The Adaptive Donchian plots a line based on the average of the lowest low and highest high. I call it 'ADL'. Maximum/Minimum lookback period defines the range where the adaptive length can move. When the asset velocity increases the indicator shortens its lookback period. When the asset velocity decreases the indicator lengthens its lookback period. The higher value 'Percent of change' is, the more adaptive it will be, hench, Adaptive Donchian sensitivity increases to velocity changes.
You can select from two different types of signals "Above or Below Middle Line" and "Touching Bands". "Above or Below Middle Line" gives a Buy signal if LOW is crossing over the middle line and Sell signal if HIGH is crossing under the middle line. "Touching Bands" gives Buy signal if HIGH touches the upper band and Sell signal if LOW touches the lower band.
== Color for "Touching Bands" == Green: Low is above center line - Up trending. Lighter Green: Close is above center line but Low is still below H/L line - Weaker up trend. Red: High is below center line - Down trending. Lighter Red: Close is below the center line but High is still above H/L line - Weaker down trend.
== Color for "Above or Below Middle Line" == Green: Low is above center line - Up trending. Red: High is below center line - Down trending.
== Notes == Bar coloring is disabled by default. Middle line can also act as a stop loss. Like if you like and Enjoy!
Code is currently closed as it needs more cleaning and updates. Feel free to comment and Follow to stay updated with upcoming scripts: tradingview.com/u/dman103
Hey kolopolo253, I'd appreciate if you open source'd this indicator or shared the source code with me somehow. This looks like a great indicator I'd like to test for my trend-following algorithm. Thanks!
simwai
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So sad this is not open-source :l Great work!
caidongyangdashen
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Why not open source
kolopolo253
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hi sir..thx for good indicator..in action alert not work for s and b ...please fix it
dman103
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@ahmad1985, Latest version does include alerts. You need to select indicator name in 'Condition' of alerts and than you'll see the buy/sell signals of indicator in the drop down list.