Precision Trend Shot | JeffreyTimmermans

Precision Trend Shot

The "Precision Trend Shot" Indicator is an advanced technical tool designed to provide a dynamic and adaptive view of market trends. By combining three core components—RSI Oscillator, LSMA ATR, and Adaptable Trend—this indicator delivers precise signals that help traders identify market direction, volatility, and potential trend reversals. The calculated total score, derived from these components, provides a clear, actionable view of market conditions.

Key Features

• Multi-Component Analysis: Integrates three key indicators (RSI, LSMA ATR, and Adaptable Trend) for a comprehensive view of market trends.
  
• Dynamic Trend Classification: Categorizes market states as "Bullish" or "Bearish", based on a combined score.
  
• Standard Deviation Bands: Displays standard deviation bands around the score line for enhanced volatility visualization.
  
• Gradient Background Coloring: Visually highlights market phases with gradient colors, aiding quick interpretation.
  
• Customizable Visuals: Offers extensive settings for coloring, background gradients, and signal visibility.
  
• Real-Time Alerts: Generates alerts for significant trend changes or transitions between market states.
  

Inputs & Settings

RSI Settings:

• RSI Source: Default: Close price. Defines the data source for RSI calculation.
  
• RSI Length: Default: 10. Sets the period for calculating RSI.
  

LSMA ATR Settings:

• LSMA Source: Default: Close price. Defines the data source for LSMA calculation.
  
• LSMA Length: Default: 21. Sets the period for calculating the Least Squares Moving Average.
  
• ATR Length: Default: 12. Sets the period for calculating the Average True Range.
  

Adaptable Trend Settings:

• Trend Length: Default: 5. Sets the period for calculating the trend.
  
• Smoothing Length: Default: 5. Controls the smoothing of trend volatility.
  
• Sensitivity: Default: 1.5. Adjusts the sensitivity of trend bands.
  

Standard Deviation Settings:

• Enable Standard Deviation Bands: Default: True. Toggles the display of standard deviation bands.
  
• Standard Deviation Length: Default: 20. Sets the period for standard deviation calculation.
  
• Standard Deviation Multiplier: Default: 2.0. Adjusts the width of the bands.
  
• Smoothing Length: Default: 5. Controls the smoothing of standard deviation bands.
  

Visual Settings:

• Enable Candle Coloring: Default: True. Colors candles based on market state (Bullish or Bearish).
  
• Enable Background Gradient: Default: True. Applies gradient coloring to the background based on trend direction.
  
• Score Line Colors: Customize colors for bullish or bearish score lines.
  

Calculation Process

RSI Calculation:

• Computes the Relative Strength Index (RSI) of the selected source data.
  
• Signals bullish (RSI > 50) or bearish (RSI < 50) conditions.
  

LSMA ATR Calculation:

• Computes LSMA for trend direction and ATR for volatility measurement.
  
• Generates buy and sell signals based on crossover and crossunder of ATR bands.
  

Adaptable Trend Calculation:

• Calculates dynamic trend levels using EMA and standard deviation bands.
  
• Classifies trend states as Bullish or Bearish.
  

Combined Signal Calculation:

• Averages the signals from RSI, LSMA ATR, and Adaptable Trend to generate a total score.
  
• Classifies the market as "Bullish" or "Bearish" based on this score.
  

Standard Deviation Bands:

• Plots standard deviation bands around the combined signal for enhanced volatility analysis.
  

Gradient Background Coloring:

• Colors the chart background based on the identified market state (Bullish or Bearish).
  

How to Use the Precision Trend Shot Indicator

Identifying Market States:

• Bullish Market: Total score > 0, gradient background green.
  
• Bearish Market: Total score < 0, gradient background red.
  

Confirming Signals:

• Use RSI and LSMA ATR signals for early indications.
  
• Use Trend Recon for confirming longer-term trend direction.
  

Visualizing Volatility:

• Standard deviation bands highlight potential reversal zones.
  

Dynamic Alerts

The Precision Trend Shot Indicator includes a robust alert system for real-time market transitions:

• Bullish to Bearish: Market shifts from a bullish to bearish trend.
  
• Bearish to Bullish: Market shifts from a bearish to bullish trend.
  

Conclusion

The Precision Trend Shot Indicator is an advanced, versatile tool for identifying market trends, visualizing volatility, and generating actionable signals. With customizable settings, dynamic alerts, and clear visual representation, it is an essential addition to any trader’s toolkit.

-Jeffrey