Trend Targets

The Trend Targets indicator provides a comprehensive visual framework for identifying trend continuations through smoothed trend-following logic and dynamic price rejection analysis. It automatically detects trend shifts, validates price rejections at key levels, and projects volatility-adjusted take-profit and stop-loss targets to support structured risk management.

Usage

The tool is designed to identify high-probability continuation setups. Traders should first adjust the Supertrend and smoothing parameters to align with their specific asset and timeframe.

• Trend Identification: The indicator colors the bars and the central baseline (green for bullish, red for bearish) based on a smoothed Supertrend model. A trend shift is marked by shape labels on the chart.
• Rejection Signals: When price "hugs" or retests the baseline during a trend, the script counts consecutive consolidation bars. If the count exceeds the "Confirmation count" setting, a triangle icon (▲/▼) appears, signaling a potential trend continuation.
• Targets: Upon a trend shift, the script automatically plots an entry line, an ATR-based stop-loss, and three tiered take-profit levels (TP1, TP2, TP3). These levels adjust in real-time based on market volatility.

Details

The indicator utilizes a custom Supertrend calculation that is smoothed twice—first through a Weighted Moving Average (WMA) and then an Exponential Moving Average (EMA). This dual-smoothing process filters out market noise while remaining responsive to major structural shifts. The rejection logic identifies periods where price action is unable to break through the dynamic trend support/resistance, suggesting that the prevailing momentum is likely to persist. All risk-reward levels are calculated using the Average True Range (ATR), ensuring that targets are proportional to current market conditions.

Settings

Trend Settings

• Supertrend Factor: Multiplier for the ATR to determine band width; higher values result in fewer, broader trend signals.
• Supertrend ATR Period: The lookback period for the ATR used in the trend calculation.
• WMA Length: The first smoothing layer applied to the trend line.
• EMA Length: The second smoothing layer that controls the final reactivity of the baseline.

Rejection Settings

• Confirmation count: The number of consecutive bars required to consolidate at the trend line before a rejection signal is triggered.

Targets

• Show Take Profit Levels: Toggles the visibility of entry, SL, and TP labels and lines.
• Volatility (ATR) period: The period used for calculating target and stop-loss distances.
• Stop Loss ATR Multiplier: Determines the distance of the SL from the entry based on volatility.
• TP1/TP2/TP3 Multiplier: Customizable risk-to-reward multiples for the three take-profit targets.

Appearance

• Bullish/Bearish Color: Customizes the visual colors for the baseline, bars, and signals.

FAQ

How do I interpret the rejection icons? The ▲ and ▼ icons represent price rejections from the smoothed baseline. They indicate that the trend has been tested and held, suggesting a potential continuation entry.

Can I use this for scalping? Yes, by lowering the Supertrend Factor and smoothing lengths, the indicator becomes more reactive to short-term moves suitable for scalping.

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