And now for something completely different after devoting a considerable amount of time to the TAA strategies. Let us take a look at an indicator based on the differences between a smoothed version of the close against averages of the high respectively the low: HLC_Trend.
In short: when HLC_Trend paints the blue line above the red line, the trend is up and when red takes the upper hand, the trend is down. The indicator is suitable for different time frames and of course the settings are user adjustable.
To elaborate a bit: When (emaClose - emaHigh) >= (emaLow - emaClose) the indicator colors the pricebar blue and a long setup is proposed. In such an instance on the sub pane indicator the blue line crosses above the red line and both are separated by a blue cloud. The long signal stays valid as long as the mentioned condition is true and (emaClose - emaHigh) carries a positive value or as long as it is rising when below zero. In case (emaClose - emaHigh) goes negative and has a negative slope, the signal switches to neutral (yellow bars). This is depicted on the sub pane indicator when the blue line crosses below the zeroline. When however (emaLow - emaClose) > (emaClose - emaHigh), the indicator paints the red line above the blue line and a short signal is given. This signal remains valid as long as the red line stays above the zeroline or, when below zero, the red line is rising relative to the previous' bar value.
On the price pane the HLC_Levels depicts the three ema's with their default settings: a 5 bar exponential moving average (ema) of the closes, a 34 bar ema of the highs and a 13 bar ema of the lows.
The thinkscripts for both studies are available in the comment section for copy/paste.
Do your own due diligence and trade safe!
