Gann HiLo Activator Using Moving Averages of Highs and Lows

Summary

The Gann HiLo Activator is described as a trend indicator that plots a colored line based on a configurable period. It calculates simple moving averages of high and low prices. When the close rises above the average high, the direction switches upward; when it falls below the average low, the direction switches downward. If neither threshold is crossed, the prior direction is retained. The displayed line uses the average low for an upward direction and the average high for a downward direction, with green and red colors respectively.

This makes the indicator a rules-based way to track direction while avoiding a switch whenever price remains between the two averages. The document specifies the calculation and color convention but provides no trade entry or exit instructions, examples, parameter guidance, or test results. Its usefulness as a signal therefore depends on how it is applied and validated for a particular market and timeframe.

Key ideas

• The indicator compares closing prices with moving averages of highs and lows.
• A close above the average high sets the direction upward, while a close below the average low sets it downward.
• When price stays between the two averages, the prior direction is retained.
• The plotted line and its color reflect the current direction.
• The document does not provide trading rules or performance evidence.

Tags

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