Tether line indicator is the first component of TFS trading strategy.
It was named this way because stock prices have a tendency to cluster
around it. It means that stock prices tend to move away from the midpoint
between their 50-day highs and lows, then return to that midpoint at some
time in the future. On a chart, it appears as though the stock price is
tethered to this line, and hence the name.
It was named this way because stock prices have a tendency to cluster
around it. It means that stock prices tend to move away from the midpoint
between their 50-day highs and lows, then return to that midpoint at some
time in the future. On a chart, it appears as though the stock price is
tethered to this line, and hence the name.
//////////////////////////////////////////////////////////// // Copyright by HPotter v1.0 16/05/2014 // Tether line indicator is the first component of TFS trading strategy. // It was named this way because stock prices have a tendency to cluster // around it. It means that stock prices tend to move away from the midpoint // between their 50-day highs and lows, then return to that midpoint at some // time in the future. On a chart, it appears as though the stock price is // tethered to this line, and hence the name. //////////////////////////////////////////////////////////// study(title="TFS: Tether Line", shorttitle="Tether Line", overlay = true ) Length = input(50, minval=1) lower = lowest(Length) upper = highest(Length) xTether = avg(upper, lower) plot(xTether, color=green, title="Tether Line")