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Gann Grids - A point of View

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Hi All.

phi.nuts, you mentioned in another thread that you have not used Gann Grids. I decided just to show you (and anyone else who wishes to look) a bit about Gann Grids. It is far more than it seems at first, kind of like Alice in Wonderland, the more you explore, the deeper into the hole you go.

A bit of 'weird' thoughts about currency pairs. They are actually living energies. They have moods and habits. They are not (even though many believe so) made and controlled by human beings trading them. The Bank of England discovered this when Soros had them over the barrel. They thought they could turn the market by massive amounts of money trading to try make it go where they wanted it to go. Soros saw where the market actually wanted to go. He made LOTS of money, BOE he could have (but did not) put out of business.

A currency pair is very similar to a woman. All is fine and happy, then suddenly through nothing you can think of that you did, you are sleeping on the couch. Such is life.

One of the things that most of us do not see about the charts of currency pairs, is the 'bigger picture'. We are usually zoomed in up close, looking at the ups and downs on a small scale of things. Yes, we see the trends and the channels. The resistance and support, but we only see a tiny part of it all. The other thing is that the way the charts are scaled, we see big up and down movement, but if you zoom out, that 'BIG' up or down was a tiny little climb or slide in the much bigger channel that the pair is following.

It is replicated throughout. It doesn't matter if you are looking at a tick chart, or a Daily chart, or even a 100 year chart, (we don't really have enough data for that one), but I promise you, if we had a 10 000 year per bar chart, the patterns remain the same.

Like a wheel within a wheel within a wheel.

So, if we know that these patterns repeat themselves in all the different time frames, then the best way to trade is to try and discover or recognise enough of these patterns so that we can do profitable trade using those patterns to our advantage.

Currency pairs are not mathematicians. They are not coders or scientists, they are not complicated. WE make them seem complicated. Just like a woman. Just because a man does not (can not) understand a woman's reasoning or logic, does not mean it is not there. She understands it 100% and thinks that the men are idiots for not seeing what to her (and all other women) is obvious and simple. Us men, on the other hand have no idea what makes her tick and which way she will be moving next. Her moods are like a cloud of fog that we can never understand. If we ask her, she tells us nothing and that is the SURE way of sleeping on the couch. Because we asked! Currency pairs are the same. We can not ask, we have to somehow learn to understand what to them is obvious.

AudUsd H4 zoomed out

There is a lot going on in this chart. It might seem to make things 'invisible' but it is fully zoomed out for a better look at the 'big' picture. The Indicator in the bottom is The MacD Magic Monster. For the full details on why it is called that is another discussion all on it's own, just take my word on it, there are valid reasons for it. It is actually 6 EMA's but they are very well chosen EMA's and are based on Fib Numbers. All EMA's act as support and resistance to the price movement, but these 6 are EXACTLY on the spot ALL the time. The EMA's themselves are resistance and support for the other EMA's.

You can see where the first 5 dots are where the faster EMA's (The children or cousins in the family) bounce off the slower ones (GrandPa-Indigo, GrandMa-Maroon and Mothe-FireBrick). The Daughter-DarkOrange, hangs around with Cousin-Brown and Second Cousin-Yellow. In this picture, it is one of the few times the old pair (Grandma and GrandPa) kiss. Most of the time they move on their own paths.

For now, totally ignore the Squiggly Lines that are almost, but not actually EMA's (Only the Purple one is an EMA).

Rather look at the Gann Grids. Notice there are TWO Grids. If you go into it really deep, you could place lots more grids and they ALL would be part of the pattern. But then it would be too confusing to see anything at all. Two is enough. Once you fully understand the way the grids work, you do not even need the grids on a chart. You can see it without them. But it is best to have them there anyway. (I will explain why later).

Some people like to say that one angle or line in a Gann Gridd is the positive, while the other is negative. This is not true. Both lines are both positive and negative. In other words they are both support for the uptrend AND the downtrend at the SAME time.

But how can that be? Well the thing is this, think of them more like being magnets. They have a tendency to pull or push her (the currency pair) but she goes where she wants to, not where they (the grids) say. Depending on her mood, it might be more comfortable for her to carry on going up the red channel. As she does so, you will notice that the sexy way she sways her behind is along the path of the Blue Gann Grid. The grids to her are like children, they can change her direction at least to a certain degree, but if she puts her foot down and decides she is going straight, nothing is going to stop her.

She hasn't had any arguments with GrandMa and GrandPa recently, so she turns around to go visit them. It is not often that she will stay away from them. They are family. But like any woman, she can be stubborn and stay away for ages just to prove a point. Then they (Grandma and GrandPa) eventually change direction and they go visit her.

