Hi-Lo is an indicator that aims to more accurately determine the trends of a given asset, thus indicating the possible best time to buy or sell.
What is hi-lo?
Hi-Lo is a term derived from the English language, where Hi is associated with the word High, and Lo is associated with the word Low. It is a trend indicator used to evaluate asset trading in the financial market.
Hence, its use is given to determine whether a particular asset shows an uptrend or a downtrend in value. Thus, Hi-Lo Activator can be translated as an indicator of ups and downs.
How does it work ?
Hi-lo works by using a graphical representation, the purpose of which is to try to indicate the trends of both appreciation and depreciation of a particular asset.
Thus, in graphical analysis, the indicator is represented by two lines, where the uptrend is shown in green, and the downtrend is shown in red. In this sense, only one row is displayed at a time.
This line will be lower or higher of the asset is therefore possible to follow the trend at this moment. When the bottom line is displayed, the indicator sends a buy signal, as it is considered that the price may show signs of an increase. On the other hand, when the upper line is displayed, a sell signal is sent, since it is considered that the trend of this asset is depreciating.