Indicator Azzx Larry draws on the chart extremum points, the calculation algorithm which suggested Larry Williams and described this in his book: “Long-term secrets of short-term trade.”
Azzx Larry Technical Indicator
For those who have not read the book of Larry Williams, in this article it is very difficult to explain the principle of constructing these extrema, in short, the extremes of Larry Williams are somewhat similar to Bill Williams’ “Fractals”, since they are built almost one by one and the same principle, namely, on the highs and lows, which are higher and lower than the neighboring bars, respectively. The difference between the extremes of Larry Williams and Fractals, in that “Fractals” are built of at least five bars, and extremes can be built from 3. But in this method of constructing extremes there is one hitch, namely the “inner bar”, on the graph.
that’s why the extremum point is transferred to another bar, all these and other nuances are taken into account by this indicator Azzx Larry .
Azzx Larry Technical Indicator parameters:
parameter has only one indicator and it is called “HISTORY_DEPTH” in which the number of bars in the history for which this indicator will be calculated, if the number is set to “0” , then the indicator will calculate the extremums for the entire history of the currency instrument.
How to use Azzx Larry Technical Indicator?
since these extremes are similar to “Fractals” and are built on the same principle, then the method of trade for these extremes can be the same as in the “Fractals” described in the books of Bill Williams, ie, at the breakdown of levels.
To begin with, we wait for an extremum to form in one direction or another, with each point of the indicator indicating the extremum has its own color. The color of a particular point depends on the “importance” of the extremum.
Points that have the color “Aqua” are the “weakest”, the input on these signals is associated with a greater risk, while these points on the chart are the most.
Extremes color «Blue» are stronger signal compared with the above, wherein the graph is considerably smaller and the breakdown price level data extrema is stronger signal to trade.
The most important extremes of the chart are denoted by the “DeepPink” color points, these extremes give the trader the best entry points to the deal, because entry into the market for these points is associated with a minimum risk and the maximum possible earnings. This increases the likelihood of making a profitable transaction.