ConeCast

How it works

ConeCast utilizes a Linear Regression line fitted over a user-defined lookback window to calculate trend slope, which is then projected forward. The indicator dynamically adapts its cone width based on real-time market volatility, using Average True Range (ATR) to scale the predictive zone.

As market conditions change, the cone expands or contracts proportionally. In calm markets, the projection remains narrow and focused, while during volatile periods, the cone widens to represent increased potential price movement, providing traders with a visual representation of possible future price behavior.

Why it may be useful

Traditional indicators often lag behind price action, forcing traders to react after market movements. ConeCast offers a proactive approach by predicting potential price ranges before they occur, giving traders a strategic advantage in anticipating market behavior.

By combining trend analysis and volatility measurement, the indicator provides a comprehensive view of potential price trajectories. This unique approach helps traders identify potential trend continuation setups, filter out choppy market zones, and make more informed trading decisions across different market conditions.

When to explore it

ConeCast is most effective on timeframes ranging from 15-minute to 4-hour charts, where trend momentum and volatility can be more clearly observed. Traders should look for instances where price enters the projected cone as potential trend continuation signals, using the indicator as a complementary tool to existing strategies.

The indicator is particularly useful during trending markets, where slope and volatility remain relatively consistent. Traders can tune the slope sensitivity and ATR multiplier to match specific trading instruments, enhancing the indicator's predictive accuracy and alignment with individual trading styles.

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