Trend Pulse Algo (LTM)

10 בנוב׳

Trend Pulse Algo LTM Indicator Description

Overview
Trend Pulse Algo LTM is an advanced multi layer technical indicator designed for TradingView that combines moving average MA crossovers confirmation signals pivot based structure analysis imbalance zone detection and overextension warnings to identify potential trend shifts continuations and reversal points. It aims to provide traders with reliable entry and exit signals in trending markets while highlighting areas of market inefficiency imbalances and overextended price moves that could signal exhaustion.

This indicator operates on a pulse concept where it detects rhythmic shifts in market momentum through layered MAs a quick MA for short term sensitivity a mid MA for intermediate confirmation and a long MA as a baseline trend filter. Signals are generated based on alignments and crosses between these MAs but with added layers of confirmation to reduce false positives such as requiring consecutive bars above below the long MA and breaks of prior pivot highs lows. It incorporates higher timeframe HTF analysis for imbalance zones to capture broader market context making it suitable for swing trading trend following or scalping on lower timeframes when combined with the overextension detector.

Unlike simple MA crossover systems for example standard dual EMA strategies this algo uses adaptive MA types based on timeframe pivot deviation for structural breaks and a tally based confirmation to filter noise. Imbalance zones identify fair value gaps or inefficiencies between candle bodies and wicks where price may retrace to fill. Overextension is calculated relative to the mid MA using a rolling mean absolute deviation MAD ratio highlighting potential tops bottoms in strong trends. The result is a visually clean or detailed based on mode overlay that colors bars backgrounds plots labels for signals and pivots and draws zones to guide decision making.

How It Works

1. MA Layers and Signal Generation
   Three MAs quick mid long are computed using either SMA or EMA selected dynamically based on the charts timeframe for optimal responsiveness for example EMA on lower TFs for faster signals.
   
   Early Signals A crossover of the quick MA above the mid MA while above the long MA triggers a Possible Bull label indicating early momentum shifts. A crossunder below triggers Possible Bear.
   
   Confirmed Signals Bullish confirmation requires a set number of bars closing above the long MA plus alignment quick greater than mid and a break above the prior pivot high. Bearish requires bars below the long MA and a break below the prior pivot low. This uses a counter mechanism to ensure persistence reducing whipsaws. Breaks are detected via crossovers under of close versus prior highs lows.
   
   State persistence tracks the current regime bull bear warn early coloring the chart accordingly until a new signal overrides it.
   
   
2. Pivot Detection and Structure
   Pivots are identified by scanning for highs lows separated by a minimum bar depth with a percentage deviation threshold to confirm validity. This follows a zigzag like approach but with deviation filtering for robustness.
   
   Labels like HH Higher High HL Higher Low LH Lower High LL Lower Low highlight market structure helping identify trends for example HH HL for uptrends or breakdowns. These are used internally to validate signal breaks.
   
   
3. Imbalance Zones
   Zones detect imbalances or gaps between candle bodies and prior highs lows where unfilled inefficiencies attract price.
   
   For bullish zones If open greater than close and high minus low two less than zero a zone is drawn from calculated top bottom limits. Bearish similarly for close greater than open.
   
   Supports current TF HTF or both. Zones extend rightward until filled price touches the opposite side or mid line if enabled then either delete or shorten based on settings. Mid lines can act as fill triggers for partial closures.
   
   HTF data is fetched via security for broader context resetting on new HTF bars.
   
   
4. Overextension Indicator
   Measures price deviation from the mid MA relative to a rolling average RMA of relative deviations over a length.
   
   Multipliers define tiers mild for example two times avg deviation moderate three times extreme four times. Circles plot above below bars in bull bear states when thresholds are exceeded signaling potential reversals for example red for extreme tops in uptrends. This is akin to a Bollinger Band squeeze expansion but normalized to MA distance for trend specific warnings.
   
