Using the Higher Highs and Lower Lows Stochastic for Trend and Reversal Signals

Summary

The document introduces the higher highs and lower lows stochastic (HHLLS), a momentum oscillator attributed to Vitali Apirine’s February 2016 article. It describes several possible uses: spotting emerging trends, identifying corrections, anticipating reversals, and assessing overbought or oversold conditions.

The suggested signal is a change in the indicator’s fill color, which occurs when its two plotted values cross. The document also mentions divergences and crossovers as ways to generate signals, but provides no calculation details, parameter settings, trading rules, charts, or performance evidence. It therefore serves as a brief indicator overview rather than a validated strategy; signals and interpretations would need independent testing.

Key ideas

• HHLLS is presented as a momentum oscillator for identifying possible trend changes and corrections.
• It may also be used to anticipate reversals and mark overbought or oversold conditions.
• The described visual signal is a fill-color change when the indicator’s two values cross.
• The document gives no parameters or evidence of trading performance.

Tags

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