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When a Power Trend is active, there is a stronger than usual uptrend underway. The concept of a Power Trend was defined by Investor’s Business Daily, more specifically, their Market School course designed to mimic the trading style of IBD’s Founder, William O’Neil.

The specifics of a Power Trend were defined by Mike Webster, Justin Nielsen and Charles Harris, while working with William O’Neil at IBD. The uptrends of the Nasdaq Composite were studied in great detail, looking for characteristics that were similar across significant uptrends. The end result was a set of rules that define when a Power Trend starts and ends.

Knowing that there is a Power Trend in play can be helpful to gauge how aggressive to be with your trades.

The price action in a major index, such as the Nasdaq Composite, is the source for determining a Power Trend’s status. Using an index is based on the definition of a Power Trend from Market School. With this indicator, in addition to indexes, it will allow an ETF (more specifically, a “fund” as defined by TradingView) to be used as the source. The reason for the latter is that various ETFs such as ARKK, which are focused on “disruptive technology,” can be helpful to track trends for growth traders.

This indicator mimics the functionality of marked highs/lows in MarketSmith, a charting tool available from Investor’s Business Daily. Marked highs/lows, sometimes referred to as pivot highs/lows, can be used to locate areas of support and resistance . These same points can also be helpful when drawing trendlines and channels.

I’ve added several customization options that add to the flexibility and overall usefulness of this technical indicator.

• Custom Ranges for Marked Highs/Lows

In MarketSmith, a marked high is the highest high going back nine bars and forward nine bars. The number of required bars with lower highs on each side of the high is referred to as the period. The default for the indicator is a nine bar period, however, you can configure the period to fit with your trading style.

• View Marked Highs/Lows on Any Timeframe

MarketSmith only supports marked highs/lows on daily charts . With this indicator you can view marked highs/lows on any timeframe.

Install the latest release of Marked Highs/Lows – Support & Resistance

Relative volume compares the volume at a specific time in the trading day versus the prior volume at the same time of day over a specified range. This is an ideal way to gauge if there is significant volume driving a price move, either up or down.

What’s Unique About this Relative Volume Indicator?

Many relative volume indicators simply divide the current volume by the average volume . Unfortunately, this calculation is not an accurate gauge of volume at a specific point in time and it will not account for typical spikes in volume that occur early and late in the day.

This indicator calculates relative volume on an intraday chart, looking at the volume for each bar in the current timeframe, over a range of days that is configured in Settings. For example, if the preferred lookback is set to 50 and you are on a 5-minute chart at 1:00pm, the indicator will determine the average of cumulative volume traded up to 1:00pm on each 5-minute bar, over the past 50 days. The result is an accurate representation of the “true” volume for a specific time in the day.