ExtremLine: Trend Direction from Lookback Highs and Lows

Summary

ExtremLine is described as a simple trend indicator that compares the current bar’s extreme with the corresponding extreme from a user-set number of bars earlier. It identifies a downtrend when the current minimum is lower than the earlier minimum, and an uptrend when the current maximum is higher than the earlier maximum. The lookback depth is configurable, so the comparison horizon can be adjusted.

The author says the indicator can help locate pullbacks as potential entry points. The document offers a conceptual description and identifies the indicator’s original MQL4 publication, but provides no performance results, test design, or rules for confirming entries and exits. Its trend labels depend on a single lookback comparison; the text does not explain how to handle conflicting signals, sideways markets, or risk. The indicator is therefore a basic price-structure tool rather than a complete trading system.

Key ideas

• The indicator compares current highs and lows with those from a configurable number of bars earlier.
• A lower current minimum than the lookback minimum is treated as a downtrend.
• A higher current maximum than the lookback maximum is treated as an uptrend.
• The author suggests using the signal to identify pullbacks as possible entry points.
• The description provides no empirical performance evidence or complete trading and risk rules.

Tags

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