How to use MAD Indicator to capture trend and reversals?

Market Anomaly Detector (MAD): Real-Time Performance Analysis

Overview

The Market Anomaly Detector (MAD) Indicator efficiently identifies market momentum shifts and volatility breakouts, clearly marking bullish and bearish opportunities. This real-time chart demonstrates the practical efficacy of MAD in capturing timely market entries and exits.

Indicator Functionality

Mainline (Blue Line): Static reference indicating general market context about the trend (non-trading but act as support and resistance sometimes.

Upper Band (Green Line):

Buy signal when price closes above, indicating potential bullish continuation.

Sell signal triggered if price closes back below, indicating bearish reversal.

Lower Band (Red Line):

Sell signal when price closes below, confirming bearish momentum.

Buy signal activated if price closes back above, signaling bullish recovery.

Performance Insights (from attached chart)

Timely Bullish Signals

Strong bullish signals clearly marked with green backgrounds as price closed decisively above the green band, capturing rapid upward momentum.

Reversal entries triggered effectively as price reclaimed and sustained above the lower red band, indicating bullish recovery.

Accurate Bearish Entries

Precise bearish signals generated consistently upon the price closing below the lower red band, accurately capturing sustained downward movements.

Price rejection at the upper green band confirmed bearish reversals, signaling timely market exits.

Volatility and Momentum Clarity

Contraction phases reliably indicated reduced market activity, clearly distinguished from momentum-driven expansions.

Band expansion highlighted impending volatility, providing actionable insights for traders.

Key Takeaways

✅ Accurate bullish/bearish signal generation at key band interactions.
✅ Consistent reliability in pinpointing volatility-driven market shifts.
✅ Effective filtering of market noise, ensuring clarity in real-time analysis.
✅ Strong alignment of signals with subsequent market trends and reversals.

This performance snapshot reinforces MAD's utility as a robust analytical tool for traders navigating complex market conditions.