CandleTrack Pro | Pure Price Action Trend Detection

The CandleTrack Pro | Pure Price Action Trend Detection indicator provides a non-repainting trend detection system built on pure price action logic to help traders identify market shifts with visual clarity.

Usage

The Usage of the CandleTrack Pro | Pure Price Action Trend Detection indicator focuses on identifying the prevailing market trend through color-coded price action. By tracking price movements relative to a dynamic trailing stop, the tool highlights bullish and bearish sentiment directly on the candlesticks.

Traders can use this tool to:

• Identify trend shifts when the candle color changes from red to green (bullish) or green to red (bearish).
• Filter out market noise using the volatility-based trailing stop mechanism.
• Combine with other technical analysis tools to confirm entries in the direction of the identified trend.

The sensitivity of the trend detection can be adjusted to suit different trading styles, from fast-paced scalping to longer-term swing trading.

Details

The indicator calculates a trailing stop based on the Average True Range (ATR) over a 500-period lookback. Unlike standard oscillators, it evaluates price structure by comparing current price action against previously established stops. If the price crosses the stop level, a trend reversal is signaled. To handle market indecision, the script includes logic to ignore "doji" candles (where the body is less than 10% of the range), preventing premature trend shifts during periods of low conviction.

Settings

• ATR Sensitivity: Adjusts the multiplier applied to the ATR calculation. Increasing this value creates a wider trailing stop for long-term trends, while decreasing it makes the indicator more responsive for scalping.
• Use High/Low for Stop Calculation: When enabled, the script uses the candle wicks (High/Low) to determine trend breaks. If disabled, it relies solely on the closing price.

FAQ

How do I interpret the candle colors?

Green candles signify a bullish trend regime where price is holding above the dynamic trailing stop. Red candles signify a bearish trend regime where price is trading below the stop.

Can I use this for automated alerts?

Yes, the script includes built-in alert conditions that trigger whenever a trend shift is detected (bullish trend started or bearish trend started).

How do I access this indicator?

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