Algorithm to Identify Peaks in Trading Charts

Traders rely on accurate peak detection to analyze market patterns and predict future prices. While the zigzag indicator is favored by most traders for its effectiveness, applying it to low volatility data, like MACD charts, leads to distorted peaks. Similarly, mathematical algorithms may generally find peaks, but these are often deemed inaccurate by traders due to the inclusion of insignificant points. Consequently, this research introduces a peak filtering algorithm tailored to traders' needs, aiming to refine peak identification. The algorithm is successful in filtering out significant peaks, as demonstrated in Figure 8, addressing the limitations of existing methods.