Trend Strength Heatmap from Moving-Average Channels

Summary

This indicator aims to show whether a trend is present and how strong it is by comparing a moving-average channel with a longer price range. For each selected moving-average period, it measures the recent high-to-low span of the average and compares that width with a set fraction of the price range over a longer lookback. When the moving-average channel is wide enough, the average’s position within the channel helps classify direction; the channel-to-price-range relationship then informs the displayed color intensity. A linear-regression smoothing option is included.

The example describes a 300-bar price lookback, a 20-bar trend check, and moving-average periods stepped across several values. It offers a visual trend filter, not an entry or exit system, and supplies no backtest or evidence of predictive value. Results depend on the chosen periods, threshold, price series, and platform adaptation. The code also does not explain how to handle edge cases such as a zero-width price range, so implementation and signal behavior should be checked before use.

Key ideas

• The indicator compares moving-average channel width with a fraction of the recent price range.
• A sufficiently wide channel is treated as evidence of a trend.
• The moving average’s location within the channel determines the directional classification.
• Color intensity represents the relative channel width as a measure of trend strength.
• The indicator provides no tested entry rules or performance evidence.

Tags

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