The Dynamic Trend signal indicator draws a two-color trend direction line and adds signal arrows.
It has two input parameters:
- Period - calculation period;
- Percent - "strengthening percent" (*).
Calculations:
Line
-
If Close < PrevLine:
Line = Close[Hindex] - Percent
-
If Close > PrevLine:
Line = Close[Lindex] + Percent
where:
- Hindex - the index of the highest Close within the Period interval;
- Lindex - the index of the lowest Close within the Period interval.
Arrows
- If Close[3] > Line[2] and Close[2] < Line[3]: Blue up arrow.
- If Close[2] < Line[1] and Close[2] > Line[3]: Red down arrow.
* The strengthening percent is actually the number of points, by which the line is "attached" to the price.
To filter the indicator signals, it is recommended to use confirmation signals, such as support/resistance levels.
