TD Points, Definition
A TD Point high of level K is a high which is strictly grater than the highs
of the K preceding and K following bars. Similarly, a TD Point low of level K
is strictly less than the lows of the K preceding and K following bars. (Gaps
are not counted in making this determination.) Note that the level number of a
recent high or low may not be finally determinable until more bars are
obtained; a high or low N bars back from the present cannot now be labeled as having a
level more than N, but it may later be given a higher number. Similarly, the
level of a bar near the start of the available data may be uncertain. Either
chart or true highs and lows can be used to determine TD Points; the latter effectively
means that a high or low is a level K TD Point only if it is greater than or less
than the close of the K+1'st prior bar. (A strict application of the
definition of true high/low would mean that a bar that closes at its high/low cannot be
a TD Point because the next bar's true high or low is at least equal to that
close.)