Swing Highs and Lows for Trend and Range Detection

Summary

The indicator marks recent price highs and lows at two scales: major swings use a longer lookback, while minor swings use a shorter one. The stated purpose is to help identify trend structure and periods when prices are ranging, drawing on Dow theory. Both lookback lengths can be adjusted.

It also plots a configurable moving average and uses the 14-period average true range to offset the markers for major swing points. The document gives code and example default settings, but no chart study, performance results, or rules for turning the marks into trades. The plotted highs and lows are therefore descriptive signals, not evidence of a profitable strategy. Users should also check how the indicator behaves as new bars arrive, since the description does not discuss repainting or other implementation limits.

Key ideas

• The indicator tracks highs and lows over separate short and long lookback windows.
• Minor and major swing markers are intended to show price structure at different scales.
• A configurable moving average is plotted alongside the swing markers.
• Average true range offsets the displayed major swing markers.
• The document provides no backtest or evidence that the indicator improves trading results.

Tags

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