The Hull Active Investing Range indicator was developed by Alan Hull. The central cord, upper deviation (UD) and lower deviation (LD) lines create four distinct price zones that indicate when you should buy, hold, or sell. According to the Active Investing theory above the UD, you should sell and lock in profit; below the LD line you should sell to avoid further loss. Between the UD and LD you should hold. If you are not holding stock you should buy when the price is between the LD and central cord.
According to Hull, this indicator can be applied in both daily and weekly timeframes, although the majority of Hull’s work is conducted on weekly price movements.
