IdeaTrend is meant for checking a trend defining idea.

The indicator has three input parameters:

  • Period - calculation period;
  • Method - calculation method;
  • Threshold - trend direction threshold.

Calculation:

Idea = (MAH - MAC) / (MAC - MAL)

where:

MAH = MA(High, Period, Method)
MAL = MA(Low, Period, Method)
MAC = MA(Close, Period, Method)
  • If the indicator histogram exceeds the Threshold line, the trend is considered downwards and the histogram columns are colored in red;
  • If the indicator histogram is below the Threshold line, the trend is considered upwards and the histogram columns are colored in green.