A Filtered Trend Line Indicator with Early and Candle Signals

Summary

This indicator modifies a prior trend-line design by using fast and slow lines derived from recent highs and lows, with default lookback settings of 3 and 7 bars. The code updates each line in relation to the previous line value and the current close. It assigns an upward or downward trend state when the close is above or below both lines, then marks state changes with colored dots and colors candles when price is on the corresponding side of the slow line.

The description presents dots as early signals and the appearance of a colored candle as a possible entry or re-entry cue. It says the added filtering is intended to reduce false signals from the earlier version, but gives no comparative tests, performance data, or trading rules for exits and risk. The code is platform-specific, and signals based on closing prices may arrive after a move has begun. Suitability would need independent testing across instruments and timeframes.

Key ideas

• The indicator builds fast and slow lines from recent price highs and lows.
• A trend state changes when the close moves above or below both lines.
• Colored dots mark changes in the trend state, while candle colors indicate alignment with the slow line.
• The author describes the changes as filtering false signals but provides no test evidence or profitability results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.