Trendilo AR

12 jam lalu

Trendilo AR is a custom trading indicator designed to identify market trends using advanced techniques such as the Arnaud Legoux Moving Average (ALMA), volume confirmations, and dynamic volatility bands. This indicator provides a clear visualization of trends, including significant changes and custom alerts.

Review of Indicators Used

1. ALMA

Description:
ALMA is a moving average that applies an advanced filter to smooth price data, reducing noise and focusing on actual trends.

Usage in the Indicator:
Used to calculate the smoothed percentage price change and determine trend direction. Customizable parameters include:
- Length: Defines the number of bars to consider.
- Offset: Adjusts sensitivity toward recent prices.
- Sigma: Controls the degree of smoothing.

Advantages:
- Reduced lag in trend detection.
- Resistance to market noise.

2. ATR

Description:
ATR measures the market’s average volatility by considering the range between high and low prices over a given period.

Usage in the Indicator:
ATR is used to calculate "dynamic smoothing", adjusting the indicator’s sensitivity based on current market volatility.

Advantages:
- Adapts to high or low volatility conditions.
- Helps define dynamic support and resistance levels.

3. SMA

Description:
SMA calculates the average of prices or volume over a specific time period.

Usage in the Indicator:
Used to calculate the volume moving average (Volume SMA) to confirm whether the current volume supports the detected trend.

Advantages:
- Easy to understand and calculate.
- Provides volume-based trend confirmation.

4. RMS Bands

Description:
RMS Bands calculate the standard deviation of percentage price changes, creating upper and lower levels that act as overbought and oversold indicators.

Usage in the Indicator:
- Define the range within which the market is considered neutral.
- Crosses above or below the bands indicate trend changes.

Advantages:
- Visual identification of strong trends.
- Helps filter false signals.

Colors and Visuals Used in the Indicator

1. ALMA Line
Colors:
- Green: Indicates a confirmed uptrend (with sufficient volume).
- Red: Indicates a confirmed downtrend (with sufficient volume).
- Gray: Indicates a neutral phase or insufficient volume to confirm a trend.

2. RMS Bands
- Upper and Lower Lines:
- Purple (with transparency): These lines represent the RMS bands (upper and lower) and
adjust opacity based on trend strength.
- Stronger trends result in less transparency (more solid colors).

3. Highlighted Background (Strong Trends)
- Color:
- Light Green (transparent): Highlights a strong trend when the smoothed percentage change (ALMA) exceeds 1.5 times the RMS.

4. Horizontal Lines
- Baseline (0):
- Dark Gray: Serves as a central reference to identify the directionality of percentage changes.
- Additional Line (0.1):
- Blue: A customizable line to mark user-defined key levels.

5. Bar Colors
- Bar Colors:
- Green: When the price is in a confirmed uptrend.
- Red: When the price is in a confirmed downtrend.
- No color: When there is insufficient volume or no clear trend.

How to Use the Indicator

1. Initial Setup

1. Add the Indicator to Your Chart: Copy the code into the Pine Editor on TradingView and apply it to your chart.
2. Customize Parameters: Adjust values based on your trading strategy:
- Smoothing: Controls the level of smoothing for percentage changes.
- Lookback Length: Defines the observation period for calculations.
- Band Multiplier: Adjusts the width of RMS bands.

2. Signal Interpretation

1. Indicator Colors:
- Green: Confirmed uptrend.
- Red: Confirmed downtrend.
- Gray: No clear trend or insufficient volume.

2. RMS Bands:
- If the ALMA line (smoothed percentage change) crosses above the upper RMS band, it signals a potential uptrend.
- If it crosses below the lower RMS band, it signals a potential downtrend.

3. Volume Confirmation:
- The indicator's color activates only if the current volume exceeds the Volume SMA.

3. Alerts and Decisions

1. Trend Change Alerts:
- The indicator automatically triggers alerts when an uptrend or downtrend is detected.
- Configure these alerts to receive real-time notifications.

2. Strong Trend Signals:
- When the magnitude of the percentage change exceeds 1.5 times the RMS, the chart background highlights the strong trend.

4. Trading Strategies

1. Buy:
- Enter long positions when:
- The indicator turns green.
- Volume confirms the trend.
- Consider placing a stop-loss just below the lower RMS band.

2. Sell:
- Enter short positions when:
- The indicator turns red.
- Volume confirms the trend.
- Consider placing a stop-loss just above the upper RMS band.

3. Neutral:
- Avoid trading when the indicator is gray, as no clear trend or insufficient volume is present.


Disclaimer: As this is my first published indicator, please use it with caution. Feedback is highly appreciated to improve its performance.

Happy Trading!