TrendLines Automatic

Definition

Trend lines can be used to identify and confirm trends. A trend line connects at least 2 price points on a chart and is usually extended forward to identify sloped areas of support and resistance. Lines with a positive slope that support price action show that net-demand is increasing. As long as the price action stays above this line, we have a bullish trend. Lines with a negative slope that act as resistance to the price action show that net-supply is increasing. As long as the price action stays under this line, we have a bearish trend. Price usually retests a sloped trend line several times, until it breaks at which point we may have a trend reversal. The more points there are to connect, the stronger a trend line becomes. Sideways trendlines are used to indicate support and resistance levels. Additionally, trendlines help identify when a trend reversal or breakout occurs.

The TrendLines Automatic indicator plots trendlines at significant high and low points on a chart, helping to determine market direction, breakouts, and market reversals.

Default Inputs

SwHighStrength sets the number of bars used to calculate the relative swing high strength, 4 by default.

SwLowStrength sets the number of bars used to calculate the relative swing low strength, 4 by default.

BarsPast truncates the trendline on the right after the specified number of bars when the next new trendline is drawn (History must be set to "No"), 10 by default.

History truncates the trendline when the next trendline is drawn, "Yes" by default. "Yes" applies multiple trendlines illustrating up and down markets.

DnTLColor sets the color of the down trendline, red by default.

UpTLColor sets the color of the up trendline, cyan by default.

AlertType sets the type of alert, IntraBar by default. "Intrabar" allows alerts inside the bar, "OnClose" alerts on the bar close, and "None" turns off alerts for all trendlines.