Heya Good People!
Created Oct 24, 2023
The "MA Sabres" indicator highlights potential trend reversals based on a moving average direction. Detected reversals are accompanied by an extrapolated "Sabre" looking shape that can be used as support/resistance and as a source of breakouts.
If a selected moving average (MA) continues in the same direction for a certain time, a change in that direction could signify a potential reversal.
In this publication, when a trend change occurs, a sabre-shaped figure is drawn which can be used as support/resistance:A sabre can be indicative of a direction, however, it can also act as a stop-loss when the price should go in the opposite direction:
Or show potential areas of interest:
This publication will look for a change in direction after the MA went in the same direction during x consecutive bars (settings: "Reversal after x bars in the same direction").
Then a circle-shaped drawing will be drawn 1 bar back, at the previous high/low, dependable of the previous direction.
From there originates a sabre-shaped figure where the tip lies as far as the user-set MA length.
The angle of the "sabre" relies on the ATR of the previous 14 bars.Less volatility will create a flatter sabre while the opposite is true when there is more volatility in the previous 14 bars.
The sabre is created by the latest feature, polylines, which enables us to connect several 'points', resulting in a polyline.new() object.
Do note that sabres are offset by one bar to the past to align their locations.
MA Type: SMA, EMA, SMMA (RMA), HullMA, WMA, VWMA, DEMA, TEMA, NONE (off)
Length: this sets the length of MA, and the length of the sabre shape
Previous Trend Duration: After the MA direction is the same for x consecutive bars, the first time the direction changes, a sabre is drawn
Wishing you all Amazing Trades !!