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Hello,
I read and like the Krausz/Gann article in TASC's February issue. As a result, I purchased the book and have sucessfully been trading with this method. Nevertheless, I am still not sure of a couple of things. Enlightenment will be appreciated.
First, I want to confirm my understanding of the High Low Activator (HLA). Let's begin with the assumption that the particular stock is in a defined uptrend. To caluclate the HLA for tomorrow's trading, one averages the high price for the last three days. If the closing price tomorrow is two ticks above this three day average, a long position is taken on the close. Going forward with this long position, each day a three day average of the low price less two ticks is made which becomes the sell stop for the following day's trading. All these calculations are based on daily charts and price movement. Any errors with this?
Next, I want to understand the significance of Gann's handwritten note on the found manuscript. Krausz notes it in his article and book. Gann's note refers to changing from a three day chart to a two day chart. But, as I noted above, my understanding is that the calculations are made using daily highs and lows. If correct, what's the significance of Gann's note?
Steve Walker
Dallas, Texas
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