PerfectBoundsTrend

The PerfectBounds trend indicator is a new type of indicator based on the idea of catching the bounds of the trend formed by moving averages with periods up to 250.

For the time frames M1, M5, M15, H1, H4, D1 and W1 the bounds are calculated:

• The upper bound is formed by the highest ma value of the price highs of each time frame (HMV and the determined period PMH).
• The lower bound is formed by the lowest ma value of the price lows of each time frame (LMV and the determined period PML).
• So if PML>PMH we have a downtrend and if PMH>PML we have an uptrend. Remember the "best" period of the movering averages is determined on every bar.

There a just a few parameters:

• period_XX is the maximum period choosen for the timeframe xx. A value between 5 and 250 is valid. Set it to 0 to disable display the lines.
• mode Set it to 0 to display only the supporting trend lines. Set it to 1 to display the bounds. Use it to combine two indicators with different modes and see the bounds with the trend highlited. The trend lines are always shown below the prices on an uptrend and above the prices for an downtrend.
  
• lineWidth set it to any reasonable value. Use it for example with mode=0 and lineWidth=3 to highlight the trend direction and a second indicator with identical periods and mode =1 and lineWidth=1.
• periodMultiplier allows fast shifts of period values without changing each value. Values up 6 with default period values make sense.
• maxBarsToShow can bet set to 0 to calculate all values for the indicator but it is but for perfomance reasons to limit the value.

The advantages are:

1. Easily determine the bounds of the trend. Often, the price returns to the bound of the trend.
2. Detect the closing triangle of the price bounds which is if the gap between HMV and LMV is getting smaller. This often suggests a breakout or trend change.
3. Better identify a ranging phase where upper and lower band are close together and we see frequent trend changes.
4. As the longer period bounds are coming "updated" always a bar behind you can easily recognize breakouts.
   

This indicator, in my opinion, offers new ways of looking at the price movement.