The Trend Setter
The "Trend Setter" script is a technical indicator that combines several other indicators to identify trends and potential entry points in the market. It is designed to work with various financial markets, including stocks, forex, and futures, and can be used on any timeframe.
The script uses the TTM Squeeze indicator, Bollinger Bands, Keltner Channels, CCI, and Parabolic SAR to identify trends and potential entry points. The TTM Squeeze is a custom indicator that identifies periods of low volatility, while the Bollinger Bands and Keltner Channels are used to identify potential breakouts. The CCI is used to identify potential overbought and oversold conditions, and the Parabolic SAR is used to identify potential trend reversals.
The TTM Squeeze indicator is a combination of Bollinger Bands and Keltner Channels. The indicator creates a "squeeze" when the Bollinger Bands move inside the Keltner Channels. This indicates a period of low volatility and is often followed by a period of increased volatility or a breakout. The script uses this information to identify potential trading opportunities.
The Bollinger Bands are a popular indicator used to identify potential breakouts. They consist of a moving average (the basis) and two standard deviation lines (the upper and lower bands). When the price moves outside the bands, it is considered a potential breakout.
Keltner Channels are similar to Bollinger Bands but are based on the Average True Range (ATR) instead of standard deviation. They consist of an exponential moving average (the basis) and two lines that are offset from the basis by a multiple of the ATR. When the price moves outside the channels, it is considered a potential breakout.
The CCI (Commodity Channel Index) is used to identify potential overbought and oversold conditions. It measures the difference between the typical price (the average of the high, low, and close) and a moving average of the typical price. The result is then divided by a multiple of the mean deviation. When the CCI moves above a certain threshold, it is considered overbought, and when it moves below a certain threshold, it is considered oversold.
The Parabolic SAR (Stop and Reverse) is used to identify potential trend reversals. It consists of a series of dots that appear above or below the price, depending on the direction of the trend. When the price crosses the dots, it is considered a potential reversal.
The script plots arrow shapes on the chart to indicate long and short entry points, and can also generate alerts to notify the user of potential trading opportunities. The script uses the various indicators to determine the potential entry points based on the current market conditions.
Overall, the script is designed to help traders identify potential trading opportunities and make more informed trading decisions. However, as with any trading strategy or indicator, it is important to thoroughly test and validate the approach before using it in a live trading environment. Traders should also consider their risk tolerance and other factors before making any trades based on the indicator.
In assembling the different indicators in this script, there is a specific rationale for each one's inclusion, and how they work together to create a comprehensive trading strategy.
The TTM Squeeze indicator is used as a primary filter to identify periods of low volatility, as these are often followed by high volatility and potential breakouts. Bollinger Bands and Keltner Channels are then used to identify potential breakouts, with the former representing the upper and lower boundaries of price action and the latter representing the average price range. The inclusion of both indicators helps to confirm potential breakouts and provide a more comprehensive view of price action.
The CCI indicator is used as a momentum indicator to confirm potential trend reversals, by identifying overbought and oversold conditions. This is important because while breakouts can be identified using the TTM Squeeze and Bollinger Bands/Keltner Channels, they do not necessarily indicate the direction of the breakout. The CCI helps to confirm whether the price is overbought or oversold, and can indicate potential reversals or continuations of the trend.
Finally, the Parabolic SAR is used as a trend-following indicator to identify potential trend reversals, by placing dots above or below the price depending on the direction of the trend. This helps to identify potential reversal points in the trend and can be used in conjunction with other indicators to confirm potential entry and exit points.
In summary, the combination of these indicators is designed to provide a comprehensive view of the market, identifying periods of low volatility, potential breakouts, momentum changes, and trend reversals. By providing clear entry and exit points, the script aims to help traders make more informed trading decisions and improve their overall trading performance.
The script uses the TTM Squeeze indicator, Bollinger Bands, Keltner Channels, CCI, and Parabolic SAR to identify trends and potential entry points. The TTM Squeeze is a custom indicator that identifies periods of low volatility, while the Bollinger Bands and Keltner Channels are used to identify potential breakouts. The CCI is used to identify potential overbought and oversold conditions, and the Parabolic SAR is used to identify potential trend reversals.
The TTM Squeeze indicator is a combination of Bollinger Bands and Keltner Channels. The indicator creates a "squeeze" when the Bollinger Bands move inside the Keltner Channels. This indicates a period of low volatility and is often followed by a period of increased volatility or a breakout. The script uses this information to identify potential trading opportunities.
The Bollinger Bands are a popular indicator used to identify potential breakouts. They consist of a moving average (the basis) and two standard deviation lines (the upper and lower bands). When the price moves outside the bands, it is considered a potential breakout.
