Background As suggested by @hedan1, he made a suggestion: this indicator can be further optimized to develop a dull line to filter the overall direction, and then use the sensitive line as a confirmation signal to enter.
One of my favourite tool to see fast trends which is simple but powerful. It runs under below market logic.
Function With @hedan1's idea, the 1st thing i come up with is a two-layer structure: the inner sensitive part is the best cost line indicator, the outer layer is a supertrend indicator to control the overall trend direction.
Best cost line is a tool to model the people's mood and preference in the market. I define a typical price as wcx, when wcx is above the best cost line, which means traders are willing to use higher price to buy, then if you long, you are following the trend and make profit. On the other hand, if wcx is below the best cost line, which means traders are NOT willing to pursue higher price (maybe due to continous stop loss or sth other), then you should at least not long or if you are agressive in style, you may consider short. That is it. Do you think it is simple and powerful enough?
Remarks L: long entry, yellow XL: close long, fuchsia S: short entry, green XS: close short, red
inner bullish: yellow color inner bearish: fuchsia color outer bullish: green color outer bearish: red color
inner indicator : the best cost line outer indicator : supertrend
also, i improved the display fucntinon remove some blur lines with linebr feature.
S: short entry, green
XS: close short, red
I see S in red, XS in green.
One of them needs to change. Most probably what you wrote in the definition.
Best