PTSE

PTSE Indicator Overview
Core Functionality:
PTSE (Price Trend Strength Evaluator) is a multi-level trend assessment tool that dynamically visualizes Exponential Moving Averages (EMAs) based on price position. It assigns a "strength level" (1-6) reflecting the trend's momentum and selectively displays relevant EMAs to reduce chart clutter.

Who Should Use PTSE & Why?
Trend Traders: Ideal for swing/position traders using EMAs to gauge trend strength.

Price-Action Analysts: Helps confirm trend stages (early/mature) via EMA clusters.

Inverse Market Traders: Optional invertLogic adapts the tool for bearish/short-selling strategies.

Key Use Cases:

Identify trend acceleration/deceleration.

Spot potential reversals when levels drop.

Simplify multi-EMA analysis.

Advantages & Disadvantages
Pros Cons
▶ Reduces visual noise (auto-hides non-relevant EMAs) ▶ Lagging (EMA-based) – less effective in sideways markets.
▶ Objective trend-strength quantification (Levels 1-6) ▶ Whipsaws during volatile price action.
▶ Customizable labels for readability ▶ Does not predict reversals; confirms existing trends.
Complementary Indicators
Combine PTSE with:

RSI/MACD: Validate overbought/oversold conditions.

Volume Oscillators: Confirm breakout strength at key levels.

Support/Resistance Lines: Identify confluence at PTSE level transitions.

How PTSE Works
Core Mechanics:
EMA Tiers: Tracks 12, 24, 50, 100, and 200-period EMAs.

Level Logic:

Level 1 → 6: Price must hold above/below* sequential EMAs (e.g., Level 3 = price > 50 EMA + lower EMAs).

invertLogic=true flips rules for bearish trends.

EMA Visibility: Only EMAs qualifying for the current level appear (e.g., Level 4 shows 12, 24, 50, 100 EMAs).

When to Use:
Level 1-2: Early trend – monitor for potential entry.

Level 4-5: Strong trend – ride momentum.

Level Drops: Warning of weakening trend (e.g., Level 5 → 4).

Level Interpretation
Level Meaning Visible EMAs
1 Weak trend (price near fastest EMA) 12-EMA only
2-3 Developing trend 12, 24, (50 for L3)
4-5 Strong trend 12, 24, 50, 100
6 Extremely strong trend All EMAs (12-200)
EMA Visibility Rules:
Visible: EMA is active for the current level (e.g., Level 3 shows 12/24/50 EMAs).

Hidden: EMA not relevant to the current strength level (e.g., 100/200 EMAs hidden at Level 3).

Practical Usage
Setup: Apply to chart; toggle invertLogic for bearish markets.

Entry/Exit Signals:

Long: Level rises (e.g., 2 → 3) + price above visible EMAs.

Exit/Short: Level drops (e.g., 4 → 3) + price breaks key EMA.

Label Tracking: Position the level label (e.g., "Top Right") to monitor strength without distractions.

Key Insight
PTSE transforms traditional EMA analysis into a phased trend-strength system. By dynamically hiding "irrelevant" EMAs, it emphasizes price position within the trend structure, allowing traders to focus on high-probability momentum shifts. Always combine with volume/price-action confirmation for optimal results.