Anchored Trend Channels

The Anchored Trend Channels indicator segments price action into discrete trend phases by mapping parallel channels between confirmed swing pivots. Unlike traditional regression tools that fit a single curve to the entire price history, this tool breaks market structure into immutable segments to visualize shifts in momentum, trend acceleration, and structural support or resistance levels.

Usage

The indicator identifies high and low pivots to anchor trend channels. Each segment represents a distinct phase of the market. Users can observe the current trend direction through the active segment and anticipate potential price boundaries via a forward-extending dashed projection.

The script is primarily used for:

• Structural Mapping: Visualizing market phases through a chain of historical channels.
• Momentum Analysis: Comparing the Micro regression channel (local momentum) against the Macro channel (broader trend).
• Support/Resistance Identification: Using the upper and lower boundaries of the active and projected channels as potential reaction zones.
• Trend Bias Assessment: Determining the overall market strength based on segment length, angle, and net price movement.

Details

The indicator utilizes a piecewise approach to trend analysis, focusing on three core algorithmic elements:

• Segment Birth Filters: To filter out market noise, a new segment is only created if the distance between pivots exceeds a specific ATR multiple and a minimum bar count.
• Max-Deviation Geometry: Channel width is determined by the maximum deviation of price from the basis line (the direct path between two pivots). This ensures the channel encapsulates the actual price action within that segment.
• Trend Bias Scoring: Instead of a simple segment count, the indicator calculates a weighted bias. It weighs each segment by its duration and angle, combining this with the net ATR progress to provide a structural strength reading (e.g., Strong Bull to Strong Bear).

Settings

Quick Setup & Visuals

• Show Macro Segments: Toggles the visibility of the primary trend channels.
• Show Micro Channel: Enables the internal linear regression channel for local momentum.
• Non-Repaint Mode: When enabled, the active segment and signals recalculate only on bar close.
• Show MTF Mini-Screener: Displays the trend direction of higher timeframes in the panel.

Macro Segments

• Pivot Sensitivity: Adjusts the lookback for pivot detection (Short to Very Long).
• Min Segment Size (x ATR): Sets the minimum price distance required between pivots to form a new segment.
• Min Segment Length (bars): Sets the minimum duration required for a segment.
• Channel Width Multiplier: Adjusts the width of the channels based on price deviation.
• Min Band Width (x ATR): Ensures channels maintain a minimum thickness in low-volatility phases.

Micro Channel

• Regression Length: The lookback period for the Micro linear regression.
• Std Dev Multiplier: Sets the width of the Micro channel bands.
• Min R-squared to Show: Hides the Micro channel if the mathematical fit is too low (noisy price action).

Signals

• Segment Break Signals: Marks when price closes outside the active Macro channel.
• Macro Pullback Signals: Marks when price tests the trend-aligned boundary of the channel.
• Micro Continuation: Marks when local momentum (Micro) aligns with the Macro trend early in the phase.
• Signal Cooldown: Prevents signal clustering by requiring a minimum number of bars between markers.

FAQ

How do I interpret the "Acceleration" metric in the panel? Acceleration is the difference between the Micro channel angle and the Macro segment angle. A positive value indicates local momentum is steepening relative to the trend, while a negative value suggests the trend is flattening or stalling.

Why do historical channels not change position? The historical segments are anchored to confirmed pivots. Because pivots require a specific number of bars to close before being confirmed, the segments are immutable once they appear on the chart.

How do I access the Anchored Trend Channels indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.