Concept is simple.
We count how many times price is hitting channel top or bottom without hitting the other side and keep counter for both. Thus:
upCount is the number of times price hits channel top without hitting bottom
downCount is the number of times price hits channel bottom without hittin top
trendCountLimit is the minimum value of upCount or downCount to call it uptrend or downtrend.
Candles are colored in green when uptrend starts by price hitting donchian channel top for trendCountLimit times. Similarly, candles are colored in red when price hits donchian channel bottom for trendCountLimit times. Trend colors are changed to lime/orange if price retraced back to mid of donchian channel. Bars will regain their strong trend color of green and red once they hit top/bottom again.
- UseBinaryTrend : Trend is either green/lime or red/orange. Silver bars are colored with previous trend.
- UseAdoptive: Option to use adoptive donchian as per script:
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.
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