***NEW*** Ultra Trend v2.0 [by TC]

3 Jun 2021

Overview – Ultra Trend v2.0 indicator

The Ultra Trend v2.0 Indicator is an advanced trading tool designed to deliver exceptional accuracy in identifying Buy and Sell signals. Built on a solid momentum and trend-based strategy, it integrates a proprietary filtering method to reduce the impact of random price movements. This ensures the detection of genuine trend shifts with outstanding precision. Whether you're a day trader, swing trader, or long-term investor, Ultra Trend v2.0 adapts seamlessly to your trading style, delivering consistent and actionable signals across all market instruments and time frames.

📈 Ultra Trend v2.0 is highly effective in trending or wave-like market conditions, particularly in stock-based instruments. Its flexible design makes it a powerful tool for scalping, optimizing trade entries on shorter time frames, or as a reliable indicator for swing trading and long-term investment strategies.

⚠ IMPORTANT NOTICE - Optimize Your Indicator for Best Results:
To fully leverage the power of Ultra Trend v2.0, it’s crucial to invest time in adjusting and fine-tuning the indicator signal settings to align with your specific trading style, instrument type, and time frame used, as this can significantly enhance signal accuracy and overall performance.


Key Features

• Advanced Signal Framework: A precise signal generation method that dynamically tracks and updates trend directions using Fast and Slow Trend Levels. This feature minimizes market noise while staying responsive to significant price movements.
  
• Signal Line (EMA): A medium-term trend indicator that enhances momentum analysis and trend direction clarity.
  
• UltraTrend Band: A powerful and adaptive trend-following feature that provides clear insights into whether the market is trending upward or downward. It can be used as a standalone feature or to complement the main indicator signals, improving decision-making.
  
• Dynamic Support and Resistance Lines: Automatically identifies and updates key levels based on pivot points, with built-in visual alerts to notify traders of potential breaches.
  

Areas of Application

• Type of Indicator: A momentum and trend-following indicator with dynamic filters to manage volatility and reduce noise, delivering clear and actionable signals.
  
• Markets: Originally developed for swing trading in the stock market, the indicator has been enhanced to perform equally well across all markets and instruments, including Forex, indices, commodities, and cryptocurrencies.
  
• Time frames: Initially designed for use on higher time frames (30 minutes and above) to ensure optimal accuracy. However, with fine-tuning of the settings, it delivers highly accurate signals and reliable results even on lower time frames, making it a versatile tool for traders with diverse strategies.
  

Settings & Customization

Ultra Trend v2.0’s default settings are optimized for general use. However, traders are encouraged to experiment with and fine-tune parameters to maximize the indicator's effectiveness for their specific trading style, strategy and market conditions. Adjust the parameters according to your preferred noise tolerance level:

• 🔃 Mode Selection: Choose from two distinct signal modes - Ultra, and Standard - to customize the indicator based on your trading approach.
  
• Ultra: Utilizes a highly adaptive smoothing algorithm for enhanced performance and precision.
  
• Standard: Designed for simplicity, providing reliable signals with minimal need for customization.
  
  
• 🔃 Source: The input price source for calculations (e.g., close, open, high, low). Default: Close.
  
  
• 🔃 Period: Sets the period for RSI-based calculations. Shorter periods increase sensitivity, while longer periods enhance stability. Default: 8.
  
  
• 🔃 Sensitivity Factor: Adjusts the noise tolerance level. Higher values reduce false signals but may delay entries. Default: 2.0.
  
  
• 🔃 Absolute Range (n): Fine-tunes the range for signal generation.
  
  Ultra Mode Adjustments:
  
• 🔃 Efficiency Factor: Optimizes the efficiency of signal generation, particularly in Ultra mode. Suggested range: 8–24. Default: 24.
  
  
• 🔃 RSI Modifier: Adjusts the RSI input for enhanced trend detection.
  
  
• 🔃 Fast TL Adjustment: Calibrates the sensitivity of short-term trend levels. Suggested range: 1.0–3.0. Default: 2.0.
  
  
• 🔃 Slow TL Adjustment: Refines medium to long-term trend assessments. Suggested range: 1.0–3.0. Default: 2.0.
  

