Band Based Trend Filter

Similar to RelativeBandwidthFilter, this script is also a simple trend filter which can be used to define your trading zone.

🎲 Concept

On contrary to reversal mindset, we define trend when price hits either side of the band. If close price hits upper band then it is considered as bullish and if close price hits lower band, then it is considered bearish. Further, trend strength is measured in terms of how many times the price hits one side of the band without hitting other side. Hit is counted only if price has touched middle line in between the touches. This way price walks on the bands are considered as just one hit.

🎲 Settings
Settings are minimal and details can be found in the tooltips against each parameters

🎲 Usage
This can be used with your own strategy to filter your trading/non-trading zones based on trend . Script plots a variable called "Trend" - which is not shown on chart pane. But, it is available in the data window. This can be used in another script as external input and apply logic.

Trend values can be
1 : Allow only Long
-1 : Allow only short
0 : Do not allow any trades

Notas de prensa:

Added timeframe option to allow HTF based calculations.