Advanced trading software: technical analysis and neural networks

In his article, “Getting Clear With Short-Term Swings”, Ron Black demonstrates an indicator that finds an effective way to identify and visualize short-term price swings. The method is simple and objective. It requires no calculation and has no delay.

Using Tradecision’s Indicator Builder, one needs to create the SWING LINE indicator:

var
hH:=H;
lL:=L;
lH:=H;
hL:=L;
upsw:=0;
upswprev:=0;
end_var

if HISTORYSIZE < 1 then upswprev:=0;
   else upswprev:=upsw\1\;

       {Find Swing Direction}
if upswprev=1 then begin
   if H>hH\1\ then hH:=H; {update hH, hL}
      else hH := hH\1\;
   if L>hL\1\ then hL:=L;
      else hL := hL\1\;

   if HlH then begin {swing changes to up}
      upsw:=1;
      hH:=H;
      hL:=L;
   end;
end;

print(1,upswprev);
if upsw=1 then return hL;
if upsw=0 then return lH;
return 0;
<hL then begin {swing changes to down}
      upsw:=0;
      lL:=L;
      lH:=H;
   end;
end;

if upswprev=0 then begin
   if L<lL\1\ then lL:=L; {update lL, lH}
      else lL:= lL\1\;
   if H<lH\1\ then lH:=H;
      else lH:= lH\1\;return 0;

lH then begin {swing changes to up}
      upsw:=1;
      hH:=H;
      hL:=L;
   end;
end;

print(1,upswprev);
if upsw=1 then return hL;
if upsw=0 then return lH;
return 0;