In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
//Shows your potential profit by going short(red)/long(green) against the current trend, use with you favorite entry/exit method for maximum effect, //can be adjusted for share cost and commission. study(shorttitle = "DP_CTI", title="DP's Countertrend Indicator") MA = input(120, minval=1, title = "Moving Avg Length") source = close mg = na(mg) ? ema(source, MA) : mg + (source - mg) / (MA * pow(source/mg, 4)) Bars = input(30,title="Lookback Bars") Cost = input(0,type = float,title = "Per Share Cost $") Comm = input(0, type = float, title = "Per Share Commission $") BullR = highest(close,Bars)-ohlc4 BearR = ohlc4-lowest(close,Bars) BullT = iff(high<mg,mg,close + BullR) BearT = iff(low>mg,mg,close - BearR) BuC = iff(BullT-close-(Cost+Comm)>0,green,lime) BeC = iff(close-BearT-(Cost+Comm)>0,maroon,red) Hull = wma(2*wma(source, MA/2)-wma(source, MA), round(sqrt(MA))) plot((BullT-close)-(Cost+Comm), color=BuC, style=histogram, linewidth = 2, trackprice = false) plot((close-BearT)-(Cost+Comm), color=BeC, style=histogram, linewidth = 2, trackprice = false)