Trend Bars (HTF PO3)

19 Mei

Hello Traders!

The innovative TRN Trend Bars are designed to help traders to analyze markets in an intuitive way. The TRN Trend Bars show bullish and bearish trends and reversals based on color coding the bars and give high probability trade opportunities.



How does the Trend Detection work in detail?

The trend analysis is based on a new algorithm that includes several different inputs:

• detection of classical and advanced bar patterns
  
• the statistical frequency of these bar patterns and their statistical outcomes are computed based on historical data
  
• probability distributions of price expansions after certain bar patterns
  
• bar information such as wick length in %, overlapping of the previous bar in % and many more
  

The algorithm weighs these inputs and computes the likelihood of a trend continuation, or a reversal. The likelihood is computed based on statistical information such as occurrence frequency of certain patterns and their historical performance.

The algorithm then outputs a color scheme for the chart bars.

Analyzing the market with the TRN Trend Bar color scheme



Green Bars signify a bullish uptrend. On the other hand, Red Bars indicate a bearish downtrend. The transition from red to green denotes a bullish trend reversal. Conversely, the shift from green to red signals a bearish trend reversal. By monitoring these color changes, traders can identify potential trend reversals and make informed trading decisions.

The presence of gray and black bars indicates a neutral market state, often observed before an impending color change from red to green or green to red. These neutral bars serve as a transition phase between the previous trend and the potential reversal.


How to use TRN Trend Bars for trading?

The TRN Trend Bars are very sensitive. Therefore, they make it easy to find strong short-term trends and pullbacks of the main trend. This can result in high probability entry and exit signals. Here are some trading strategies examples:

1. Breakouts
   After an up breakout of a consolidation or range (or any other chart pattern) you can enter the moment TRN Trend Bars turn green. Alternatively, you wait for a pullback with red bars and enter once a green bar occurs.
   
   
2. Pullbacks
   In a trending market you use the TRN Trend Bars for pullback entries. For example, if we are in a strong downtrend and a few green bars occur, then you can enter short once a red bar is displayed.
   
   
3. Exit signals/Trade Management
   If you are in a position, you can use the TRN Trend Bars to manage the trade or find good exit points. In case the bar color is not in favor of your position anymore, you can either adjust your stop loss or exit the position completely. E.g. you are in a long position and the bars turn red, then you can either close the trade or tighten your stop loss.
   
   

Conclusion

While signals from TRN Trend Bars can be informative, it is important to recognize that their reliability may vary. Various external factors can impact market prices, and it is essential to consider your risk tolerance and investment goals when executing trades.

Risk Disclaimer

The content, tools, scripts, articles, and educational resources offered by TRN Trading are intended solely for informational and educational purposes. Remember, past performance does not ensure future outcomes.

8 Nov

Nota Keluaran

HTF PO3 with Trend Bars
The indicator displays the PO3 cycle with the sophisticated trend bar coloring to help traders to easily identify the current market direction and to spot high probability trade setups.

Forming a bias with HTF PO3:


Take a high probability trade based on the HTF PO3 bias:


HTF PO3
High Time Frame (HTF) Candles with the Power of Three (PO3) is a concept in trading that explains price movement patterns on higher time frames (HTF). It's based on the idea that price action tends to follow a three-phase Smart Money cycle within a session, consisting of:

1. Accumulation – The market ranges or consolidates, building liquidity as traders position themselves, setting up for the main move.
   
   
2. Manipulation – The market may create a false breakout or move in the opposite direction to trigger stops and build liquidity.
   
   
3. Distribution – The primary directional move, occurring during peak hours with increased volume and marking the trend direction.
   

HTF PO3 with Trend Bars helps to form a bias, as well as identifying trend direction and institutional levels. By identifying the PO3 cycle, traders can anticipate price direction and potential reversals, aligning trades with the distribution phase for more effective entries.

Indicator Features:

• Real-Time HTF Candle Tracking: Follow higher time frame (HTF) candle development live.
  
• Track HTF Trend: Easily track the high time frame trend.
  
• PO3 Strategy Backtesting: Seamlessly backtest and study PO3 strategies in Replay Mode.
  
• High Probability PO3 Trading: Trade PO3 strategies profitably without switching between multiple layouts.
  

Possible Long Trading Scenarios:

• Easily analyze the trend on the higher timeframe with the trend bars.
  
• Look for an uptrend on the higher timeframe.
  
• Wait for a pullback (best case scenario: external liquidity is taken).
  
• Look for displacement back to the range with a structure shift.
  
• Identify an imbalance in the displacement.
  
• Aim for an imbalance that is below 50% of the former move.
  
• Entry: within the imbalance
  
• Stop: Below the candle with the imbalance or below the former swing.
  
• Target: 3R or a new swing high.