There is a lack of parameterization in the definition of tops and bottoms in technical analysis. Commonly, tops and bottoms, and consequently trends, are classified empirically, leaving it up to the trader's experience to define them through visual interpretation.
The Top Bottom Detector is a tool that creates parameters for the detection of tops and bottoms, automatically applying a line to the price chart. The extremes of this line are classified as tops or bottoms. In other words, the indicator helps to systematically parameterize the definition of trends.
To add the Top Bottom Detector to your chart, right-click on the chart and go to Add Indicator.
Notes
The smaller the calibration period of the indicator, the more sensitive and faster the detection of tops and bottoms will be. The interval represents the number of consecutive extreme breakouts. Depending on the volatility and the state of the market (trending or consolidating), the calibration with the best performance should be defined.
To set the desired Interval, right-click on the indicator and open the Top Bottom Detector Properties, then access Parameters.
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