Overview of Auto Gann

[MR]

Advanced GET Trading Strategies
Overview of Auto Gann Angles
By Marc Rinehart

(When doing a search I realized there is nothing about the Auto Gann tool in this AGET forum. So am posting this work I did last year to add to the subject matter, and to encourage sharing of information.)

Auto Gann uses an Advanced GET algorithm attempting to define and display relevant Gann angles available for an immediate price range. It was developed to simplify the Gann angle application.

Here is a Auto Gann in action, a before and after look--



One benefit of using Auto Gann is that the only Gann angles displayed on a chart will be those angles coming into the area where the immediate price is located. All other Gann angles outside that range are filtered out.

Charts are generally more useful for analysis when less cluttered.

One negative of seeing only the closest Gann angles is that the user sees incomplete Gann angle relationships. It, therefore, becomes harder to anticipate how and when other angles will later appear, and how they play into a current trade strategy.

It could be compared to traveling; you should look at the entire map not just part of it. You arrive at your destination but not without challenges when glancing at only part of a map.

One way to use the Auto Gann tool is as a secondary tool for Type 1 or 2 setups.

Say you combine tools and studies to identify a trade setup, yet some questions still exist. Try adding Auto Gann. Then helpful support or resistance angles appear, which can improve chart clarity, and it can increase your confidence for that trade strategy.

Here is an example of using Auto Gann in a Type 1 Sell setup. Observe the setup....



Observe the result....



The Auto Gann tool can also be used with momentum trade setups.

Take, for example, the General Electric charts I am now going to show. They have an interesting array of Auto Gann 1x4 angles initially provides an attractive picture when combined with Fib retracement and MOB support....



Later the same 1x4 angle continues to provide additional support on pullbacks within this trending stock.



Notice as momentum begins to pick up, a combination of the Ellipse study with the Auto Gann 1x4 angles worked well....



One method of applying the Auto Gann tool is to experiment with existing data for which combination works best, then apply it and toggle “Off” in the property menu the rest for a less cluttered analysis.

With the Auto Gann tool, you have complete control of where angles originate, which pivots to use, and whether to use up or down directed angles. You can select 1x1, 1x2, 1x4, 2x1 and 4x1 angles.

You can select Primary, Major, Intermediate and Minor pivots to display angles. You can select angle directions, up or down angles, or both

Here is what the Auto Gann menu looks like....

[MR]

One important selection in the Auto Gann menu is called “Target %.”

The Target % is defined as, "a multiple of the range of the last bar." The Target % determines how narrow or wide the Gann angle range will be.

For example, the default is 100%, and which means the range of the last bar is multiplied by a factor of 1. Gann angles within the percentage range of 1 turned “On” are displayed.

Changing the Target % reduces or widens a trading range and can determine how many angles will be displayed on a chart. If not many angles appear, try increasing the Target

Here is what Target % looks like....



To become more familiar with how the Target % affects the number of Auto Gann angles displayed, experiment with the various target ranges. Experimenting with Target % settings can identify which price range brings out and identifies Gann angles producing the best results.

Try widening the Target % to values such as 200, 250, 300, 350, 400, 500, etc. To keep a narrow price range for Auto Gann, use a Target % with a default of 100.

Auto Gann has a Scale of 1 for its default....



The Scale selection allows manual input for any Gann angle scale one desires to use so long as it is a whole number. Type in the value you desire and see what the Gann angle looks like with that scale value. Experiment with a scale setting until satisfied.

Here is an example where I experimented not so much the scale, but just added more pivots to calculate that scale from. The chart orginally looks like this....



Turning on a couple more pivots....



And voilà!

It generates a few more very useful Auto Gann angles...



If looking to use a scale that generates few or zero Auto Gann angles, consider using the Optimize feature. Optimize is an exceptional algorithm that forces the Gann angles to recalculate to identify a best fit optimization or a new Scale setting where angles catch more of the price pivot swings.



While some prefer sticking to an Auto Gann angle scale of 1, the Auto Gann 'optimization 'routine makes accommodations for price variations often associated with stocks, indices, spreads and cross-rates.

This Optimize routine generates improved results rather than sticking to preconceived or canned calculation values.

Another important feature in the Auto Gann menu is the PivotTypes selection. (This selection was shown a few posts earlier.)

The Pivot Types selection defines what pivot points to use when calculating the Auto Gann angles.

The default is set to primary (P) and major (J) pivots. Primary and major pivots are the strongest price pivot swings, so Gann angles originating from primary lows or highs have greater priority when defining the future path of a trader's emotional cycle.



Gann angles provide some degree of support and resistance for price swings.

A hierarchy would suggest angles such as those coming from primary or major pivots typically provide stronger support or resistance.

If a primary or major pivot selection does not provide quality Gann angles, then consider adding the intermediate (I) and minor (M) pivots. Gann angles generated using a lower level pivot have less significance, yet if it is all you have to work with then it is worthy of being added in the analysis.

Just remember any intermediate or minor Gann angle generated using Auto Gann has less strength, providing less dependable and less significant Gann Angle support or resistance for a trade setup.

Here is a before look example where just primary pivots are toggled 'on'....



Later, afterwards...

[MR]

(This lesson begins at the beginning of this thread, go to the beginning to start. Another way to view this lesson, go to the bottom of this page, select "Show Printable Version" and it can starts at the beginning.)


When the Auto Gann analyzes the chart it will be following one of these conditions: It has either been trending up or down, or in a range trading pattern. If it is trending up, up angles may be all that is needed. If in a downtrend, down angles may be all needed. If range trading, both up and down directions provide useful angles.

A tip when using this feature-- when first testing Auto Gann angles, consider leaving angle direction set to include both directions.

Observe which direction displays the strongest and most useful angles. Then consider toggling “Off” the direction not providing significant angles.

Experiment with expanding the Trading % before eliminating a direction setting. Expanding the Trading % range may add more useful angles previously not seen, and it may compel you to leave a directional setting alone.

If the angles added are of marginal value, then just return the Trading % to the previous and toggle “Off” the unnecessary direction.

The Auto Optimize selection allows for a new Gann angle optimization any time a chart is re-loaded. If you are going to optimize anyway, use this feature.



Finally, if for some reason the optimization routine is not generating good angles, experiment with manually generated values.

One experimental method is to turn “On” all angles, directions and pivots, and experiment with various values until those angles are picking off all the significant or stronger pivot swing areas.

If you find settings that pick off bigger swings, those manual Auto Gann settings are worth continuing to apply to that stock, index, spread or cross-rate chart.

Remember that chart we showed earlier? (See below) Well, here is one where everything has been optimized, or we experimented with various settings to produce the best key angles. Now we monitor for key breaks to determine the next price direction.



Watch what happened when key angles were broke. It began a free-for-all down for a period of time....



The Auto Gann feature really can serve a very useful, secondary role for supporting a trade setup. At times it is great!

It can quickly provide the relevant, automatically drawn Gann angles to your analysis.

Auto Gann can simplify the complexity often associated with the use of Gann angles in technical analysis.

Always remember, the Advanced GET Auto Gann tool should never be considered a permanent replacement for tried and true Gann methods, and do not overlook other quality Advanced GET Gann tools such as the Gann Box tool.

I hope you like this basic information on the AGET Auto Gann feature.

Now, if there are any experienced trader's out there who have been using this tool, now is your chance to share with us your experiences so we can all learn how to make more money using it.