GlossaryTrendfinder Overlay
Trendfinder Overlay
A compact trend signal between −1 and +1 made of three parts: the difference between two high-pass filters, RSI momentum and the slope of a regression line. Above zero it points up, below zero down, and the distance from zero is the strength. Despite the name, it sits in its own pane; the original uses it to color the candles.
How to read it
| Zone | Range |
|---|---|
| Up, strong | from +0.3 |
| Up, weak | 0 to +0.3 |
| Down, weak | −0.3 to 0 |
| Down, strong | below −0.3 |
Reference lines are at −0.3, 0 and +0.3. Above +0.3 the pane has a greenish background, below −0.3 a reddish one.
- Sign = direction, absolute value = signal strength. A change across the zero line is the change of direction.
Limitations
- The normalization window counts candles. On the weekly chart, 600 candles would be over eleven years. Meant for 1H to 1D.