This indicator consists of 2 x McGinley Dynamic moving averages with the ability to fill the area between the 2 MA lines.
The McGinley Dynamic MA is a very powerful tool that has many applications and can be a great addition to a traders arsenal if you're interested in it I suggest doing a bit of research. I personally use this indicator in addition to the other indicators in my algorithm as a method of filtering out ranging trades, thus I will not enter a trade if the price is within the colour filled area
When using this indicator don't forget to adjust the inputs to find the best settings to suit your trading method, timeframe and personality. The source code is available to use and modify as you wish.
//@version=4
study(title="McGinley Dynamic Band DT", overlay=true)
length1 = input(3, "Dynamic 1 Length", minval=1)
length2 = input(8, "Dynamic 2 Length", minval=1)
length3 = input(30, "Dynamic 3 Length", minval=1)
length4 = input(80, "Dynamic 4 Length", minval=1)
source = close
mg1 = 0.0
mg1 := na(mg1[1]) ? ema(source, length1) : mg1[1] + (source - mg1[1]) / (length1 * pow(source/mg1[1], 4))
mg2 = 0.0
mg2 := na(mg2[1]) ? ema(source, length2) : mg2[1] + (source - mg2[1]) / (length2 * pow(source/mg2[1], 4))
mg3 = 0.0
mg3 := na(mg3[1]) ? ema(source, length3) : mg3[1] + (source - mg3[1]) / (length3 * pow(source/mg3[1], 4))
mg4 = 0.0
mg4 := na(mg4[1]) ? ema(source, length4) : mg4[1] + (source - mg4[1]) / (length4 * pow(source/mg4[1], 4))
p1 = plot(mg1, "MD1", color=color.lime, linewidth=2)
p2 = plot(mg2, "MD2", color=color.red, linewidth=2)
p3 = plot(mg3, "MD1", color=color.lime, linewidth=2)
p4 = plot(mg4, "MD2", color=color.red, linewidth=2)
fill(p1, p2, color=color.blue, transp=50)
fill(p3, p4, color=color.lime, transp=50)