Half-Trend Channel [BigBeluga]

Half Trend Channel [BigBeluga] is a powerful trend-following indicator designed to identify trend direction, fakeouts, and potential reversal points. The combination of upper/lower bands, midline coloring, and specific signals makes it ideal for spotting trend continuation and market reversals.


The base of the channel is calculated using smoothed half-trend logic.

// Initialize half trend on the first bar
if barstate.isfirst
    hl_t := close

// Update half trend value based on conditions
switch 
    closeMA < hl_t and highestHigh < hl_t => hl_t := highestHigh
    closeMA > hl_t and lowestLow   > hl_t => hl_t := lowestLow
    => hl_t := hl_t

// Smooth
float s_hlt = ta.hma(hl_t, len)

🔵Key Features:

• Upper and Lower Bands:
• The bands adapt dynamically to market volatility.
  
• Price movements toward the bands help identify areas of overextension and potential reversal points.
  
• Midline Trend Signal:
• The midline changes color to reflect the current trend:
  
• Green Midline: Indicates an uptrend.
  
• Purple Midline: Signals a downtrend.
  
• Fakeout Signals ("X"):
• "X" markers appear when price briefly breaches the outer bands but fails to sustain the move.
  
• Fakeouts help traders identify areas where price momentum weakens.
  
  
• Reversal Signals (Triangles):
• Triangles (▲ and ▼) mark potential tops and bottoms:
  
• ▲ Up Triangles: Suggest a potential bottom and a reversal to the upside.
  
• ▼ Down Triangles: Indicate a potential top and a reversal to the downside.
  
  
• Dynamic Trend Labels:
• At the last bar, the indicator displays labels like "Trend Up" or "Trend Dn", reflecting the current trend direction.
  

🔵Usage:

• Use the colored midline to determine the overall trend direction.
  
• Monitor "X" fakeout signals to spot failed breakouts or momentum exhaustion near the bands.
  
• Watch for reversal triangles (▲ and ▼) to identify potential trend reversals at tops or bottoms.
  
• Combine the bands and midline signals to confirm trade entries and exits:
  
• Enter long trades when price bounces off the lower band with a green midline.
  
• Consider short trades when price reverses from the upper band with a purple midline.
  
• Use the trend label (e.g., "Trend Up" or "Trend Dn") for quick confirmation of the current market state.
  

The Half Trend Channel is an essential tool for traders who want to follow trends, avoid fakeouts, and identify reliable tops and bottoms to optimize their trading decisions.