Hi all,

I'm trying to find an indicator that finds peaks and bottoms. I'm aware of fractals but I don't think that it's very accurate, too many false peaks.

I have experienced with some indicators, donchian channels reversed by some % is quite good (wpr is good for this) as is bolligner bands reversal (CCI is the indicator to look for this) but I'm looking for more ideas.

I don't mind if the peak is recognized only few bars or pip movement later - what I want to do is mechanically test some peak patterns (higher highs + lower lows and so on) with a very long period of data.

I'll probably be programming my own indicator to find peaks and after that I'll post it here if I get some good ideas.

Just an example for an idea: attached is one of my indicators that uses donchian channels to find short term reversals, I think something like this will be good start (find max of previous bars before the reversal signal).

Attached Files

mikko_minmaxreversal.mq4 (2.6 KB, 143 views)

Thanks.
It's very interesting.
Just played with the settings of this indicator (xbars settings):

mikko_reversal_1.jpg

mikko_reversal_2.jpg

Attached Files

	mikko_reversal.tpl (1.6 KB, 58 views)
	iTrend_hist.mq4 (4.4 KB, 59 views)

Just don't get too overexcited, most of my stuff is really quite simple (simpler is better IMHO)

Just to point how it works, it just looks for a point when the bar has touched the donchian channel X bars ago and not since.

I was thinking of using a similar method to find a max/min point of chart between last up/down arrow to find peaks. That's why I posted the indicator, just as an example.

Maybe something like this?

Attached Images

	trend eur.gif (15.4 KB, 708 views)
	trend.gif (14.5 KB, 699 views)

Attached Files

Trend direction & force index.ex4 (6.7 KB, 102 views)

Thanks for that but I'm a bit unsure how I can use that mechanically to find peaks.

There is a "famous" pattern that occurs at some tops/bottoms.

For a long trade...a bar makes a new low, followed by an upclose(can be on the same bar), followed by a downclose that does not break the low...your entry is a few pips above the high of the downclose...a variation on this entry is if it makes another low(still not breaking the original low) you can enter on a break above the high of the newest low...However, I believe the original version has the orignal high of the first downclose as entry point.

Reverse for a short trade...

Some other things I have observed about this pattern...I think it works best when not too many bars make up the pattern, the pattern occurs at a support/resistance point/area, and price has not traveled too far from the extreme that started the pattern.

Maybe also to be used during volatile market hours if trading intraday...try it out on a 15 min chart in conjunction with a pivot point indicator or daily camarilla line indicator.

I'm not a programmer so I don't have this pattern programmed.

Hope this helps

Very interesting post. Thanks.

FerruFx

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Very nice one. Thanks.

FerruFx

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Hey Mikkom,

Maybe look for "cycle point Kroufr" :

Cycle indicators

And look for the explanations :

Cycle indicators

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Thanks Joe!

Those seem to be pretty good, I'll go through the code and see how they work