I'm starting Time Series Analysis by Hamilton James Douglas, to try to find some fun ideas to test and upgrade my skills on that subject and share them when it produce something that can be useful.
The idea behind that indicator, it's to only get the shape of the biggest movement in percent.
To solve that problem, I iterate about the of about 15 intervals and I apply a bigger power to the intervals that get bigger.
Why ? If the price is ranging, the indicator will show only the spics, but if the price breakout of the range, each new close that are longer from the price will have a better impact on the indicator and the last ones will be neglected.
I've try to use some parametric lag indicators on top of that indicator but he result is not good enough for me, it can't be used for trade directly but it can be an approach.
If you have upgrade ideas or recommendations on that indicator, I will be please to hear them.
Have fun with the script.
Have a great day !
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.