Multi-Band Trend Line

This Pine Script creates a versatile technical indicator called "Multi-Band Trend Line" that builds upon the concept of the popular "Follow Line Indicator" by Dreadblitz. While the original Follow Line Indicator uses simple trend detection to place a line at High or Low levels, this enhanced version combines multiple band-based trading strategies with dynamic trend line generation. The indicator supports five different band types and provides more sophisticated buy/sell signals based on price breakouts from various technical analysis bands.

https://tr.tradingview.com/script/29iYBNku-Follow-Line-Indicator/

Key Features

1. Multi-Band Support
   The indicator supports five different band types:
   - Bollinger Bands: Uses standard deviation to create bands around a moving average
   - Keltner Channels: Uses ATR (Average True Range) to create bands around a moving average
   - Donchian Channels: Uses the highest high and lowest low over a specified period
   - Moving Average Envelopes: Creates bands as a percentage above and below a moving average
   - ATR Bands: Uses ATR multiplier to create bands around a moving average
   
   
2. Dynamic Trend Line Generation (Enhanced Follow Line Concept)
   
   - Similar to the Follow Line Indicator, the trend line is placed at High or Low levels based on trend direction
   - Key Enhancement: Instead of simple trend detection, this version uses band breakouts to trigger trend changes
   - When price breaks above the upper band (bullish signal), the trend line is set to the low (optionally adjusted with ATR) - similar to Follow Line's low placement
   - When price breaks below the lower band (bearish signal), the trend line is set to the high (optionally adjusted with ATR) - similar to Follow Line's high placement
   - The trend line acts as dynamic support/resistance, following the price action more precisely than the original Follow Line
   
   
3. ATR Filter (Follow Line Enhancement)
   
   - Like the original Follow Line Indicator, an ATR filter can be selected to place the line at a more distance level than the normal mode settled at candles Highs/Lows
   - When enabled, it adds/subtracts ATR value to provide more conservative trend line placement
   - Helps reduce false signals in volatile markets
   - This feature maintains the core philosophy of the Follow Line while adding more precision through band-based triggers
   
   
   
4. Signal Generation
   
   - Buy Signal: Generated when trend changes from bearish to bullish (trend line starts rising)
   - Sell Signal: Generated when trend changes from bullish to bearish (trend line starts falling)
   - Signals are displayed as labels on the chart
   

*Visual Elements

- Upper and lower bands are plotted in gray
- Trend line changes color based on direction (green for bullish, red for bearish)
- Background color changes based on trend direction
- Buy/sell signals are marked with labeled shapes


How It Works

1. Band Calculation: Based on the selected band type, upper and lower boundaries are calculated
   
2. Signal Detection: When price closes above the upper band or below the lower band, a breakout signal is generated
   
3. Trend Line Update: The trend line is updated based on the breakout direction and previous trend line value
   
4. Trend Direction: Determined by comparing current trend line with the previous value
   
5. Alert Generation: Buy/sell conditions trigger alerts and visual signals
   

Use Cases

• Enhanced trend following strategies: More precise than basic Follow Line due to band-based triggers
  
• Breakout trading: Multiple band types provide various breakout opportunities
  
• Dynamic support/resistance identification: Combines Follow Line concept with band analysis
  
• Multi-timeframe analysis with different band types: Choose the most suitable band for your timeframe
  
• Reduced false signals: Band confirmation provides better entry/exit points compared to simple trend following