Using Pivot Point Dimensions to Build More Consistent Trend Lines
Summary
The document critiques trend lines built from DeMark pivot points or Bill Williams fractals when key points are identified using only a minimum-bar rule. It proposes removing that minimum and defining a point's dimension as the smallest count of bars on either side that are lower or higher than the point. The author argues that this changes which points qualify and makes it easier to compare their structural scale.
For trend construction, the suggested practice is to connect points with equal or similar dimensions; mixing points of different dimensions is described as producing unreliable trends. The text introduces a MetaTrader 5 script that marks key points and displays their dimensions. Its parameters set a minimum dimension for display and a maximum number of bars to process. The author cautions that processing many bars can be slow and says points whose dimensions cannot be calculated within the processing range are specially marked. The claims are illustrated with charts, but no systematic performance test or objective definition of a successful trend is given.
Key ideas
- The method defines a key point's dimension by the smallest qualifying bar count on either side.
- It removes the minimum-bar constraint used in conventional fractal or pivot identification.
- Trend lines should use points with equal or similar dimensions, according to the author.
- The script marks key points and their dimensions, with configurable minimum dimension and processing range.
- The charts are illustrative, and the document provides no systematic test of trading performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.