   
5. Chart Coloring and Visuals
   Background or candle coloring reflects the state green for bull red for bear orange for warn blue for early.
   
   Modes control clutter Clean hides MAs zones pivots Balanced shows essentials Detailed includes all.
   

How to Use It
Setup Add to your chart via TradingViews indicator search. Adjust inputs based on asset timeframe for example shorter MA periods for volatile cryptos longer for stocks.

Trading Strategy Ideas

• Trend Following Enter long on Confirmed Bull labels exit on Confirmed Bear or extreme overextension circles. Use imbalance zones as support resistance for stops targets for example buy dips to unfilled bullish zones.
  
  
• Reversal Scalping Watch for Possible Bull Bear near pivot labels for example HL LL and overextension in the opposite direction. Confirm with zone fills.
  
  
• Multi TF Analysis Set HTF to D for daily context on hourly charts zones from HTF often act as magnets.
  
  
• Risk Management Place stops below prior lows in bulls or above highs in bears. Target zone edges or MA crosses. Avoid trading against strong states without confirmation.
  

Alerts Set up via TradingView for Early Up Down or Up Down Confirm to notify on signal edges.

Limitations Best in trending markets may lag in ranges. Test on historical data no indicator is foolproof combine with volume price action.

Detailed Input Settings
Below is a comprehensive breakdown of all user adjustable inputs from the settings panel grouped as in the script. Each explains what it controls its effect on the indicators logic and usage tips. Defaults are provided for reference.

Chart Mode
Chart Mode default Detailed Mode options Clean Mode Balanced Mode Detailed Mode
Controls visual detail level. Clean Mode hides MAs imbalance zones and pivots for a minimal overlay focused on signals and coloring. Balanced Mode shows MAs and signals but omits zones pivots. Detailed Mode displays everything for in depth analysis. Use Clean for live trading to reduce clutter Detailed for backtesting structure review.

Display Settings
Color Style default Candles options Background Candles
Determines how states bull bear warn early are visualized. Background colors the chart area for example green shading for bull. Candles colors bar bodies wicks directly. Background is subtler for multi indicator setups Candles emphasizes signals on naked charts.

Imbalance Zone HTF Config

• Higher TF Period default D
  Sets the higher timeframe for imbalance detection for example D for daily four H for four hour. This fetches broader data to identify significant zones. Use a TF four to five times your current for context for example daily on one H charts avoid very high TFs like W on intraday for relevance.
  
• TF Mode default Current TF options Current TF Current plus HTF HTF Only
  Defines timeframe handling for zones. Current TF uses only your charts TF. Current plus HTF combines both for layered zones. HTF Only ignores current TF. Current plus HTF is ideal for multi TF confluence HTF Only simplifies for swing traders.
  
• Shift default ten min zero max five hundred
  Horizontal offset in bars for current TF zone labels. Higher values shift labels rightward to avoid overlap. Adjust if labels crowd the chart.
  
• HTF Shift default twenty min zero max five hundred
  Similar to Shift but for HTF zone labels. Use larger offsets for HTF to distinguish them visually.
  

Imbalance Zone Core Options

• Mid Line Fill default false
  Enables a midpoint line in each zone zones fill close short when price touches this mid line instead of the far edge. Activates partial fill logic for more conservative zone closure. Enable for tighter risk in volatile markets.
  
• Remove Filled Zones default true
  If true completely deletes filled zones if false shortens them to the fill point keeping history. True clears clutter false retains context for review.
  
• Display TF on Zone default false
  Shows the timeframe for example D IZ on zone labels. Useful for distinguishing current versus HTF zones in combined mode.
  
• Max Upward Zones default twenty min one max fifty
  Limits displayed bullish upward zones removes oldest when exceeded. Lower for cleaner charts higher for historical depth.
  
• Max Downward Zones default twenty min one max fifty
  Same as above but for bearish downward zones.
  

