I have been considering using the Gann HiLo indicator as a trailing stop and since I'm an active TS user, I decided to convert my ToS version to EL. Here's the indicator:
The second input value, averageType, is a numerical value corresponding to the type of moving average to suite your needs. 1 = SMA, 2 = EMA, 3 = DEMA, 4 = Hull, and 5 = weighted MA. The default value, if the averageType value is not in this range is EMA.
I commented out the hull moving average function reference because my version has a copyright mark. I think I got it off the TS support site if you want/need it. I'm sure it's available on google. The DEMA is not, so here's that function if you don't have it:
“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” - Sun Tzu
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I would just like to make a small comment here on the Gann Hi-Lo Activator:
The Gann Hi-Low Activator has two stop lines which are calculated from a moving average of the Highs and a moving average from the Lows of the last N bars.
Now what you also could do is to calculate
- the same moving average from the last N bars from the center = (high + low)/2
- calculate the same moving averate of the range of the last N bars
and then take the values
- high stop = average of center + 0.5 * average range
- low stop = average of center - 0.5 * average range
This is nothing else than a Supertrend that
- uses the same average of period N as the Gann-HiLo-Activator,
- then applies that average to the last ranges of the last N bars
- and adds and subtracts half an average range
The SuperTrend has the advantage that you can modulate the factor 0.5, which is fixed for the Gann-HiLo-Activator. Usually you will set your stop line farther away from pirce action to avoid to get stopped out quite often.
Nobody who has a SuperTrend needs a Gann-HiLo-Activator. Scrap it!
Chart attached below.
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Last edited by Fat Tails; July 30th, 2012 at 11:32 AM.
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