Gann High Low Activator as a Moving-Average Trend Channel

Summary

The Gann High Low Activator is described as a channel built from moving averages of prior-period highs and lows. The close determines which of the two curves is plotted, producing a line that can be used to track the boundary a price move would need to cross for a trend change. Robert Krausz is credited with describing the indicator in a 1998 issue of a trading magazine.

The note says this version permits a choice among four basic average types, although the original definition uses simple moving averages. That flexibility may change the signal’s behavior and should be evaluated for the market and timeframe in use. A multi-timeframe example is mentioned, but its details and any performance evidence are absent. The text explains the indicator’s construction and intended interpretation, but does not define entry, exit, or risk rules, so it is not a complete trading system.

Key ideas

• The indicator uses moving averages of prior highs and lows to form a trend channel.
• The closing price selects which of the two curves is displayed.
• A close through the channel is presented as a possible indication of trend change.
• The original formulation uses simple moving averages, while this version permits other average types.
• The note provides no trading rules or evidence of profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.