This trend analysis indicator is an idea from:
Stocks & Commodities V. 40:03 (8–12): Intraday Patterns Of Price Change by Richard Poster, PhD
We decide an uptrend or downtrend is in play, if there are certain percentage of bars across N bars where the direction is the same. The default settings use what the article says, 66% of adjacent 15 bars must be in the same direction, to be trending. While the article isn't precise about what up or down bars mean, this indicator assumes an up direction if close is greater than the open.
The indicator also allows differing configurations for up and downtrend analysis, though the defaults, as per the article, are the same.
Stocks & Commodities V. 40:03 (8–12): Intraday Patterns Of Price Change by Richard Poster, PhD
We decide an uptrend or downtrend is in play, if there are certain percentage of bars across N bars where the direction is the same. The default settings use what the article says, 66% of adjacent 15 bars must be in the same direction, to be trending. While the article isn't precise about what up or down bars mean, this indicator assumes an up direction if close is greater than the open.
The indicator also allows differing configurations for up and downtrend analysis, though the defaults, as per the article, are the same.
Release Notes:
No behavioral change.
Refactor: rename variable to be more consistent in source code.
Refactor: rename variable to be more consistent in source code.