Discussing the article: "Automating Swing Extremes and the Pullback Indicator: Anticipating Reversals with LTF Market Structure"
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Check out the new article: Automating Swing Extremes and the Pullback Indicator: Anticipating Reversals with LTF Market Structure.
In this discussion we will Automate Swing Extremes and the Pullback Indicator, which transforms raw lower-timeframe (LTF) price action into a structured map of market intent, precisely identifying swing highs, swing lows, and corrective phases in real time. By programmatically tracking microstructure shifts, it anticipates potential reversals before they fully unfold—turning noise into actionable insight.
From an automation perspective, the extreme bearish move is converted into a precise rule-based execution model. When price aggressively trades below the LTF’s last low and the chart updates, the system evaluates whether both LTF_LastHigh and LTF_LastLow are positioned above the current market price—confirming structural displacement beneath the recent range. Once these conditions are met, the logic interprets the move as exhaustion rather than continuation and automatically executes a buy trade. The system then inherits LTF_LastHigh as the take-profit level, targeting a mean reversion back toward prior structure. This removes discretion entirely: the trade is triggered strictly by structural imbalance and predefined thresholds, ensuring consistent execution whenever bearish expansion becomes statistically stretched.
Conversely, during an extreme bullish move, automation applies the inverse logic. When price accelerates above the LTF last high and the chart updates, the algorithm checks whether both LTF_LastHigh and LTF_LastLow are now below the current market price—confirming upward structural overextension. Once validated, the system automatically executes a sell trade, recognizing that price has displaced beyond its recent structural bounds. In this case, LTF_LastLow is inherited as the take-profit level, positioning the trade for a pullback toward prior structure.
Author: Hlomohang John Borotho