Intermediate Term Low (ITL): A point on a price chart where the price reaches a relatively lower level compared to the surrounding price points within an intermediate time frame.
Intermediate Term High (ITH): A point on a price chart where the price reaches a relatively higher level compared to the surrounding price points within an intermediate time frame.
Long Term Low (LTL): An Intermediate Term Low (ITL) that has higher Intermediate Term Lows (ITL) on both sides of it, indicating a potential significant reversal point and considered a long term trend change.
Long Term High (LTH): An Intermediate Term High (ITH) that has lower Intermediate Term Highs (ITH) on both sides of it, indicating a potential significant reversal point and considered a long term trend change
The script designed to automatically identify these patterns on a price chart. It categorizes ITH/L and LTH/L points for easy recognition of the market structure and potential pivot points. Traders and analysts often use such patterns and pivot points to make decisions about entering or exiting positions in the market.
Please note that while these concepts are based on certain patterns observed in historical price data, trading and investing in financial markets can be complex and risky. It's important to have a solid understanding of technical analysis, risk management, and market dynamics before making trading decisions.