Exponential Envelopes For ThinkOrSwim

[anand_bitra]

mod note:
Exponential Envelopes Indicator is a pressure gauge.
If price is walking the upper band, buyers are in control.
If price is hugging the lower band, sellers are in control.

Like most band indicators,
If price hits a band and stalls, treat it as a form of dynamic resistance or support.
It’s not a reversal call. It's a heads‑up to look at your other indicators to determine whether the trend is weakening or just catching its breath.

# Exponential Envelopes
# Author: Anand Bitra
# Date: 2026-05-26
# Description :
# Upper and Lower extrimities.
# Credits: Alex Pierrefeu - https://alpaca.markets/learn/andean...sed-on-an-online-algorithm-for-trend-analysis

input length = 50;

def alpha = 2.0 / (length + 1);

def C = close;
def O = open;

def up = max(max(C, O), up[1] - alpha * (up[1] - C));
def dn = min(min(C, O), dn[1] + alpha * (C - dn[1]));

plot bullish = up;
bullish.AssignValueColor(if up > up[1] then Color.GREEN else Color.RED);
plot bearish = dn;
bearish.AssignValueColor(if dn > dn[1] then Color.GREEN else Color.RED);