TASC 2024.02 Price-Time Filtering

1월 17일

█ OVERVIEW

This script implements a price-time trend filter proposed by Alfred François Tagher in the “Trend Identification By Price And Time Filtering” article from the February 2024 edition of TASC's Traders' Tips.


█ CONCEPTS

In his article, Alfred François Tagher proposed a rule set designed to minimize the impact of stochastic price movements, facilitating the identification of larger-scale trends. The rules are:
• If the most recent week's close exceeds the previous week's high, the trend is up.
• If the most recent week's close is below the previous week's low, the trend is down.
• The trend remains unchanged until one of the above conditions occurs.
Similar rules can also apply to monthly bars.
The author argues that this approach integrates characteristics of conventional price action and time dynamics filters, so he refers to it as price-time filtering.


█ CALCULATIONS

This script applies the above price-time filtering rules and offers multiple ways to view the results on a chart:
• In the "Oscillator" view mode, the script counts and displays the number of bars in the uptrend and downtrend.
• In the "Linebreak" view mode, the trend filter is presented in a format resembling a point-and-figure (P&F) chart, with the length of each bar corresponding to the high-low range of the respective trend.
• In both view modes, the script offers bar coloring of the main chart based on the identified trend.