GANN & QQE

These two go together (sort of like Love & Marraige .. ok, I guess that dates me!)

I learned the magic of gann trading from Karmostaji's thread on Forex Factory. He is a great trader & very generous in his willingness to share his knowledge with others. Clicking the link above will take you directly to his thread if you would like to learn more about how he trades.

I won't bore you with a history of gann & qqe (even if I knew it). All we are concerned with is how to use them to make money.

For our purposes, Gann and QQE are used to determine trend. They can be used on any timeframe but for our purpose, we want to look at the daily, 4 hour, 60 min and 30 min and hope that, ideally, all will line up. If not, the most important for swing trading is the 4 hour, then the daily.

To increase probabily of your trade producing a profit, you always want to trade with the trend. "The trend is your friend" is pithy but true. So when the trend is UP, you only want to take long positions, When the trend is DOWN, you only want to open short positions.

But sometimes it is not that obvious which way trend is going.

Once you have your Gann & QQE indicators on your chart, you just eyeball the daily and the 4 hour.
(Gann & QQE indicators along with chart template for MT4 will be provided on the Resources page)

Below are two 4 hour charts with gann (thick blue line) and qqe indicators.

If price is above gann and QQE is crossing up, the bias is up.
>>If QQE is crossed up but price is below gann, that is a bullish continuation sign. Bias is still long.

 

If price is below gann and QQE crossed down, bias is down.
If QQE is crossed down but price above gann, this is a bearish continuation sign, bias is still short.

 

If the daily chart and 4 hour chart do not agree, pay more attention to the signal from the 4 hour chart, BUT stay extra alert, bearing in mind that a reversal could occur.

When a double bottom or double top occurs on a chart and you want to catch the reverse move up or down, then you can go to 15 min gann, watch for the QQE cross, then the gann cross, then go to the next higest TF (timeframe) and wait for the same direction cross to confirm. At this point you could enter long (for a double bottom) with a stop under the last bottom low. Gann/QQE is telling you that direction is most likely reversing.

As you practice with your charts in real time, you will get a feel for how gann behaves. You will find it to be amazingly predictive. If gann is against you, even if all the other factors I will show you look good, it is probably better not to take the trade.

Gann/QQE will help you determine trend and predicting trend is essential to a high probability trade. However Gann/QQE are just one bullet in the gun; before firing, we need must look for more confluence with other signals, like this one:

 

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