Shock Wave: EMA9 Slope / ATR (Normalized) for SPY

Shock Wave – EMA9 Slope Normalized by ATR (Fragility Gauge)

This indicator measures trend fragility, not direction.

Instead of relying on visual trendline angles (which change with zoom and chart scaling), this tool normalizes the slope of the 9-EMA by ATR, producing a scale-independent steepness metric that remains consistent across timeframes and zoom levels.

The goal is to identify late-stage acceleration and liquidity vulnerability — conditions where price is advancing faster than inventory can rebalance and the market becomes sensitive to forced liquidation.

What this indicator shows

Normalized EMA9 slope (ATR per bar)

An angle-like degree value derived from the normalized slope (for intuition only)

Background shading to highlight trend maturity / fragility

A compact table showing live readings on the chart

How to interpret

Green / low values (< ~0.30 ATR/bar): Healthy, sustainable trend

Orange / mid values (~0.30–0.40 ATR/bar): Late-stage acceleration

Red / high values (≥ ~0.45 ATR/bar): Fragile / liquidation-prone conditions

These thresholds are empirically derived from historical index behavior (e.g., SPY prior to 2018, 2020, 2022 volatility events).

Important notes

This is not a buy or sell signal

Red does not mean “short”

The indicator highlights risk asymmetry, not timing

Best used on higher timeframes (weekly) in conjunction with liquidity, inducement, and higher-timeframe structure analysis

Why use this

Markets often fail after strong trends, not because they are weak, but because they are crowded. This tool helps quantify when a trend has become structurally vulnerable, providing context for liquidity-based frameworks and macro risk management.