MTF Trend Analyzer + Option Signal

This Pine Script indicator, titled "MTF Trend Analyzer + Option Signal", is a comprehensive multi-timeframe trend analysis tool designed for TradingView to assist traders in identifying market trends and generating potential option trade signals. It overlays the chart and provides visual labels, a detailed trend table, and option strike suggestions based on trend conditions.

Detailed Description for Publishing on TradingView

Overview
The MTF Trend Analyzer + Option Signal indicator is designed to help traders make informed decisions by analyzing trend strength and direction across the current and a higher timeframe using Exponential Moving Averages (EMAs) and the Average Directional Index (ADX). Alongside trend analysis, it generates actionable option signals (Call or Put options) for instruments like NIFTY or BANKNIFTY by suggesting strikes based on the current trend and user input.



Key Features

- Multi-Timeframe Trend Analysis: Compares trend indicators on both the current chart’s timeframe and a user-selected higher timeframe to confirm trend direction and strength.
- Trend Identification Using EMAs and ADX:
- Calculates fast and slow EMA crossovers.
- Uses ADX to determine trend strength (with values above 20 indicating strong trends).
- Visual Labels for Trend Changes:
- Displays "BUY" or "SELL" labels on the chart when the trend shifts, based on EMA and ADX conditions.
- Option Trade Signal Suggestions:
- Based on the identified trend and option action type (Buy or Sell), suggests corresponding Call or Put option strike prices.
- Strike prices are calculated dynamically using the current price and user-defined strike gap (e.g., 50 for NIFTY, 100 for BANKNIFTY).
- Trend Score: A cumulative score from 0 to 100 reflecting the alignment of EMA and ADX conditions across both timeframes, helping quantify trend reliability.
- Trend Summary Table: A dynamic table positioned on the chart displaying key metrics including EMA values, ADX values, trend direction, score, and option signals for quick reference.



Inputs

- Fast EMA Length: Length for the fast EMA used to detect short-term trend signals (default 20).
- Slow EMA Length: Length for the slow EMA used as a baseline trend filter (default 50).
- ADX Length: Length for the ADX calculation to assess trend strength (default 14).
- Show Trend Table: Toggle to display or hide the trend summary table on the chart.
- Higher Timeframe for Confirmation: The timeframe used for higher timeframe validation (default 60 minutes).
- Option Action: Choose the desired option trading action: "Buy" or "Sell".
- Strike Gap: Defines the interval between option strikes, e.g., 50 for NIFTY or 100 for BANKNIFTY.



How It Works

1. Current Timeframe Calculations: The indicator computes EMAs and ADX on the current chart timeframe to identify short-term trends.
2. Higher Timeframe Validation: It concurrently fetches corresponding values on the selected higher timeframe to confirm trend strength and direction.
3. Trend Determination:
- A BUY trend is confirmed when:
- Fast EMA > Slow EMA on both timeframes.
- ADX > 20 on both timeframes (signifying strong trend).
- A SELL trend occurs when:
- Fast EMA < Slow EMA on both timeframes.
- ADX > 20 on both timeframes.
- Any other condition results in a NEUTRAL trend.
4. Trend Score: Adds points (25 each) for each condition met (fast EMA relation and ADX threshold on both timeframes), totaling up to 100 points.
5. Trend Change Labels: When the trend shifts from previous bars, a label ("BUY" in green or "SELL" in red) is plotted to visually alert traders.
6. Option Strike Suggestions: The indicator rounds the current price to the nearest strike based on strike gap and suggests buying or selling Calls/Puts aligned with the trend and user's option action preference.
7. Trend Table: Displays a comprehensive snapshot of EMA and ADX values on both timeframes, the detected trend, trend score, and option signal for easy monitoring.



Practical Usage

- Trend Confirmation: Use the combined signals from current and higher timeframes to avoid false signals during choppy or sideways markets.
- Option Trading Guidance: The option strike recommendations ease decision-making for options traders by suggesting actionable strikes aligned with the trend.
- Visual Alerts: The labels and table provide quick, on-chart updates without requiring constant monitoring of multiple indicators.
- Customization: Adapt the EMA lengths, ADX window, higher timeframe, and strike gap as per specific market instruments or trading style.



Who Should Use This Indicator?

- Swing and intraday traders seeking robust trend validation across multiple timeframes.
- Options traders looking for timely strike price signals based on technical conditions.
- Traders who prefer a visual and quantitative summary of trend behavior over manual analysis.
- Market participants trading indices or stocks with available options, especially in markets similar to NIFTY or BANKNIFTY.



Summary

The MTF Trend Analyzer + Option Signal is an all-in-one tool for comprehensive trend analysis and options trade signal generation. Its multi-timeframe approach combined with EMA and ADX indicators delivers reliable trend direction and strength insights. The dynamic visual labels, scoring mechanism, and detailed trend table empower traders to make informed market entries and option strike selections effectively.



This script is a powerful yet user-friendly assistant for improving timing and precision in trading decisions, making it an invaluable addition to TradingView’s indicator library.



If needed, customisation or integration support is available upon request.

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