Gann Mass Pressure
Overview
W.D. Gann believed that history often repeated, with the financial markets moving in mathematical cycles. The Gann Mass Pressure tool takes that philosophy to help determine these cycles, and potential turning points in the market.
The tool calculates the daily performance for selected years and averages the daily percentage change for each day, and plots them on the chart. By default, data for the previous 10, 20, 30, 40, 60 and 80 years are averaged.
For example, the Mass Pressure indicator for the Dow Jones in 2018 takes the historical daily percentage changes in 2008, 1998, 1988, 1978, 1958 and 1938, and then averages them. The average low of those years occurred on April 4th, with other turning points labelled. On average, those years closed 8.5% higher:
To add the tool to your chart, select the tool from the Gann tool group, and left-click on the year you wish it to be applied. For example, if you click on any date in 2022 it will apply from January 1st of that year. Optuma will then draw the tool using the default settings.
Note: from Optuma 2.1 the calculation will extend beyond a year, so it may be necessary to increase the chart’s Blank Bars setting. See here for instructions.
Scripting Function: GMP()
Video
Note: This video is a clip taken from the Gann Changes in Optuma 1.4 video by Mathew Verdouw. You can view the full version here:
https://ganntrader.com/videos/gann-changes-in-1-4/
Action & Properties
Actions
Copy Data to Clipboard: Will copy the tool’s values to the clipboard which can then be inserted into a spreadsheet, for example, allowing for further analysis.
Add to Toolbar: Adds the selected tool to your custom toolbar.
Apply Settings to All: When multiple Gann Mass Pressure tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other Gann Mass Pressure tools in the chart, page or entire workbook to be updated instantly.
Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.
Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.
Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.
Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Gann Mass Pressure to a chart, the tool will display using the new settings.
Delete: Deletes the tool from the chart.
Properties
Tool Name: Allows you to adjust the name of the tool, as it’s displayed in the Structure Panel.
Year: Change the base year on which the tool is being calculated from, eg 2023.
Years: Select the lookback periods from the base year. By default, they are 10, 20, 30, 40, 60 and 80 years. IdIf the base year is 2023 then the tool will calculate on 2013, 2003, 1993, etc.
The Correlation Factor next to the “20” shows how correlated this year is to the year 20 years ago. This works best by reviewing the correlations a few months into the year and then seeing if there is a stand out. eg in 2023 for SPX, the 20 and 10 year had a 0.82 correlation, so 2023 tracked 2003 and 2013 very closely.
Reset on New Year: When selected the tool will calculate from the beginning of the new year, rather than continue from the base year.
Plot Style: Allows you to change how the tool is displayed on the chart, including Line Style, Width and Colour.
Offset: Moves the tool forward or backwards in time. The offset is measured in bars, so a value of 2 will push the tool forward 2 bars and -2 will move the tool back 2 bars.
Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.
Visible: Un-tick this checkbox to hide the tool from the chart.
Show in Price Scale: When selected the latest value will be displayed in the Price Scale.