Using the Gann High-Low Activator as a Trend-Change Signal

Summary

The Gann High-Low Activator is described as a simple moving average of prior-period highs or lows. This note presents a deliberately uncomplicated version intended to make indicator testing straightforward. Its line changes color according to the indicator’s trend, and the main suggested use is to treat those color changes as possible trend-change signals.

The note attributes the indicator to Robert Krausz in a 1998 issue of Stocks & Commodities Magazine. It recommends beginning tests on daily charts, reflecting the charting conventions common when the indicator was introduced, then experimenting with other time frames and lookback periods. The document does not specify a particular period, provide entry or exit rules beyond the color-change cue, or report backtest results. It therefore offers a basic indicator description and testing suggestion, rather than evidence that the signal is profitable or suitable across markets and time horizons.

Key ideas

• The indicator uses a simple moving average of prior-period highs or lows.
• Its line color changes with the indicator’s trend, and color changes can serve as trend-change cues.
• The note recommends starting experiments on daily charts and then trying other time frames and periods.
• It gives no performance results or full trading rules.

Tags

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