Keltner Channels are similar to Bollinger Bands but are based on the Average True Range (ATR) instead of standard deviation. They consist of an exponential moving average (the basis) and two lines that are offset from the basis by a multiple of the ATR. When the price moves outside the channels, it is considered a potential breakout.
The CCI (Commodity Channel Index) is used to identify potential overbought and oversold conditions. It measures the difference between the typical price (the average of the high, low, and close) and a moving average of the typical price. The result is then divided by a multiple of the mean deviation. When the CCI moves above a certain threshold, it is considered overbought, and when it moves below a certain threshold, it is considered oversold.
The Parabolic SAR (Stop and Reverse) is used to identify potential trend reversals. It consists of a series of dots that appear above or below the price, depending on the direction of the trend. When the price crosses the dots, it is considered a potential reversal.
The script plots arrow shapes on the chart to indicate long and short entry points, and can also generate alerts to notify the user of potential trading opportunities. The script uses the various indicators to determine the potential entry points based on the current market conditions.
Overall, the script is designed to help traders identify potential trading opportunities and make more informed trading decisions. However, as with any trading strategy or indicator, it is important to thoroughly test and validate the approach before using it in a live trading environment. Traders should also consider their risk tolerance and other factors before making any trades based on the indicator.
In assembling the different indicators in this script, there is a specific rationale for each one's inclusion, and how they work together to create a comprehensive trading strategy.
The TTM Squeeze indicator is used as a primary filter to identify periods of low volatility, as these are often followed by high volatility and potential breakouts. Bollinger Bands and Keltner Channels are then used to identify potential breakouts, with the former representing the upper and lower boundaries of price action and the latter representing the average price range. The inclusion of both indicators helps to confirm potential breakouts and provide a more comprehensive view of price action.
The CCI indicator is used as a momentum indicator to confirm potential trend reversals, by identifying overbought and oversold conditions. This is important because while breakouts can be identified using the TTM Squeeze and Bollinger Bands/Keltner Channels, they do not necessarily indicate the direction of the breakout. The CCI helps to confirm whether the price is overbought or oversold, and can indicate potential reversals or continuations of the trend.
Finally, the Parabolic SAR is used as a trend-following indicator to identify potential trend reversals, by placing dots above or below the price depending on the direction of the trend. This helps to identify potential reversal points in the trend and can be used in conjunction with other indicators to confirm potential entry and exit points.
In summary, the combination of these indicators is designed to provide a comprehensive view of the market, identifying periods of low volatility, potential breakouts, momentum changes, and trend reversals. By providing clear entry and exit points, the script aims to help traders make more informed trading decisions and improve their overall trading performance.
Notes de version:
In the updated script, several modifications have been made compared to the previous one. Here are the key changes:
Indicator Name: The name of the indicator has been changed from 'Trending' to 'The Trend Setter'.
Entry Condition Variables: The entry condition variables have been renamed from longEntry and shortEntry to bullTrend and bearTrend respectively. The resulting values for these conditions are now either 1 (for bullish) or -1 (for bearish) instead of boolean true/false.
Tracking Consecutive Signals: New logic has been added to track consecutive signals. Variables longCount and shortCount have been introduced to count the number of consecutive bullish and bearish trends respectively. This count is reset to 0 whenever there's a break in the trend.
Modified Plotting: The bullishTrend and bearishTrend are now plotted as columns, where the height (or depth) of the column represents the consecutive count of bullish or bearish trends. This gives a visual representation of the strength and persistence of a particular trend.
Horizontal Lines: Four horizontal lines have been added at levels 15, -15, 30, and -30. These can act as visual thresholds for traders.
Alerts: Alerts have been added for both bullish and bearish conditions. This allows traders to set notifications for when these conditions are met, providing real-time updates even when not directly monitoring the chart.
Please note that the calculations for the Bollinger Bands, Keltner Channels, Squeeze conditions, Commodity Channel Index (CCI), and Parabolic SAR remain the same as in the previous script. The changes are primarily related to how the results are interpreted, displayed, and alerted.
Indicator Name: The name of the indicator has been changed from 'Trending' to 'The Trend Setter'.
Entry Condition Variables: The entry condition variables have been renamed from longEntry and shortEntry to bullTrend and bearTrend respectively. The resulting values for these conditions are now either 1 (for bullish) or -1 (for bearish) instead of boolean true/false.
Tracking Consecutive Signals: New logic has been added to track consecutive signals. Variables longCount and shortCount have been introduced to count the number of consecutive bullish and bearish trends respectively. This count is reset to 0 whenever there's a break in the trend.
Modified Plotting: The bullishTrend and bearishTrend are now plotted as columns, where the height (or depth) of the column represents the consecutive count of bullish or bearish trends. This gives a visual representation of the strength and persistence of a particular trend.
