Trendlines - JD

The Trendlines - JD indicator automatically identifies and draws trendlines based on pivot points to help traders visualize market structure and potential breakouts. By connecting significant price peaks and troughs, this tool projects future support and resistance levels across various timeframes.

Usage

The Usage section describes how the script can be used to identify trend structure. The indicator detects pivot highs and lows based on a user-defined lookback period and connects these points with lines. Traders can use these lines to identify trend direction, potential reversal points, or breakout opportunities when the price crosses a projected line.

• Trend Direction: Rising trendlines connecting lows indicate bullish structure, while falling trendlines connecting highs indicate bearish structure.
• Breakout Detection: The script includes internal logic to detect when the price crosses a trendline. By enabling alerts or visual markers, users can spot when a trend might be shifting.
• Projection: Lines can be extended infinitely to act as long-term support/resistance or limited to a specific number of bars to keep the chart clean.

Details

The script utilizes a custom pivot detection algorithm that looks for local minima and maxima within a specific Lookback Length. Once two valid pivot points are established, the script calculates the mathematical slope.

For users utilizing logarithmic scales on their charts, the script includes a specialized log-slope calculation. This ensures that the trendlines remain visually and mathematically accurate when the "Log Chart" setting is enabled, preventing the distortion that typically occurs with standard linear trendlines on log scales.

Settings

General Settings

• Lookback Length Pivots: Determines the number of bars used to detect a pivot point. Higher values result in more significant, longer-term trendlines.
• Draw lines from wicks (checked) or real bodies (unchecked)? Toggles whether trendlines anchor to the high/low of the candle or the open/close (real body).
• Display only falling 'high' and rising 'low' trendlines? Filters the output to show only traditional descending resistance and ascending support lines.
• Checked = monochrome lines, unchecked = direction colored lines? Allows the user to choose between a single color for all lines or color-coding based on the slope direction.
• Limit extensions of the lines? Sets the projection length. 0 provides infinite extension, while other values limit the line length in 50-bar increments.
• Show trendline breaks: Enables visual indicators when price crosses an active trendline.
• Limit number of trendlines shown: When enabled, restricts the chart to show only the most recent lines.
• Number of trendlines to show: Specifies the maximum number of lines to display if the limit setting is active.
• Number of past trendlines to check for breaks: Determines how many historical lines the script monitors for price crosses.
• Only display 'long' breaks on trendlines connecting 'highs' and 'short' for 'lows': Filters break signals to focus on specific directional biases.
• USING A LOG CHART?: Essential toggle for users on logarithmic price scales to ensure slope accuracy.

FAQ

How do I adjust the sensitivity of the trendlines? You can adjust the "Lookback Length Pivots" setting. A smaller number will detect more frequent, shorter-term trendlines, while a larger number will focus on major macro trends.

Why don't the trendlines align with my price action on a log scale? Ensure that the "USING A LOG CHART?" checkbox is selected in the indicator settings to match your charting platform's scale settings.

How can I access the Trendlines - JD indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.