A daily trading signal that identifies potential buy and sell levels by detecting local price extremes in historical candles, providing dynamic support and resistance reference points.
Explore complementary indicator rolesHow it works
The indicator scans historical price candles in descending order to identify specific price configurations that signify potential trading opportunities. For a buy signal, it looks for a candle with a close price lower than both its previous and next candle's closes, marking the low of that candle as the buy level.
Similarly, for a sell signal, the indicator seeks a candle with a close price higher than both surrounding candles' closes, establishing the high of that candle as the sell level. Only one signal (either buy or sell) is generated per day, determined by the first qualifying candle encountered during the backward scan.
Why it may be useful
This signal provides traders with dynamic, objective reference points for potential market entries and exits based on recent price action. By identifying local price extremes, it helps traders recognize potential turning points in the market without relying on subjective interpretations.
The methodology offers a systematic approach to identifying support and resistance levels, which can be crucial for making informed trading decisions. It reduces emotional trading by providing clear, quantifiable criteria for market entry and exit points across different timeframes.
When to explore it
The signal is most effective in markets with clear, identifiable price trends and moderate volatility where local price extremes can be reliably detected. It works particularly well in timeframes that capture meaningful price movements, such as intraday or daily charts.
Traders should consider using this signal in conjunction with other technical indicators to confirm potential trade setups and validate the identified levels. It is especially useful for short-term trading strategies that aim to capitalize on quick price reversals and momentum shifts.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
