//------------------------------------------------------------------------------

//
// Formula Name: Automatic Trend-line
// Author/Uploader: Tomasz Janeczko
// E-mail: tj@amibroker.com
// Date/Time Added: 2001-06-16 07:56:58
// Origin: Created by Tomasz Janeczko
// Keywords: trend
// Level: medium
// Flags: indicator
// Formula URL: http://www.amibroker.com/library/formula.php?id=3
// Details URL: http://www.amibroker.com/library/detail.php?id=3
//
//------------------------------------------------------------------------------
//
// A trend line is a sloping line drawn between two prominent points on a
// chart. Rising trend lines are usually drawn between two troughs (low
// points) to illustrate price support while falling trend lines are usually
// drawn between two peaks (high points) to illustrate upside price
// resistance. The consensus is that once a trend has been formed (two or more
// peaks/troughs have touched the trend line and reversed direction) it will
// remain intact until broken.
//
// The trend line is described by well-know linear equation:
//
// y = ax + b
//
// where x represents time (bar number), y represents price, a defines the
// slope of the line and b defines initial offset. The main problem in
// defining appropriate AFL formula is finding the values of these two latter
// coefficients. If a trend line is drawn between two important lows the slope
// of the line could be calculated by subtracting the second low price from
// the first low price and dividing the result by a number of bars between the
// lows:
//
// a = ( low2 - low1 ) / ( bars2 - bars1 )
//
// Calculating offset (b) value is trivial when we shift the time scale so x=0
// is located at the first low. In this case b=low1.
//
// So our mathematical formula for the trendline between two important lows
// will look like this:
//
// y = ( x - bars1 ) * ( low2 - low1 ) / ( bars2 - bars1 ) + low1
//
// While determining low prices is simple (just point your mouse over the
// dominant low and read the low price from a data tooltip that appears on the
// screen), determining the bar number is not that simple. You can of course
// count bars by hand but this is simply too much work (especially when you
// don't have Florida volunteers for a recount :-) ). Luckily we have AFL that
// allows us to do it in automatic way. All we have to do is to make a running
// total of bars (our x coordinate) using cum() function:
//
// x = cum( 1 );
//
// and then find out where low occured using valuewhen() function:
//
// bar1 = valuewhen( low == low1, x, 1 );
//
// bar2 = valuewhen( low == low2, x, 1 );
//
// For more detailed description please check out:
//
// <a href="http://www.amibroker.com/newsletter/04-2000.html">Newsletter
// 04/2000</a>
//
//------------------------------------------------------------------------------

x = Cum(1);

perchg = 0.3*LastValue( Highest( ROC( Low, 50 ) ));

startvalue = LastValue( Trough( Low, perchg, 1 ) );

endvalue1 = LastValue( Trough( Low, perchg, 2 ) );

startbar = LastValue( ValueWhen( Low == startvalue, x, 1 ) );

endbar = LastValue( ValueWhen( Low == endvalue1, x, 1 ) );

Aa = (endvalue1-startvalue)/(endbar-startbar);
b = startvalue;

trendline = Aa * ( x - startbar ) + b;

Plot( Close, "Price", colorBlue, styleCandle );

Plot( IIf( x >= endbar, trendline, Null ), "Trendline", colorRed );