Peak Valley

• 06/19/2019 at 10:40 AM #101028
  Dr Manhattan

  Hi, I have seached forums for “Peak” / “Valley” functions but not exactly found what Im looking for.

  Im looking for a method / function to identify peaks / valleys which are not so pointy. For example using a moving average with 500 on a price curve generates this type of slow peaks / valleys. The functions I have found in the forum doesnt find these peaks / valleys.

  Any idea what type of code I could use to identify those ones. They often have a few bars of a horizontal line in the middle.

  

  Dr Manhattan

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  06/19/2019 at 11:10 AM #101032
  robertogozzi

  Yes, a PEAK is when your average is the highest within a range of bars, VALLEY is when it’s the lowest.

  Peaks & Valleys

  DEFPARAM CalculateOnLastBars = 3000 p = 500 LookBack = 500 MyAvg = average[p,0](close) Valley = lowest[LookBack](MyAvg) Peak = highest[LookBack](MyAvg) x = 0 IF MyAvg = Peak THEN x = 1 ELSIF MyAvg = Valley THEN x = -1 ENDIF RETURN x,0

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  DEFPARAM CalculateOnLastBars = 3000 p        = 500 LookBack = 500 MyAvg    = average[p,0](close) Valley   = lowest[LookBack](MyAvg) Peak     = highest[LookBack](MyAvg) x = 0 IF MyAvg = Peak THEN    x = 1 ELSIF MyAvg = Valley THEN    x = -1 ENDIF RETURN x,0

   

  

  robertogozzi

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  06/19/2019 at 8:11 PM #101077
  Dr Manhattan

  Thanks! Thats a good definition of PEAK / VALLEY.

  I have another question, it might not be on the same topic but related how would you define or try to measure falling, for example a falling ADX.

  

  Dr Manhattan

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  06/19/2019 at 9:04 PM #101080
  robertogozzi

  A falling ADX is current ADX < previous ADX.

  The falling is even stronger the more periods you account for ADX < previous one!

  

  robertogozzi

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  06/19/2019 at 11:20 PM #101083
  robertogozzi

  Examples:

  Falling ADX

  Periods = 14 //14 ADX periods LookBack = 3 //3 consecutive falling ADX periods MyAdx = Adx[Periods] IF summation[LookBack](MyAdx < MyAdx[1]) = LookBack THEN //actions to be taken when ADX is falling for 3 LOOKBACK consecutive periods ENDIF

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  Periods  = 14                 //14  ADX periods LookBack = 3                  //3   consecutive falling ADX periods MyAdx = Adx[Periods] IF summation[LookBack](MyAdx < MyAdx[1]) = LookBack THEN    //actions to be taken when ADX is falling for 3 LOOKBACK consecutive periods ENDIF

  you need to replace MyAdx < MyAdx[1] with MyAdx > MyAdx[1] for a rising ADX.

   

   

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  Dr Manhattan

  

  robertogozzi

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  06/20/2019 at 7:30 AM #101090
  Nicolas

  As for peak and valley, you can also use any type of highest high / lowest low detection such as zigzag, fractals, swing hi/lo, donchian channel, ..

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  Dr Manhattan

  

  Nicolas

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