Trend Type Indicator

Trend Type Indicator usage:

The purpose of this indicator is to programmatically determine the type of price trend using technical analysis tools.
You can do a quick check on the asset’s higher and lower time frames. For example, if you are trading on an H1 chart, you can check the m5 chart to ensure that the trend is in the same direction and similarly check the H4 chart to ensure that the higher time frame price is also moving in the same direction.
If multiple time frame charts confirm a similar trend, then it is considered a very strong trend and ideal for Trend trading.

Remarks:
By default, the last status is related to 8 periods before the latest closing price.

Types of trends

The three basic types of trends are up, down, and sideways.

1. Uptrend

An uptrend describes the price movement of a financial asset when the overall direction is upward. The uptrend is composed of higher swing lows and higher swing highs.
Some market participants (“long” trend traders) only choose to trade during uptrends.

2. Downtrend

A downtrend refers to the price action of a security that moves lower in price as it fluctuates over time.
The downtrend is composed of lower swing lows and lower swing highs.

3. Sideways

A sideways trend is the horizontal price movement that occurs when the forces of supply and demand are nearly equal. This typically occurs during a period of consolidation before the price continues a prior trend or reverses into a new trend.

How it works:

Step 1: Sideways Trend Detection

In this step we want to distinguish the sideways trend from uptrend and downtrend. For this purpose, we use two common technical analysis tools: ATR and ADX.

1. Average True Range (ATR)

The average true range (ATR) is a technical analysis indicator that measures market volatility.
We also use a 20-period moving average of the ATR.
When the ATR is below the average of its last 20-periods, it means that the rate of price volatility has decreased and we conclude that the current trend is sideways.

2. Average Directional Index (ADX)

The average directional index (ADX) is a technical analysis indicator used by some traders to determine the strength of a trend.

The trend has strength when ADX is above 25.
So when the ADX is less than or equal to 25, there is no strong trend, and we conclude that the current type of trend is sideways.

Step 2: Detect uptrend from downtrend

If it turns out that the current price trend is not sideways, then it is either uptrend or downtrend.
For this purpose, we use plus and minus directional Indicators (+ DI & -DI).

A general interpretation would be that during a strong trend, when +DI is higher than -DI, it is an uptrend. When -DI is higher than +DI, it is a downtrend.

* Original description from author: BobRivera990

//PRC_TrendType | indicator
//version = 0
//02.02.2024
//Iván González @ www.prorealcode.com
//Sharing ProRealTime knowledge
/////////////////DEFAULT PARAMETERS//////////////////////////////
useAtr = 1 //boolean// Use Average True Range (ATR) to detect Sideways Movements
atrlen = 14 //integer// length of the Average True Range (ATR) used to detect Sideways Movements
atrMalen = 20 //integer// length of the moving average of the ATR used to detect Sideways Movements
Matype = 1 // Type of the moving average of the ATR used to detect Sideways Movements
useAdx = 1 //boolean// Use Average Directional Index (ADX) to detect Sideways Movements
adxlen = 14 //integer// length of the Average Directional Index (ADX) used to detect Sideways Movements
dilen=14 //integer// length of the Plus and Minus Directional Indicators (+DI & -DI) used to determine the direction of the trend
adxlim=25 //integer// A level of ADX used as the boundary between Trend Market and Sideways Market
smooth=3 //integer// Factor used for smoothing the oscillator
lag=8 //integer// lag used to match indicator and chart

///////////////////////////INDICATORS///////////////////////////
/////ATR
atr = averagetruerange[atrlen]
atrMa = average[atrMalen,Matype](atr)

/////ADX, +DI, -DI
myadx = adx[adxlen]
plus = DIplus[dilen](close)
minus = diminus[dilen](close)
//////////////////////////CONDITIONS////////////////////////////
/////Sideways Movement condition (based on ATR or ADX)
cndSidwayss1 = useAtr and atr <= atrMa
cndSidwayss2 = useAdx and myadx <= adxlim
cndSidways = cndSidwayss1 or cndSidwayss2

/////Uptrend/downtrend conditions
cndUp = plus > minus
cndDown = minus >= plus

/////Determine type of trend
if cndSidways then
trendType = 0
elsif cndUp then
trendType = 2
else
trendType = -2
endif

//////////////Calculate the smoothed trend type oscillator////////////
smoothtype = round(average[smooth](trendtype)/2)*2

///Oscillator Color
IF smoothtype = 2 then
r = 76
g = 185
b = 80
elsif smoothtype = -2 then
r = 255
g = 82
b = 82
else
r = 120
g = 123
b = 134
endif
///Draw oscilator (offset=lag)
drawsegment(barindex[lag],smoothtype,barindex[lag+1],smoothtype[1])style(line,3)coloured(r,g,b)

/////////////////////////////////BANDS//////////////////////////
band3 =  3
band2 =  1
band1 = -1
band0 = -3
COLORBETWEEN(band2,band3,76,175,80,90)
COLORBETWEEN(band1,band2,255,255,255,90)
COLORBETWEEN(band0,band1,255,82,82,90)

return band0 as "Band0", band1 as "Band1", band2 as "Band2", band3 as "Band3"

