Many use this as a contrarian indicator, which is my personal preference too.
I have added an option to plot too, to see how strong the trend/no-trend values are.
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.
// // @author LazyBear // VHF determines whether prices are in trneding or congestion phase. // study(title = "Vertical Horizontal Filter [LazyBear]", shorttitle="VHF_LB") src=close length=input(28, title="VHF Period") showEma=input(false, title="Show EMA?", type=bool) hcp=highest(src, length) lcp=lowest(src, length) cdiff=abs(close-close) N=abs(hcp-lcp) D=sum(cdiff, length) vhf=N/D plot(vhf) plot(showEma ? ema(vhf, length) : na, color=orange, linewidth=2)