TFS: Tether Line — Indicator by HPotter

tfs tether

Tether line indicator is the first component of TFS trading strategy.
It was named this way because stock prices have a tendency to cluster
around it. It means that stock prices tend to move away from the midpoint
between their 50-day highs and lows, then return to that midpoint at some
time in the future. On a chart, it appears as though the stock price is
tethered to this line, and hence the name.

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.

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.

Want to use this script on a chart?

////////////////////////////////////////////////////////////
//  Copyright by HPotter v1.0 16/05/2014
// Tether line indicator is the first component of TFS trading strategy.
// It was named this way because stock prices have a tendency to cluster
// around it. It means that stock prices tend to move away from the midpoint
// between their 50-day highs and lows, then return to that midpoint at some
// time in the future. On a chart, it appears as though the stock price is
// tethered to this line, and hence the name.
////////////////////////////////////////////////////////////
study(title="TFS: Tether Line", shorttitle="Tether Line", overlay = true )
Length = input(50, minval=1)
lower = lowest(Length)
upper = highest(Length)
xTether = avg(upper, lower)
plot(xTether, color=green, title="Tether Line")