Gann x-Bar Swings

Swing trading takes advantage of the tendency for prices to ebb and flow in the short-term, to move in directions against the trend, and to reestablish that trend again.  Wait for the counter trends to occur and then trade in the direction of the trend.

One of the simplest of Gann’s methodologies is the use of swing chart patterns as a study of market swings.  The construction of a swing chart results in what Gann called a trend line indicator.  Using the high and low for the period, whichever exceeds the previous period becomes the trend line indicator.  Market swings are the true reflection of price movement and that means we can all know that ‘Price tells the trend’.  It’s the simplest way to keep our mind focused on market direction at the beginning of a new swing and exiting at or near the end of that swing to await the development of a new swing trading opportunity.

The illustration shows a 2-bar swing concept.  A 2-bar swing chart measures swings only after the market has made two higher highs or two lower lows without an interrupting counter move.   A 3-bar swing chart requires three higher highs and three lower lows.

Swing Chart Rules

Gann swings are shown in Ensign using the Pesavento Patterns draw tool.   Go to the Pesavento Patterns property form and change the Study Mode to one of the 5 Gann selections.  Ensign can display 1-bar swings through 5-bar swings.

The Gann swings look like this 2-bar swing example.  The counts are shown using the colors selected for the Up Trend Marker and the Down Trend Marker.  The Pesavento Patterns, Support and Resistance levels, and Fibonacci levels can optionally be added to the swings.

Gann Swing Chart

Refresh for IMM Exchange Symbols

Q:  I follow B6H2 from the IMM exchange using the BarChart data feed.   Normally I refresh data from BarChart, but they recently had an outage and refresh data for a few hours is unavailable.  Can I get the refresh I need from DTN Market Access?

A:  DTN Market Access does not have data for the IMM exchange.  However, you might consider refreshing with data from the CME exchange for symbols that are similar.  For example, the CME symbol for the British Pound is @BPH2 .

On the Properties for the chart, select the Data tab and edit the DTN Market Access symbol like this:
Now you can refresh for a couple days to fill in the missing data.  Then I suggest you change the refresh source back to BarChart and refresh again for the same time period.  BarChart will then replace the data that overlaps, and retain data received from DTN which BarChart lacks.  The data refreshed from the CME looks acceptable to me in my testing.
Find CME symbols on the DTN symbol guide that would be substitutes for the IMM symbols you use and do a similar process for other IMM symbols you need to refresh.

Square the Chart Value

Q:  I’m experimenting with “Square Charts”. It would be helpful to add some geometric drawing tools to determine best fit and know the points/bar value for use with “Square Chart”.

A:  The tool to use is the Gann Fan with the Slope showing at the vertex.  Use that value as the Pts/Bar on the Square Chart.  This slope shows the rate of change of the 1×1 line.

In this example, the Gann Fan placed manually shows a slope of 0.22 pts/bar down.  A good value for squaring the chart would be the nearest multiple of price interval, which would be 0.25 pts/bar.

Range chart for EUR/USD

Q: I am totally confused as to what is happening here as I am getting very different bars on my 3R charts on EW (Eur/Usd+) compared to E10 (Eur/Usd).  EW needs 3R to give 3 pips per bar whereas the other is 30R to give 3 pips per bar. Which is correct and how do I rectify this?

A:  The R parameter is relative to the number of decimals used in the chart scale.

In EW you have 4 decimals showing so R3 is  0.0003.
In E10 you have 5 decimals showing, so the same value is R30 to get 0.00030.
If you want both to be the same, then both EW and E10 need to use the same decimal format.
I will assume your preference is to show the 1/10th pip digit, so lets change EW to show 5 decimals.  In EW go to the chart properties form by pressing CTRL+P on the chart.  Change the Price formats from the current  #.#### selections to the #.##### (5 decimal) selections.
Then EW will use  R30  charts instead of R3.

Interactive Broker Chart Volumes

Q:  Why does my 15-second chart from IB have less volume than the same chart in Ensign?  When I refresh the Ensign chart from IB, the volume difference is corrected.

A: The higher volume bars in Ensign should be considered to be more correct than the IB chart, and here is why.   IB is a sampled feed, meaning they do not send all ticks.  The IB chart is charting the ticks seen and summing the tick volumes on those ticks. Ticks NOT sent, because it is a sampled feed, are totally ignored.

