Principle of Operation
When transmitting, a high gain antenna allows more of the transmitted power to be sent in the direction of the receiver, increasing the received signal strength. When receiving, a high gain antenna captures more of the signal, again increasing signal strength. Due to reciprocity, these two effects are equal - an antenna that makes a transmitted signal 100 times stronger (compared to an isotropic radiator), will also capture 100 times as much energy as the isotropic antenna when used as a receiving antenna. As a consequence of their directivity, directional antennas also send less (and receive less) signal from directions other than the main beam. This property may be used to reduce interference.
There are many ways to make a high-gain antenna - the most common are parabolic antennas, helical antennas, yagi antennas, and phased arrays of smaller antennas of any kind. Horn antennas can also be constructed with high gain, but are less commonly seen. Still other configurations are possible - the Arecibo Observatory uses a combination of a line feed with an enormous spherical reflector (as opposed to a more usual parabolic reflector), to achieve extremely high gains at specific frequencies.
Read more about this topic: High-gain Antenna
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