Most traders will ignore the use of this tool, Gann grid. Tool metatrader gann grid has been provided as an auxiliary analysis trader. But till now not much review on Gann grid. And here we will examine as well as knowing how to use them in trading using gann grid tool. Immediately, we learn in the following review.
To build a Gann Grid lines, defining needed 2 points specified as the basis for the establishment of the grid itself Gann lines. Gann grid based on a 45 degree angle and it is the law of itself as a Gann line measurement points of the potential price movement. If we look from the Gann fan then we can calculate a power trend occurring where 45 degrees is its balance point and the point of intersection is the point of evaluation.
The actual function of the Gann grid itself for what?
Gann grid can show a trend that is formed by an angle of 45 degrees (Gann Law Lines). According to Gann’s concepts, in which a 45-degree slope line may indicate a long-term trend line (up or down). When the price is above the line riding, bull market maintain direction / uptrend and if prices are below the line indicates the market is bear / downtrend.
Okay, we will try how to see Gann works. Pull the end of the Gann grid to chart a break point on his last long and angular shape as shown below. Remember the tip angle chart should lead to a vacant position.
If so, pairs of horizontal line on each sides rhombus as follows:
Its function is the horizontal line as a boundary map and market movements: break, sideways, bounced / reversal.
When the price is above the line riding, bull market maintain direction / uptrend and if prices are below the line indicates the market is bear / downtrend. Gann lines crossing point will usually show signs of major trend changes.
When prices decline towards the line during the uptrend, time and price to be the right balance. Gann grid lines next intersection is a testament to the cessation of the balance and likely there will be changes to the new trend.