Trend Signal trend-following indicator specifies the change of a trend when Close price breaks through the specified range of bars upwards or downwards.
The Risk parameter allows defining the distance from the extreme price for this period.
We define it as a percentage of the range for this period.
It has two configurable parameters:
Period - range calculation period
Risk - percentage of range over Period
Calculation:
If PrevClose < Max and Close > Max
Upward breakthrough = Bullish signalIf PrevClose > Min and Close < Min
Downward breakthrough = Bearish signal
where:
Max = max-(max-min) * Risk / 100.0
Min = min+(max-min) * Risk / 100.0
Max, min are the highest and lowest prices within the Period interval