This is a new indicator that uses DPO ( Detrended Price Oscillator ) and calculating its HMA 200 and EMA 200 is able to show the current price direction.
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 ( bearish ), otherwise, the market is in a long term uptrend ( bullish )
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 DPO (default 21 periods) and its HMA (default 200 periods) and EMA (default 200 periods) and shows if the DPO is above both HMA and SMA (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!
Release Notes: The indicator now shows a three colour line:
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.
Release Notes: removed some comments
Open-source script

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.

Want to use this script on a chart?


you did a great job. congratulations. !
Really awesome concept, keep it up!