Lookback |
This is the number of bars back from the current bar that will be analyzed for trendlines, pivot points, support/resistance zones, and gap zones. The indicator will restrict its analysis to the number of bars that you specify. Range is from 10 to 3000 bars. The default is 150 bars. |
Pivot Size |
This number represents the minimum 'strength' or 'size' that a potential pivot must have to be considered as a valid pivot. This is measured as the number of bars on either side that are lower (for defining a high pivot) or higher (for defining a low pivot). A pivot size of 2 would require that each high pivot have two lower highs on either side and each low pivot have two higher lows on either side. Increasing this number will likely reduce the number of pivots that are identified by the indicator and, therefore, it will reduce the number of trendlines and support/resistance zones. In general, a lower Pivot Size setting provides a higher granularity in terms of trendline and S/R line identification. The default is 3. |
Min Length |
This number represents the minimum length (expressed in bars) for a trendline to be considered valid by the system. You can use this parameter to filter out shorter trendlines that may not be as meaningful, from a trading perspective, as their longer counterparts. The default is a minimum length of 10. |
Min TouchPoints |
This number represents the minimum number of 'touchpoints' that a trendline must have to be considered valid by the system. You can use this parameter to filter out trendlines with fewer touchpoints. The default is a minimum of 2 touchpoints. |
Tolerance ATR Len |
This value is the length, in bars, of the Average True Range (ATR) calculation to use when determining the Tolerance to be used by Trendline Pro.
Tolerance is the percentage of price that constitutes a Break or a Touch of a trendline and is used in evaluating the validity of a potential trendline. If a trendline is broken at any point between the oldest pivot and the Ignore Zone, the trendline is considered invalid and is discarded. Conversely, all data points between the beginning of a trendline and the end of a trendline are analyzed and each time the price is within the Tolerance value of the trendline at that point in time, the trendline's touch count is incremented. The high price is used when testing upper trendlines and the low price is used when testing lower trendlines.
A Break is encountered if any price (high price for upper trendlines and low price for lower trendlines) exceeds the trendline by more than this amount.
A Touch is encountered if any price (high price for upper trendlines and low price for lower trendlines) comes within (but does not exceed) this distance to a trendline (on either side of the trendline).
Breaks and Touches are checked for between the oldest pivot and the Ignore Zone (which is generally the 3 most recent bars). In other words, a break that occurs within the last 3 bars of trading does not invalidate the trendline and this is how you identify trendline breakouts and breakdowns as they occur.
In the Trendline Pro indicator, Tolerance is calculated by taking a fractional multiple of the security's ATR.
The available range is from 1 to 200 bars with 14 bars being the default setting. |
Tolerance Mult |
This parameter is used to set the number of ATRs to use when calculating the Tolerance value. Generally you would set this Tolerance Multiple parameter to a fractional value, such as 0.10 or 0.20, etc. The default value is 0.10. |
Length Weight |
Use the Length Weighting parameter to instruct the indicator to favor longer trendlines over shorter trendlines. Range is from 1 to 20 with 1 being the default value. |
Touchpoint Weight |
Use the Touchpoint Weighting parameter to instruct the indicator to favor trendlines with more touchpoints over trendlines with fewer touchpoints. Range is from 1 to 20 with 1 being the default value. |
Gap Weight |
Use the Gap Weighting parameter to instruct the indicator to favor trendlines with smaller gaps over those trendlines with larger gaps. A "gap" is simply the distance between touchpoints on a trendline and the theory is that a trendline with evenly distributed touchpoints is more robust than a trendline comprised of touchpoints that are perhaps clustered at either end of the trendline. Range is from 1 to 20 with 1 being the default value. |
Proximity Weight |
Use the Proximity Weighting parameter to instruct the indicator to favor trendlines that are closer to the current price action. Range is from 1 to 20 with 1 being the default value. |
Max Trendlines |
This number represents the maximum number of Upper and Lower trendlines to draw on the chart. When Trendline Pro performs the trendline analysis over the lookback period that you have specified, it is likely to find a large number of valid trendlines. The Max. Trendlines parameter allows you to filter the display of these trendlines to only the top X trendlines where X is the Max. Trendlines parameter value. The actual number of trendlines displayed may be less than this number but will never be more. Range is from 1 to 100 with 3 being the default value. |
Bars To Ignore |
This value represents the number of most recent bars that should be ignored by the trendline analysis routine for purposes of determining trendline breaks. The default value is 3, which means that the 3 most recent bars will be ignored for each trendline when it is examined to see if any breaks have occurred. The Ignore Zone is highlighted by a light-colored bracket on the chart display. Range is from 0 to 100 with 3 being the default value. |
Show S/R Lines |
This parameter allows you to control the display of S/R lines on the chart. This parameter has three settings available:
•None: Select this setting to prevent S/R lines from being displayed on the chart.
•Active Only: Select this setting to display only those S/R lines that have not yet been breached. Important: A S/R line is considered as breached if price crosses over the S/R line at any point along the length of the line. By crossing over we mean that price must have closed on one side of the line and then at some point closed on the other side of the line. A High or Low that pushes past a S/R line is NOT considered as a breach.
