Peak Valley

Viewing 6 posts - 1 through 6 (of 6 total)

Author

Posts
06/19/2019 at 10:40 AM #101028 quote

Dr Manhattan
Participant

Senior

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.

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

Legend
Yes, a PEAK is when your average is the highest within a range of bars, VALLEY is when it’s the lowest.
```
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
```
x-12.jpg
06/19/2019 at 8:11 PM #101077 quote

Dr Manhattan
Participant

Senior

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.

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

robertogozzi
Moderator

Legend

A falling ADX is current ADX < previous ADX.

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

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

Legend
Examples:
```
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.

Dr Manhattan thanked this post
06/20/2019 at 7:30 AM #101090 quote

Nicolas
Keymaster

Legend

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, ..

Dr Manhattan thanked this post
Author

Posts