Using Dual Highest- and Lowest-Price Bands to Track Trends

Summary

The Perfect Trend Line indicator uses two bands built from recent highs and lows over different lookback periods: one slower and one faster. The indicator compares the close with the prior band values to update each line, then uses the lines and price position to classify the trend. A breach of the slower line is presented as a possible reversal, while movement within the space between the lines is treated as a retracement that may resume the prevailing trend.

The indicator marks changes in its trend state with colored dots and displays the two lines as a shaded cloud. Separate displacement settings widen the bands by a chosen number of points or pips. The document explains the indicator’s construction and interpretation but provides no market examples, backtest, or performance evidence. Signals are described as potential reversals or rebounds, so the indicator alone does not establish that a trade is profitable or that a trend change will persist.

Key ideas

• The indicator builds two bands from rolling highs and lows using different lookback periods.
• The faster and slower lines together define a shaded region used to interpret retracements and possible trend changes.
• A close crossing the slower line is treated as a potential reversal signal.
• Displacement settings expand the bands by a specified number of points or pips.
• The document gives no empirical test of the indicator’s trading performance.

Tags

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