This is the Baseline Indicator. I modelled it after one of my favourite Tradingview chart types, the baseline type (shown in image below):
I really love this chart, but I wanted a way for it to: a) Be static and not move with the chart; and b) Auto calculate the baseline average for a specified period of time.
So I created this indicator which does essentially that.
What it does:
The indicator will calculate the average between the high and low of a user defined timeframe. The timeframe is customizable, but it defaults to daily. It will then plot the average (or baseline) of the high and low over that specified timeframe. The default plot is a candle plot. It will change the colours of the candles to green (for above the baseline) and red (for below the baseline). The chart below shows an example of the indicator with candles on SPY. The Baseline timeframe is set to 1 hour:
You can choose whether you want to plot the current baseline average or the previous. The advantage to plotting the previous is that this provide a static reference point and can be helpful on the 30 and 60 minute timeframe. Here is an example:
In this example on SPY, the indicator is plotting the previous average. You can see SPY is using this as support and creating a "staircase" pattern. This is indicative of a trend.
The example above is using the previous day average on the daily timeframe during a sideways day. You can see that the price action accumulates and is consistently drawn to this point.
Inversely, you can manually select your own baseline price if you want a static, self-calculated baseline reference point.
Options and Settings:
Below is an outline of the menu as well as a brief explanation of the options and settings:
To view your chart as a baseline chart, make sure you select the "Line" input and then hide the candles on your chart using your chart settings (see image below):
The purple arrow shows how to hide the candles. You select the "Eye" Icon which should then become greyed out and you will be left with the baseline chart from the indicator.
Why use baseline average?
The average between the high and low of a designated timeframe is a very helpful value. In choppy markets, this acts as a key point of frequent return. In trendy markets, this acts as a reference point of trend direction and strength. I encourage you to play around with the indicator and review some historical charts using it, and you will see some patterns emerge!
Final thoughts:
I have also done a quick tutorial video on the indicator for your reference, you can check that out below:
Thanks for checking out the indicator and I hope you like it!
發布通知
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Quick fix, the tooltips did not get put in the posted indicator. This is just the revision which includes the tooltip description.
發布通知
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Added the ability to plot a label for the High and Low of the current timeframe and the current baseline:
Hey seems like price never is above or below the line at the very start of a new hour. When you check replay it seems to be there. Does this repaint? For example right at the beginning of the hour I wasn’t to scalp back towards the line but during live price starts right on the line
Mnbrass549
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i appreciate you putting alot of time an effort into this.. very well made..
sigbull0138
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Super!!!
Parimal_S
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Thank you for this gift. A game changer indeed. 1 hour time frame over 3 minutes charts giving wonderful results. Keep rocking !
Hungaryan
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Does it repaint?
acpabastocentral
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"Hi! Thanks for all your effort. Question: Is the average between highs and lows simply the ATR (Average True Range) of the price for a certain number of periods? Would it not be good to calculate the average between highs and the average between lows separately?"
Steversteves
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@acpabastocentral, Hello, unfortunately I am not familiar with ATR or the ATR strategy. The indicator is based off of just a baseline average (the line between 2 opposing points). However, if ATR is your interest, I do know there are many different indicators for this you can check out, not by me but by others. Hope this helps! Thanks for the comment :-).
Black-Hawk2024
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Thank you for this wonderful indicator with a very interesting idea. I will forward test it and come back with more feedback so far its looks clean and nice