Daily Movement Trend Lines

Daily Movement Trend Lines Indicator

This indicator visually decomposes each trading day into distinct, self-contained segments based on intraday price action. Here’s how it works:

Daily Isolation:
The indicator treats each trading day separately. It uses the opening price of the day as the starting point and the closing price of the final candle as the endpoint, ensuring that movements from one day do not carry over to the next.

Local Extremes and Trend Reversals:
Throughout the day, the indicator tracks local highs and lows. It dynamically identifies significant turning points (reversals) when the price moves in the opposite direction of the current trend. A user-adjustable tolerance parameter (expressed as a percentage) filters out minor fluctuations, ensuring that only meaningful price movements are considered.

Visual Representation:
When a reversal is detected:

A static blue line is drawn from the last confirmed pivot (the previous reversal point) to the current local extreme.
A label ("H" for a high or "L" for a low) is placed at the extreme point to denote the reversal.
A dynamic red line continuously connects the last confirmed pivot to the current price, updating in real time as the day progresses.
Day-End Finalization:
At the start of a new trading day, the indicator finalizes the previous day’s movement by drawing a final segment from the last pivot to the close of the previous day. It then resets its calculations, using the new day’s opening price as the new starting point.