Horizontal Lines: Four horizontal lines have been added at levels 15, -15, 30, and -30. These can act as visual thresholds for traders.
Alerts: Alerts have been added for both bullish and bearish conditions. This allows traders to set notifications for when these conditions are met, providing real-time updates even when not directly monitoring the chart.
Please note that the calculations for the Bollinger Bands, Keltner Channels, Squeeze conditions, Commodity Channel Index (CCI), and Parabolic SAR remain the same as in the previous script. The changes are primarily related to how the results are interpreted, displayed, and alerted.
Notes de version:
Title Change: Our team has updated the title of your favorite script from 'The Trend Setter' to 'The Trendicator'. We believe this new title better represents the powerful functionality of this tool as a trend indicator in your trading arsenal.
RSI Calculations: We've added an exciting new feature - calculations for the Relative Strength Index (RSI). The RSI is a popular momentum oscillator that measures the speed and change of price movements. In our updated version, we calculate an adjusted RSI value (to fit our scale) and plot it over the histogram. This adjusted value is scaled from 30 to -30, as opposed to the traditional 0-100 scale, giving you a more focused view of the critical middle range where many trading decisions are made. This allows for potentially clearer signals when the market is overbought or oversold. Readings above 15 are overbought. Readings below -15 are oversold.
Divergence Calculations: We've also introduced calculations for bearish and bullish divergences. Divergence is a powerful concept in technical analysis that occurs when the price of an asset is moving in the opposite direction of a technical indicator. This can often be a sign of potential market reversals. Our script now identifies these divergences for you, which could be a helpful addition to your trading strategy.
Color Assignment: To make our chart even more intuitive, we now assign colors based on the divergence conditions. This means you can visually spot potential trading signals more easily. If a bullish divergence is identified, the column will be colored green. If a bearish divergence is identified, the column will be colored red.
MACD Calculations: We know how much many traders value the Moving Average Convergence Divergence (MACD) as a trend-following momentum indicator. So, we've included calculations for MACD in our new update. Our script now shows the relationship between two moving averages of your asset’s price. This can provide valuable insight into potential buy and sell signals.
Scale Factor for MACD Line: We've taken the MACD a step further by applying a scale factor to the MACD line calculation depending on your selected timeframe. This helps to adjust the MACD line for better visual display, particularly on smaller timeframes. This means that regardless of whether you're a day trader or a swing trader, our script can adapt to provide you with meaningful data.
We hope you find these updates helpful. As always, we're committed to providing you with the best tools to support your trading decisions. Happy trading!
RSI Calculations: We've added an exciting new feature - calculations for the Relative Strength Index (RSI). The RSI is a popular momentum oscillator that measures the speed and change of price movements. In our updated version, we calculate an adjusted RSI value (to fit our scale) and plot it over the histogram. This adjusted value is scaled from 30 to -30, as opposed to the traditional 0-100 scale, giving you a more focused view of the critical middle range where many trading decisions are made. This allows for potentially clearer signals when the market is overbought or oversold. Readings above 15 are overbought. Readings below -15 are oversold.
Divergence Calculations: We've also introduced calculations for bearish and bullish divergences. Divergence is a powerful concept in technical analysis that occurs when the price of an asset is moving in the opposite direction of a technical indicator. This can often be a sign of potential market reversals. Our script now identifies these divergences for you, which could be a helpful addition to your trading strategy.
Color Assignment: To make our chart even more intuitive, we now assign colors based on the divergence conditions. This means you can visually spot potential trading signals more easily. If a bullish divergence is identified, the column will be colored green. If a bearish divergence is identified, the column will be colored red.
MACD Calculations: We know how much many traders value the Moving Average Convergence Divergence (MACD) as a trend-following momentum indicator. So, we've included calculations for MACD in our new update. Our script now shows the relationship between two moving averages of your asset’s price. This can provide valuable insight into potential buy and sell signals.
Scale Factor for MACD Line: We've taken the MACD a step further by applying a scale factor to the MACD line calculation depending on your selected timeframe. This helps to adjust the MACD line for better visual display, particularly on smaller timeframes. This means that regardless of whether you're a day trader or a swing trader, our script can adapt to provide you with meaningful data.
We hope you find these updates helpful. As always, we're committed to providing you with the best tools to support your trading decisions. Happy trading!
Notes de version:
Updated to have a proper image
Notes de version:
Modified the reactive color scheme to alert users to divergence. Aesthetic upgrade.
Notes de version:
Updating the chart image. Furthermore, there is a new addition to the script which provides an alert feature (with custom inputs) that notifies the user when a certain number of bars have passed since the last Bullish or Bearish trend.