The script analyzes the behavior of prices on two periods and visualizes the acceleration and deceleration of the price, highlights the areas with reversal and non-directional movement.
The script builds two non-linear trends with higher and lower periods based on quadratic regression. It highlights the following price patterns for each of them:
- Linear Channel - a special case of a parabolic channel (quadratic regression channel)
- Turn Up/Down - change in price direction
- Trend weakening after movement Up and Flat/Down and Flat
- moving up/down with acceleration after Flat and Up/Flat and Down price consolidation.
- longterm period (bars) - the number of bars used for plotting the long-term trend
- shortterm period (bars) - the number of bars used for plotting the short-term trend
Peculiarities of usage
The script works on any currency pair and timeframe.
The arrows indicate the trend direction.