Detecting and Projecting Wedge Trendlines from Price Pivots
Summary
The document explains an indicator that automates wedge-style chart analysis by detecting pivot highs and lows, connecting selected pivots into upper and lower trendlines, and projecting each line forward by 20 bars. A configurable lookback determines which prices qualify as pivots; users can choose whether pivots are based on closing prices or on highs and lows. Additional offsets select which stored pivots anchor each line, and the indicator draws updated lines on the latest bar.
The method uses linear interpolation between two pivot points to estimate trendline prices along the projected path. Longer lookbacks are described as producing fewer, more significant pivots. The document presents wedge convergence as a possible breakout signal, but supplies no test results, asset or timeframe evaluation, or rules for confirming breakouts. Pivot selection and wedge interpretation remain parameter-dependent, so the drawn pattern is a charting aid rather than evidence of a profitable strategy.
Key ideas
- The indicator detects pivot highs and lows using configurable lookback windows.
- Selected pivots define upper and lower trendlines that are projected 20 bars forward.
- Users can adjust pivot offsets and choose close prices or high and low prices as sources.
- The projected lines illustrate possible wedge convergence, but no trading performance evidence is provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.