Trend Indicator for Directional Trading (main)

Nov 25, 2020

TIDT is a two-part trend-based indicator that aims to recognize the general direction and help you identify good opportunities for going long or short. This is the main indicator that is plotted on the chart and is comprised of 3 Moving Averages over which you have full control. You can choose between the following 7 types:

- Simple Moving Average (SMA)
- Exponential Moving Average (EMA)
- Weighted Moving Average (WMA)
- Running Moving Average (RMA)
- Hull Moving Average (HMA)
- Volume Weighted Moving Average (VWMA)
- Arnaud Legoux Moving Average (ALMA)

For clarity of the trend whenever a fast MA crosses up or down a slower MA, the slower one changes its color. The faster MA changes color based on its direction.

Depending on your MA preferences and their period, you generate two main signal types:

1) Moving Average Bounce Signals - You will get a signal whenever the price bounces off, nearly touches or pierces your first MA (depending on your settings as described below)

2) Pullback / Retracement Signals - You will get a signal whenever a trend is established and the price retraces, thus giving you an optimal entry.

I've included 3 additional settings that you can tweak in order to reduce the noise or get more signals, all depending on your risk tolerance and trading style. Configuring these settings will filter the results you get in "Moving Average Bounce Signals". They are as follows:
1) Trend Strength - identifies ranging areas and helps you avoid choppy markets. The higher number, the stronger the trend must be for a signal.
2) Buffer Zone - allows you to receive a signal whenever price approaches your first MA. This way you will not miss a signal if the price doesn't bounce off your MA, or it will notify you in advance of a possible bounce/breakdown.
3) Max Candles Beyond MA - gives you a signal even if the price doesn't bounce off your first MA, but goes through it and then goes back up. You can select how many candles can close beyond the MA before invalidating the signal. Currently, the maximum number of candles that can close beyond the first MA is 5. This is done for your own practicality.

Almost all available options can be configured including the colors of the different signals - Bounces, Pullbacks, MA piercing depending on the number of candles, etc.

The second part of the indicator (called the same way with "add-on" at the end) is meant to complement this one and show additional trending signals, as well as Bull and Bear Divergences. For better results, both indicators must be used at the same time.

Please, note that like any other indicator, this one does exactly this - it indicates a good possibility of an entry, but does not guarantee profitability. Any indicator must be used as part of a system and strict money-management rules.

If you have any questions regarding the indicator or suggestions on how it could be improved, please let me know in the comment section below. Thank you.

Dec 10, 2020

Release Notes

A fairly comprehensive update done alongside the "add-on" complementary version of this indicator (see the description above for more info). Changes include:
- cleaner and more efficient code (done mainly for easier and faster future updates);
- visual improvements in the parameters box (easier to distinguish the different elements);
- added multiple time frames for all moving averages. You can now have a daily trend MA, hourly mini-trend MA, and a minute MA for entries;
- changed the coloring of the MAs to shades of green, blue, and orange. It used to be a change from green to red depending on the trend, which was a bit confusing when the MAs start crossing each other up, hence the change. Of course, feel free to change those to any color you like;
- slight improvements in the Bounce and Pullback algorithms;

Further to the improvements, I must reiterate that the Pullback/Trend Retracement Signals would only make sense if you use this indicator (main) with the other indicator, called the same way, but with (add-on) at the end. The way it works is more thoroughly described there.

Feel free to drop me a line if you have any questions or suggestions. Thanks!