Trendlines (long)

8월 17일Hi all!

I hope that this indicator helps you to be a more efficient trader. The concept is well known and useful. So this is not some magic algorithm founded by me, but rather a well known concept. The concept is the drawing of trendlines.

It draws trendlines that has a retest. It draws the trendlines in different colors, the colors used are blue, red, fuchsia and lime.

These are the steps for finding a trendline:

1. Find a generic retest
Find a low that has 2 earlier lows and 1 later low that are higher. This is the reason that a trendline will be created "1 bar late". This is the base and the indicator goes on from here, meaning that this needs to be true to continue.

2. Find an uptrend
Look back 8 bars to find a low that is lower than the retest low.

3. Create the first point of a trendline
Go thru every bar between the user defined "Lookback" and the retest bar (minus the user defined "Skip gap" that's needed between points to create a trendline). From the earliest bar to the latest.

4. Create the second point of the trendline
Go thru every bar between the retest bar and the the first point (bar) minus the "Skip gap". From latest bar to the earliest. A trendline between the two bars are invalidated if some of the criteria are met in-between the bars creating the trendline:
- closed above the trendline (trendline broken)
- is not within the retest bar
- the slope of the trendline is upwards (this indicator is for long entries only)
- at least 1 of the bars creating the retest (1 main bar and 2 earlier bars) has NOT been above the trendline
- is not the created trendline (between the two points) that's closest to the low of the retest bar

TODO:
- add functionality to draw trendlines directly on breakouts
- add volume (high volume needed to create a trendline from a breakout/retest)
- ...?

I hope this explanation makes sense, let me know otherwise. Also let me know if you have any suggestions on improvements.

Best of luck trading!

8월 25일

릴리즈 노트

Hi all!

An update that updates previous trendlines if they are broken (the price has closed below it). This is visible as lines that are dotted instead of filled and does not continue after it's been broken. Hope this update suits you well!

Best of luck trading!