Volatility Adjusted Grid [Gann]

2021년 8월 14일

█ OVERVIEW

Gann Square of 9 is one of the many brilliant concepts from W.D.Gann himself where it revolves around the idea that price is moving in a certain geometrical pattern. Numbers on the Square of 9 spiral tables, especially those lie in every 45degree in the chart act as key vibration levels where prices have tendency to react to (more on the table below).

There are few square of 9 related scripts here in Tradingview and while there's nothing wrong with them, it doesn't address 1 particular issue that i have: The numbers can be too rigid even when scaled based on current price because the levels are fixed, which makes them not tradable on certain timeframes depending on where the price currently sitting.

Heres 5min and 1hour Bitcoin chart to illustrate what i mean: Grey line on the left is based on Volatility Adjusted levels, while red/blue on the right are the standard Gann levels.

You can see that on 1hour chart, it provides a good levels (both Volatility Adjusted and the standard one happened to share the same multiplier in this case),

1Hour Chart:


On 5 min chart tells a different story as the range between blue/red levels can be deemed as to big for a short term trade, while the grey line is adjusted to suit that particular timeframe (You can still adjust to make it bigger/smaller from the settings, more on this below)

5Min Chart:


█ Little bit on Gann Square of 9 table

This is the square of nine table, the numbers highlighted in Red are known as Cardinal Cross and considered to be a major Support/Resistance while those in Blue color are known as Ordinal Cross considered as minor (but still important) Support/Resistance levels


Similarly, this script use these numbers (and certain multipliers) to print out the levels, with Cardinal numbers represented by solid lines and Ordinal numbers by dotted lines.

█ How it Works and Limitations

The Volatility Adjusted grid will go through several iterations of different multipliers to find the Gann number range that is at least bigger than [x] times ATR. Because it's using ATR to determine the range, occasionally you'll notice that the line become smaller as ATR contracting (and vice versa). To overcome this, you can change the size range multiplier from the settings to retrieve the previous range size.

Use the size guide at the bottom left to find the multiplier that suits your need:
1st Row -> Previous Range -- Change Range Size to number lower than this to get a smaller range
2nd Row -> Next Range -- Change Range Size to number higher than this to get a larger range

Example:
Before:


After:


As you'll soon realise, the key here is to find the range that fits the historical structure and suits your own strategy. Enjoy :)

█ Disclaimer

Past performance is not an indicator of future results.
My opinions and research are my own and do not constitute financial advice in any way whatsoever.
Nothing published by me constitutes an investment recommendation, nor should any data or Content published by me be relied upon for any investment/trading activities.
I strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Any ideas to further improve this indicator are welcome :)

2021년 8월 16일

릴리즈 노트

Notes:
Added Alert function. You can change the frequency in indicator setting window.

Additional notes:
If the indicator messes with the price scale on your chart like this:


Make sure you turn on the "Scale Price Chart Only"