Following the demands of many of our beloved customers, MA-Slope Trend Filter was developed with advanced algorithms in the mission to help traders gain more confidence in detecting trending & sideways markets.
As a trader, you know that "a trend is your friend". But how to detect a trend? A simple yet effective way is to rely on the slope of a moving average:
- Uptrend: An uptrend is detected if the moving average is upward steep enough.
- Downtrend: A downtrend is detected if the moving average is downward steep enough.
- Sideways: A sideways period is detected if the moving average is not steep (considerably flat).
MA-Slope Trend Filter measures a moving average's slope in ninZaATR unit, that is: how many ninZaATR the moving average changes per bar (averaging over the lookback period you specify). Because the number is too small, we multiply it by 1000 to derive a final value that is easy to read and configure.
Traders will need to define 4 slope thresholds: uptrend start/end, downtrend start/end - which are used to categorize the market into uptrend, downtrend, sideways phases. Generally, if the slope is large enough, the moving average is steep and we are in a trend.
The indicator comes with 10 moving average types to select, along with 10 moving average methods for smoothing. You will have a whole lot of flexibility to define and fine-tune your favorite moving average. These settings are 100% identical to ones in our Easy Trend indicator; therefore if you already own Easy Trend, you will find it easy to configure the moving average.
MA-Slope Trend Filter comes with an option to enable/disable sideways:
- "No Sideways" is enabled: In this mode, there are only uptrend & downtrend.
- "No Sideways" is disabled: In this mode, there are 3 phases: uptrend, downtrend and sideways.
Besides, MA-Slope Trend Filter generates "Trend Slowdown" and "Trend Resuming" signals which notify traders when the trend slows down and recovers from a pullback/correction, respectively. A trend-slowdown signal is often used for an exit, while a trend-resuming signal is an opportunity for traders to enter the market or add to their existing position.
In this indicator, ninZaATR is used (instead of regular ATR) for better performance. For your information, ninZaATR is ninZa.co's special ATR version that helps improve indicator performance significantly on intraday charts. It is also a standalone FREE indicator for ninZaFamily â https://ninza.co/product/ninzaatr.
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