Gann High-Low System with Laguerre/Fisher/VSA/Sixths, etc.
This is just a system I came up with by experimenting with stochastic indicators I've collected over the years. Best of all: the additional Gann High and Low indicators will make you money. This thread is dedicated to filtering this output.
See the blue line in the attached chart, which at first glance looks like a moving average. Unlike a simple (or exponential) MA, this appears to completely cross the candle at a certain point, giving you a very clear signal.
1) When price crosses the blue line = BUY (Closing the position to buy: Gann line crosses at least 1 confirmation bar below the price candle.
Or I personally find using the sixth pivot line as an exit to be the most successful. There are no hard and fast rules here.
When you demo trade this method for a few days and stick to the 1= hourly and 4 hour charts, you can usually get out of the trade in enough time even if you step away from the computer for a while because this is not scalping.
When price is below the blue line = sell (sell to close: opposite of above)
Then: not in any order, all important):
2) Laguerre/Fisher: I overlapped these. Fisher's key point is the 0 intersection point (or close to it). This usually indicates that the trend is reversing. For Laguerre, shorting is possible if the price falls below 0.75. A move above the 0.15 area is a safe period for bulls.
3) VSA: To get the most out of VSA you need to do some research to properly understand the indicator, I have posted a few PDFs, suffice to say you should see some sort of VSA event (swing bar, climax, mark) usually shown as a red or green bar on better volume indicators, before or just before price action crosses the Gann Line. Soon, I'll be posting more examples of how to use Andy's VSA text bar to help find inversions.
4) Squalou’s Ladder Breakout Indicator. This is optional and not always required. You can usually get good moves when price crosses the Gann Line inside the box, you will see this in some of my screenshots. But this is not required. VSA and candlestick patterns are more important. (optional)
5) Balance all the above with the s/r of the six degree indicator. This makes it easy to avoid stupid low-return trades where you could be putting yourself in a position where you could potentially compete with the market.
NOTE: Good trading doesn't always require 3 and 4! Try to stick to them at first, but after a while you'll feel the movement and sometimes you'll see additional opportunities even though their conditions don't exist.
I use tracking stations. However, you can set a nearby pivot or another Gann line reversal as your hard stop
We know it works well for the EU, most Yen crosses and metals. Try your favorite market and tell us!
So there you have it. A sample transaction will be posted so you can see how it works better next week.
It's good to stack Laguerre on Fisher, and it becomes clearer when Laguerre reaches max and Fisher starts to fade toward zero. This is a powerful divergence and in the context of the above is another key factor I'm looking for.
Update 3/6/12 12:57 PM: Put all indis and templates into a zip file, it should all be there.
Including VQ, not a core part of the system, but I like to see
It is during the down candle confirmation period.
Update: March 13, 2012: Uploaded the new VSA indicator I discovered, please download this indicator separately as an appendix to the core indicators. The symbol appears as a wing symbol above or below the candle. I would hover over any relevant signals it gives.
Update: March 27, 2012: Thanks to Andrew for this killer indicator that uses a text description of the VSA formation to mark the candles -> VSAc BAR TEXT SIGNALS.mq4 -> http://www.forexfactory.com/showthread.php?t=348254. Unreal, I'll be posting some updated examples on how to use it soon.
Finish.
Special note to the ForexHard and Stairstep Breakout threads: I am not in any way trying to hijack "your" system. I simply use this indicator as a third component in my trading. Please do not interpret the use here as an attempt to copy your post. Therefore, accept my trading style as a unique form of self-expression. For those who want to learn more about breakout boxes, be sure to check out ForexHard's Ladder Breakout thread. For the same reason, I ask all members of the Stairstep breakout thread not to fill my thread with garbage. As mentioned before, this indicator is the third part of my trade
See the blue line in the attached chart, which at first glance looks like a moving average. Unlike a simple (or exponential) MA, this appears to completely cross the candle at a certain point, giving you a very clear signal.
1) When price crosses the blue line = BUY (Closing the position to buy: Gann line crosses at least 1 confirmation bar below the price candle.
Or I personally find using the sixth pivot line as an exit to be the most successful. There are no hard and fast rules here.
When you demo trade this method for a few days and stick to the 1= hourly and 4 hour charts, you can usually get out of the trade in enough time even if you step away from the computer for a while because this is not scalping.
When price is below the blue line = sell (sell to close: opposite of above)
Then: not in any order, all important):
2) Laguerre/Fisher: I overlapped these. Fisher's key point is the 0 intersection point (or close to it). This usually indicates that the trend is reversing. For Laguerre, shorting is possible if the price falls below 0.75. A move above the 0.15 area is a safe period for bulls.
3) VSA: To get the most out of VSA you need to do some research to properly understand the indicator, I have posted a few PDFs, suffice to say you should see some sort of VSA event (swing bar, climax, mark) usually shown as a red or green bar on better volume indicators, before or just before price action crosses the Gann Line. Soon, I'll be posting more examples of how to use Andy's VSA text bar to help find inversions.
4) Squalou’s Ladder Breakout Indicator. This is optional and not always required. You can usually get good moves when price crosses the Gann Line inside the box, you will see this in some of my screenshots. But this is not required. VSA and candlestick patterns are more important. (optional)
5) Balance all the above with the s/r of the six degree indicator. This makes it easy to avoid stupid low-return trades where you could be putting yourself in a position where you could potentially compete with the market.
NOTE: Good trading doesn't always require 3 and 4! Try to stick to them at first, but after a while you'll feel the movement and sometimes you'll see additional opportunities even though their conditions don't exist.
I use tracking stations. However, you can set a nearby pivot or another Gann line reversal as your hard stop
We know it works well for the EU, most Yen crosses and metals. Try your favorite market and tell us!
So there you have it. A sample transaction will be posted so you can see how it works better next week.
It's good to stack Laguerre on Fisher, and it becomes clearer when Laguerre reaches max and Fisher starts to fade toward zero. This is a powerful divergence and in the context of the above is another key factor I'm looking for.
Update 3/6/12 12:57 PM: Put all indis and templates into a zip file, it should all be there.
Including VQ, not a core part of the system, but I like to see
It is during the down candle confirmation period.
Update: March 13, 2012: Uploaded the new VSA indicator I discovered, please download this indicator separately as an appendix to the core indicators. The symbol appears as a wing symbol above or below the candle. I would hover over any relevant signals it gives.
Update: March 27, 2012: Thanks to Andrew for this killer indicator that uses a text description of the VSA formation to mark the candles -> VSAc BAR TEXT SIGNALS.mq4 -> http://www.forexfactory.com/showthread.php?t=348254. Unreal, I'll be posting some updated examples on how to use it soon.
Finish.
Special note to the ForexHard and Stairstep Breakout threads: I am not in any way trying to hijack "your" system. I simply use this indicator as a third component in my trading. Please do not interpret the use here as an attempt to copy your post. Therefore, accept my trading style as a unique form of self-expression. For those who want to learn more about breakout boxes, be sure to check out ForexHard's Ladder Breakout thread. For the same reason, I ask all members of the Stairstep breakout thread not to fill my thread with garbage. As mentioned before, this indicator is the third part of my trade
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