Instantaneous Trendline
The Instantaneous Trendline AFL is likely focused on plotting trendlines that adapt quickly to price movements. Utilizing an Amibroker data feed, this AFL dynamically adjusts trendlines based on recent price action. It assists traders in identifying current market trends and potential trend reversals by providing a responsive visualization of trendlines on price charts.
/// Instantaneous Trendline
Price = (H+L)/2;
Length = Param("Length", 20, 2, 100, 1 );
SMA = MA( Price, Length );
Slope = Price - Ref( Price, - ( Length - 1 ) );
SmoothSlope = ( Slope + 2 * Ref( Slope, -1 )
+ 2 * Ref( Slope, -2 ) + Ref( Slope, -3 ) )/6;
ITrend = SMA + 0.5 * SmoothSlope;
// Cyclic Component
alpha = 0;
HP = 0;
SmoothHP = 0;
PI = 3.1415926;
alpha = ( 1 - sin( 2 * PI / Length ) )/cos( 2 * PI / Length );
HP = AMA2( Price - Ref( Price, -1 ), 0.5 * ( 1 + alpha ), alpha );
SmoothHP = ( HP + 2 * Ref( HP, -1 )
+ 2 * Ref( HP, -2 ) + Ref( HP, -3 ) ) / 6;
Plot( Price, "Price", colorBlack, styleCandle );
// components of model
// Plot( ITrend, "ITrend", colorRed );
// Plot( SmoothHP, "SmoothHP", colorRed );
Model = ITrend + SmoothHP;
Plot( Model, "Model", colorRed );