Now take a look at the sixth dor in the Monster Indicator. What was THAT resistance that caused a reversal? I mean there are no family EMA's there, why would she turn and run up instead of down? It makes no sense does it? Women, one can never understand them.

You remember I said that I would explain why it is good to keep the Grids on the chart... Well if you look at the first vertical red line, just to the right of the fifth dot (counting from left). That vertical line is the centre of the Red Gridd 'diamond'. It is a crossover point in the Red Grid Lines. These are places where, if big change is going to happen, it is usually at these intersections.

Ahhh, you say, but that is just too convenient, you just PUT the grid with the intersection there. Well what you are thinking is part true. That IS how you find the right place, angle and spacing for the Gridds. You go back a bit in the chart and change the angle/spacing until you find that it fits at 90% of the medium to big zigs and zags. It takes a while to get used to it, but the more you do it the easier it becomes. The same with the Blue Gridd. There are usually two 'major' angles happening on any chart. One is the slow and steady (Red here) and the other is the 'sudden' Up/Down (Blue here). So those same 'intersection' sudden changes will also already have happened and been lined up with the gridd further back in this chart.

Now notice the SECOND vertical Red line. That is EXACTLY where she turned and went up instead of down. The 6th dot that makes no sense. Well..... now it does. A Gridd intersection is MORE likely to be a turning point if the price hits EXACTLY on that crossover, instead of a near hit. This is not to say it will ALWAYS reverse that way, just that it is more likely. She does like to keep us guessing, if she was TOO predictable she would be boring.

AudUsd H4 zoomed in more

Now this picture is now (2012 18 Dec). Here you get a closer look at my Magic Moving Channels Indicator. I say moving because they curve and flow. Notice that while the Magic Monster at the bottom (As with all EMA's) offer only one sided resistance and support, the MMC offers both above and below resistance and support, and the angle of the channel seems to change like magic. You can see the start bars on the right hand side already have the support/resistance lines above and below them. In other words this is not a delayed indicator that shows you the resistance 5 or 10 bars after the fact. It is live. Almost every single bar on the chart bounces off these lines, with high, low open and close. If I wanted to, I could actually use 100's of lines, and because of the way they are calculated (like Fib numbers) they could show that EVERY high, low, open and close happens at an EXACT position in time, regardless of the time frame, if it is a currency, a stock or the way a flock of geese fly. Even us! the supposed free wiled human beings follow these patterns.

So, in the end, though it is not possible to know EXACTLY when she will change channels, you will notice that she 'skips' in more or less similar patterns each time. She runs a channel of two or three 'zones' then moves up or down another 3. Sometimes (If she takes the Blue Grid - like what happens during news) she burst straight through ALL the zones.

One thing though that you can see on these two pics but will believe it more if you look at an entire chart from 1991 till today, the second yellow line is like a form of limit. When the price action crosses up from below the purple (thick Magic Channel Line), what happens is that 'under' the price was above the yellows, so it was 'inside' the curve, so after the crossover it is 'above' or outside the yellow lines. That is a GREAT place to go long. You close trade only when price drops below the inner blue line. (You wandered why it was blue didn't you?). The point of the yellow 'limits' is that once the price is 'inside' or under the yellow lines while above purple (The base EMA) then it is very rare that the price ever goes above the second yellow, and IF it does, it does not go far and will almost imediately drop down at least 2 lines above base EMA.

One last thing about these supports and resistances, meaning the Magic Channels, The Magic Monster EMA's AND the Gann Grids, is that each and every 'shock' in the market, from news to an oil strike causing good economy, IS IN THE PATTERN.

You can not tell which way it will jump, but once it has, with these indicators, you can see EXACTLY when to enter the reverse of the news, or it will show you that no reverse is happening.

I hope this gives you some ideas about Gann Grids.



phi nuts
phi nuts  

And you write new topic on the wrong section !!!

Please delete this topic and move it either to Trading Systems or Technical Indicators - but not both.

Just move your cursor to bottom right of the comment and you will find the "delete" link



And you write new topic on the wrong section !!!

Please delete this topic and move it either to Trading Systems or Technical Indicators - but not both.

Just move your cursor to bottom right of the comment and you will find the "delete" link


The English Dictionary says this about the word General:-

1.Applying to all or most members of a category or group.

2.Not specialized or limited to one class of things

My misunderstanding. Now there is a problem about deleting it and moving it to another place,

I get those two options, complain or reply.

It seems that the edit or delete option only lasts for a short time after writing the post.

Here is the end solution, you are the moderator, just delete it.

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