A formidable trend-following indicator, based on an ATR combined with a trailing stop mechanism. Divinetrend’s aim is to offer a simple and efficient alternative to Supertrend, another highly reputed indicator of the same type. It comes with a trading strategy that can be activated in its parameters. You can also change a number of design parameters.
Divinetrend is pretty straightforward in its approach. It calculates a base moving average taking into account the asset’s volatility, multiplies it with an ATR, then displays a line representing a trailing stop. When a red line is broken, the asset is considered to be moving back into an uptrend. Inversely, when a green line is broken, a bearish signal is sent. In the parameters, you can also activate a trend contestation period. If this parameter is activated, the price must have been trending for at least 5 days for the trend change to be validated.
Usage advice #
We recommend that you do not use this indicator with a time unit of less than 2 hours. Ideally in 4 hours or daily, or even 3 days. Otherwise, there’s nothing special about the use of this indicator. We still recommend that you use your logarithmic chart for a better visualization, but this is optional.
This indicator was designed in particular for the crypto market, but it also works on traditional market assets.
The different signals #
Divinetrend gives buy and sell signals based on trailing stop line breaks and trend orientation. In particular, it can be used for trend identification and following. If the Contested Trend option is activated in the settings, the indicator will also display a contested period in blue. In this case, it is necessary to wait 5 days for the trend to be validated.
Integrated Trading Strategy #
In addition, a trading strategy is integrated into the Divinetrend indicator. This can be activated in the parameters. This is mainly there to see the results and the relevance of the indicator in the TradingView Strategy Tester. We do not recommend using it alone. As this strategy is used to study the indicator’s performance, we use the following default parameters: An initial capital of 2,000 USDT with 100% of equity in order size. In other words, we’ll bet the entire portfolio on each trade. To do this, we use a default stop loss of 10%, to avoid risking heavy losses. We also use a commission of 0.01% and a slippage of 3 ticks to reflect more reality.
By opening the parameters of the indicator, it is possible to :
- Activate Contested Trend to take into account a trend validation period.
- Display or hide buy and sell signals.
- Display or not wait signals (only if Contested Trend is enabled).
- Enable color filling between asset price and trailing stop.
- Activate or deactivate the indication table, and choose its position.
- Activate the trading strategy.
- Choose whether or not to pass the first signal sent by the indicator. This may be a false signal due to the moving-average calculation method used in this indicator.
- Select a date range to backtest over a given period.
- Activate and configure Stop Loss elements.
Indicator link #
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