Ensign, on the other hand, compares the tick volume on the tick received with the change in total volume. Then they match, Ensign uses the tick volume value. When they differ, obviously some ticks were not sent and Ensign adds a filler tick with the needed tick volume to stay in sync with total volume.  These inserted ticks with the missing tick volume are the source of the larger volume values shown in Ensign compared to IB.

When the tick database is refreshed, Ensign receives 1 second records from IB to work with and this erases the filler ticks with the missing tick volume.  Thus the refreshed result looks more like the IB chart.  The refresh has forced Ensign to miss the ticks that the IB chart missed.  What Ensign is doing to account for missing volume in the live feed it better than what IB is doing.  The chart Ensign shows with the inserted missing tick volume is MORE like the charts from other data vendor who send all ticks.  It is recommended that refresh only be used when data is missing.

FYI, Ensign 10 does the same thing for the Yahoo Finance feed which is also a sampled feed.  Ensign 10 watches the change in total volume to calculate the tick volume that must have occurred since the last tick was received.

Convert BLine Buttons Template

Ensign’s Webinar Archive has been updated with the recorded Webinar from Sept 7th, 2011.   The webinar covered these topics:

  • Side by side comparison of Ensign Windows and Ensign 10
  • Process to manually convert EW templates.
  • Automated conversion using menu Setup | Charts | Convert EW Templates
  • Manually fix DYOs
  • DYO editing controls
  • Download the official BLine Buttons template

Chart Maximum Bars

Q: My 2 Range chart fills within an hour or two (on a fast day in 15 minutes) and the bars re-size and the marking and indicators are gone due to resizing.

A: On the chart property form are 2 parameters for Save/Resize and Maximum Bars.

Chart Maximum Bars Property

Here is how these 2 values work together. When a chart is opened it loads with the Save/Resize quantity.  Then the chart grows until Maximum is reached, at which point the chart trims back to the Save/Resize quantity.  So to reduce the frequency of resizing (which also causes a recalculation) make the 2 numbers further apart.  In the example shown, this 5-min chart will collect 60 bars before resizing. This would be 3 hours of collection.  Your 2 Range charts is building bars much more quickly, so a separation of several thousand might be beneficial so you resize infrequently. Your discussion of 300 and 10,000 sounds like the right idea, but I have not seen your entries to verify if 300 is your Save/Resize value and 10000 is your Maximum Bars value.   And when it resizes to 300 the draw tools are removed that have anchors in the bars that are clipped from the file.   Only the last 300 bars are retained.

What you are seeing and calling resize might be something else, such as how often the chart is shifting leftward.  To reduce the constant repaint of moving the chart just 1 bar leftward, we do have a parameter used for tick based charts of moving the chart several bars leftward so there is more margin in which to build several bars before another shift left is performed.

Shift Chart Leftward

On the Setup | Charts form see the value pointed to by the arrow. This is the number of bars to shift leftward. So the jump left is every 10th bar, and the margin will have room to build 10 bars before the left shift again.  Perhaps it is this operation you are calling resize. Try 20 and see if that is helpful to what you see.

Volume Data for Indexes

Q: Traderbyte volume data is inconsistant on the $DOWI 30 min chart. Volume looks good on daily,weekly, and monthly although the volume amount shows milliions when should be billions.

A: The $DOWI is an index and as such is not a traded instrument.  The intra-day refresh does not have any volume information.   On the intra-day charts, what is being shown in the volume field for a bar is a tick count when the bar is built in real-time.  Each time a value is received, the volume is treated as 1 and the sum would be a total number of ticks in the bar’s time period.

On daily refresh from TraderBytes for this index, a volume value is returned. Their values
are shown in the millions. Possibly the values sent have a decimal shift to show 100 lots. Either way, Ensign displays the values returned on the data feed.

For weekly and monthly, the TraderBytes source does not have weekly and monthly bars, so Ensign requests refresh of daily bars and builds weekly and monthly bars from the daily data.  The daily volume values are summed to get a weekly value and a monthly value.

Swing Labels on an Average

Q: I would like to have a DYO that will assign labels to pivots on a simple moving average.  These labels would be similar to the labels used by the Pesavento Patterns (Min Size/Bars 0/0).   The DYO must be compatible with the new build for Ensign, and must include Double Tops (DT) and Double Bottoms (DB). The Pesavento Patterns do not include these.

A: Add to the chart the average study and the Pesavento Patterns study.  Change the DATA POINT selection in the Pesavento to reference the moving average and then the swing points of the average are labeled.  Use the LBL selection as the Marker on the top two rows of the Pesavento Patterns property form.