Philosophy
Analysis through thousands of instruments across all timeframes over the years via CQG’s Entry Signal Evaluator, revealed some very consistent patterns in terms of how long trends can last before they enter there first correction, how long that correction typically lasts, before the most difficult part, which is whether the trend will restart. Part of understanding this process was to assess how long it takes before a swing pattern or Peak forms in that trend. Peak Range HiLoCount measures the number of bars between changes to Peak points of those typically above the market (HiCount) and those typically below the market (LoCount). The difference between the range based Peak and |normal Peak, is the fact that Peak points are qualified by an expansion of range over and above a user defined long term average of Range at Peak points. This is normally set at least 1.25 times the normal range (See page 227 of Trading Time).
Interpretation
The thresholds for this study vary considerably from the standard HiLoCount, in that Peak Range HiLoCount can go for an extended period without changing value. This is normally true when a trend is beginning as nobody knows it’s a new trend and ranges are more condensed than the long term average of range. However, when trends develop and go beyond the normal trend cycle (65 bars), more rapid changes in Peak Range HiLoCount should be evident as range expands on any corrections to that trend.
PRHLCnt Parameters
|
Name |
Default |
Definition |
|
Display |
Both |
This sets whether both studies or just a user defined study will appear. |
|
LLev |
2 |
Qualifies how many bars are to the left of the mid point. |
|
RLev |
2 |
Qualifies how many bars are to the right of the mid point. |
|
Mult |
1.5 |
Qualifies the threshold for expansion of range so trigger a change in the Count. |
|
Len |
250 |
Qualifies how many bars that lookback period is to compare range. |