OPEN-SOURCE SCRIPT
[blackcat] L1 Richard Poster Trend Persistence
Level 1
Background
In Traders’ Tips of February 2021, the focus is Richard Poster’s article in the February 2021 issue, “Trend Strength: Measuring The Duration Of A Trend”.
Function
In his article in this issue, Richard Poster outlines several common ways to evaluate the strength and duration of trends. Then he evaluates their sensitivity to volatility. Next, he steps up our game a bit by proposing an indicator that seeks to measure a trend’s persistence rate, or TPR for short. TPR turns out to be relatively insensitive to the influence of volatility.
Financial markets are not stationary; price curves can swing all the time between trending, mean-reverting, or entire randomness. Without a filter for detecting trend regime, any trend-following strategy will bite the dust sooner or later. In his article in this issue, Richard Poster offers a trend persistence indicator (TPR) for helping to avoid unprofitable market periods.The TPR indicator measures the steepness of a SMA (simple moving average) slope and counts the bars where the slope exceeds a threshold. The more steep bars, the more trending the market. Threshold, TPR period, and SMA period are the parameters of the TPR indicator.
Remarks
This is a Level 1 free and open source indicator.
Feedbacks are appreciated.
Background
In Traders’ Tips of February 2021, the focus is Richard Poster’s article in the February 2021 issue, “Trend Strength: Measuring The Duration Of A Trend”.
Function
In his article in this issue, Richard Poster outlines several common ways to evaluate the strength and duration of trends. Then he evaluates their sensitivity to volatility. Next, he steps up our game a bit by proposing an indicator that seeks to measure a trend’s persistence rate, or TPR for short. TPR turns out to be relatively insensitive to the influence of volatility.
Financial markets are not stationary; price curves can swing all the time between trending, mean-reverting, or entire randomness. Without a filter for detecting trend regime, any trend-following strategy will bite the dust sooner or later. In his article in this issue, Richard Poster offers a trend persistence indicator (TPR) for helping to avoid unprofitable market periods.The TPR indicator measures the steepness of a SMA (simple moving average) slope and counts the bars where the slope exceeds a threshold. The more steep bars, the more trending the market. Threshold, TPR period, and SMA period are the parameters of the TPR indicator.
Remarks
This is a Level 1 free and open source indicator.
Feedbacks are appreciated.
Avoid losing contact！Don't miss out! The first and most important thing to do is to join my Discord chat now! Click here to start your adventure: discord.com/invite/ZTGpQJq 防止失联，请立即行动，加入本猫聊天群: discord.com/invite/ZTGpQJq
Skrip sumber terbuka
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 publications is governed by House rules. Anda boleh menyukainya untuk menggunakannya pada carta.
Ingin menggunakan skrip ini pada carta?
Avoid losing contact！Don't miss out! The first and most important thing to do is to join my Discord chat now! Click here to start your adventure: discord.com/invite/ZTGpQJq 防止失联，请立即行动，加入本猫聊天群: discord.com/invite/ZTGpQJq
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.