At The Close: Using Price Extreme Values by Voznjuk Vladimir Vladimirovich
Here’s one way to look for entry points by using extreme price values.
ALL traders dream about opening a position at an extreme low or high price value. In an ideal world, everybody would open short positions at a high price and open long positions at a low price. This is because doing so guarantees a small floating drawdown, minimal risk, and the possibility of an effective trailing position.
To pursue this idea, I created an interesting algorithm to search for entry points using extreme price values. Here is an idea for such an indicator. (Code follows for the MetaTrader 4 trading platform.) The charts I have created will help you to understand this algorithm better.