OPEN-SOURCE SCRIPT

True Range Trend Strength

This script is designed to analyze trend strength using True Range calculations alongside Donchian Channels and smoothed moving averages. It provides a dynamic way to interpret market momentum, trend reversals, and anticipate potential entry points for trades.

Key Functionalities:

Trend Strength Oscillator:

Calculates trend strength based on the difference between long and short momentum derived from ATR (Average True Range) adjusted stop levels.
Smooths the trend strength using a simple moving average for better readability.
Donchian Channels on Trend Strength Oscillator:

Plots upper and lower Donchian Channels on the smoothed trend strength oscillator.
Traders can use these levels to anticipate breakout points and determine the strength of a trend.
Zero-Cross Shading:

Highlights bullish and bearish zones with shaded backgrounds:
Green for bullish zones where smoothed trend strength is above zero.
Red for bearish zones where smoothed trend strength is below zero.
Moving Averages for Oscillator:

Overlays fast and slow moving averages on the oscillator to provide crossover signals:
Fast MA Cross Above Slow MA: Indicates bullish momentum.
Fast MA Cross Below Slow MA: Indicates bearish momentum.
Alerts:

Alerts are available for MA crossovers, allowing traders to receive timely notifications about potential trend reversals or continuation signals.
Anticipating Entries with Donchian Channels:

The integration of Donchian Channels offers an edge in anticipating excellent trade entries.
Traders can use the oscillator's position relative to the channels to gauge oversold/overbought conditions or potential breakouts.
Use Case:
This script is particularly useful for traders looking to:

Identify the strength and direction of market trends.
Time entries and exits based on dynamic Donchian Channel levels and trend strength analysis.
Incorporate moving averages and visual cues for better decision-making.