A quick moving average type of indicator that is used as an entry trigger and stop-loss placement.
Overview
Introduced by Robert Krausz the Gann HiLo Activator was first described in the Feb. 1998 issue of Stocks & Commodities Magazine. Further information about this indicator was gathered from Robert Krausz’s Fibonacci Trader Journal (Volume 1, Issue 2).
The Gann HiLo Activator is basically a 3-period simple moving average, plotted based in relation to the HiLo Activator. When price is above the HiLo Activator, the indicator uses the previous period’s lows for calculations, and can also be used as a stop for a long position. When price is below the HiLo Activator, the indicator uses the previous period’s highs for calculation, and it can be used as a stop for a short position.
The Gann HiLo Activator on a EUR/GBP 4H Chart 4/12/2011
Source: VT Trader
Interpretation
The Gann HiLo Activator is meant to be used in conjunction with the Gann Swing and Gann Trend indicators to form a trading system commonly referred to as the “New Gann Swing Chartist Plan”. Within this system the Gann HiLo Activator can be used as an entry trigger as well as stop-loss placement.
