For a full free tutorial explaining this code in more detail, visit the backtest-rookies (.com) website.
This indicator will plot two at any given time. A resistance and a support . The resistance trend is shown with red circles and is created by joining swing highs together. The second is a support trend which is created by joining swing lows.
Since we need swings to make the trend, the code contains code for the swing detection. You can play around with the swing detection to alter how frequently new are detected. Relying on swings also means that there will be some delay in trend detection depending on how you configure the swing detection. The higher you set rightbars, the more lag you will have before a trend is detected. However, at the same time the quality of the found will increase. So it is a trade-off you need to come to terms with and decide what the best settings are for you.
A single is made up of several components.
- Points: Marked as blue or orange circles. There will be two per trend.
- Orange/Purple Lines: Connecting all . You will see these lines change direction slightly each time a new is detected (new circles appear).
- Green/Red Circle lines: Showing the from the earliest moment a new trend is detected.
- Blue Dashed lines: Joining the purple and green/red circle lines so the full can be seen.
Note: The blue dashed lines use pine-scripts drawing functions. As such, there is a limit to how many of these can be placed on a chart. When the limit is reached, the oldest line will be removed so the newest can be drawn. This means that if you detect enough trends and scroll back in time, the blue dashed lines will disappear at some point!
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.
The script connects only two consecutive pivots, why not connect say the first of the ten last that meet the criteria of being a resistance trendline for pivot highs or support trendline for pivot lows?