The RTrends indicator does two things: first, it automatically draws the layout of the price chart by plotting trend lines and, secondly, it produces bearish and bullish signals.
The layout reflects the fractal nature of the market. Trends from different time horizons are applied simultaneously on the chart. Thus, from a single chart a trader can see trend lines of higher timeframes. The lines, depending on the horizon, differ in color and width: the older the horizon, the thicker the line is.
To simplify the indicator setup, only 4 colors are used. They can be set in the parameters of the indicator. Three smaller displayed horizons have individual colors, the fourth and subsequent ones are of the same color. This is due to the fact that the higher lines are rare. For example, on a minute chart for almost 14 years the indicator marks only about 10 horizons. Line marking (visible when you hover over the line) contains additional information. For example, the name Sup7_1 means support line relating to the horizon with a nominal number 7 and having number 1 on this horizon (numbered from zero). Similarly, the name Res5_0 means resistance line number 0 of horizon 5.
Indicator signals are divided into bullish and bearish, their main advantage is that the signals are very early. The reverse side of this is the large number of "false" signals. Thus, they require additional filtering. So it is better to treat them as signals of a moment to make a decision (to enter or not), not as direct signals to open a position. A signal is accompanied by a popup window with additional information. These moments are marked as arrows on the chart. They can also be read from the indicator buffer. The value +1 corresponds to the bullish signal, -1 - bearish, 0 means no signal.
The indicator has the following parameters:
- DrawFrom specifies the number of the horizon at which displaying of trends begins (i.e. the number of the smaller horizon).
- SgnRank sets the rank of signals.
- ShowAlert allows to enable/disable the popup window.
- Color1 sets the color of the lines of the smallest displayed horizon.
- Color2 and Color3 set the color of the lines of next two horizons.
- Color4 sets the line color of the fourth and all subsequent horizons.