OPEN-SOURCE SCRIPT
Trend Extractor
Updated
First off, I'm a huge John Ehlers admirer. Been learning a lot from him. This indicator was inspired by his Super Bandpass Filter.
The goal of this indicator, which I'm calling "Trend Extractor" for lack of a better name, is to identify trends and filter out choppy market movements, similar to the Super Bandpass Filter,... but arguably more customisable. Personally, I've had better results with this Trend Extractor.
A brief overview of how it works:
The price changes are averaged over the lookback period using the Arnaud Legoux Moving Average (ALMA), which has been chosen for its superb versatility.
For instance, with Offset 1 and Sigma 0, it behaves like a SMA, and with Offset 1.1 and Sigma 2, it behaves like a WMA. So, feel free to tweak and experiment.
The purple lines are the positive and negative root mean square (RMS) of the main line, and act as signal lines.
The higher the Smoothing, the smoother the main line, at the cost of greater lag. Default is 1, that is, none. I'd suggest going not higher than 5.
Signals are straightforward to interpret. Trending up when green, trending down when red, and ranging when gray.
Your feedback is very well appreciated. Thank you. :)
The goal of this indicator, which I'm calling "Trend Extractor" for lack of a better name, is to identify trends and filter out choppy market movements, similar to the Super Bandpass Filter,... but arguably more customisable. Personally, I've had better results with this Trend Extractor.
A brief overview of how it works:
The price changes are averaged over the lookback period using the Arnaud Legoux Moving Average (ALMA), which has been chosen for its superb versatility.
For instance, with Offset 1 and Sigma 0, it behaves like a SMA, and with Offset 1.1 and Sigma 2, it behaves like a WMA. So, feel free to tweak and experiment.
The purple lines are the positive and negative root mean square (RMS) of the main line, and act as signal lines.
The higher the Smoothing, the smoother the main line, at the cost of greater lag. Default is 1, that is, none. I'd suggest going not higher than 5.
Signals are straightforward to interpret. Trending up when green, trending down when red, and ranging when gray.
Your feedback is very well appreciated. Thank you. :)
Release Notes
For those who want to get more surgical:Added an option to set a custom length for the RMS Bands (Off by default).
Added a multiplier for the RMS Bands (1.0 by default).
Release Notes
Added Bar Color change optionOpen-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 publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.