The Gann Hilo Activator looked interesting to us based on our review here. However, a trader will not know when to take profit in real time just trading the Gann Hilo alone.
A reactive indicator which highlights trend exhaustion will be useful for both taking profit, as well as a warning for whipsaws. We experimented with the Heiken Ashi and it seems to get the job done.
Legend for the Video above:
- White Line: Price
- Blue Line: Gann hiLo Activator
- Green and Red Candles: Heiken Ashi
How we trade this Long:
Conditions for Long:
- White Line above Blue Line
- Green Heiken Ashi
Conditions for Exit Long: Appearance of single Red Heiken Ashi bar, or you can wait for 2 consecutive Red Bars. This is a sign of bull trend exhaustion.
How we trade this Short:
Conditions for Short:
- White Line below Blue Line
- Red Heiken Ashi
Conditions for Exit Short: Appearance of single Green Heiken Ashi bar, or you can wait for 2 consecutive Green Bars. This is a sign of bear trend exhaustion.
If you see Green and Red bars alternating repeatedly, it is Christmas and time to relax, and stay out of a whipsawing market. This is indicated by the red rectangular range box in the video.
Get Gann Hilo indicator here and Heiken Ashi here.
Please comment below and let us know what other indicators can work together with this strategy.
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