•All: Display all S/R lines. Any S/R lines that are Active will have a small square displayed at the very end of the S/R line. This will make it easier for you to differentiate between those S/R lines that have already been breached and those that have not yet been breached.
S/R lines are simply price levels that have acted as support and/or resistance in the past and, it is assumed, will again in the future. S/R lines are displayed as colored horizontal lines on the chart and are drawn from the oldest pivot point in the group of pivot points that created the support/resistance level. All S/R lines are assigned a 'strength' rating. S/R line strength is simply a measure of how many pivot points have touched the line from beginning to end..... the more pivot points that touch the price level, the stronger that price level is likely to be in terms of providing support/resistance. The current Tolerance value is used to determine whether or not a particular pivot point has touched a particular S/R price level. |
S/R Strength |
This parameter is used to set the minimum 'strength' that a support/resistance zone must have in order to be displayed on the chart as an S/R line.
Support/resistance zone strength is measured by counting the number of pivots that touch the price level in question. By 'touch' we mean that the pivot comes within the distance specified by the calculated Tolerance value. If you set the S/R Strength parameter to 4, then only those S/R lines that have a measured strength of 4 or greater will be displayed on the chart.
Range is from 1 to 1000 with 2 being the default value. |
S/R Formatting |
The S/R Formatting parameter is used to adjust the display characteristics of all S/R lines to make it easier for you to interpret their significance. The options for this parameter are:
•Print Strength: Each S/R line is displayed as a horizontal line AND the strength is displayed in the form of a number directly to the right of the S/R line.
•Adjust Thickness: Each S/R line is displayed as a horizontal line and the line thickness will be set to the strength of that particular S/R line. So, if a specific S/R line has a strength of 5, it will be drawn on the chart as a horizontal line with a line thickness of 5. Note that S/R lines will be drawn up to a maximum thickness of 15.
•Both: This option simply combines the behavior in Print Strength and Adjust Thickness above.
The default value is Print Strength. |
Show Gap Lines |
This parameter allows you to control the display of Gap lines on the chart. This parameter has three settings available:
•None: Select this setting to prevent Gap lines from being displayed on the chart.
•Active Only: Select this setting to display only those Gap lines that have not yet been breached. This allows you to focus on only those Gap lines that are still likely to be strong areas of support and/or resistance.
•All: Display all Gap lines.
Gap lines are always displayed on the chart in pairs. For example, in a Gap Up situation (e.g., the current bar's Low is higher than the prior bar's High), a Gap line will be drawn at the current bar's Low price AND at the prior bar's High price. In a Gap Down situation (e.g., the current bar's High is lower than the prior bar's Low), a Gap line will be drawn at the current bar's High price AND at the prior bar's Low price. |
Gap Logic |
This parameter controls how gaps will be closed. This parameter has two settings available:
•Fill: A gap is considered closed if the high or low of a bar fills the gap.
•Must Close Thru: A gap is considered closed only when a price bar closes beyond the gap level.
The default value is Fill. |
SR/Gap Proximity ATRs |
This parameter is used to restrict the display of S/R and Gap lines so that only those lines that are within a certain distance of the current price are displayed on the chart. This can help to reduce clutter on the chart. The value that you enter for this parameter is the number of ATRs to use in the proximity calculation.
The Average True Range (ATR) calculation is used to perform this function. As each new bar comes in, the current ATR value is calculated using the number of bars specified in the Tolerance ATR Len parameter. This ATR value is then multiplied by the value you supply in the S/R Gap Proximity parameter. The resulting number is added to current price and subtracted from current price to create a price envelope. Only those S/R and Gap lines that fall within this envelope will be displayed on the chart.
The range is from 1 to 1000 and the default value is 10. |
Show Upper TL |
true or false. Select true if you want upper trendlines to be displayed. |
Show Lower TL |
true or false. Select true if you want lower trendlines to be displayed. |
Show Pivots |
true or false. Select true if you want pivots to be displayed. |
Extend Lines |
This parameter is used to extend the display of all trendlines, S/R lines and Gap lines into the future (e.g., to the right of the most current price bar) by the specified number of bars. Extending trendlines in such a fashion can help you to visualize where trendlines will intersect.
Range is from 0 to 100 with 10 being the default value. |
Upr Pivot |
Select the color to be used to display upper pivots. The default is blue. |
Lwr Pivot |
Select the color to be used to display lower pivots. The default is light red. |
SR Line |
Select the color to be used to display S/R lines. The default is purple. |
Gap Down |
Select the color to be used to display Gap lines in a gap down situation. The default is red. |
Gap Up |
Select the color to be used to display Gap lines in a gap up situation. The default is green. |
Upr TL |
Select the color to be used to draw upper trendlines. The default is dark blue. |
Lwr TL |
Select the color to be used to draw lower trendlines. The default is maroon. |
Text |
Select the color to be used to draw any text notifications on the chart. The default is black. |
Ignore Zone |
Select the color to be used to draw the Ignore Zone on the chart. The default is grey. |
