Each trend has its high and low key points that are important in the next prices. Sometimes it's hard to find out the keys with a naked eye, so I tried to code a simple indicator to marking these points also, as a bonus, to draw support and resistance lines from previous critical pivot points.
Let me explain the details with a downtrend. If we consider the previous trend, each downtrend starts with a HH and end with a LL. There are always many tries between that HH and LL to turn the trend up. This indicator counts that inner attempts. The higher the number of attempts, the more important move has been started from the beginning (HH). These numbers take their final form when the trend ends and are included in the label at the beginning of each trend.
Key points with 3 and more inner tries are consider as critical point by default but It's alterable and you can change it as you want. The indicator draws lines from critical points too, so you can use that lines as support and resistance in next candles.
Likewise, there are marks below inner LLs and above inner HHs.
This indicator idea is entirely my own and is a product I've really thought about, AND you have allowed to use and share it anywhere to anyone. I did my best to make it useful, even so I am open to any improvement. If you have an idea or a suggestion, don't forget to leave a comment.
Notas de prensa
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Add movement step length calculation.
Notas de prensa
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Update movement step length calculation and format the label prices.
I am sorry but I think the instructions is a bit unclear, I have read your study but still dont understand what the numbers 1-4 represents. Please clarify.
bhnmzm
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@sthlm08, those are the number of moves made by the price to change a trend. or number of pivot point between trend's start and end. The larger the number, the more important the pivot. You can also check the guide here.
Sonoluminescence
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@bhnmzm, Thanks, after reading your other post it was clearer. Have you tried your strategy on lower timeframes 1- 5 min as well?
bhnmzm
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@sthlm08, You are more than welcome! One important point, this is not a strategy it's a helper and complementary tool for the other indicators (or your eyes). Of course you can use it in lower timeframes but the result would be less reliable.
swanny
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this is great, it gives a clear picture thank you very much for the work you have done on this and sharing it with people to use much appreciated