Gann Trend Oscillator MTF Indicator
Platform: MT4 Type: Trend Last update: December 15, 2024The Gann Trend Oscillator MTF Indicator for MT4 is based on the famous gann trading methodology, but it simplifies the whole complex formula into clean signals. Essentially, it just provides traders colorized histogram bars that corresponds with trend direction in the martket. In other words, the idea here is to trade only with the current bias. Let’s check how effective it is in practice.
Example chart:
As you can see, it’s a pretty basic gauge in terms of visual aspects. One just need to grasp concepts behind each of these two colors.
Historical background
W.D. Gann’s had a great impact on technical analysis of financial markets and his contributions are analyzed and respected till present day. He is known for his special approach involving geometric patterns and mathematical calculations. He believed that the markets function on some laws and by knowing them, there is possibility to predict movements with high accuracy.
Understanding gann oscillator signals
Simply speaking, blue bars suggest bullish momentum, while pink bars indicate bearish momentum. There are two ways of taking advantage of provided readings:
- trend triggering which takes place during change of colors
- just understanding overall direction but entries/exits would be provided by other tool
It’s possible to use the first path, however the second option is recommended.
Summary
Obviously this is not of these fancy indicators, but it can be helpful in all “trade with the trend” strategies. One of its qualities is no-repaiting feature, thus signals placed are more reliable as they are not being redrawn. As the name suggests, it can be applied to various time frames.
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