A Repainting Indicator for Locating Local Price Highs and Lows
Summary
This MetaTrader indicator marks selected local price tops and bottoms with colored dots. It calculates highs and lows over a configurable period, compares them with the broader trading range, and marks points that meet a significance threshold. The period setting affects how many points appear: longer periods produce fewer marks, while a higher range cutoff adjustment produces more frequent dots. An option controls how many bars are included in the calculation.
The key limitation is that the indicator repaints: previously marked locations can move as new price data arrives. The document explicitly cautions against treating dot appearances as buy or sell signals. It presents the tool as a quick way to identify possible support and resistance areas for breakout analysis or as a component in further indicator development. No performance testing, instrument-specific evidence, or rules for confirming levels are provided.
Key ideas
- The indicator marks local highs and lows based on their size relative to a recent price range.
- A longer calculation period results in fewer displayed dots.
- Changing the range adjustment changes how frequently significant points are marked.
- The indicator repaints, so historical dot locations can shift as new data arrives.
- Its suggested use is to locate possible support and resistance areas, not to generate direct trade signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.