TDU Trend Magic

TDU Trend Magic is a trailing line that sits under price in an uptrend and above price in a downtrend. CCI decides the side, ATR decides the distance. A second, wider line forms a channel around it, markers flag trend reversals and pullbacks, and a small table on the chart counts how those setups ended on the bars you have loaded.

What TDU Trend Magic is

The indicator is a price overlay built from two standard calculations, CCI and ATR.

The Trend Magic line works like this. While the CCI (period 20 by default) is zero or higher, the line is the low of the bar minus the ATR times a multiplier, and it is never allowed to move down. While the CCI is below zero, the line is the high of the bar plus the ATR times the multiplier, and it is never allowed to move up. So the line trails below price as long as CCI is positive and above price as long as it is negative.

The channel line, called Band, follows the same rule with its own ATR settings. By default both use an ATR of 5 bars. The Trend Magic line uses a multiplier of 1 and the channel line a multiplier of 3, so the channel line sits further from price. The space between the two is the channel.

The trend is read from the Trend Magic line itself. If the line was higher on the previous bar than on the bar before that, the trend is up. If it was lower, the trend is down. If it was flat, the trend stays what it was.

How to read it on the chart

The indicator needs 10 bars before it draws anything. It also publishes two hidden values. Trend is plus 1 in an uptrend and minus 1 in a downtrend. Signal is plus 1 or minus 1 on a reversal bar and plus 2 or minus 2 on a pullback bar.

The statistics table

The table has three rows, Total, Reversals and Pullbacks, and two numbers per row: Trades and Win ratio. It is a count of the indicator's own past signals on the bars loaded in the chart.

Each R and PB marker is followed as a test trade. The entry is the entry line of that setup. The trade ends when a later bar reaches the Stoploss (ticks) or the Target (ticks) distance from that entry. A trade that reaches the target counts as a winner. Only trades that have ended are counted.

Read it for what it is. The count assumes a fill at the entry line and ignores slippage and commission. It changes when you load more or fewer bars, switch time frame or change the stop and target. The table describes the past on this chart. It is not a forecast and not a promise of results.

Three ways traders use it

How to add it in SabrTrader

1. Install SabrTrader and sign in with a Pro, Ultimate or Perpetual plan. See pricing for the plans.
2. Open a chart of the instrument you trade.
3. Add the indicator. Open the indicator list, search for Trend Magic and add it. It draws on the price panel.
4. Start with the defaults: CCI 20, ATR Period 5 with multiplier 1, Channel ATR Period 5 with multiplier 3.
5. Set the stop and target of the statistics to distances that make sense for your instrument.
6. Move the table with X coordinate and Y coordinate, or hide it with Show Statistics.
7. Switch on the alerts you want, then save the chart as a template.

Settings reference

Parameters

Statistics

Colours, text and alerts

Markets and data it needs

Trend Magic is calculated from the open, high, low and close of each bar. It needs no volume and no order flow, so it works on futures, stocks, forex and crypto and with any feed SabrTrader supports, including Rithmic, dxFeed, Databento, IQFeed and Interactive Brokers. It counts bars, so it also runs on tick, volume and range charts.

Frequently asked questions