I have been thinking of of adding another GannHiLo to the chart from a higher timeframe to supplement the trend bias given to us by the EMAs. The idea is to reduce false entries and give more stability…particularly in the lower time frames. But here lies a problem. The approach is used as a confirmation, or a visual aid, but considering that a higher TF is used, the Gann can hypothetically change before the candle is closed relative to its timeframe. Now this is relative, because if you use 15 min to 30 min(2x), it should be negligible. It might become a problem if you use daily to weekly for example (x7) In terms of trading it – as long as the higher tf keeps its color, trend is still going. If they both change, you must re evaluate the situation, consult moving averages – either a sharper pullback, or a reversal. Also, i have taken some trades – might have used 4 trades instead of 3, but this was a rather sharp move.
- This reply was modified 8 years, 10 months ago by Edington.