About TrendLine Pro
TrendLine Pro — part of the DS Essentials package — is a fully automated trendline and support/resistance tool implemented as an overlay in Technician. It will assist you in identifying low-risk entry points by calculating and then projecting trend lines, support/resistance zones, and gap zones on charts of any bar interval. Once loaded into a chart, the TrendLine Pro indicator will scan the price data and identify all pivot points and will use these pivots points to analyze all possible trendline formations.
It uses proprietary ranking logic to determine the best trendlines to display based upon the current price action and weighting parameters that you control. In addition to trendlines and pivot points, TrendLine Pro will also automatically identify key support/resistance zones as well as gap levels on your chart. Whether you actually trade trendline breakouts/breakdowns or you are just looking for a easy-to-use and reliable support/resistance tool, TrendLine Pro will do the job.
While a large number of parameters are available for tweaking performance, TrendLine Pro is ready to run right out of the box and the default settings should be fine for most users. However, if you do wish to fine-tune the performance, options are available to control the number of trendlines as well as for trendline weighting, which force the indicator to have a bias towards trendlines that have more of the characteristics that you are looking for.
One important aspect of TrendLine Pro is the Ignore Zone. In the chart example above, the Ignore Zone is the shaded bracket that encompasses the most recent 3 price bars. Any trendline breaks that occur in the Ignore Zone are ignored for purposes of removing broken trendlines, and this applies to gap levels and S/R levels as well. This gives you the ability to monitor a trendline breakout or breakdown for up to 3 bars after the break occurs (more if you decide to increase the size of the Ignore Zone) giving you time to make a decision as to entry point and possible stop levels.
The default lookback is 150 bars, which is more than reasonable for most bar intervals. However the lookback can be increased up to 3000 bars, if desired.
The TrendLine Pro indicator has a number of parameters that can be adjusted. Once the indicator has been loaded, you can access the parameters dialog by selecting the indicator menu. You will see a pencil icon to the right of the TrendLine Pro menu option:
The full TrendLine Pro user guide can be found on the Divergence Software website here: http://www.sr-analyst.com/ChartIQHelp/index.html
It should not be assumed that past performance is any guarantee of future results. Results obtained from the use of the DS Essentials Indicator Collection for ChartIQ indicators or any information provided in this User Guide are not guaranteed to be profitable. It should be understood that investing or speculating in the financial markets involves risk and may result in either a partial or total loss of one’s investment capital. The information presented in this User Guide is believed to be reliable, but cannot be guaranteed as to its accuracy or completeness.
Divergence Software, Inc. and/or its principals and employees will accept no liability whatsoever for any loss arising from any use of the DS Essentials Indicator Collection for ChartIQ indicators, or the information contained in this User Guide. Neither Divergence Software, Inc. nor ChartIQ offer trading advice of any kind and we are solely involved in the business of financial software development and education.
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