Gann HiLo Activator
This lesson will cover the following
- Definition
- Interpretation
Developed by Robert Krausz, the Gann HiLo Activator is a trend-following technical indicator that helps determine the trend’s direction and generate entry signals aligned with the trend. It is best combined with the Gann Swing Indicator and the Gann Trend Indicator (which will be reviewed in the following articles) as part of a trading system commonly known as the ‘New Gann Swing Chartist Plan’.
The Gann HiLo Activator is a simple moving average of the previous three periods’ highs or lows. Based on moving-average logic, it is a trend-following indicator that reflects the market’s direction of movement. Within the trading system mentioned earlier, the Gann HiLo Activator is responsible for generating entry signals and also helps determine stop-loss levels. Here is how it looks on a trading platform.
Chart source: VT Trader
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Its readings can be interpreted as follows: a bullish trend is in force when the price action is above the Activator, implying that only long entries should be taken. During an uptrend, the indicator is calculated using the previous three periods’ lows.
Conversely, if the indicator is plotted above the price, it suggests that the market is in a bearish trend; therefore, you should restrict your trades to short positions. During a downtrend, the Activator’s calculations are made using the previous periods’ highs. Read the next two articles to gain the full picture of this trading system.