Trend Analysis Index — Indicator by HPotter

trend index

In essence, it is simply the standard deviation of the last x bars of a
y-bar moving average. Thus, the TAI is a simple trend indicator when prices
trend with authority, the slope of the moving average increases, and when
prices meander in a trendless range, the slope of the moving average decreases.

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

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////////////////////////////////////////////////////////////
//  Copyright by HPotter v1.0 28/05/2014
// In essence, it is simply the standard deviation of the last x bars of a 
// y-bar moving average. Thus, the TAI is a simple trend indicator when prices 
// trend with authority, the slope of the moving average increases, and when 
// prices meander in a trendless range, the slope of the moving average decreases.
////////////////////////////////////////////////////////////
study(title="Trend Analysis Index", shorttitle="TAI")
AvgLen = input(28, minval=1)
TAILen = input(5, minval=1)
hline(0, color=purple, linestyle=dashed)
xPrice = close
xSMA = sma(xPrice, AvgLen)
xHH = highest(xSMA, TAILen)
xLL = lowest(xSMA, TAILen)
nRes = (xHH - xLL) * 100 / xPrice
plot(nRes, color=blue, title="TAI")