Auto Trend Drawing [LuxAlgo]

This indicator is subject to repainting and is displayed retrospectively based on the most recent price data.

• Bullish Flow: When the curve is sloping upward and the price generally stays above or near the curve's trajectory.
• Bearish Flow: When the curve is sloping downward and the price remains below or near the curve's trajectory.
• Consolidation: When the curve flattens out, indicating a lack of clear directional momentum.

1. Normalization: Price data is normalized using the Average True Range (ATR). This ensures that the simplification process remains consistent across different assets and timeframes regardless of their volatility.
2. Ramer-Douglas-Peucker (RDP) Algorithm: This algorithm identifies the most "important" anchor points in the price series by recursively simplifying the path. It removes points that deviate less than a certain threshold (set by the Simplification Multiplier) from a straight line.
3. Catmull-Rom Splines: Once the key anchor points are identified, the script uses Catmull-Rom spline interpolation to connect them. This creates a smooth, aesthetic curve that passes through every identified anchor point, providing a more "organic" look than jagged lines.

• Window Size: Determines the number of recent bars the indicator analyzes to build the curve.
• Simplification Multiplier: Controls the sensitivity of the trend detection. Higher values filter out more noise, resulting in a smoother, more "macro" curve. Lower values allow the curve to follow price more closely.
• ATR Length: The period used for the ATR normalization process.
• Curve Tension: Adjusts how tightly the spline curve follows the anchor points. A value of 0.5 is centripetal, while higher or lower values change the curvature between points.
• Curve Resolution: Sets the number of sub-points calculated between each anchor. Higher values result in a smoother-looking line.
• Line Color: Changes the color of the trend curve.
• Line Width: Adjusts the thickness of the displayed curve.