LonesomeTheBlue

Trend Follower

Hello Traders!

While analysing the charts, one of the biggest problem is to see if there is trend or not, or is it in a congestion zone/area? While thinking about it, I found the idea to analyse moving averages in channel and their momentum according to channel width.


How it calculates and works?

On each bar it creates a channel by highest/lowest point of a MA. highest point is upper point and lowest point is lower point of the MA channel,
It gets highest and lowest point of last 300 bars, (say Price Channel )
If the width of MA channel is greater than certain rate of price channel then it decides there is trend
After it decided there is trend, it calculates the rate between channel and MA. Bigger result means stronger trend.
According to rate of MA channel and the price channel , bar color becomes lighter/darker. so when you look at the bar color you can see the trend strength.


Short explanation on the chart:


Also by changing channel or size other options (such MA length etc) you can see congestion zones/areas:


Another one, about trend direction and its strength:


Options:

You can choose following MA types as source: EMA , SMA , RMA, WMA , VWMA
"Period to Check Trend" is the period to create MA channel. Bigger period cause more sensitivity.
MA Period is the Length of the MA that will be checked
"Trend Channel Rate %" is rate of price channel . Price channel created by using highest/lowest of last 300 bars. I did this to make the script works on all time frames correctly.
"Use Linear Regression" is used to get rid of noise. it may cause 1-2 bars latency. (I use it)


The idea was created by LonesomeTheBlue.


Enjoy!
Notas de Lançamento: Added Alerts for:
- Trend is UP
- Trend is DOWN
- No Trend
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If you find my works useful, please consider a donation
BTC: 19qDW9AShZhBZsGuXcgRzam5Fbpc3EU8EV
ETH: 0x39c8552371b9b7f4e324197af460ba8bc8e18ef9

Comentários

Great! thank you
+2 Resposta
nice work
+2 Resposta
Thanks for this Great work!
Can you add divergence line with respect to price in indicator.
i.e if price go higher high n indicator make lower low?
+1 Resposta
@wagla_21, if I have time this month I can do this.
Resposta
wagla_21 LonesomeTheBlue
@LonesomeTheBlue, Thank you for consideration!
Resposta
thank you
+1 Resposta
@skook7, you are welcome
Resposta
thank you
+1 Resposta
@ahmetk072, you are welcome
Resposta
as always. great work sir
+1 Resposta
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