Gann HiLo Activator: Trend Direction, Entries, and Stop Levels

Summary

The document explains the Gann HiLo Activator as a trend-following indicator attributed to Robert Krausz. It compares the close with moving averages of prior highs and lows, using a three-period lookback in the supplied version. When price is above the relevant level, the indicator treats conditions as bullish and uses the average of prior lows; when price is below it, it treats conditions as bearish and uses the average of prior highs. The indicator is described as helping generate with-trend entries and inform stop-loss levels.

The included implementation changes its state when the close crosses above the average of prior highs or below the average of prior lows, then plots the corresponding low or high average. The document does not provide a complete trading system, specify position sizing or exit rules, or present empirical results. Its directional signals can therefore be treated as a rule description rather than evidence of profitability; testing across markets and conditions would be needed to assess lag, whipsaws, and stop behavior.

Key ideas

• The Gann HiLo Activator uses moving averages of prior highs and lows to indicate trend direction.
• The supplied implementation uses a three-period lookback and compares the close with those averages.
• In bullish state it plots the average of prior lows, while bearish state uses the average of prior highs.
• The indicator is presented as a source of with-trend entries and potential stop levels.
• No full trade management rules or performance evidence are supplied.

Tags

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