Gann trend oscillator
This lesson will cover the following
- Definition
- Interpretation
Developed by Robert Krausz, the Gann Trend Oscillator is a trend-following indicator used to determine a financial instrument’s long-term price direction.
Just like the Gann Swing Oscillator, the Trend Oscillator shows the transition from an uptrending market to a downtrending one, and vice versa. The indicator’s values are again displayed on a scale ranging between +1 and -1.
An uptrend is signified by a value of +1, while a downtrend is indicated when the oscillator edges down to -1. Here is how the Gann Trend Oscillator appears on a trading platform.
Chart source: VT Trader
As stated in the previous article, the Gann Swing Oscillator is used to define short-term trends as the market swings, thereby accurately pinpointing market entry points. The Gann Trend Oscillator complements it by determining the long-term market direction.
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Entry signals arise when the Gann Trend and Swing Oscillators converge. Thus, a buy signal is produced when the Trend Oscillator rises from -1 to +1 and matches the Swing Oscillator’s value of +1. Conversely, when the Trend Oscillator declines from +1 to -1 while its counterpart is already at -1, it signals that the major trend has turned bearish, and you should restrict your trading to short positions. The Gann HiLo activator pinpoints exact entry points and also determines stop-loss levels. Here is how the three indicators look when combined.
