I did some Wealth Lab backtests with a friend. I didn't understand an indicator. Why is there a lookback period for consecdown/up and what does lookback 1 or 2 mean?
Rename
It's another way of saying "the number of bars ago". So if Lookback is exactly 1, the indicator returns the number of consecutive bars that the TimeSeries was greater/less than the value 1 bar ago (yesterday for EOD). If lookback is 2 then Consec* compares to the day before yesterday etc.
This makes it handy to, for example, calculate something like Tom Demark's trademarked "Power of 9" which is 9 consecutive days where the close is lower than the close of 4 bars ago :)
Good hint with Tom Demark. Can you also build his TD Sequential with the consecdown/up indicator? As far as I know, the counter 1-9 starts only when a new 4 bar low/high was reached...
According to https://cmtassociation.org/kb/demarks-sequential/
QUOTE:
1) Setup. There must be a decline of at least nine or more consequtive closes that are lower than the corresponding closes four days ealier. If today’s close is equal to or greater than the close four days before, the setup must begin again.
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