Imbalance Zone Visuals

• Upward Zone color green at ninety percent transparency
  Color for current TF upward imbalance zones. Adjust opacity for visibility.
  
• HTF Upward Zone color lime at eighty percent transparency
  Color for higher timeframe upward imbalance zones. Differentiate from current for example lighter shade.
  
• Downward Zone color red at ninety percent transparency
  Color for current TF downward imbalance zones.
  
• HTF Downward Zone color maroon at eighty percent transparency
  Color for higher timeframe downward imbalance zones.
  
• Mid Line Color color white at eighty five percent transparency
  Color for the optional midpoint line in zones.
  
• Text Color color white
  Color for text labels on zones.
  

MA Layers

• Quick MA Period default ten min one
  Length for the fastest moving average sensitive to short term price. Shorter for example five for scalping longer for example fifteen for less noise.
  
• Mid MA Period default twenty min one
  Intermediate MA length used for crossovers and overextension base. Typically two times quick for balance.
  
• Long MA Period default fifty min one
  Baseline trend filter length. Longer for example one hundred for major trends shorter for active trading.
  

MA Variants by Period

• Under one H default EMA options SMA EMA
  MA type for timeframes under one hour for example EMA for faster response.
  
• One H to less than five H default EMA options SMA EMA
  MA type for one to five hour timeframes.
  
• Five H to less than one D default EMA options SMA EMA
  MA type for five hour to one day timeframes.
  
• One D plus default EMA options SMA EMA
  MA type for daily and higher timeframes. Adapt to market EMA for trends SMA for mean reversion.
  

Signal Confirmation

• Bull Confirm Bars default one min zero
  Consecutive bars needed above long MA for bull confirmation. Zero for instant higher for example three filters noise but delays entries.
  
• Bear Confirm Bars default two min zero
  Same for bear below long MA. Asymmetrical default higher for bears assumes uptrend bias.
  

Pivot Detection

• Pivot Depth default six min one
  Min bars between pivots. Higher reduces minor swings lower captures more structure.
  
• Pivot Deviation percent default one point zero min zero point one
  Percent change required for new pivot. Higher ignores small moves for example two percent for stocks zero point five percent for forex.
  
• Display HH and HL default true
  Shows labels for Higher Highs Lows bullish structure.
  
• Display LH and LL default true
  Shows labels for Lower Highs Lows bearish structure.
  

Overextension Indicator

• Show Overextension Circles Potential Tops default true
  Enables circles above bars in bull states for potential tops.
  
• Show Overextension Circles Potential Bottoms default true
  Enables below bars in bear states for bottoms.
  
• Overextension Length default fourteen min one
  Period for rolling relative deviation average. Matches RSI STOCH defaults for alignment.
  
• Mild Multiplier default two point zero min zero point zero
  Threshold for mild overextension yellow circle. Zero disables tier.
  
• Moderate Multiplier default three point zero min zero point zero
  For moderate orange.
  
• Extreme Multiplier default four point zero min zero point zero
  For extreme red. Tune lower for sensitive warnings in ranging markets.
  

10 בנוב׳

הערות שחרור

Update Notes for Trend Pulse Algo (LTM)

Hey, here's a quick changelog based on the recent tweaks we've made to the script. These changes aim to improve responsiveness in choppy recoveries while keeping the core logic solid and reducing false signals. I've focused on the key additions/modifications:

*General Fixes:
- Ensured state persistence handles the new resumption without overriding existing confirms.
- No changes to imbalance zones, pivots, or display layers – they remain as-is for stability.

12 בנוב׳

הערות שחרור

Inspired by a friend who uses this indicator for scalping, I refined the shorter timeframe signals to make them more responsive. I also enhanced the Overextension Bubbles by adding a new tier. As momentum builds, you'll notice the colors progress. You now have the options to change the color of these Overextension Bubbles. That said, this is purely a visual aid—always rely on your own analysis and judgment for actual entry and exit decisions.