Custom Trend Indicator with Reversal Arrows and Pivot Points

The Custom Trend Indicator with Reversal Arrows and Pivot Points tool identifies price action trends and potential reversal points using specific candle relationship rules and EMA crossovers. This script aims to help traders visualize the current market direction and spot momentum shifts through a combination of color-coded trend lines and directional signal arrows.

Usage

The indicator can be used to identify three distinct market states based on price action:

• Uptrend: A green line is plotted when the current bar's high, low, and close are all higher than the previous bar's corresponding values.
• Downtrend: A red line is plotted when the current bar's high, low, and close are all lower than the previous bar's corresponding values.
• No Trend: A black line is displayed when neither the uptrend nor downtrend criteria are met, indicating a period of consolidation or mixed price action.

Traders can look for green upward-pointing arrows to identify bullish reversals and red downward-pointing arrows for bearish reversals. Additionally, the included Exponential Moving Averages (EMAs) provide dynamic support and resistance levels.

Details

The script executes logic that compares current price levels (High, Low, Close) against previous price levels to determine the trend state. This "higher-high/higher-low" logic is a fundamental approach to trend identification.

Beyond the candle-based trend lines, the script incorporates an 8-period and 20-period EMA. These averages are frequently used by momentum traders to gauge short-term trend strength. The inclusion of alertcondition functions allows users to set notifications for when the fast EMA (8) crosses the slow EMA (20), which often serves as a secondary confirmation for trend shifts.

Settings

• Show EMA Lines?: Toggles the visibility of the 8-period and 20-period Exponential Moving Averages on the chart.
• Line Offset Multiplier: Adjusts the vertical distance between the trend line and the price candles for better visual clarity.

FAQ

How do I use the reversal arrows?

The arrows appear when price action shifts from one trend state to another or when specific reversal criteria are met, signaling a potential change in market momentum.

Can I set alerts for EMA crosses?

Yes, the indicator includes built-in alert conditions for both bullish (EMA 8 crossing above EMA 20) and bearish (EMA 8 crossing below EMA 20) crossovers.

How can I access Custom Trend Indicator with Reversal Arrows?

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