OPEN-SOURCE SCRIPT
Trading the Trend
Trading the Trend Indicator by Andrew Abraham (TASC, 1998)
The Trading the Trend indicator, developed by Andrew Abraham, combines volatility and trend-following principles to identify market direction. It uses a 21-period weighted average of the True Range (ATR) to measure volatility and define uptrends and downtrends.
Calculation: The True Range (highest high minus lowest low) is smoothed using a 21-period weighted moving average. This forms the basis for the trend filter, setting dynamic thresholds for trend identification.
Uptrend: Higher highs are confirmed when price stays above the upper threshold, signaling long opportunities.
Downtrend: Lower lows are identified when price stays below the lower threshold, favoring short positions.
This system emphasizes trading only in the direction of the prevailing trend, filtering out market noise and focusing on sustained price movements.
The trendline changes her color. When there is an uptrend the trendline is blue and when the trend is downward the trendline is yellow.
The Trading the Trend indicator, developed by Andrew Abraham, combines volatility and trend-following principles to identify market direction. It uses a 21-period weighted average of the True Range (ATR) to measure volatility and define uptrends and downtrends.
Calculation: The True Range (highest high minus lowest low) is smoothed using a 21-period weighted moving average. This forms the basis for the trend filter, setting dynamic thresholds for trend identification.
Uptrend: Higher highs are confirmed when price stays above the upper threshold, signaling long opportunities.
Downtrend: Lower lows are identified when price stays below the lower threshold, favoring short positions.
This system emphasizes trading only in the direction of the prevailing trend, filtering out market noise and focusing on sustained price movements.
The trendline changes her color. When there is an uptrend the trendline is blue and when the trend is downward the trendline is yellow.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.