This script uses a reverse function of the famous Ehler Instantaneous Trendline to calculate the source price required in order to change from Bullish to bearish
From my analysis, the reverse price does appear to be rather choppy, though it is 100% accurate. This is because Ehler's Instantaneous Trendline tends to remain trending for longer periods of time with above average hold periods.
The main suitability for this would be higher level timeframes, such as Weekly, 5 daily, 3 daily. From my findings Smoothed Heikin Ashi Trend, tends to provide better risk-adjusted returns across most timeframes (Higher return to drawdown ratio)
As I have spent a bit of time getting the reverse function mathematics to work, I decided to publish this as open source for the benefit, scrutiny and for further development by the TradingView community anyways.
This indicator is a great addition! Can you code an alert for when the trend changes candle color? That would make it a scalpers must-have. Thanks
tashley
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@tashley, Found it. Add this at ine 35: // Alerts alertcondition(bull and not bull[1], title="Red to Green", message="Red to Green Alert!") alertcondition(not bull and bull[1], title="Green to Red", message="Green to Red Alert!")