TrueTrend MaxR

The TrueTrend MaxR indicator is designed to identify the most consistent exponential price trend over extended periods. It uses statistical analysis on log-transformed prices to find the trendline that best fits historical price action, and highlights the most frequently tested or traded level within that trend channel.

For optimal results, especially on high timeframes such as weekly or monthly, it is recommended to use this indicator on charts set to logarithmic scale. This ensures proper visual alignment with the exponential nature of long-term price movements.

How it works

The indicator tests 50 different lookback periods, ranging from 300 to 1280 bars. For each period, it:
- Applies a linear regression on the natural logarithm of the price
- Computes the slope and intercept of the trendline
- Calculates the unbiased standard deviation from the regression line
- Measures the correlation strength using Pearson's R coefficient

The period with the highest Pearson R value is selected, meaning the trendline drawn corresponds to the log-scale trend with the best statistical fit.

Trendline and deviation bands

Once the optimal period is identified, the indicator plots:
- A main log-scale trendline
- Upper and lower bands, based on a user-defined multiple of the standard deviation

These bands help visualize how far price deviates from its core trend, and define the range of typical fluctuations.

Point of Control (POC)

Inside the trend channel, the space between upper and lower bands is divided into 15 logarithmic levels. The script evaluates how often price has interacted with each level, using one of two selectable methods:
- Touches: Counts the number of candles crossing each level
- Volume: Weighs each touch by the traded volume at that candle

The level with the highest cumulative interaction is considered the dynamic Point of Control (POC), and is plotted as a line.

Annualized performance and confidence display

When used on daily or weekly timeframes, the script also calculates the annualized return (CAGR) based on the detected trend, and displays:
- A performance estimate in percentage terms
- A textual label describing the confidence level based on the Pearson R value

Why this indicator is useful

- Automatically detects the most statistically consistent exponential trendline
- Designed for log-scale analysis, suited to long-term investment charts
- Highlights key price levels frequently visited or traded within the trend
- Provides objective, data-based trend and volatility insights
- Displays annualized growth rate and correlation strength for quick evaluation

Notes

- All calculations are performed only on the last bar
- No future data is used, and the script does not repaint
- Works on any instrument or timeframe, with optimal use on higher timeframes and logarithmic scaling