N-Bar High-Low Trend Signals for Pullback Entries

Summary

This note describes Extrem_N, a simple price indicator that compares the current bar’s high and low with those from a user-selected number of bars earlier. A lower current low is treated as evidence of a downtrend, while a higher current high is treated as evidence of an uptrend. The lookback depth can be changed in the indicator settings.

The author suggests using the indicator to identify pullbacks as potential entry points. The document explains the rule but provides no performance data, validation, or detailed entry and exit criteria. It also does not specify how to handle conflicting high and low signals, market gaps, or different asset and time-frame behavior. The indicator was originally written in MQL4 and published in 2014; the note offers no further evidence about its effectiveness, so any use as a trading signal would require independent testing and risk controls.

Key ideas

• The indicator compares the current high and low with values from a configurable number of bars earlier.
• A lower current low signals a downtrend under the described rule.
• A higher current high signals an uptrend under the described rule.
• The author proposes using the indicator to locate pullbacks as possible entry points.
• The document supplies no backtest or evidence of profitability.

Tags

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