Gann HiLo activator

Developed by Robert Krausz, the Gann HiLo Activator is a trend-following technical indicator used to help determine the trend’s direction and to generate with-trend entry signals.

The Gann HiLo Activator is a simple moving average of the previous three periods’ highs or lows. Based on the moving averages logic, it is a trend-following indicator used to reflect the market’s direction of movement. Within the trading system we mentioned earlier, the Gann HiLo activator is responsible for generating entry signals, but also helps determine stop-loss levels.

• Bullish Signal- When price is above the Gann Activator it shows that the trend is bullish and only Buy trades should be executed. In a bullish trend the Gann Activator uses the previous periods’ price lows for calculations.
• Bearish Signal- When price is below the Gann Activator it shows that the trend is bearish and only Sell trades should be executed. In a bearish trend the Gann Activator uses the previous periods’ price highs for calculations.

Coded by request on forum.

//PRC_Gann HighLow Activator | indicator
//31.12.2016
//Nicolas @ www.prorealcode.com
//Sharing ProRealTime knowledge
//Converted from Metastock version

// --- parameters
// period = 3
// ---

avgH = average[period](high)[1]
avgL = average[period](low)[1]

if close>avgH then
 hilo = 1
elsif close<avgL then
 hilo = 0
endif

if hilo then
 gannHiLo = avgL
 color = 1
else
 gannHiLo = avgH
 color = -1
endif

return gannHiLo coloured by color as "gannHiLo activator"