This indicator may be of interest to those traders who prefer to trade by levels. Gann Signal will plot them on the chart, and also give a signal about a favorable situation for opening a trade deal. It can be used in trading not only currency pairs, but also CFDs. As for timeframes, there are no special restrictions. This indicator can be traded on any time frame. It is not recommended to use it only on the smallest TFs: M1 and M5.
In MT4, set the Gann Signal indicator in the usual way. If any of you have difficulties with this, then read my article “Metatrader 4 Cheat Sheet” . It provides step-by-step instructions for setting any indicator into a trading terminal.
Setting up the Gann Signal indicator
There are few important parameters in the settings, and they should not raise questions. Nevertheless, I will tell you a little about each of them.
Start and End – these parameters are intended so that the trader can tell the indicator at what time it is necessary to start calculating the levels and when to complete this work
Step – this variable can have values 1,2,3, depending on how many target levels you want to see on the chart.
The following two parameters relate to the sound notification of signal formation or reversal: use_alert_new_target and use_alert_targetGet.
The indicator, in addition to levels, displays information on the chart regarding the forecast. You can select its location in the chart window using the Corner parameter.
Well, the remaining parameters in the settings do not really matter, since they are intended for choosing the color and thickness of the lines.
How to use Gann Signal
It is enough to look at the graph to understand this:
The indicator draws seven levels on the price chart: central (yellow) and three levels above and below. When the price breaks through the yellow level, a signal arrow appears to open a deal in one of two directions. Red and blue levels can be used to set stop loss and take profit. Profit can be fixed in parts as the price reaches each of the three levels. If a new signal appears, then it is recommended to close an active order opened earlier.
It is mandatory to test the Gann Signal indicator in demo trading. First, you need to make sure of its effectiveness for a specific trading instrument and timeframe. If it is confirmed, then you can go to a real trading account.