This indicator searches for important price extremes. It is based on the algorithm described in the articles Fink and Gandhi: “Important Extrema of Time Series” (2007) and “Compression of Time Series by Extracting Major Extrema” (2011). This algorithm compresses the price timeseries by finding the most important price points (i.e., extremes). The algorithm assigns importance levels to all points of the price timeseries and then leaves only the most important ones. The number of the most important price points is regulated by the compression level set by the user. For example, at a compression level of 80%, the indicator will display only 20% of the most important points. The indicator compresses high and low prices separately, i.e., the final curve consists of the most important extremes of high and low prices.

The indicator has 4 buffers: