OPEN-SOURCE SCRIPT
Ultimate Trend Line
Updated
The "Ultimate Trend Line" indicator, designed for overlay on financial charts, calculates and plots a global trend line. It works by first allowing users to input several parameters such as different lengths for up to 21 groups, a multiplier that defines the deviation from the linear regression line for calculating the upper and lower bands, and a color for the fill.
Using these inputs, it calculates the upper and lower bands for each length group based on a multiple of the standard deviation from the linear regression line. It then averages these bands to define the global trend line, which is plotted on the graph.
Although the code includes commented-out lines for plotting each individual upper and lower band, the indicator as it stands only displays the overall average trend line. The line's color and linewidth can be adjusted according to user preferences.
This indicator can be effectively used on both logarithmic and linear scales. This versatility allows it to be adaptable to various types of financial charts and trading styles, providing a flexible tool for users to assess and visualize trend patterns across different market conditions and time frames. It maintains its accuracy and relevance, regardless of the scale used, thus making it a comprehensive solution for trend line analysis in diverse scenarios.
It's important to note that the "Ultimate Trend Line" indicator requires a substantial amount of historical data to function properly. If insufficient historical data is available, the indicator may not display accurately or at all. This issue is particularly prevalent when using larger time units, such as weekly or monthly charts, where the available data may not stretch back far enough to satisfy the requirements of the indicator. As such, users should ensure they are operating on a time scale and data set that provides adequate historical depth for the reliable operation of this indicator.
Using these inputs, it calculates the upper and lower bands for each length group based on a multiple of the standard deviation from the linear regression line. It then averages these bands to define the global trend line, which is plotted on the graph.
Although the code includes commented-out lines for plotting each individual upper and lower band, the indicator as it stands only displays the overall average trend line. The line's color and linewidth can be adjusted according to user preferences.
This indicator can be effectively used on both logarithmic and linear scales. This versatility allows it to be adaptable to various types of financial charts and trading styles, providing a flexible tool for users to assess and visualize trend patterns across different market conditions and time frames. It maintains its accuracy and relevance, regardless of the scale used, thus making it a comprehensive solution for trend line analysis in diverse scenarios.
It's important to note that the "Ultimate Trend Line" indicator requires a substantial amount of historical data to function properly. If insufficient historical data is available, the indicator may not display accurately or at all. This issue is particularly prevalent when using larger time units, such as weekly or monthly charts, where the available data may not stretch back far enough to satisfy the requirements of the indicator. As such, users should ensure they are operating on a time scale and data set that provides adequate historical depth for the reliable operation of this indicator.
Release Notes
MTF option addedRelease Notes
Use of the logarithmic scaleOpen-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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