WD Gann Grid tool is the most demanding indicator used on Metatrader trading platform by professional traders. Although Metatrader has a free Gann Grid drawing tool, unfortunately, it is not up to the mark with the original method of WD Gann master charts. There are very fewer resources available for the traders to understand, the ultimate mechanism of WD Gann grid trading system. In this tutorial, we are going to cover all the basic components of a grid chart & learn how to apply it for your daily forex trading, CFD trading. In order to begin, you only need to download our WD Gann intraday pivot point indicator and install it into your forex broker Metatrader trading platform.
- Grid Basics
- Grid Components
- Bullish Grid Lines & Channels
- Bearish Grid Lines & Channels
- Conjunction Point Trend Change
- Conjunction Point Breakout
- Identifying Range
- Grid Visual Adjust
- Stoploss & Take profit
What is WD Gann Grid Indicator?
The Gann Grid layout is a subpart of our “Gann Intraday Pivot Indicator” created for Metatrader trading software. It is different than the normal Gann grid tools which are available on basic charting platforms, even on Metatrader too.
Gann grid is based on Gann natural square & master charting calculation. So it’s already acute in nature. Plus with Metatrader, you only need to scale the vertical axes, in order to view it better for some low volatile currency pairs or securities.
It is a complete tool for all types of traders. Because with this tool you can get the following trade signals which are imperative for technical analysis.
- Entry Point for trades
- Exit Points for trades
- Stop Loss
- Trail Stop Loss
- Profit Target
WD Gann Grid Components:
Gann Grid includes seven major parts which are
- Uptrend grid line
- Downtrend grid lines.
- Price Time Conjunction Point.
- Horizontal Minor Support Resistance Level
- Horizontal Major Support Resistance Level
- Major Market Timing
- Minor Market Timing
Bullish Grid Line & Channel:
This channel gets formed with two diagonal bullish grid lines. If the market keeps rising inside this channel that indicates a bullish trend. It is not necessary to follow a single bullish channel continuously. Because the market is not always perfect. Therefore it might move from one bullish channel to another, please see the next example to understand it better.
Example 1: GBPJPY
With the example above we can see the market has moved inside the bullish channel & maintain the uptrend.
The scale used here is default 1 cent per degree or 1 pip per degree. For all forex pairs, we have used this scale.
Example 2: Gold
Above example shows bullish uptrend channel with custom timing for XAUUSD & scale of 10 cents per degree.
Bearish Grid Line & Channel:
This channel gets formed with two diagonal bearish grid lines. If the market keeps falling inside this channel that indicates a bearish trend. It is not necessary to follow a single bearish channel continuously as we mentioned before due to the imperfectness of the market. Please refer the below examples to understand it better.
Example 3: EURAUD
With the above example, we can EURAUD is falling down inside a bearish grid channel with default scale.
Example 4: AUDCHF
Above example shows how the market continues to fall inside the bearish channel. Also, notice that it moving from one bearish channel to another one with the time.
Using Price Time Conjunction Point:
The area or point where two diagonal grid line crosses over with a major/minor horizontal price level and major/minor vertical time level is the conjunction point. The indicator has the option to set an alert everytime price reaches to these levels. These levels are the most important levels for changing trend or continuation of a trend.
Example 5: EURAUD
See EURAUD was moving upward & then it created a small range & followed the bearish grid channel. Thus it changed its trend around the conjunction point.
Price time Breakout with Conjunction Point:
Now as we have mentioned earlier, that conjunction point can be a place for breakout trading also, can be placed to continue the current trend. So below are some examples to prove that.
Example 6: UK 100
With this example above at the red arrow area, look market did not change the downtrend, rather continue by breaking the lower bearish diagonal grid lines.
Indicator has an alert system to get a notification every time when the market reaches any minor or major grid conjunction points.
The easiest way to do it, by looking at the horizontal support & resistance levels. If the market keeps staying inside a minor & major resistance levels for a long time then that will be the range. So you can plan your trade accordingly, either you can wait to break the range top/bottoms or buy from the range bottom or sell from the range top. Targeting inside the range for such cases.
In the picture above, you can see, EURUSD moved inside a range which we can easily spot by looking at the major grid support resistance levels. Also reacted on the middle of the range. Note that High time & low time difference is also a minor degree. (Please find more reference on the indicator product page)
Example 7: EURCAD
one more example of range market.
Example 8: GBPUSD
Above example shows how the whole day market structure looks like, with a grid, it is easy to spot it quickly.
Grid Visual Adjust:
Sometimes you might see on MetaTrader grid layout on the chart showing narrowly. It happens when that particular instrument moves in low volatility. So you need to adjust the viewing by dragging the horizontal scale.
Stoploss & Take profit
With Gann grid, stop loss needs to be adjusted with recent high & lows, horizontal grid lines & diagonal grid lines. Diagonal grid lines are basically for a trailed stop. You can use horizontal grid lines also for it. Take profit is as long as the market doesn’t change trend or touching any major support/ resistance levels. Keep going with the current trend & trail position.
|Grid Type||Stop Loss||Take Profit|
|Bullish Grid Channel||Below the lower bullish grid channel & also could be a lower horizontal major minor grid lines.||Continue until changes the trend & went inside any bearish grid channel.|
|Bearish Grid Channel||Above the top bearish grid channel & also could be a higher horizontal major minor grid lines.||Continue until changes the trend & went inside any bullish grid channel.|
|Range Market||In case of buying from the bottom of the range, stop loss will be few pips or points below that bottom of the range or to any higher low.
In case of selling from the top of the range, stop loss will be few pips or points above it or to any lower high.
|If you buy from the bottom of the range, then the target will be top the range, vice versa for sell.|
|Conjunction Trend Change||If you buy from the conjunction point then stop loss will be the recent high. If you sell form the conjunction point then stop loss will be the recent low.||Continue to trail your stops until changes trend.|
|Conjunction Breakout continuation||Recent swing low for buy trade stop loss & recent swing high for sell trade stop loss.||Continue to trail your stops unitl changes trend.|
Grid chart layout is a great tool to spot market structure easily. It does not take much time to train your eyes to get accustomed with. Once you get habituated, it will actually take a glance to understand the whole thing. This indicator is a stand-alone system, along with other pivot points components. If you are good with price action, then other indicators are not much required. But for a second opinion, you can always use other indicators, oscillators, wave patterns to confirm your entry & exit along with it. Remember to trade only when you have a confirmed direction.