Cloud Trend Indicator ☁
The "Cloud Trend" indicator is a robust tool designed to identify and follow trends in financial markets. Leveraging Heikin Ashi principles, this indicator offers a clear visualization of trend strength and direction through the construction of a dual-line cloud.
How it works:
Principle of code is simple and efficient. Based on the loop, indicator calculates how many Heikin Ashi closes bars back are higher or lower of the current one and producing higherBars sum or lowerBars sum. In this way we have two lines from what clouds are constructed.
int higherBars = 0
int lowerBars = 0
// Heikin Ashi Close
series float h_close = math.avg(open,close,high,low)[barstate.isconfirmed ? 0 : 1]
// Calculation Lines
for i = 0 to lookbackInput - 1
if h_close < h_close
higherBars += 1
else if h_close > h_close
lowerBars += 1
Features:
- Dual-Line Cloud Construction: The cloud is formed by two lines, where the upper line represents bullish momentum (aqua color) and the lower line reflects bearish momentum (red color).
- Dynamic Bar Color: Traders can choose to color price bars based on trend strength. Aqua bars indicate a strong bullish trend, while red bars signify a robust bearish trend, providing valuable insights into market dynamics.
- Customizable Lookback Period: Adapt the indicator to different market conditions by adjusting the lookback period. This flexibility accommodates various trading strategies and preferences.
Usage:
- Cloud Color Signals: Changes in the cloud's color signal shifts in trend direction. Aqua signifies a bullish trend, while red indicates a bearish trend.
- Bar Color Strength: If enabled, the color of price bars reflects the strength of the trend. Intense colors represent strong trends, offering a quick visual cue to the market's momentum.
- Lookback Period Adjustment: Tailor the lookback period to match the timeframe and market conditions you are analyzing. Shorter periods capture immediate trends, while longer periods identify more sustained movements.
The "Cloud Trend" indicator, with its dual-line cloud construction, provides an intuitive way to interpret market trends. Whether you are a seasoned trader or a beginner, this tool enhances your technical analysis and supports more informed trading decisions.
A cool additional feature that could be added in the settings is the ability to set the timeframe the indicator refers to independently of the chart. Great work! 🙌