Madrid Donchian Bar

This is the companion bar of the Donchian Channel study. This bar at the bottom of the screen depicts the detrended position of the closing price. This is useful to reduce clutter on the screen and locate the position of the closing price at a glance.
Lime ; Extremely Bullish
Green : Bullish
Maroon : Bearish
Red : Extremely Bearish

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?

// Hector R. Madrid : 15/JUN/2014 : 23:07 : 2.0 : Madrid Donchian Bar
study("Madrid Donchian Bar", shorttitle="MDonchianBar")

len = input(13)

src = close

highestBar=highest(high, len)
lowestBar=lowest(low, len)
midBar=(highestBar+lowestBar)/2

// Donchian Indicator
mdcb = (src-midBar)/(highestBar-lowestBar)
ceilFloor = mdcb<-0.25 ? -0.5 : mdcb<0 ? -0.25 : mdcb<0.25 ? 0.25 : 0.5

ceilFloorColor = ceilFloor==-0.50 ? red
               : ceilFloor==-0.25 ? maroon
               : ceilFloor==0.25  ? green 
               : ceilFloor==0.50  ? lime
               : yellow               
               
// output
plot(1, linewidth=3, style=columns, color=ceilFloorColor, transp=30)

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