The Recent Trend Indicator is a colorful way to easily identify the recent trend with a Red Light/Green Light look. With the default settings, the trend is identified in the following way:
Green = Up Trend = Last Bar is at least 15% greater than the bar six months ago
Yellow = Sideways Up Trend = Last Bar is greater than the bar six months ago but not more than 15% greater
Orange = Sideways Down Trend = Last Bar is less than the bar six months ago but not more than 15% less
Red = Down Trend = Last Bar is at least 15% less than the bar six months ago
All values are editable with the following default settings:
Trend Timeframe = 1 Week
# of Bars for Trend = 26 (6 months)
Trend Growth % = 15%
With the default settings, this indicator is best viewed on the Daily chart but you can easily edit the settings to work well intraday as well on a 5m or 15m chart with settings something like this:
Trend Timeframe = 1 Day
# of Bars for Trend = 5, 7, 10, 14 or 30 for example
Trend Growth % = 2% or 3%
*** NOTE: This is NOT a standalone system and should only be used with other indicators or strategies to determine a good entry point.
Version 1.1: Added the above notes to explain the indicator and added a step value to the Trend Growth % to allow for .25% increments instead of whole numbers
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.