This is an interesting study that can be used as a tool for determining trend direction, and also could be a trailing stop setter. I use it as a gauge on MTF settings. If on, you can look at the bar cycle of the 1h while on the 15m giving you a lot of information in one tool. If a line is missing high or low, it is because it was broken, if both exist you are trading in range and cloud appears. If both sides break you get thick gray boxes above and below bar.
Get used to editing the inputs to suit your liking. Often 3-5 length and always looking at different resolutions to get a big picture story. You could put multiple instances of the study up to see them simultaneously. I based the idea off of Krausz's 3 day cycle which you can read about in his teachings. I tend to find it looking better using Heikin Ashi bar-style.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
I am loving this indicator. Thank you so much. I would like to understand it though on how it is drawn to allow me to choose a better larger timeframe. What do you exactly mean by "bar cycle" as well as how do the indicator knows whether it is trading in a range. I am not a programmer but I would rly appreciate it so much if you could explain this in layman terms.
t = tickerid(syminfo.prefix, ticker)
realC = security(t, period, close)
realH = security(t, period, high)
realL = security(t, period, low)
realO = security(t, period, open)
with this set using the "real" (or consistent) values the indicators with give consistent results.
It is a set of variables that can be used in indicators so that the indicator does not change when you change bar/candle type. If you want an indicator to not change behavior and act as if ohlc bars or candles are being used do the following: insert this codee before calling close, high, low or open and where ever close, high, low or open are used in the code replace them with realC, realH, realL or realO (or choose your own names if you wish of course.
Does this answer your question completely. Let me know if not clear. Thanks again and keep smiling!