Larry Williams Nested Price Extremes for Market Structure

Summary

This indicator identifies short-, medium-, and long-term price extremes using a nested hierarchy. A short-term high is a bar whose high is at least as large as the bar to its left and larger than the bar to its right. A medium-term high must also be a short-term high and exceed the nearest short-term highs on both sides. A long-term high applies the same comparison to neighboring medium-term highs. The rules are reversed for lows.

An option controls whether inside bars are ignored when locating short-term extremes; when enabled, the search proceeds past neighboring inside bars. The indicator calculates only on completed bars and is presented as a tool for marking significant price levels or formalizing extremes for trend detection. The document explains the construction rules but provides no quantitative evaluation, trading system, or evidence that the marked levels predict reversals. Its signals therefore describe past bar structure, and users would need to define confirmation, execution, and risk rules separately.

Key ideas

• Short-term extremes compare a bar’s high or low with neighboring bars.
• Medium-term extremes are short-term extremes that exceed the nearest short-term extremes on both sides.
• Long-term extremes apply the same nested comparison to medium-term extremes.
• An option determines whether inside bars are skipped when identifying short-term points.
• The indicator uses completed bars and marks structure, but the document provides no predictive or performance evidence.

Tags

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