HL-Trend: A Candle-Comparison Filter for Swing Trading

Summary

HL-Trend is a price-based indicator intended for swing trading across timeframes. It uses each candle’s high and low relative to the prior candle to update a signal level: a lower high assigns the current high, while a higher low assigns the current low. The candle is then colored bullish when its close exceeds the previous signal value, and bearish when it falls below that value. The page notes that the indicator has no adjustable settings and can serve as a trade filter or part of a swing strategy.

The description explains the signal logic and includes implementation code, but supplies no chart examples, backtest, or performance evidence. It does not define what to do when neither high-low condition applies, when both apply, or when the close equals the prior signal. It also leaves entry, exit, stop, and position-sizing rules to the user, so the indicator alone does not constitute a complete trading system.

Key ideas

• HL-Trend derives a signal level by comparing each candle’s high and low with those of the previous candle.
• A close above the prior signal is marked bullish, while a close below it is marked bearish.
• The indicator is presented as a swing-trading component or a filter for trade decisions.
• The article gives implementation logic but no backtest or measured results.
• It leaves several signal edge cases and complete trade-management rules unspecified.

Tags

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