Gann High Low Signals from Rolling High and Low Averages

Summary

The Gann High Low indicator switches between a simple average of recent highs and a simple average of recent lows. It sets a bearish state when the close falls below the prior value of the low average, or a bullish state when the close rises above the prior high average. The latest nonzero state determines which average is plotted as the active HiLo line. A close crossing above that line signals a long entry; a cross below signals a short entry.

The supplied parameters set the high lookback to 13 periods and the low lookback to 21 periods. Published test settings specify BTC/USDT futures on a four-hour chart, but the document gives no performance statistics or evaluation of the indicator's behavior. The example uses crossings to enter positions and does not describe explicit stop-loss, position sizing, or exit management beyond the opposite crossing. As a lagging average-based method, signals may arrive after a move has begun and can reverse repeatedly in sideways markets.

Key ideas

• The indicator compares price with prior rolling averages of highs and lows to update its directional state.
• The active line switches between the high average and low average according to the latest state change.
• A close crossing above the active line signals a long entry, while a cross below signals a short entry.
• The published settings use different lookback lengths for the high and low averages.
• No results are reported, and explicit risk controls are not described.

Tags

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