Medium-term Trend

This Medium-term Trend indicator is designed to identify short, mid, and long-term price pivots, track trend directions, and visualize key support and resistance zones. It excels at analyzing mid-term trends, the most optimal timeframe for traders, and delivers greater reliability when applied to larger chart periods. The indicator helps you dynamically observe the battle between bullish and bearish forces at mid-term highs and lows, enabling you to align your trades with the prevailing trend.

How to Use This Script
1. Core Parameter Adjustment
The only critical adjustable parameter for trend validation is Retrace Percentage (%).It defaults to 0.01, with a range of 0 to 20.0 (adjustable in 0.01 increments). This parameter defines the minimum retracement percentage required to confirm a trend change from bullish to bearish or vice versa. A higher value means a more conservative trend change confirmation (fewer false signals), while a lower value captures more frequent trend shifts (may include more noise).
2. Visual Display Controls (Toggle On/Off)
You can enable or disable the following visual elements via the indicator settings panel to match your chart clarity needs.
Pivot Point Displays
Show Short Points: Disable by default. When enabled, small green circles mark short-term lows and small red circles mark short-term highs, with tooltips showing the exact pivot price.
Show Mid Points: Enables by default. When enabled, tiny yellow circles mark mid-term lows and mid-term highs (the core of the indicator), with tooltips showing the exact pivot price. These points are key for identifying mid-term trend direction.
Show Long Points: Disables by default. When enabled, small blue circles mark long-term lows and long-term highs, with tooltips showing the exact pivot price.
Trend Channel Displays
Show Short Channel: Disables by default. When enabled, green lines connect consecutive short-term lows and red lines connect consecutive short-term highs, forming a short-term price channel.
Show Mid Channel: Disables by default. When enabled, yellow lines connect consecutive mid-term lows and mid-term highs, forming a mid-term price channel that clearly visualizes the mid-term trend trajectory.
Show Long Channel: Disables by default. When enabled, blue lines connect consecutive long-term lows and long-term highs, forming a long-term price channel for broader trend analysis.
Mid-term Pivot Rectangles (Core Visual Element)
Show Mid Rectangles: Enables by default. When enabled, transparent rectangles mark mid-term pivot zones (support and resistance) with dynamic break tracking.These rectangles extend to the right until the trend completes, helping you monitor price interactions with key mid-term levels.
3. Trend Identification & Trading Guidance
Key Trend Rules (Mid-term Focus)
Uptrend Confirmation: When mid-term lows show a sequential upward pattern (each subsequent mid-term low is higher than the previous one), the mid-term trend is bullish (uptrend).Downtrend Confirmation: When mid-term highs show a sequential downward pattern (each subsequent mid-term high is lower than the previous one), the mid-term trend is bearish (downtrend).Range Bound Condition: When mid-term highs and lows move sideways (no clear upward/downward sequence), the market is in a mid-term range.
4.How to Align Trades with the Trend
Observe Mid-term Pivot Interactions: Pay close attention to price reactions at the mid-term rectangles (purple for support, orange for resistance). These zones represent key battle areas between bulls and bears.
Uptrend Trading: In a confirmed mid-term uptrend, prioritize long trades when price touches or bounces from mid-term support rectangles (purple), with stop losses placed below the support rectangle’s bottom edge.
Downtrend Trading: In a confirmed mid-term downtrend, prioritize short trades when price touches or rejects from mid-term resistance rectangles (orange), with stop losses placed above the resistance rectangle’s top edge.
Range Trading: In a mid-term range, trade between consecutive mid-term support (purple) and resistance (orange) rectangles—buy near support and sell near resistance, with tight stop losses beyond the rectangle edges.
Trend Breakout Confirmation: When price closes beyond the top (uptrend breakout) or bottom (downtrend breakout) of a mid-term rectangle, and the rectangle stops extending, this signals a potential mid-term trend shift. Wait for a retest of the broken rectangle (if applicable) to enter trades in the direction of the breakout.
5. Best Practices
Optimal Timeframes: While the indicator works on all timeframes, it performs best on larger periods (4-hour, daily, weekly) where mid-term trends are more defined and less prone to noise.Mid-term Focus: For consistent trading results, prioritize mid-term signals (yellow pivot points, mid rectangles) over short-term signals, as mid-term trends offer higher probability trades with favorable risk-reward ratios.Avoid Overcluttering: Keep short-term and long-term displays disabled by default unless you need multi-timeframe confluence. Enabling too many visual elements can obscure key mid-term trend signals.Parameter Fine-Tuning: Adjust the Retrace Percentage (%) based on your asset’s volatility—use higher values (e.g., 0.5 to 2.0) for volatile assets (cryptocurrencies) and lower values (e.g., 0.01 to 0.2) for less volatile assets (blue-chip stocks).Dynamic Analysis: Regularly monitor the evolution of mid-term pivot rectangles and pivot point sequences—trends are not static, and early detection of shifting mid-term highs/lows can help you exit losing trades and capture new trend opportunities.

Disclaimer: This indicator is for educational and analytical purposes only. It does not constitute financial advice. Always conduct your own research and risk assessment before executing trades. For support or customization requests, please send a private message to the author.