The trend-step indicator (or auto-line) was based on and aimed to spot trends in an adaptive way, however the indicator was only based on and didn't gave much attention to the trend, later on i would publish an efficient version of it (efficient auto-line) based on the efficiency ratio who could adapt to the trend and eliminate potential whipsaws trades, however this approach included many settings that would require changes if the user switched markets, which reduce the utility of the indicator and make it actually super inefficient.
This is why i had to propose this indicator who remove all the flaws the efficient auto-line had without removing the core idea of it.
The indicator is based on recursion, when the price is superior/inferior to the indicator precedent value +/- metric, then the indicator is equal to the closing price, this allow the indicator to fit the price relatively well. The metric used is based on 2 standard deviations, one fast and one slow and the efficiency ratio, basically when price is trending the metric will be closer to the value of the fast standard deviations, which would allow the indicator to be closer to the price, else the metric will be closer to the slow standard deviation which restrain the indicator from changing, therefore the metric act as a threshold.
length control the period of the efficiency ratio, lower values of length will result in a metric way closer to the fast standard deviation thus making the indicator more inclined toward making false signals.
Lower values for slow will make the indicator more reactive.
The indicator can be reactive but can also be really conservative, thus even remaining unchanged in some contrary movements of the main trend, this is called robustness and has its pro's and con's.
The trend-step indicators family might get to an end, or not, nonetheless they can provide precise entries and be extremely robust, which is great. Using low settings might prove to be useful to remove some noise. I hope this version find its use amongst the community. Thanks for reading !
- Select different price types/indicators as input
- Removal of the bar_index object
- Cleaner code
Ganz im Sinne von TradingView hat der Autor dieses Skripts es als Open-Source veröffentlicht, damit Trader es verstehen und überprüfen können. Ein Hoch auf den Autor! Sie können es kostenlos verwenden, aber die Wiederverwendung dieses Codes in einer Publikation unterliegt den Hausregeln. Sie können das Skript den Favoriten hinzufügen, um es auf dem Chart zu verwenden.
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You can also check out some of the indicators I made for luxalgo : https://www.tradingview.com/u/LuxAlgo/#published-scripts