True Trend Oscillator [wbburgin]

The True Trend oscillator identifies trending or ranging markets with a stochastic ATR and RSI. Here are some examples for how it can be used.

Uptrends

If the candlesticks are lime green, this signals an uptrend. On the oscillator, you can identify an uptrend if the bull strength (the green line) is above the bear strength (the red line). The strength of the uptrend and the downtrend can be found by looking at the slope of these lines.

Downtrends

If the candlesticks are red, this signals a downtrend. On the oscillator, notice how the bear strength line is above the bull strength line.

Ranging Markets and Pullbacks
The True Trend oscillator can also be used to identify ranging markets or pullbacks. Let's look at the previous example again:

If you notice that the bull and bear lines are bouncing above the red weak-trend zone (as in the example above), this signals an extended trend. On the contrary, when the bull and bear lines fall into the weak-trend zone, this may indicate a larger pullback or a range to look to enter a trade again, as in this example, where the ranging candles in gray demonstrate temporary pullbacks in a larger bullish trend:

Ranges can also occur before trend reversals, so a range may also indicate a smart time to secure profits.

You can customize the ranging threshold in the settings. It can be set from 0-100 because the indicator is a stochastic.

Hope you all find this indicator useful!

Versionshinweise:

Updated threshold to change bar colors.