Parabolic Gann
- Indicators
- Version: 1.0
- Activations: 5
The proposed indicator is based on the method of William D. Gann (1878-1955), which uses the relationship between price and time.
In this method, the relationship is expressed as follows: Price = Time squared or P = t ² This relationship between price and time can be represented graphically. To do this, a significant Low and a significant High are taken from the chart. A parabola is then constructed using the “Parabolic_Gann” indicator.
Next, a new parabola is constructed from the base that appeared at the Maximum price, and when it is crossed, the asset price is likely to change its trend direction. This principle can be expressed as, "When price meets time, change is inevitable."
A “straight” parabola is used for selling.
An “inverted” parabola is used for buying.
Based on experience using the indicator, it's best to enter a trade in the direction of the main trend.
After a strong move, the price pulls back, and when the bar completely covers the parabola, the optimal entry point is determined. Moving averages can be used to determine the trend direction.
