Indexes of Lowest & Highest Values (ILV & IHV)
The Time-Stamp Duo That Ages Your Market Peaks and Troughs
While most traders focus on *how high* or *how low* price has gone, the Indexes of Lowest & Highest Values (ILV & IHV) add the missing piece: *how long ago* those extremes happened. For a rolling window of N bars, IHV tells you how many bars back the highest high occurred, and ILV does the same for the lowest low. Output is a simple integer 0 to Nā1 ā zero means 'fresh extreme today!' while higher numbers mean the peak/trough is getting stale. It's the perfect freshness meter for breakouts, trailing exits, and spotting when momentum is running out of gas.
The Clean Formulas
Pure index lookup:
IHV_t = N - 1 - \text{index of max}(High_{t-N+1 \to t})
ILV_t = N - 1 - \text{index of min}(Low_{t-N+1 \to t})
Can apply to any series ā close, volume, indicators.
Interpreting the Age Values
Market messages:
- 0: Fresh extreme today ā momentum alive.
- 1ā3: Extreme very recent ā trend healthy.
- ā N/2: Extreme aging ā watch for weakness.
- > N/2: Extreme stale ā momentum fading.
- Nā1: Oldest bar holds extreme ā reset imminent.
Combined: fresh high + old low = bullish bias; reverse for bearish.
Parameter Choices
N sets the window:
- Short (5ā10): Sensitive ā intraday micro extremes.
- Medium (20ā50): Balanced ā daily swing freshness.
- Long (100ā252): Macro ā 52-week extreme age.
Pro Trading Applications
Smart uses:
- Fresh breakouts: Enter only when corresponding index = 0.
- Trailing exits: Exit long if IHV > threshold (no new high too long).
- Mean reversion: High index = old extreme ā fade in ranges.
- Volatility timing: Indexes on ATR nearing N ā compression.
Turtle-style: fresh extremes only for entries.
Strategy Templates
Quick setups:
- Fresh momentum: Long when price > HHV and IHV = 0.
- Stale reversal: High ILV + bullish divergence ā long fading dip.
- Volatility squeeze: Both indexes high on ATR ā prep expansion.
Strengths and Limitations
The Wins
- Instant age of extremes ā zero lag timing.
- Versatile on any series.
- Sharpens entries/exits and filters.
- Simple freshness check.
The Gotchas
- Flips on spikes ā filter needed.
- Descriptive ā pair with action rules.
- Oscillates in tight ranges.
- No magnitude ā use with HHV/LLV.
Your ILV & IHV Checklist
- Choose series and N.
- Plot with HHV/LLV for context.
- Backtest freshness thresholds.
- Combine with trend/volume confirmation.
- Alert on resets (0) or stale values.
- Review N across volatility regimes.
Key Takeaways
ILV & IHV count bars since recent low/high ā extreme freshness duo.
0 = new extreme today, high values = stale momentum.
Perfect for fresh breakouts, trailing exits, and spotting exhaustion.
Adds time dimension to HHV/LLV ā crucial timing layer.
Simple stopwatch for peaks/troughs ā trade fresh moves, fade old ones. Stay timed and trade strong!
Indexes of Lowest & Highest Values (ILV & IHV)
The Time-Stamp Duo That Ages Your Market Peaks and Troughs
While most traders focus on *how high* or *how low* price has gone, the Indexes of Lowest & Highest Values (ILV & IHV) add the missing piece: *how long ago* those extremes happened. For a rolling window of N bars, IHV tells you how many bars back the highest high occurred, and ILV does the same for the lowest low. Output is a simple integer 0 to Nā1 ā zero means 'fresh extreme today!' while higher numbers mean the peak/trough is getting stale. It's the perfect freshness meter for breakouts, trailing exits, and spotting when momentum is running out of gas.
Table of Contents
The Clean Formulas
Pure index lookup:
IHV_t = N - 1 - \text{index of max}(High_{t-N+1 \to t})
ILV_t = N - 1 - \text{index of min}(Low_{t-N+1 \to t})
Can apply to any series ā close, volume, indicators.
Interpreting the Age Values
Market messages:
- 0: Fresh extreme today ā momentum alive.
- 1ā3: Extreme very recent ā trend healthy.
- ā N/2: Extreme aging ā watch for weakness.
- > N/2: Extreme stale ā momentum fading.
- Nā1: Oldest bar holds extreme ā reset imminent.
Combined: fresh high + old low = bullish bias; reverse for bearish.
Parameter Choices
N sets the window:
- Short (5ā10): Sensitive ā intraday micro extremes.
- Medium (20ā50): Balanced ā daily swing freshness.
- Long (100ā252): Macro ā 52-week extreme age.
Pro Trading Applications
Smart uses:
- Fresh breakouts: Enter only when corresponding index = 0.
- Trailing exits: Exit long if IHV > threshold (no new high too long).
- Mean reversion: High index = old extreme ā fade in ranges.
- Volatility timing: Indexes on ATR nearing N ā compression.
Turtle-style: fresh extremes only for entries.
Strategy Templates
Quick setups:
- Fresh momentum: Long when price > HHV and IHV = 0.
- Stale reversal: High ILV + bullish divergence ā long fading dip.
- Volatility squeeze: Both indexes high on ATR ā prep expansion.
Strengths and Limitations
The Wins
- Instant age of extremes ā zero lag timing.
- Versatile on any series.
- Sharpens entries/exits and filters.
- Simple freshness check.
The Gotchas
- Flips on spikes ā filter needed.
- Descriptive ā pair with action rules.
- Oscillates in tight ranges.
- No magnitude ā use with HHV/LLV.
Your ILV & IHV Checklist
- Choose series and N.
- Plot with HHV/LLV for context.
- Backtest freshness thresholds.
- Combine with trend/volume confirmation.
- Alert on resets (0) or stale values.
- Review N across volatility regimes.
Key Takeaways
ILV & IHV count bars since recent low/high ā extreme freshness duo.
0 = new extreme today, high values = stale momentum.
Perfect for fresh breakouts, trailing exits, and spotting exhaustion.
Adds time dimension to HHV/LLV ā crucial timing layer.
Simple stopwatch for peaks/troughs ā trade fresh moves, fade old ones. Stay timed and trade strong!
Related Terms
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