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Stocks & Commodities V. 24:11 (36-44): Sidebar: Algorithm for the Swing Indicator by Giorgos E. Siligardos, Ph.D.

Stocks & Commodities V. 24:11 (36-44): Sidebar: Algorithm for the Swing Indicator by Giorgos E. Siligardos, Ph.D.

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Stocks & Commodities V. 24:11 (36-44): Sidebar: Algorithm for the Swing Indicator by Giorgos E. Siligardos, Ph.D.

The Pascal-like pseudolanguage here consists of two parts and gives the basic steps to construct the swing indicator (SI) using parameter threshold %. We consider the closing price of a trading vehicle an array of N values: CLOSE[1], CLOSE[2], CLOSE[N]. The first part of the code constructs the PIVOT array (PIVOT[1],PIVOT[2], .PIVOT[N]), which carries information about the peaks and troughs of the SI by assigning 1 to cases where a swing high or low has occurred and zero otherwise.

The second part of the code constructs the SI array ( SI[1], SI[2], SI[N] ) by getting the information from the PIVOT array and connecting the pivots using line segments.
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