Price Extremum Detection Using Neighboring Highs and Lows

Summary

This note describes a chart indicator that marks local price highs and lows using a single period setting. An upper extremum is identified when the prior bar’s high reaches the maximum for the calculation window and exceeds the current bar’s high; a lower extremum uses the corresponding minimum-low comparison and requires the prior low to be below the current low.

The document shows the indicator on hourly and four-hour charts, but gives no performance results or rules for trading from the marked points. The period controls the calculation, though the note does not explain its exact window boundaries or how to interpret a signal after it appears. Extremum markers can help locate possible turning points, but they are descriptive chart signals and do not establish that a reversal will follow.

Key ideas

• The indicator uses a period parameter to calculate candidate price extrema.
• An upper extremum occurs when a prior high is a window maximum and exceeds the current high.
• A lower extremum occurs when a prior low is a window minimum and is below the current low.
• The document illustrates the indicator on hourly and four-hour charts but reports no strategy testing.

Tags

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