Automatic Trendlines from Recent Fractals and Price Crosses

Summary

This indicator systematically draws trendlines by joining successive confirmed pivot highs and lows, with the pivot period configurable. It tracks the two most recent fractals of each type, plots higher highs, lower highs, higher lows, and lower lows, and distinguishes the newest lines from older ones. Users can choose how many line pairs to retain and whether lines extend rightward or in both directions. Optional markers and alerts identify closing-price crosses of the calculated upper and lower lines.

The author presents the lines as reference price levels that reduce the subjectivity of manual drawing, not as forecasts. The description includes an observation from NASDAQ futures on a five-second chart during regular trading hours, but reports no systematic study or evidence that line slopes predict future price direction. Fractals require subsequent bars for confirmation, so signals appear with delay relative to the pivot itself. Cross markers and drawn lines can support chart review, but the document does not define a standalone entry, exit, or risk-management strategy.

Key ideas

• Confirmed pivot highs and lows are connected to create upper and lower trendlines automatically.
• The fractal period controls the pivot definition, and the display can classify swings as higher or lower highs and lows.
• Line retention, extension direction, colors, and optional closing-price cross markers are configurable.
• The author frames trendlines as reference levels and cautions that their slope does not establish future direction.
• The example is observational rather than a systematic performance study, and pivot confirmation introduces delay.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.