Price Cycle

[Tradewinds 12]

This is a very simple oscillating indicator to compare price high to price low behavior. Interestingly, the price often peaks with the Price Low line goes higher than the Price High line. So you can take peak signals off what the Price Low is doing.

 

var: PrcLwChg(0), PrcHiChg(0), FinalPriceHiChg(0), FinalPriceLwChg(0), PrcLwChgDwn(False), PrcHiChgUp(False);

PrcHiChg = H-H[1];
PrcLwChg = L-L[1];

If PrcHiChg <> 0 then FinalPriceHiChg=PrcHiChg/0.77
Else if PrcHiChg=0 and C-O<>0 then FinalPriceHiChg=(C-O)/0.77
else FinalPriceHiChg=FinalPriceHiChg[1];
If PrcLwChg <> 0 then FinalPriceLwChg=PrcLwChg/0.77
else if PrcLwChg=0 and C-O<>0 then FinalPriceLwChg=(C-O)/0.77
else FinalPriceLwChg=FinalPriceLwChg[1];

PrcHiChgUp = FinalPriceHiChg>FinalPriceHiChg[1];
PrcLwChgDwn = FinalPriceLwChg<FinalPriceLwChg[1];

plot1(FinalPriceLwChg,"Hi Chg");
plot2(FinalPriceLwChg,"Hi Chg2");

plot3(FinalPriceHiChg,"Low Chg");
plot4(FinalPriceHiChg,"Low Chg2");

plot5(0,"ZeroLine");

[Tams 20]

would you have a sample chart to go with the code?

[clmacdougall 11]

Hi Tradewinds

 

 

A few months ago I finished the book, " Future Trends From Past Cycles," by Brian J. Millard, it may interest you if you are looking for an understanding of price oscillation. Just thought it could be of some help as you must be studying about such things nowadays.

[Tradewinds 12]

would you have a sample chart to go with the code?

 

ES 3 minute chart.

 

This screen shot shows how I've colored the lines in the oscillator. Here's how I would read the peak signals:

 

Once you see some separation up between the Price Low line (Gray), and the Price High line (Yellow), . . . . AND the Yellow Line is either going up with the grey line, OR the Yellow line was going up on the last bar, you would exit your long position on the next bar when the close was up, and the close was higher than the close of the last bar. If you take a look at the chart, the close would have been up, and higher 100% of the time on the next bar. Yes, the historical chart shows one set up with a close down after the signal at 10:51am, but in real time there would have been a close up, AND the close higher than the last.

 

That strategy would have gotten you out of your long order almost at every price peak.