OMNIUSD 1H GANN BOX STRATEGYStep #1: Always draw the Gann Box from the low to the high of the previous day, for bullish candles. And from high to the low for bearish candles.
The Gann Box indicator can be found on the most popular trading platforms (MT4 and TradingView). This is different than the Gann Squares which requires the relationship between time and price to be 1:1.
On the vertical axis, the Gann box has the Fibonacci retracement levels, while on the horizontal axis; we have the Gann time zones based on the Fibonacci sequence.
The power of WD Gann’s time cycles is well-known among Gann trading community.
Since we have integrated the time into our trading strategies, we have been able to improve the overall performance of our trading systems. What makes the Gann’s time cycle so powerful is the combining of the cycles which is represented quite well by the Gann Box.
Step #2: Stretch the Gann Box to the right until the 0.382 time cycle aligns with the end of the previous day.
We try to align the 0.382 time cycle with the end of the day price. You can do this by simply pulling the right side of the Gann Box and stretch it to the right until the 0.382 time cycle aligns with the end of the previous day.
Traders are only taught to focus on price, but the problem is that not many people talk about the time axis. From a practical point of view, you get stopped out on most of your trades because your timing might be wrong.
Time is just as important as price!
Step #3: Wait until the price trades between 0.618 and 0.75 time cycles.
The 1.618, or its inverse 0.618, known as the golden ratio, or Phi is considered to be the most important number in mathematics. This is one of the most important and valuable number that can be used to forecast turning market points accurately.
We only want to buy when the price is trading between 0.618 and 0.75, which is our time of action.
This trading rule only works if you correctly draw the Gann Box otherwise, you might encounter a different kind of results.
Step #4: Trading Cryptocurrency OMNI: Sell when OMNI coin price breaks below the 0.382 price cycle.
You can get on board with minimum risk, and you can ride the bearish momentum as far as it goes. You can time your entry with very high precision when you use the confluence of time and price.
Gann considered the time-price relationship as the fourth dimension.
The right time to enter the market is when the OMNI coin price breaks below the 0.382 price cycle (vertical axis).
Note: If by the time we’re trading between 0.618 and 0.75 the OMNI coin price is already trading above the 0.382 price cycle then you should not take any position
The cycles expand and contract and they are not consistent, which means that some days will be no trade signals.
Step #5: Place your initial protective Stop Loss above the previous day high, or current day’s high. Close the trade if after 0.75 time cycle we trade above 0.25 price cycle.
Where to place your stop loss order is as important as where you get into a trade.
Every trader and his dog have their own opinion about where to hide your stop loss. However, a solid technique is to use the market levels that will prove your trade idea wrong, which is what we’ve done here.
A more advanced stop loss technique is to use a time stop and close the trade if after 0.75 time cycle we’re trading above the 0.25 price cycle. The thing is that you’ll have to raise your initial stop loss above the 0.25 price level in order to better protect your trade.
We recommend doing more research on this matter and seeing how this can fit into your crypto trading toolbox.
Step #6: Take Profit should be 2-3 times larger than your Stop Loss
A good cryptocurrency strategy will always give you a good risk to reward ratio. You don’t necessarily need to hit home runs to grow your cryptocurrency account. You can simply concentrate on getting base hits to grow your cryptocurrency portfolio.
Take profit once you manage to bank two or three times more than your initial SL
