LazyBear

Coral Trend Indicator [LazyBear]

This is a famous trend indicator in MT4 platform. Is this better than other MA based trend systems? I will let you decide that :)

Supported modes:
- Trend mode: This is the default. Draws a trend line (like MA) and colors them based on the trend.
- Ribbon Mode: Shown at the bottom pane. No trend lines are drawn.
- OverlayMode: Bars are colored based on the current trend. Trend line is also displayed (default color=gray).

Complete list of all my indicators:
https://docs.google.com/document/d/15AGCufJZ8CIUvwFJ9W-IKns88gkWOKBCvByMEvm5MLo/edit?usp=sharing
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//
// @author LazyBear 
// List of all my indicators: 
// https://docs.google.com/document/d/15AGCufJZ8CIUvwFJ9W-IKns88gkWOKBCvByMEvm5MLo/edit?usp=sharing
// 
study(title="Coral Trend Indicator [LazyBear]", shorttitle="CTI_LB", overlay=true)
src=close
sm =input(21, title="Smoothing Period")
cd = input(0.4, title="Constant D")
ebc=input(false, title="Color Bars")
ribm=input(false, title="Ribbon Mode")
di = (sm - 1.0) / 2.0 + 1.0
c1 = 2 / (di + 1.0)
c2 = 1 - c1
c3 = 3.0 * (cd * cd + cd * cd * cd)
c4 = -3.0 * (2.0 * cd * cd + cd + cd * cd * cd)
c5 = 3.0 * cd + 1.0 + cd * cd * cd + 3.0 * cd * cd
i1 = c1*src + c2*nz(i1[1])
i2 = c1*i1 + c2*nz(i2[1])
i3 = c1*i2 + c2*nz(i3[1])
i4 = c1*i3 + c2*nz(i4[1])
i5 = c1*i4 + c2*nz(i5[1])
i6 = c1*i5 + c2*nz(i6[1])

bfr = -cd*cd*cd*i6 + c3*(i5) + c4*(i4) + c5*(i3)
// --------------------------------------------------------------------------
// For the Pinescript coders: Determining trend based on the mintick step. 
// --------------------------------------------------------------------------
//bfrC = bfr - nz(bfr[1]) > syminfo.mintick ? green : bfr - nz(bfr[1]) < syminfo.mintick ? red : blue
bfrC = bfr > nz(bfr[1]) ? green : bfr < nz(bfr[1])  ? red : blue
tc=ebc?gray:bfrC
plot(ribm?na:bfr, title="Trend", linewidth=3, style=circles, color=tc)
bgcolor(ribm?bfrC:na, transp=50)
barcolor(ebc?bfrC:na)
List of my free indicators: http://bit.ly/1LQaPK8
List of my indicators at Appstore: http://blog.tradingview.com/?p=970

grahvity
2 years ago
And when a whole candle body fits in between the circles, the trend is accelerating.
+1 Reply
LazyBear PRO grahvity
2 years ago
+1 for noticing that.
+1 Reply
GermanTrader
2 years ago
Since it is a trend indicator it lags with default settings, but the Ribbon mode is very useful.
Reply
dilip_r
2 years ago
could u please explain how different is it from "CM_Ultimate_MA_MTF_V2"
Reply
LazyBear PRO dilip_r
2 years ago
Ultimate_MA is MA with coloring based on the direction (so, the lag depends on the MA calculation).

CTI is primarily for trend filtering. I'd suggest not to use it as a xMA (EMA/SMA/WMA/...) replacement.
+1 Reply
GermanTrader LazyBear
2 years ago
What exactly does the Coral Trend Indicator calculate to determine the current trend? I don't see typical EMA/SMA moving averages in the code.

And what is the "Constant D" of 0.4? What happens if I change the value to 0.2 or 0.6? What does it amplify in the calculation?
+1 Reply
LazyBear PRO GermanTrader
2 years ago
Since I am not the original developer of CoralTrend formula, I don't want to hazard a guess on its internal machinations.

BTW, constant D can be used to highlight the price momentum. For ex.,

snapshot


For the same D, length can be adjusted to bring out the shorter cycles in the current trend. For ex.,

snapshot
+2 Reply
GermanTrader LazyBear
2 years ago
Thank you very much for this explanation. Now I will optimize both values to my favor.
Reply
GermanTrader LazyBear
2 years ago
It took me some time to research it, but I finally found the source of this indicator:

"The THV Coral is a multi-colored triple exponential moving average (Trix). "

http://www.pipware.com/software/thv/coral.html
+1 Reply
LazyBear PRO GermanTrader
2 years ago
Thanks for the info.
+1 Reply
Alphaoptions LazyBear
2 years ago
Great idea to combine the two settings!
Reply
snapshot


I plugged in a couple of Constants that I use....0.739 and 0.886. And these to the default for a Multi Time Frame effect which will confirm your bias in trade direction. I offer just a simple example of how 1.) When all three signals agree its safe to look for trades in that directional bias short or long. 2.) Once a bias is established, look for value in divergence price bars that close against the perceived trend. 3.) Mark the closing price where the 3 signals agree with a horizontal ray...best trades are those with no draw down due to good timing execution which usually takes place AFTER a test/retrace. This example shows how the given signal offered a trading range of over 3% to work Long trades.
+1 Reply
GermanTrader coondawg71
2 years ago
I had a similar idea to compare the indicator by itself and tested this by only changing the periods not the constant and this really works to filter out the strongest trend.
Reply
coondawg71 PRO GermanTrader
2 years ago
Off the top of my head I think it would be better to keep the periods the same, this way its apples to apples. I"ve done some work with other indi's that have this same ability. Proves to be better this way, at least in the MTF fashion, getting all three speeds to compliment each other is the advantage in the signal.
+1 Reply
LazyBear PRO coondawg71
2 years ago
Nice. I built this as a separate indicator, but I like how visual yours looks.

snapshot
+3 Reply
SirNoseDvoidoffunk LazyBear
2 years ago
Any chance of releasing this as well?
Reply
http://fxcodebase.com/code/download/file.php?id=4220&mode=view

A two indicator with separate Constants crossover seems to have merit.
Reply
LazyBear PRO coondawg71
2 years ago
Thanks for the info.
Reply
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