Radius Trend

The Radius Trend indicator provides a dynamic, volatility-adjusted visualization of market trends by employing a radius-based sweeping mechanism to track price action. This tool aims to offer traders a fluid alternative to traditional linear trend lines, allowing for more adaptive identification of trend direction, strength, and potential exhaustion points.

Usage

The Radius Trend is primarily used to identify the prevailing market bias and detect potential trend reversals.

• Trend Identification: The indicator features a color-coded main band. A green-tinted area typically signifies an uptrend, while a red-tinted area indicates a downtrend.
• Trend Strength Analysis: The angle of the band's ascent or descent reflects market momentum. Steeper angles suggest stronger trends, while a flattening band may indicate a loss of momentum.
• Reversal Detection: Traders can look for price crossing the main trend band or the dashed outer band as a signal for a potential change in market direction.
• Volatility Assessment: Because the band placement incorporates price range volatility, the distance between the price and the bands can be used to gauge current market intensity.

Details

Unlike static moving averages or standard linear regressions, the Radius Trend uses a step-based radius approach. It calculates a dynamic trend line that adjusts its position and angle based on price movement over specific intervals. The implementation uses a "lookback" period to apply a radius multiplier, which increments or resets based on the current trend state. This "sweeping" logic ensures that the support and resistance levels provided by the indicator are sensitive to both time and price volatility.

Settings

• Radius Step: This controls the rate at which the angle of the trend band adjusts. A higher value makes the band more aggressive in following price, while a lower value results in a smoother, slower-moving line.
• Start Points Distance: This sets the initial vertical distance multiplier for the band calculations relative to the current price volatility. It determines how far the "radius" starts from the price when a new trend is detected.

FAQ

How do I interpret the dashed line?

The dashed line acts as an outer boundary or a secondary filter. When price interacts with or crosses this level, it often signals an overextended market or the early stages of a trend reversal.

Is the Radius Trend suitable for all timeframes?

Yes, the indicator uses volatility-adjusted calculations (based on recent price ranges), making it adaptive to various timeframes, from intraday scalping to long-term swing trading.

How can I access the Radius Trend?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.