//PRC_TrendType | indicator

//version = 0

//02.02.2024

//Iván González @ www.prorealcode.com

//Sharing ProRealTime knowledge

/////////////////DEFAULT PARAMETERS//////////////////////////////

useAtr = 1 //boolean// Use Average True Range (ATR) to detect Sideways Movements

atrlen = 14 //integer// length of the Average True Range (ATR) used to detect Sideways Movements

atrMalen = 20 //integer// length of the moving average of the ATR used to detect Sideways Movements

Matype = 1 // Type of the moving average of the ATR used to detect Sideways Movements

useAdx = 1 //boolean// Use Average Directional Index (ADX) to detect Sideways Movements

adxlen = 14 //integer// length of the Average Directional Index (ADX) used to detect Sideways Movements

dilen=14 //integer// length of the Plus and Minus Directional Indicators (+DI & -DI) used to determine the direction of the trend

adxlim=25 //integer// A level of ADX used as the boundary between Trend Market and Sideways Market

smooth=3 //integer// Factor used for smoothing the oscillator

lag=8 //integer// lag used to match indicator and chart

///////////////////////////INDICATORS///////////////////////////

/////ATR

atr = averagetruerange[atrlen]

atrMa = average[atrMalen,Matype](atr)

/////ADX, +DI, -DI

myadx = adx[adxlen]

plus = DIplus[dilen](close)

minus = diminus[dilen](close)

//////////////////////////CONDITIONS////////////////////////////

/////Sideways Movement condition (based on ATR or ADX)

cndSidwayss1 = useAtr and atr <= atrMa

cndSidwayss2 = useAdx and myadx <= adxlim

cndSidways = cndSidwayss1 or cndSidwayss2

/////Uptrend/downtrend conditions

cndUp = plus > minus

cndDown = minus >= plus

/////Determine type of trend

if cndSidways then

trendType = 0

elsif cndUp then

trendType = 2

else

trendType = -2

endif

//////////////Calculate the smoothed trend type oscillator////////////

smoothtype = round(average[smooth](trendtype)/2)*2

///Oscillator Color

IF smoothtype = 2 then

r = 76

g = 185

b = 80

elsif smoothtype = -2 then

r = 255

g = 82

b = 82

else

r = 120

g = 123

b = 134

endif

///Draw oscilator (offset=lag)

drawsegment(barindex[lag],smoothtype,barindex[lag+1],smoothtype[1])style(line,3)coloured(r,g,b)

/////////////////////////////////BANDS//////////////////////////

band3 = 3

band2 = 1

band1 = -1

band0 = -3

COLORBETWEEN(band2,band3,76,175,80,90)

COLORBETWEEN(band1,band2,255,255,255,90)

COLORBETWEEN(band0,band1,255,82,82,90)

return band0 as "Band0", band1 as "Band1", band2 as "Band2", band3 as "Band3"

ADX ATR trend

Risk disclosure:

No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

ProRealTime ITF files and other attachments :

Filename : download the ITF files

How to import ITF files into ProRealTime platform?

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winnie37 • 273 days ago #
Hi Ivan,
if i want to use it, and call the oscillator value (in grey, green or red), how to do? i just call the 4 bands in the components. Thanks for your answer…
- Iván • 273 days ago #
  The oscillator is smoothtype. In inputs there is de lag to configure the output

PeterClothier Hi, I downloaded this indicator and imported it. I tried adding it to a chart , and it hasn'...

Nicolas Don't add it on the price, so just don't use the price setting to add the indicator.

PeterClothier Thanks

Nicolas Hi Stef, thanks again for contributing to my near perfect english :)

Salocin Hi Nicolas, seems to be a pretty cool one as an indicator. can you define "plotsingal". Syst...

Nicolas Download the itf file attached to the post, there's everything needed in it. Just import thi...

cosmicsurfer I actually live up the road from Daryl Guppy. On the first day of my training i walked aroun...

Pleidian Hi, I'm trying to add the guppy indicator to my charts but i keep getting a box that's says ...

Nicolas Wrong copy/paste? Always a better idea to download the ITF file and import it into the platf...

Tradesun Salve, ho provato ad inserire l'indicatore nella piattaforma ma mi chiede di definire la var...

maximus78 Tradesun, se scarichi il file ITF allegato e lo importi nella piattaforma ci sono già le var...

petmut Hello all, When I import the code here above "multiple ATR bands" and apply it on the PRT ...

Nicolas That should need some custom coding, if you want to make it done, please open a new topic in...

Patopercho Hello, thanks for the indicator, i would like to change the color, is it possible, thanks

Trend Type Indicator usage:

Types of trends

1. Uptrend

2. Downtrend

3. Sideways

How it works:

Step 1: Sideways Trend Detection

1. Average True Range (ATR)

2. Average Directional Index (ADX)

Step 2: Detect uptrend from downtrend

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