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The HLCTrend is a simple yet powerful VertexFX client-side indicator useful to identify trend reversals.
As the name implies, the HLC Trend indicator is based on High, Low and Close price series.
In the first step we calculate the Exponential Moving Averages (EMA) of the High, Low and Close prices with HIGH_PERIOD, LOW_PERIOD and CLOSE_PERIOD respectively. In the next step we calculate the Bullish (BLUE) and Bearish (RED) components. The Bullish component is calculated by subtracting the EMA of the High from the EMA of the Close. The Bearish component is calculated by subtracting the EMA of Close from the EMA of Low. When the price starts rising after a fall, the EMA of Close is rising but the EMA of the High does not rise with the same intensity. As a result the BLUE Bullish line is rising and marks the confirmation of a bullish trend. When the price is falling after a rise, the EMA of Low falls rapidily as compared to the EMA of Close thereby marking a bearish trend.
The value of CLOSE_PERIOD should be lesser than that of LOW_PERIOD and the value of the LOW_PERIOD should be smaller than the value of the HIGH_PERIOD.
BUY / EXIT SHORT - Enter LONG when the BLUE line is below zero and rising for 3 consecutive candles and the RED line is above zero and falling. The stop-loss can be set to the nearest Swing Low. Traders are advised to employ a trailing stop when the trade turns profitable.
SHORT / EXIT LONG - Enter SHORT when the RED line is below zero and rising for 3 consecutive candles and the BLUE line is above zero and falling. The stop-loss can be set to the nearest Swing High. Traders are advised to employ a trailing stop when the trade turns profitable.
As the name implies, the HLC Trend indicator is based on High, Low and Close price series.
In the first step we calculate the Exponential Moving Averages (EMA) of the High, Low and Close prices with HIGH_PERIOD, LOW_PERIOD and CLOSE_PERIOD respectively. In the next step we calculate the Bullish (BLUE) and Bearish (RED) components. The Bullish component is calculated by subtracting the EMA of the High from the EMA of the Close. The Bearish component is calculated by subtracting the EMA of Close from the EMA of Low. When the price starts rising after a fall, the EMA of Close is rising but the EMA of the High does not rise with the same intensity. As a result the BLUE Bullish line is rising and marks the confirmation of a bullish trend. When the price is falling after a rise, the EMA of Low falls rapidily as compared to the EMA of Close thereby marking a bearish trend.
The value of CLOSE_PERIOD should be lesser than that of LOW_PERIOD and the value of the LOW_PERIOD should be smaller than the value of the HIGH_PERIOD.
BUY / EXIT SHORT - Enter LONG when the BLUE line is below zero and rising for 3 consecutive candles and the RED line is above zero and falling. The stop-loss can be set to the nearest Swing Low. Traders are advised to employ a trailing stop when the trade turns profitable.
SHORT / EXIT LONG - Enter SHORT when the RED line is below zero and rising for 3 consecutive candles and the BLUE line is above zero and falling. The stop-loss can be set to the nearest Swing High. Traders are advised to employ a trailing stop when the trade turns profitable.
