Trend Tracer [Cloud] (Expo)

16 ene 2023

█ Overview

The Trend Tracer [Cloud] (Expo) indicator identifies and predicts the future market direction. The cloud is designed to make it easier to see when a market is trending in one direction or another and to help traders identify potential entry and exit points, as well as trend changes. It is a visual representation of the price's momentum, price action, and volatility by using the trend range in a cloud-like pattern. The bigger the cloud, the more momentum the price has.


█ How is the trend tracer cloud calculated?

The primary function used in the code is an extension of traditional single-smoothed moving averages, using a more sophisticated weighting system to reduce the effect of short-term fluctuations and provide a clearer view of the underlying trend. Using this function, we get a unique leading trend tracer while maintaining a robust long-term trend tracer. This allows for more accurate trending signals and helps reduce the amount of noise in the data.


█ Trend Cloud Trading

Trend Cloud Trading is a type of trading based on technical analysis that uses a tool called a trend cloud. A trend cloud is a graphical representation of how a certain asset or instrument is trending over a specific period of time. The trend cloud will highlight areas where there is high volatility, low volatility, and the current trend direction and its strength.


█ How to use

One way of using the indicator is to look for a "cloud break," which is when the cloud turns from red to green (or vice versa) and indicates a change in the trend.

S/R Levels

• The Trend Tracer Cloud can be used to find support in a bullish trend and resistance in a bearish trend. If the cloud is sloping downwards in a bearish trend, traders can look for potential resistance levels at the highs of the cloud. Similarly, if the cloud is sloping upwards in a bullish trend, traders can look for potential support levels at the lows of the cloud.
  

Volatility

• The width of the cloud is used to determine if there is high or low volatility.
  

Strength

• The deviation between the leading trend advisor line and the price determines whether a trend is strong or weak. The larger the deviation, the stronger the trend move.
  

█ Indicator Features

Trend Cloud

• It highlights the trending range, current volatility, and trend direction.
  

Trend Advisor - leading and trending + cloud

• The leading trend advisor highlights the short-term trend strength and momentum, while the trending trend advisor highlights the underlying long-term trend.
  

Trend Tracker

• The Trend Tracker is a fast-moving trend-following line that combines long-term and short-term trend characteristics.
  

Trend Candlesticks

• The Bar coloring uses momentum to highlight the current trend direction.
  

-----------------
Disclaimer

The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.

All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.

My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!