DYO: Pesavento Break

The Pesavento Patterns study is an excellent way to find and mark the swings on a chart.   This example will highlight in blue the bars which break above a prior swing high in an up trend.  In a down trend, the bars that trade below a prior swing low will be highlighted in yellow.

Line A gets the prior swing price and stores this value in Global Variable [1].  This price is marked with a horizontal red line and represents the trigger level for the break out test.

Line B tests for a bar's High being above the swing price.   Line C tests for the current Pesavento trend to be rising.   Line D highlights a bar in blue when both conditions from Line B and C are True simultaneously.

Lines E, F and G are a mirror image of the logic on lines B, C and D.    A bar whose Low is below the swing price and in a down trend is highlighted in yellow.

Template:   PesaventoBreak