Highest / Lowest

Highest and Lowest are relative extreme indicators that find the maximum or minimum value of a price series over the last N bars. They are essential building blocks for breakout strategies, channel detection, and range analysis.

HIGHEST(N) = Maximum value of the source over the last N bars
LOWEST(N)  = Minimum value of the source over the last N bars

By default, HIGHEST uses the high price and LOWEST uses the low price:

• HIGHEST(20) — the highest high of the last 20 bars
• LOWEST(20) — the lowest low of the last 20 bars

These values update on each bar as the rolling window moves forward.

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 20 | Number of bars for the lookback window |

Donchian Channel breakout

A classic breakout strategy — buy when price exceeds the highest high, sell when it falls below the lowest low:

Entry Long:  close > HIGHEST(20)
Entry Short: close < LOWEST(20)

Volatility measurement

The difference between HIGHEST and LOWEST gives the price range:

Range = HIGHEST(20) - LOWEST(20)

A narrow range suggests consolidation; a wide range suggests trending or volatile conditions.

Support/Resistance identification

Recent highs and lows act as natural support and resistance:

• HIGHEST(50) represents a significant recent resistance level
• LOWEST(50) represents a significant recent support level

| Condition | Meaning | |-----------|---------| | close > HIGHEST(20) | Price breaks above 20-bar high (breakout buy) | | close < LOWEST(20) | Price breaks below 20-bar low (breakout sell) | | high > HIGHEST(50) | New 50-bar high — strong momentum | | low < LOWEST(10) | New 10-bar low — short-term weakness | | close > HIGHEST(5) | Price above last 5 bars' high — micro breakout |

• The Donchian Channel (HIGHEST/LOWEST over N bars) is one of the most robust breakout strategies — used by the famous Turtle Traders
• Short periods (5-10) capture micro breakouts — good for scalping
• Medium periods (20-50) are standard for swing trading
• Long periods (100-200) identify major support/resistance levels
• Combine breakouts with volume confirmation to filter false breakouts
• Use HIGHEST/LOWEST as trailing stop levels: exit long when price falls below LOWEST(10)
• Narrowing of HIGHEST - LOWEST range often precedes explosive moves (Bollinger Band squeeze analogy)