Gann Swing / TrendUP

[James]

Hey there,

I am trying to eliminate a buy signal plotting unless Gann trend is up, however I still get buy signals in clear downtrends. Is there something I am missing?

 

S1 = GANNSWING(SWINGCOUNT=5); SMI(DEFAULT=SMI, BARS=14) CrossesAbove -75 and SWINGTRENDUP(S1);

1 2 3 4

S1 = GANNSWING(SWINGCOUNT=5); SMI(DEFAULT=SMI, BARS=14) CrossesAbove -75 and SWINGTRENDUP(S1);

Yet I get things like this.. any advice welcome please 🙂

[Darren]

Hi James,

Note that a swing trend is different from swing direction, so the trend can be up even though the current direction is down (for an explanation of the difference click here).

Try using SWINGUP(S1) instead of SWINGTRENDUP(S1) – but note that dealing with swings is tricky because you have to wait for confirmation of the swing. In this example the current confirmed swing is up when the SMI has crossed above -75, so the signal is taken:

However, a few days later the downswing is confirmed, making the entry invalid:

Read this article about how swings are calculated and the difference between SwingLists and BarLists which may help you understand more:

https://forum.optuma.com/topic/help-with-gann-swing-pattern-solution-please/#post-50551

1 user thanked author for this post.

James Keble-Johnston

[Author]

Posts