if the line is below 0 the market is in a downtrend in the short term, otherwise, the market is in an uptrend.
if the line is red, the market is in a downtrend in the long term ( ), otherwise, the market is in a long term uptrend ( )
a sequence of red/green lines means that the market is choppy
Currently, I'm using it with cryptocurrencies to assess if the short term price action.
How it works:
the indicator calculates the (default 21 periods) and its (default 200 periods) and (default 200 periods) and shows if the is above both and (indicator line above 0 and green), below both (indicator line below 0 and red) or between (the indicator line and the colour are not matching: e.g. red line above the zero or green line below zero). the latter is the classic situation of a choppy market or a possible short term reversal.
The aim of this indicator is to find a good entry point for long/short positions.
I'm still testing and improving it, please
let me know in the comments if you find this useful. Cheers!
when the line is red, we have a strong downtrend
when the line is green, we have a strong uptrend
when the line is orange, the trend is weak.
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.