BB Gann System | Foreign exchange indicator download-MT4/MT5 resources-MetaTrader 5 resources

Simple BB Gann system for mechanical traders: http://www.forexfactory.com/showthre...49#post7771149

The difficult but potentially more profitable BB Gann System for the following free traders:

===========================================================================================================

Hey, skin makers!

I first introduced the BB Gann system in Eitan's "Scientific MRI Systems" post:
http://www.forexfactory.com/showthre...28#post7759828

Much of what follows is paraphrased from the original post.

I highly recommend you check out Eitan's SMRI system, it's mechanical and very profitable:
http://www.forexfactory.com/showthread.php?t=503148

The birth of the BB Gann system was almost an accident. I was checking out some of Eitan's old systems when I noticed something interesting about the Stochastic 8,1,1 indicator he was using in his MTS system: it seemed that whenever there was a quick direct move from the buy zone to the sell zone (or vice versa), the price seemed to move some distance in that direction.

Of course, trading blindly based on this fact alone will not lead to great results. So I tried to combine it with some SMRI indicators and some other ideas from my trading toolkit (as a trader I have made about 50 systems, but none of them are worth writing about!)

I'm also not a big fan of the carte blanche system so I try to make my system as mechanical as possible with clear entries, take profit and stop loss. Unfortunately, I haven't managed to do this to my satisfaction: the system is still more discretionary/subjective than I'd like.

Please note that this system, while the foundation has been laid, is still a work in progress. We are still back testing a few currency pairs and trying to figure out the best rules for trading them ( no curve fitting, mind you!)

I will update the first post with the latest rules.

The current rules are as follows:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

:

1] The stochastic indicator has moved from the buy area to the sell area, that is, from the 75 level to the 25 level, it would be better if it moved from 85 to 15. The cleaner/straighter/better/faster/less jagged the move, the better.

2a] CCI 34 has moved from overbought to normal levels (i.e. has moved down through the upper 100 level) and there is a valley before the last peak (examples of valleys and peaks are shown in the picture at the end of the post)

OR

2b] CCI 34 has entered oversold from normal levels (i.e. moved down through the lower 100 level) and there is a trough (possibly indicating a continuing downtrend) before the last trough (when I say "before the last trough" I mean before the trough currently formed)
: When a setup complies with Rule 2b, it is usually because there is a strong downtrend, which means the price is likely to hug the lower range, which would violate Rule 3 below. In this case, it is better to wait for a slight price correction before entering the market. The price is not far from the MA and is not bad. If the price moves too far away from the moving average, it could be a sign that the trend is exhausted and a reversal is imminent, at least toward moving average resistance.

3] Price action (hereafter called PA) crosses the middle line of Bollinger Bands (hereafter called BB) downwards at or near the middle line (or, if everything else looks good, at least there is some space between the current price and the BB lower limit, although the latter rule may be violated when the BB is too narrow, as a breakout is about to occur, often called a Bollinger Bands squeeze)

4] PA has not broken or pierced the lower BB limit yet (again, this rule may be violated in the case of a Bollinger Bands squeeze, or when everything else looks fine!)

5] The blue line of the Gann HiLo indicator is currently above PA

The red Moving Average 60 (hereinafter referred to as MA), in addition to helping traders identify the current trend (when there are consecutive CCI bottoms, when the Stoch tends to zigzag around the sell zone, when the Gann HiLo is below the red MA, when the PA is below the red MA, then we are most likely in a downtrend), sets possible TP and SL as well as indicating possible support and resistance areas.

:

Fractal method (or method 1): The last fractal high is the stop loss and the TP is the same: so if the last fractal high is 50 pips, the TP is also 50 pips.

BB method (or method 2): The higher extreme BB is the SL. The lower limit BB is TP.

Fractal & BB method (or method 3): The last fractal high point is SL, and the lower limit BB is TP. This often results in a negative risk-return (RR) ratio.

BB & Fractal Method (or Method 4): The higher extreme BB is the SL, and the last fractal high determines the TP. This is usually a positive RR ratio.

