Highest High/Lowest Low

Owned by Chris Harrison
Last updated: Aug 19, 2022 by Brendan Hebert (Unlicensed)
1 min read

The mathematics defines an envelope of values by using the Highest High or the Lowest Low of the Last 'n' Periods.

The rules generally followed for this study are:

  • enter the market when one of the bands is penetrated. This indicates a possible start of a trend.

  • exit and reverse the position when the opposite band is penetrated.

Another rule you may want to apply is the Donchion's rule, which states:

  • cover short positions and go long whenever the price exceeds the high of the previous four weeks.

  • reverse long positions and go short whenever the price exceeds the low of the previous four weeks.

Default Parameters: 10, 10

Period1: The number of bars used in the calculation for the upper band. If the chart displays daily data, then period denotes days; in weekly charts, the period will stand for weeks, and so on. If the default length of the study is chosen (10), the study will return the highest of the high price values over the previous 10 bars.

Period2: The number of bars used in the calculation for the lower band.