Visulaized version of @colinmck's Twin Range Filter version on TradingView.
On @colinmck's Twin Range Filter version, you can only see Long and Short signals on the chart. But in this version of TRF, users can visually see the BUY and SELL signals on the chart with an added line of TRF.
TRF is an average of two smoothed Exponential Moving Averages, fast one has 27 bars of length and the slow one has 55 bars.
The purpose is to obtain two ranges that price fluctuates between (upper and lower range) and have LONG AND SHORT SIGNALS when close price crosses above the upper range and conversely crosses below lower range.
I personally combine the upper and lower ranges on one line to see the long and short signals with my own eyes so,
-BUY when price is higher or equal to the upper range level and the indicator line turns to draw the lower range to follow the price just under the bars as a trailing stop loss indicator like SuperTrend.
-SELL when price is lower or equal to the lower range levelline under the bars and then the indicator line turns to draw the upper range to follow the price just over the bars in that same trailing stop loss logic.
There are also two coefficients that adjusts the trailing line distance levels from the price multiplying the effect of the faster and slower moving averages.
The default values of the multipliers:
Fast range multiplier of Fast Moving Average(27): 1.6 Slow range multiplier of fSlow Moving Average(55): 2
Remember that if you enlarge these multipliers you will enlarge the ranges and have less but lagging signals. Conversely, decreasing the multipliers will have small ranges (line will get closer to the price and more signals will occur)