Unlike structure tools that only label HH, HL, LH and LL, Dow Theory also shows which swing the trend depends on and how close price is to it.

How it works

• Swing points come from a ZigZag that follows the same steps as the MetaTrader 5 ZigZag (Depth 12, Deviation 5, Backstep 3). Only confirmed swing points are used.
• Uptrend: a higher high and a higher low (HH and HL). Downtrend: a lower high and a lower low (LH and LL). Anything else is a range.
• In an uptrend, the latest swing low is the pullback low. If price falls below it, the trend changes to Range. In a downtrend, the same applies to the rally high.
• A reversal warning appears when price comes within a set distance of the pullback low or the rally high.

On the chart

• Trend label in the top right corner.
• Latest swing high and low lines, with the distance to each.
• Up to three previous swing highs and lows, labeled HH, HL, LH or LL.
• Bullish reversal / Bearish reversal labels when the trend turns from up to down or from down to up (at bar close).
• Swing line colored by trend: green in an uptrend, red in a downtrend, gray in a range.
• A trend line through the last two falling swing highs or rising swing lows.
• Optional: higher timeframe trend and swing line, background color. Every part can be turned off.

Alerts

Use the "Any alert() function call" condition. Events: new high, new low, swing high or low reached, swing high or low broken, trend change, reversal warning.

Notes

• Distances are in pips on forex and metals and in percent on other markets. You can change this in "Distance unit".
• Swing points can differ slightly from MetaTrader because session times and price data differ between providers.
• If you choose a timeframe above the chart's, its values can change until that bar closes.