The Gann Swing Oscillator is a simple trend trading indicator that describes the market swings. Robert Krausz introduced it in the book A.W.D Gann Treasure Discovered. The Gann Swing Oscillator is a range-bounding technical indicator that oscillates between +1 and -1. The Gann HiLo Activator and the Gann Trend Oscillator and is used to help define market swings, assisting the traders decision-making. The Gann Swing Oscillator can indicate that the market is either in an up-swing, or in a down-swing.
What is the Gann Swing Oscillator?
The Gann Swing Oscillator applies the Gann Hilo Activator and Gann Trend Oscillator to define whether the market is upswing or downswing. The combination of these three indicators is also known as New Gann Swing Chartist Plan.
When the market is in an upswing, the Gann Swing Oscillator describes it as 2 higher highs with the value of +1. After an upswing, the downswing is foreseen.
On the other hand, the Gann Swing Oscillator defines the downswing market as 2 lower lows with the value of -1. An upswing is expected after that.
The Gann Swing Charts assess the market price action and tells where the market highs and lows have occurred. These highs and lows help to determine a trend.
The Gann Swing Oscillator can’t work on its own. It needs to be combined with the Gann Trend Oscillator and Hilo Activator.
The Gann Trend Oscillator determines the long trend while the Gann Swing Oscillator describes the short trend. Thus, pointing market entry points.
To use the indicator on MT4, you can change the input settings according to your own forex trading strategy or keep it as default.
How to use the Gann Swing Oscillator?
The Gann Swing Oscillator can be used for determining market direction. Its methodology for determining the market direction is simple; when it is upward, the market is in a bullish trend, and it generates a buy signal.
Conversely, when the oscillator is downwards, this is a bearish trend, and it generates a sell signal.
For determining the long-term market trend, the Gann Swing Oscillator compliments the Gann Trend Oscillator.
An entry-signal is produced when both these indicator converges. A buy signal is generated when the Gann Trend Oscillator rises from -1 to +1 and matches the +1 value of the Swing Oscillator. When the Trend Oscillator’s value declines from -1 to +1 and matches -1 of the Gann Swing Oscillator, this is a sell signal.
The Gann Hilo Activator, when combined with both these oscillators, tells the exact entry points. This is what the combination of three oscillators looks like on the chart.
I find that the higher the timeframes, the more reliable the trading signals of the Gann Swing Oscillator. Because sometimes the oscillator becomes prone to whipsawing and false signals in short-term trading. Whereas, in long-term trading, the Gann Swing Oscillator reacts slower to market changes, giving less false signals.
Gann Swing Oscillator trading strategy
We can use the Gann Swing Oscillator in long-term and swing trading strategies (short to medium term). But you need to remember that the Gann Swing Oscillator only tells the direction of the market. We can combine the indicator with Gann Trend Oscillator and Gann Hilo Activator to use it in long-term trading strategies.
The Gann HiLo Activator, Gann Swing Oscillator and Gann Trend Oscillator are combined together in the so-called “New Gann Swing Chartist Plan” strategy.
More specifically, the Gann Trend Oscillator determines the long-term trend, while the Swing Oscillator defines short-term movements. Convergences between the two are traded in their direction.
Breakout trading strategies can also benefit from the Gann Swing Oscillator as it establishes a clear trend.
Gann Swing Oscillator buy strategy
- The oscillator should be upwards.
- Wait for the price bar to go bullish.
- Set a stop-loss near a swing low area.
- Exit when the Gann Swing Oscillator drops.
Gann Swing Oscillator sell strategy
- The oscillator should be downwards.
- Wait for the price bar to go bearish.
- Set a stop-loss near a swing low area.
- Exit when the Gann Swing Oscillator rises.
Gann Swing Oscillator Conclusion
The Gann Swing Oscillator can be a helpful indicator for determining the direction of the market. To use it in forex trading strategies, we can combine it with the Gann Trend Oscillator and the Hilo Activator. The Gann Swing Oscillator indicator can be used on your trading platform charts to help filter potential trading signals as part of an overall trading strategy.
The Gann Swing Oscillator can indicate that the market is either in an up-swing, or in a down-swing. Its results are plotted on a scale ranging between +1 and -1. An up-swing is defined by 2 higher highs and is signified by the indicator having a value of +1. Conversely, a downswing is defined by 2 lower lows and is accompanied by the oscillator hitting a value of -1.
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