This Pine Script code implements a Supertrend indicator in TradingView. The script highlights trends on the chart and optionally displays buy/sell signals when the trend changes. Here is a breakdown of its key components:
Inputs
ATR Period: Determines the look-back period for the Average True Range (ATR) calculation.
Source: Defines the price data to use (default is hl2, the average of high and low).
ATR Multiplier: Adjusts the sensitivity of the Supertrend lines.
Change ATR Calculation Method: Allows switching between simple moving average (sma) and standard ATR calculations.
Show Buy/Sell Signals: Toggles the display of buy/sell signals.
Highlighter On/Off: Toggles background highlighting for uptrends and downtrends.
Calculations
ATR: Computes either a simple moving average of tr or the standard ATR, depending on the changeATR input.
Trend Lines:
up: Defines the upper trendline using the formula src - Multiplier * ATR.
dn: Defines the lower trendline using the formula src + Multiplier * ATR.
Both lines are adjusted to prevent flipping when conditions do not warrant it.
Trend Direction
The trend is determined using:
1 for uptrend (price above dn).
-1 for downtrend (price below up).
Plots
Uptrend Line: Green line plotted when the trend is upward.
Downtrend Line: Red line plotted when the trend is downward.
Buy/Sell Signals: Circles and labels appear where the trend changes.
Highlighter: Colors the background based on the current trend.
Alerts
Three alert conditions are defined:
SuperTrend Buy: Triggered when an uptrend begins.
SuperTrend Sell: Triggered when a downtrend begins.
Direction Change: Triggered whenever the trend switches.
If you have any specific requests or modifications you'd like to make to this script,
feel free to ask!