Detecting Single and Double Tops and Bottoms with Height and Distance Filters
Summary
The document describes a chart indicator that marks individual swing tops and bottoms, as well as paired formations. It uses three configurable limits: the minimum height or depth of a swing, the maximum separation between the two peaks or troughs, and the maximum number of bars allowed between them. The chart uses dots for single swings and the first point of a pair, then stars for the second point; color distinguishes tops from bottoms.
This is a visual pattern-identification tool rather than a documented trading strategy. The description gives no entry or exit rules, confirmation criteria, performance results, or guidance on choosing parameter values. Traders would need to assess how the thresholds behave across instruments and timeframes, and whether identified patterns are useful within their own analysis.
Key ideas
- The indicator marks single tops and bottoms as well as double formations.
- A minimum swing height or depth filters which turning points qualify.
- Maximum separation and bar-count settings constrain paired peaks or troughs.
- Dots mark single swings and the first point of a pair, while stars mark the second point.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.