Gann Trend Indicators and Round-Level Analysis of Market Swings
Summary
The article describes rules for constructing a non-redrawing micro-trend indicator from bar highs and lows. Rising or falling sequences define directional swings; inside bars are excluded, while outside bars are handled according to direction. Reversals mark minor peaks and bottoms, and a move that turns without crossing the prior swing extreme is treated as a correction. The proposed MetaTrader indicator plots these segments, marks swing points, and can store current trend and recent peak or bottom parameters. The broader discussion considers micro, intermediate, and main trends and their possible use in automated analysis.
A separate exploratory analysis plots the final quoted digits at daily swing highs and lows for major currency pairs over 2000–2011. It finds uneven distributions, but the apparent concentrations do not align exactly with expected round levels. The author does not establish that these patterns can be traded and calls for more research. The article gives construction rules and a descriptive historical observation, not a validated trading strategy or profitability evidence.
Key ideas
- The micro-trend method builds swings from successive bar highs and lows and marks direction changes as peaks or bottoms.
- Inside bars are omitted from the trend graph, while outside bars are interpreted using the bar’s direction.
- A reversal that fails to cross the prior swing extreme is classified as a correction.
- The indicator is designed not to redraw its completed line when another bar closes.
- Historical swing-point prices show uneven last-digit distributions, but the observed patterns do not validate a round-level trading edge.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.