Unlike standard indicators that react to every price movement, this tool focuses on significant trend bars—those that establish new highs or lows—while filtering out non-trend bars that do not contribute to meaningful market direction. This approach reflects Gann’s philosophy of prioritizing swings and wave behavior over minor price noise.

At its core, the indicator applies the “Golden Rule”:

Compare each new bar only with the last trend bar, and ignore all non-trend bars.

This helps highlight true turning points (swing highs and lows) and accurately tracks market momentum.

• Trend Detection

  The indicator uses several rules to detect trends:

  • Upward Trend
    A bullish trend is confirmed when price breaks above the most recent peak after a downtrend. Different reversal models are identified, such as rising valley or equal valley reversals.

  • Downward Trend
    Similarly, a bearish trend is signaled when price breaks below the last valley after an upward trend. Models like rising peak or equal peak breakdown are used. 

  Swing Points

  • Peaks and Valleys
    These are identified using fractal logic: the highest or lowest price of a trend bar before the slope changes direction. 

  Outside Bar & Close Price Rules

  • The indicator incorporates additional rules for outside bars—significant bars with both higher highs and lower lows—and uses closing prices to confirm movement direction.

To maximize the effectiveness of the indicator:

1. Customize settings to match your trading style and timeframe.
2. Combine trend signals with risk management, such as stop-loss and take-profit levels based on swing structure.
3. Use multi-timeframe analysis for better context and confirmation of signals.
4. Apply additional confirmation tools (like volume or other trend indicators) before making trade decisions.