In it's simplicity is a lot more powerful than might appear at first glance.
- Does not rely on calculation.
- Can be linked together to create an objective view of recent support levels.
- Makes current trends more visible.
- Excellent as a trailing stop algorithm.
Can be used with its sibling: Local Limit Upper
Simply select the "Change" value and alert on "Greater Than" or "Less Than" zero depending on which direction you want to detect.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.