How to Use the Indicator:

1. Apply the Indicator: Add the Ultra Trend v2.0 indicator to your chart, selecting your desired instrument and time frame. Adjust the settings to suit your trading strategy (See "Settings & Customization" above").
2. Buy Signals: When a Buy signal is confirmed (Green triangle, up ▲) –> enter a Long position.
3. Sell Signals: When a Sell signal is confirmed (Red triangle, down ▼) –> exit the Long position (or enter a Short position).
4. Manage Exits: Exit also the trade when –> it reaches your profit target, limit, or stop loss (based on your discretion).

Use the UltraTrend Band for Trend Following:
- Entering Trades: Enter Long positions in the direction of the green UltraTrend Band and exit or enter Short positions in the direction of the red UltraTrend Band.
- Swing Trading or Trend Following: Use the UltraTrend Band to stay with the trend as long as the price remains within the green band. This allows traders to ride sustained trends effectively while reducing noise and false exits.

Use the Dynamic Support and Resistance Line function for Trading Decisions:
This feature provides a clear visual framework, helping traders make informed decisions with precision and confidence.
- Identifying Key Levels: The Dynamic Support and Resistance Line function automatically detects and draws crucial lines based on pivot points. These lines help traders identify levels where price is likely to reverse or consolidate, offering valuable context for entry and exit decisions.
- Entering Trades: Enter Long positions when the price bounces from a support line, and consider entering Short positions when the price reverses from a resistance line. Use the on-screen visual alerts to act promptly when key levels are breached.
- Trend Continuation or Reversal: Stay aligned with the trend by observing how the price interacts with these lines. If the price respects the support or resistance levels, it suggests a continuation of the trend. A breach, however, may signal a potential reversal or breakout opportunity.

IMPORTANT: Always wait for the candlestick to close before acting on a signal to ensure confirmation.


Additional Features

• Adaptive UltraTrend Band: An adaptive trend indicator that serves as a powerful standalone tool or complements primary signals, offering comprehensive market insights. (To use it as a standalone tool, go to Indicator Settings > Style and disable the Buy and Sell signals.)
  
• Custom Alerts: Set real-time alerts to ensure you never miss a trading opportunity. Use "Once Per Bar Close" for confirmed signals.
  

Tips for Best Results

• Adjust Settings for Different Time Frames: For shorter time frames (e.g., 1-minute, 5-minute), you may need to fine-tune the signal sensitivity to avoid false signals.
  
• Experiment with Filters: Focus on the main variables, "Period", "Sensitivity Factor", and "Absolute Range", and adjust the values to align with the instrument's volatility and your trading objectives.
  
• Use with Alternative Candles: Traditional bar candles are recommended, though Heikin Ashi candles can help filter out noise, offering a clearer view of trends.
  
• Combine with Other Indicators: Enhance performance by combining Ultra Trend with support/resistance levels, volume indicators, or moving averages.
  

Important Notice

⚠ If you are new to trading and/or technical analysis, it’s recommended to start with a demo account (paper-trading) until you become familiar with how to use the indicator before applying it to live trades.

The Ultra Trend indicator is non-repainting, meaning signals do not change or disappear after the bar closes. While Ultra Trend delivers reliable Buy/Sell signals, it is essential to combine it with a solid risk management strategy and other forms of technical analysis. Keep in mind that no indicator guarantees success, as markets are influenced by unpredictable events.

30 Okt 2024

Nota Keluaran

Bug fix. Minor improvements to signal detection logic and script efficiency.

1 Dis 2024

Nota Keluaran

Ultra Trend v2.0
This version introduces several improvements and new features designed to enhance functionality and performance:
- The signal calculation algorithm has been refined to deliver higher accuracy, reduced noise, and improved customization, ensuring more reliable performance across various market conditions.
- A 90 EMA Signal Line has been added as a medium-term trend indicator, providing a clearer overview of trend direction and momentum.
- The "UltraTrend Band" feature has been introduced as a unique and adaptive trend indicator. It can be used as a complementary tool to the primary indicator signals or as a standalone tool for comprehensive trend analysis.
- This update includes an optional feature to automatically draw support and resistance lines based on pivot points. Customization options are available, along with visual alerts to notify users of breaches at nearby levels.