Auslanco - GBP/JPY and GBP/USD (newstrade)
Hi gang. It’s nice to see this thread alive and healthy again. It’s also nice to see people pulling together during this critical time. I’ve noticed several inquiries about how the Gann HiLo Activator works. Here’s an attempt at explaining it.
I’ve attached before and after 4hr charts from yesterday, to help make it clearer. While price was below the Gann (chart #1), it was a 10sma “high” line. After price moved briefly above it (chart #2), the activator sensed it and shifted the line to a 10sma “low” starting with that bar. The shift between high and low averages is where the indicator gets the “HiLo” in its name. It uses 10sma because the Loopback periods are set to 10. It was originally used with 3 periods, and seems to have defined a logical stop loss area.
If the price bar had closed while price was above it yesterday, the Gann line would have stayed in the new position (10sma low). But since it didn’t close, when price moved below the original level that activated it in the first place, the line reverted back to 10sma high. In the last chart I’ve added a 10sma high (dashed) and a 10sma low (solid) to the same chart. Here you can see how the Gann line works with the 10sma channel, shifting from high to low. You can do the same thing on a lower time frame chart to get an even better idea of how it works, since the shifts happen more frequently.
Here’s an overview of the indicator that I found in VT Trader:
The Gann HiLo Activator was first introduced by Robert Krausz 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 simple moving average of the previous 3 periods' highs or lows plotted based in relation to the HiLo Activator. When price is above the HiLo Activator it can be used as a buy stop (uses the previous periods lows for calculations) and when price is below the HiLo Activator it can be used as a sell stop (using the previous periods highs for calculation).
The Gann HiLo Activator is meant to be used in conjuction with the Gann Swing and Gann Trend indicators to form a trading system methodology commonly referred to as the "New Gann Swing Chartist Plan". Within this methodology the Gann HiLo Activator can be used as an entry trigger and stoploss point.
my my a nice classic horn bottom on the 4h , im with karmo now , we werent unable to break the previous low ... (oh horn bottom is explained here http://thepatternsite.com/hornb.html)
