The Gann Line forex trading strategy uses the Gann Line at its core in addition to the Moving Average of Oscillator.
The Gann Line can be drawn by inserting a “Trendline by Angle” or by inserting a “Gann Line” directly when clicked through Insert => Gann => Gann Line as seen on MT4 platforms.
MetaTrader4 Indicators: Gann Line (default setting), OsMA.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours
Recommended Trading Sessions: All
Currency Pairs: any
Buy Trade Example (Click the image for full size)
Long Entry Rules
Place a buy entry when the following chart pattern are in display:
- Buy when the Gann Line serves as a support level for price bars.
- If the histogram of the Moving Average of Oscillator (OsMA.ex4) is formed above the 0.00 level, it denotes a buy signal.
Stop Loss for Long Entry: Place stop loss at convenient levels in line with a firm money management strategy below the “Initial Point” of the Gann Line.
Exit Strategy/Take Profit for Long Entry
Exit or take profit on position(s) when the following conditions are on display on the activity chart:
- If price curve breaks below the Gann Line, it is a signal that trend is reversing and a trader should consider exiting or taking profits on open position(s).
- If the histogram of the Moving Average of Oscillator collapses into the 0.00, it is a signal that trend is about to reverse, giving clue to the trader for an exit or take profit.
Sell Entry Rules
Place a sell order when the following indicator or chart pattern are in display:
- If price forms below a descending Gann Line it indicates a bear market.
- If the histogram of the OsMA MT4 indicator forms below the 0.00 level, it is also a signal for a bearish trend.
Stop Loss for Sell Entry: Place stop loss at convenient levels in line with a firm money management strategy above the “Initial Point” of the Gann Line.
Exit Strategy/Take Profit for Sell Entry
Exit positions when the following chart or indicator patterns are in display:
- If price curve breaks the Gann Line upward, it is a trigger for an exit or take profit on position(s) entered.
- If the histogram of the OsMA recoils and fades into the 0.00 level, it indicates a possible trend reversal – an exit or take profit is advised.
About The Trading Indicators
The Gann Line is simply a trend line plotted at a 45 degrees angle. It is also known as a “Balance Angle” or “one-to-one”, an indication that one price interval matches to one time interval.
William Delbert Gann, who’s the creator of this tool stated that 45 degree angle superbly validates long term trend line – hence its importance.
The Moving Average of Oscillator (OsMA.ex4) is a technical tool that depicts the momentum of price action.