Perfect Trendlines indicator for VertexFX

Trading Tech and Tools
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Perfect Trend Lines, PTL, is a short-term trend trading indicator. The lines showing the trend in this indicator is not straight lines like normal trend lines. PTL indicator calculation is simple. First take the 7 bar high and low, then the 3 bar high and low. If the close price is above the 7 bar high and 3 bar high, then an uptrend is identified. When the close price is below the 7 bar low and 3 bar low then a downtrend is identified. These bars are considered as strong trend bars. The magenta line is the 7 bar high or low depending on the trend. The cyan line is the 3 bar high or low depending on trend direction. When price is trading between these 2 lines trend strength is weak.

PTL
PTL800×600 14.6 KB

A magenta diamond shape appears when sell signal is generated. Cyan diamond shape appears for a buy signal. The magenta line can be used as stop loss. The cyan line provides a tighter stop loss level. Strong downtrend bars are marked by a magenta dot at the bar high and strong uptrend bars are marked by a cyan dot at the bottom of the bar.

PTL.zip (2.8 KB)

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It isn’t hard to generate buy signals and sell signals, and they will work, whether with this method or using MA’s or candlestick patterns or whatever method. But how well it works and how much risk is bult in depends on exit rules.

In this case, with PTL, do you set stop-losses or is the position simply reversed when a new contrary signal prints?

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I use stoloss at the faster line

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