If you're looking to enhance your trading strategy, the Larry Williams MinMax Indicator for MetaTrader 5 might be just what you need. Inspired by Larry Williams' book, "Long-Term Secrets to Short-Term Trading", this tool helps identify extreme price points across various time frames.
Understanding Short-Term, Medium-Term, and Long-Term Highs
Here's a quick rundown of how the indicator identifies highs:
- Short-term highs are marked when:
- The high of the current bar is greater than or equal to the high of the previous bar and greater than the high of the next bar.
- If IgnoreInsideBars is set to true, nearby bars must not be inside the current bar; otherwise, we’ll focus on the following bars. If it's false, inside bars are considered normal and can contribute to extreme formations. Check out figures 1 and 2 for clarity.
- Medium-term highs are identified when:
- A short-term high is present on the current bar;
- The nearest short-term highs to both the left and right are lower than the current bar's high.
- Long-term highs appear when:
- A medium-term high is found on the current bar;
- The nearest medium-term highs to the left and right are below the high of the current bar.
Keep in mind: The same logic applies for identifying lows.
This indicator operates solely on completed bars, so patience is key!
Fig. 1 An example with IgnoreInsideBars = true
Fig. 2. An example with IgnoreInsideBars = false
How to Use the Indicator Effectively
This indicator can be instrumental in pinpointing significant price levels, confirming extremes, and aiding in trend detection. It’s a versatile addition to your trading toolkit.
If you're still using MetaTrader 4, don't worry! A similar tool is available: Corrected version of Extrema Indicator by L. Williams.
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