Counter-Trend Scalping Indicator with Moving-Average Crosses and Extremes

Summary

This document presents a chart indicator intended to support counter-trend scalping. It tracks new highs and lows over a configurable lookback period, calculates a linear weighted moving average and a smoothed version, and marks an earlier local extreme when the two averages cross. The indicator displays support and resistance levels, a color-coded chart background, optional stop-loss labels at the marked extremes, and a 200-period simple moving average as a medium-term reference.

Its configurable inputs control the lookback, label offset, background transparency, and display options. The material is an indicator description and code example rather than a fully specified trading system: it does not define position sizing, entry execution, or a systematic exit beyond the plotted stop reference. It supplies no backtest or performance evidence. The text frames the method as counter-trend trading, so the plotted crossings and historical extremes should be treated as signals to evaluate rather than proof that reversals will occur.

Key ideas

• The indicator marks local extremes when a linear weighted moving average crosses its smoothed counterpart.
• A configurable lookback identifies new highs and lows that are used as support or resistance references.
• Stop-loss labels are placed near the identified extreme, while a 200-period simple moving average provides broader context.
• The document does not provide trading rules, backtest results, or evidence that the counter-trend signals are profitable.

Tags

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