Posted by forex at 7:37 AM
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1. Launch the MT4 software.
2. Select the instrument to trade from the left pane and open it in the chart window (e.g., EURUSD).
3. Select the time frame to trade. Charts of lower time frames need to be monitored constantly as chart movement is relatively higher in lower time frames.
4. Click on 'Insert' in the top menu and then select 'Gann.' From the list, select 'Gann grid' and double-click on the chart window to insert the grid into the chart.
5. Click on any of the three white spots and drag to stretch and skew the grid. MT4 gann grids are not fixed at 45 degrees. However, a 45 degree angle is only a base figure.
6. Move the gann grid and place it in a way that trending candles in a chart are aligned with a line in the grid. (e.g., Low points of candles of an upward trend would be aligned with an ascending gann grid line.)
7. Determine stop loss and take profit levels according to money management rules or simply with the expected reward-to-risk ratio for the particular trade. Gann concept indicates that a trend continuing along a gann line (ascending or descending) is a strong trend, so there is no specific point of entry. If a trend is forming in the charts and it seems to be falling in line with a gann line, then it's a gann signal to enter the trade.
8. Follow the charts and stay in the trade until either an exit signal has been formed or any of the 'take profit' or 'stop loss' levels are hit.
9. Exit the trade once a full candle has been formed. Use a little bit of trader instinct to decide the actual point of exit. The exit point is when a candle breaks the base gann line in the opposite direction. A base gann line may either be a support or a resistance line. After closing the trade, look for trends forming in the reverse direction.