Trend Curve Indicator
Trend trading is a key to success and most of successful traders work with trends. Trend trader needs an indicator which has fast response to direction change and also disregards rapid and useless price changes. Here it is! Trend Curve Indicator creates a smoothed price curve, with almost no lag respect to a real trend change. It uses some filters to remove sharp and fast changes that make ripples. The indicator has two different colors for uptrend and downtrend. There is also trend change yellowish color that connects uptrend and downtrend together. Therefore, all trends separate of each other and can be used to trend trading simply.
Trend Curve is a simple tool to find trend direction change and new trends. Each trend starts by yellowish color and then continues until trend power decreases.
Trend Curve indicator works well at any timeframes. However, timeframes greater than M30 are better, because the trends are longer.
There is just one input parameter. ALPHA is the coefficient of a low pass filter in the last stage of program which creates the final curve. Lower values make less sensitivity to price changes and can be used for seeking longer trends. Higher values (up to 0.95) are useful for scalping. You can see the differences between high and low ALPHA on pictures.
- ALPHA: Softness of Indicator 0<a<10