Trend Strength Buddy — Indicator by optictropic

oscillator trendanalysis candlestick trend strength buddy suite

One of the indicators in the "Trend Buddy" suite.

This indicator plots the oscillator at the bottom of the chart and colors the candles according to trend strength.

The oscillator can be used to identify divergence in several ways

If price is moving one way and the oscillator another, it can mean that the trend is gearing up to change. Example: above, in Bancor ( BNTBTC )
If price is making higher highs/lower lows and the oscillator is not, it can signal that the current trend is weakening. Example: see vertical lines

Legend of candle colors

strong uptrend - green
weakening uptrend - olive
weakening downtrend - maroon
strong downtrend - red

Note that the healthiest uptrends will show an oscillator value greater than zero (vice versa for downtrends). Using deflections of the zero-line can help filter our false trend changes.

This Suite of indicators is actively being developed and researched. Please contact me directly for more information.

Release Notes:

Reduce dimensionality of input

Release Notes:

Polish

Invite-only script

Access to this script is restricted to users authorized by the author and usually requires payment. You can add it to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author. Contact optictropic for more information, or follow the author's instructions below.

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