Today we have a simple, but endlessly versatile, indicator that plots the X Period High/Low/Mid of your chosen market.
Traditionally the 52 week High/Low is used as a breakout signal. However, by changing to an X period, and adding a midway line, we create a more versatile indicator that can be tailored to various markets.
By default it's set at 250 periods (because I like the 250 period moving average), and I generally trade H4 and Daily time frames. But tweak it to your liking, you just have to modify the length periods by your desired time frame and lookback length. E.g. to create a 52 week indicator on the daily time frame, enter a length of 260 in the indicator (5 days per week * 52 weeks = 260).
For the above reason, I haven't made this indicator MTF, as there's no real need. However, if users find it easier I can look at adding it later.
Also, the mid point between an X period high/low is often a good trend-follower, as well as acting as support/resistance . I encourage you to experiment with different ways of using this indicator. Entire systems (if your risk management is correct) can be built and traded from this one indicator.
I see a plot of High-250, Low-250 and Mid-250. And also a fourth line. What is the fourth line?
DreamsDefined
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@DickvanK, Hi, there are only three plot functions in the code, so there can only be 3 lines. Are you sure it's not another indicator? Feel free to post a screenshot :)
pacecapitalinvestments
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Good work with this indicator. I would love to have this indicator to back test with.
amgtorre
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Perhaps the best tool I have seen to follow the price structure, removes the subjectivity or confusion from identifying higher highs- higher lows , or lower highs lower lows
RedKTrader
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Doncian Channel ?
DreamsDefined
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@RedKTrader, Yep, but can modify upper & lower variables independently.