Projecting Trend Lines from the Two Most Recent Period Highs and Lows

Summary

This indicator tracks the two latest highest highs and lowest lows for selectable periods, from yearly down to hourly. It draws lines between those extrema and can extend the resulting slopes across the current period. Users can enable or disable period groups, connecting lines, and projected lines. The author suggests using the levels as possible support or resistance references or for breakout trading.

The description notes practical limits: a chart must be faster than the period being displayed, enough history is needed to identify two extrema, and drawing many historical lines may be slow. Daily and weekly boundaries follow particular candle conventions, including combining Sunday data with Friday for daily calculations and starting weeks at the Sunday candle open. On very fast charts, missing candles may cause projected lines to appear uneven. These lines are visual references; the document offers no evidence that they predict price or produce profitable trades.

Key ideas

• The indicator connects the latest two period highs and the latest two period lows.
• It can extend the slopes of those lines through the current period and label them.
• The author presents the lines as possible support, resistance, or breakout references.
• Data availability, chart timeframe, candle conventions, and missing bars can affect the output.
• The document supplies no performance evidence for trading from the plotted lines.

Tags

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