The HyperTrend indicator aims to provide a real-time estimate of an underlying linear trend in the price. Support and resistance extremities are constructed from this estimate which can provide trade opportunities within the overall trend.

Most tools that return lines on a chart are either subject to backpainting or repainting. We aimed to provide a reliable real-time method to estimate linear trends in the price, enhancing traders' decision making processes when it comes to trading trends in price, hence the term 'HyperTrend'.

USAGE

Users can use the HyperTrend to easily determine the trend direction in the price, with an average sloping upward indicating an uptrend, and an average sloping downward indicating a downtrend.

The channels upper extremity can act as a resistance, while the lower extremity can act as a support. Contact with candle wicks can signal timely reversals/retracements.

Using a higher "Multiplicative Factor" value will return less frequent new channels, and is suitable to analyze longer-term trends. The slope settings on the other end allow us to control the slope of the returned channels, with higher values returning flatter results (similar to our previously posted predictive ranges).

Channel Average

The channel average can return an estimate of the current (and future) trend in the price, the chart below shows an interval where a linear regression is displayed alongside the channel average:

Unlike the linear regression, the average does not have any lookahead bias, this of course comes at the price of accuracy in most cases.

Users can also use this average as a support or resistance. The breakout of a TC average that has been tested multiple times can be considered more significant in suggesting a trend reversal.

SETTINGS

• Multiplicative Factor: Control the allowed degree of deviation of the price from the average line. Higher values will return less frequent new channels.
• Slope: Controls the steepness of the returned lines. Higher values will return flatter results.
• Width %: Width percentage of the channel. Lower results will return narrower channels.