- Never use this indicator as standalone trading signal, it should be used as confluence.
- It is highly recommended to use this indicator on the 15m timeframe and above, try experimenting with the inverse feature and multipliers as well.
- When the price is above the moving average this shows the bullish trend is strong.
- When the price is below the moving average this shows the bearish trend is strong.
- When the moving average is purple, the trend is bullish , when it is gray, the trend is bearish.
- When price is above the upper band this may indicate a bearish reversal.
- When price is below the lower band this may indicate a bullish reversal.
- Purple line for bullish trend and gray line for bearish trend.
- Custom formula combining an ATR and Hull MA to clearly indicate trend strength and direction.
- Unique approach to moving averages and bands by taking the average of 2 types of MA's combined with custom ATR's, then multiplying these by correlation factors.
- Bands to indicate possible trend reversals when price crosses them.
How does it work?
1 — ATR value is calculated, then the correlation between the source and ATR is calculated.
2 — Final value is calculated using the following formula:
correlation * atr + (1 - correlation) * nz(atr, atr)
3 — Moving average is calculated with the following formula:
4 — Bands calculation using multipliers.
- Added a time adaptive option which will make sure the bands are useable on lower timeframes as well.
- Fixed time adaptive calculations for higher timeframes.
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.