Averaging Method (or Method 5): SL is the last fractal high or higher extreme BB, but TP is the MA as it may act as resistance/support. This option may be preferable if the PA has recently been rejected by the MA.

The nice thing about setting your TP and SL according to the BB is that they adjust according to the market: as the BB moves - maybe they get tighter, maybe they get wider - you move your TP accordingly, tightening or widening respectively. It is recommended that you keep the original SL the same but move your TP according to the BB. This way, if we choose the wrong direction, we can make a small profit or break even (BE).

Here is a picture of an ideal sell trade based on Rule 2a:



- Contrary to the above:

1] The stochastic indicator has moved from the selling zone into the buying zone, that is, from the 25 level to the 75 level, and it would be better if it rose from 15 to 85. The cleaner/straighter/better/faster/less jagged the move, the better.

2a] CCI 34 has moved from oversold to normal levels (i.e. crossed the lower 100 level upwards) and has a peak before the last trough

OR

2b] CCI 34 has gone from normal levels to overbought (i.e. an upward break above the upper 100 level) and there is a peak (possibly indicating a continued uptrend) before the last peak (when I say "before the last peak" I mean before the current peak forming)
: When a setup complies with Rule 2b, it is usually because there is a strong uptrend, which means the price is likely to be close to the upper limit, which would violate Rule 3 below. In this case, it is better to wait for a slight price correction before entering the market. The price is not far from the MA and is not bad. If the price moves too far away from the moving average, it could be a sign that the trend has exhausted itself and is about to reverse, at least toward moving average support.

3] PA up through the middle BB or close to it (or, if everything else looks good, at least some space between current price and the higher extreme BB, although this latter rule may be violated when the BB is too narrow as a breakout is imminent, often called a Bollinger Bands squeeze)

4] PA has not yet broken or punctured the higher extreme BB (again, this rule may be violated in the case of a Bollinger Bands squeeze)

5] The blue line of the Gann HiLo indicator is currently below PA

In addition to helping traders identify the current trend (when there are consecutive peaks, when the Stoch tends to zigzag around the buy zone, when the Gann HiLo is above the red MA, when the PA is above the red MA, then we are most likely in an uptrend), sets possible TP and SL as well as indicating possible support and resistance areas.

:

Fractal method (or method 1): The last fractal low is the stop loss, and the TP is the same: so if the last fractal low was 50 pips, the TP is also 50 pips.

BB method (or method 2): The lower limit BB is SL. The higher extreme BB is TP.

Fractal & BB Method (or Method 3): The last fractal low is SL and the higher extreme BB is TP. This usually results in a negative RR ratio.

BB & Fractal Method (or Method 4): The lower limit BB is SL, and the last fractal low determines TP. This is usually a positive RR ratio.

Averaging Method (or Method 5): SL is the last fractal low or bottom BB, but TP is the MA because it may act as support. This option may be preferable if the PA has recently been rejected by the MA.

Here is an (almost) ideal picture of a buy trade based on Rule 2b:



------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

These are the basic rules of the BB Gann System, but it is highly recommended that you complete our Backtesting (BT) (which I will post soon), mentally note each trade one by one, and read the explanation for each trade in order to become familiar with the method and trade as proficiently as possible.

Although this system was developed on H4 charts, some casual/visual BTs have shown that it may be profitable on all timeframes, even as low as M5. But this has not yet been confirmed.

So far, this system seems to work best on GBP pairs as well as volatile pairs like EURUSD.

Finally, I would like to thank (in no particular order!) the people involved in working on the system itself or who have supported me in other ways, or just people I know! :

Soros (my positive thinking mentor), Arso (who did BT for this system More work than anyone else, including myself! ), Eitan (without whom this system would probably not exist), RockRobb, Sriniff (a great programmer), flyer415, reso09, nickcnew, Ata-Turkoglu, priceaction7, spufuz, ginger, pips777, carlosar13, BobMorane, pending, Vigovski, Cariddi, Adam84, Blackeagle, RockerZeus (who modified the CCI indicator we are using), and everyone!

Oh, this is a template for this system! (I'll update when possible. You know it's new when it has close to 0 downloads!):



Metrics you may be missing:





The rest are included in MT4.