Gann Swing Charts
Gann Swing Charts, as proposed by W.D. Gann, provide an excellent way to determine trends of the market.
The Gann Swing Chart is constructed from price chart data and a thorough examination of each bar and how it compares to previous bars. When considering two bars, if the later bar has a higher high and a higher how, then it is called a "higher" bar, regardless of closing price. If a swing was going down then it would require a higher bar to make the swing turn up. As always, there are many properties that are adjustable allowing each analyst to set up the Gann Swing Chart to suit specific trading preferences, such as bar swing count, and how to count outside/inside bars.
The Gann Swing Chart takes the element of time out of the Bar Chart and represents only the movement of price.
Bar TypesThere are four bar types with respect to the previous bar
- Higher Bar = Higher High and Higher Low
- Lower Bar = Lower High and Lower Low
- Outside Bar = Higher High and Lower Low
- Inside Bar = Lower High and Higher Low
The Gann Swing Chart moves to the high for the period on an up bar and keeps moving higher until a reversal is recorded. A reversal would come in the form of a down bar (or an outside bar). On a three bar swing count, a down-swing will be displayed following three consecutive lower bars. It will only be reversed after three consecutive up bars.
Kagi, Percent, Point and Volatility Swing Charts are all available in Optuma. These charts are similar to Gann Swings, however, use different information to generate the swings.
Below is an example of how a Gann Swing Chart is displayed when drawn over a Bar Chart using the Gann Swing Chart Overlay tool:
Introduction to Gann Swing Charts Video
Actions & Properties
Apply Settings to All: Any changes to the chart's setting can be applied to all the other charts on the page or in the workbook. For example, change the line width of the chart and click this option to automatically change all the other charts in the workbook.
Move to Back: If the Gann Swing Chart is displaying in front of other tools or indicators clicking this action will move the lines view to the background.
Move to Front: If the Gann Swing Chart is displaying behind other tools or indicators on the chart, clicking this action will bring the lines to the forefront.
Restore Default Settings: Click this action if you have adjusted the default settings of the Gann Swing Chart, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the Gann Swing Chart's properties (such as line width, for example) you can save the adjustments as your new default setting. Each time you open a new Gann Swing Chart it will display using the new settings.
Copy Data to Clipboard: Copies the raw data values from the Gann Swing Chart to your clipboard, which can then be used in other programs (such as Notepad, MS Excel, etc). Note that the values copied will be in the timeframe of the chart, so a weekly chart will copy weekly values.
Delete: Deletes the Gann Swing Chart from the page.
Tool Name: Allows for the name of the tool to be changed, as displayed in the Structure Panel.
Relative Index: Use this option to create a relative strength chart. Type the symbol of the index or other security, eg SPX from World Indices to see the chart relative to the S&P500 index.
Chart Style: Allows you to change the Gann Swing Chart to another chart style (such as Line Chart).
Date Range: This setting allows you to choose how much historical data is displayed on the chart. By default, all data contained in the data file is displayed but this option can be used to limit the amount of data in the chart, eg Last 10 Years, or from a user-defined date or range of dates.
Default Price Unit: Used to set the Price Unit various Gann-based tools will use by default when applied to the selected chart. For example, setting the Default Price Unit to 0.01 will set any Gann Fan applied to the chart to use 0.01 as its price unit. For more information on the Price Unit, please see here.
Filters: Mouse over this option to open the Filters panel:
- Calendar Days - Ticking this option will add a dash for every day on the chart not filled by an existing bar, such as weekends and public holidays.
- Show Blanks - When enabled a dash will be added for weekdays where no trading activity is recorded (public holidays for example), however, no dashes will be added for weekends.
- Ignore Dilutions - Optuma data is adjusted for share splits, capital adjustments etc. When this option is ticked, any historical adjustments on the chart are ignored.
- Ignore Out of Session Ticks - Any data coming in outside of the designated session times (assigned to the specific code in use) will not be added to the chart. Requires a real-time datafeed.
- Show Single Session - For codes containing two sessions in a single day (e.g. Session 1 = Day, Session 2 = Night). Ticking this checkbox will allow you to view only one of those sessions on the chart, with data from the other session being hidden from view. Requires a real-time datafeed.
Swing Count: Sets how many time periods (bars) must take place in the same direction for the swing to turn. For example, if set to three there would need to be three successive higher bars before a down swing would turn up.
Outside Bar Calc: Sets how outside bars are treated in the swing calculation eg Use Outside Bar or Use Next Bar option.
Use Inside: Tick this box to include inside bars in the swing count
Use Breakout: This option can only be used with a swing count greater than one. If the turning point of the previous swing is exceeded before the number of bars in the swing count has occurred this is called a 'breakout' and the new swing will be drawn. For example, with a two bar swing count, a down day occurs on the first day that has taken out the previous swing low. Normally this bar would not be considered in the calculation until the second down day, but by selecting the Use Breakout option the next swing is drawn on the first bar.
Blank Bars: The number of blank bars to the right of the current price action. After the last bar, there will be an area of blank charting space used for plotting tools and indicators into the future. Increasing this value will increase the amount of blank space.
Colour Style: Select from Up/Down, Trend, or Unconfirmed.
Up Colour: Allows you to change the colour of an upward swing.
Down Colour: Allows you to change the colour of a downward swing.
Show 50% Mark: This option allows you to display two horizontal lines at the 50% level of the last two swings of the chart.
50% Mark Line Style: Expands to give you the options to change the Line Style and Colour of the 50% Markers (when enabled).
Show Labels: If this box is checked, then details regarding the swings will be displayed on the Chart.
Visible Labels: Expands to show the items available to display within a Gann Swing label. These are:
- Calendar Days
- Bar Date
- High/Low Date
- % Change
- Price Retracement
- Time Ratio: the duration of the swing relative to the duration of the previous swing as a percentage.
Text Size: Use this slider bar to increase / decrease the size of the text labels displayed on the Gann Swing Chart (if enabled).
Text Colour: Allows the label text colour to be changed.
Text Angle: If the Show Labels option has been enabled then the Text Angle property allows you to change how they are displayed - either horizontal (0 degrees) or vertical (90 degrees).
Line Width: Use this slider bar to increase / decrease the width of the Gann Swing chart lines.
Data File Properties: This field can be expanded to display information on the data file being used to generate the chart. Items such as the Data File's name, Exchange, physical location on your system are all displayed here. Generally, this information is only required for trouble shooting purposes and is not something you will use on a regular basis.
Tool Transparency: This slider bar is used to adjust the transparency of the chart itself. Moving the slider to the left will increase the transparency of the chart. Moving the slider to the right will increase the opacity of the chart.
Visible: Unticking the checkbox will hide the swing chart from view.
Show In Price Scale: When selected the current swing value will be displayed in the Price Scale.