Trend Levels Indicator for Trend Changes and Dynamic Price Levels

Summary

The Trend Levels indicator uses the highest high and lowest low over a configurable lookback period to identify potential changes in direction. A new period high sets an uptrend state, while a new period low sets a downtrend state; arrows mark those transitions. From each detected change, the indicator tracks the highest high and lowest low since that point, then calculates their midpoint. It displays these three values as horizontal levels that can serve as dynamic resistance, support, and a reference midpoint.

The lookback length is adjustable, with the document giving a default of 30 bars, and the illustrated implementation also uses an average true range to position the arrows and labels. The article presents the tool as a visual aid for chart analysis across timeframes, but provides no tests, performance evidence, or rules for trading entries, exits, or risk. Its levels depend on recent extremes, so they describe past price structure and do not establish that a reversal or continuation will follow. The signal’s behavior will also vary with the selected lookback and market.

Key ideas

• The indicator uses lookback-period highs and lows to define its trend state.
• It marks changes in trend state with directional arrows.
• It tracks the high and low since a state change and plots their midpoint as a third reference level.
• The lookback length can be adjusted, and the example uses 30 bars.
• The document gives no evidence of profitability or complete rules for entries, exits, and risk.

Tags

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