This is one of the very best trading techniques I have ever developed. The reason why is that it often rides mega trend markets for a long , long time, yet does not give back much profit when the correction begins as conventional moving average and channel. 

This technique can be used not only as an exit techniques, but as an entry technique as well. It is really quite simple. Once the market is in a run away move, as I call it a “rock and roll” market – then and only then – do we use this exit. Price must be out of a trading range. 

As a trailing stop: Make certain prices are out of congestion, they have begun to run, then, and only then, implement this as your trailing stop (i.e. exit).

For entry: Make certain the market is really set up. Sometimes the first entry will be false as a straight up or down market usually “bases” before the next trend move begins.

(excerpt from the author’s description of this trend following indicator)

This indicator has been requested by Maximus 78 here (https://www.prorealcode.com/topic/3-bar-trailing-stop-di-larry-williams/).

Blue skies!!!

count=1
i=0
j=i+1
tot=0
while count<4 do
 tot=tot+1
 if (low[j]>=low[i]) and (high[j]<=high[i]) then
 //inside bar
  j=j+1
 else
  count=count+1
  i=i+1
  J=i+1
 endif
wend
basso=lowest[tot](low)
alto=highest[tot](high)

if close>alto[1] then
 ref=basso
endif
if close<basso[1] then
 ref=alto
endif

return ref