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.
Key features:
- Allow turning sideways on/off
- Allow defining moving average (among
)
- Allow smoothing moving average (with
)
- Allow applying a plot change filter on the moving average, either before or after smoothing
- Allow configuring lookback period for slope calculation
- Allow smoothing slope
- Allow configuring 4 slope thresholds: uptrend start/end, downtrend start/end
- Colorize plot based on 4 states: positive increase/decrease, negative increase/decrease
- Colorize bars based on trend status: uptrend & downtrend
- Paint background to clearly show uptrend, downtrend & sideways (if enabled)
- Print markers on trend start, slowdown, resuming
- Trigger alerts on trend start, slowdown, resuming
- Be NinjaScript ready for advanced usage, only restricted by your imagination
- Expose dedicated NinjaScript signals
Dedicated NinjaScript signals:
- Signal_Trend: 1 = uptrend, -1 = downtrend, 0 = sideways
- Signal_Trade: 1 = uptrend start, -2 = uptrend slowdown, 3 = uptrend resuming, -1 = downtrend start, 2 = downtrend slowdown, -3 = downtrend resuming, 0 = no signals
- Signal_State:
- 2 = slope above "Uptrend Start" threshold
- 1 = slope from zero to "Uptrend Start" threshold
- -1 = slope from zero to "Downtrend Start" threshold
- -2 = slope below "Downtrend Start" threshold
- 06 Oct 2020 - The indicator was released (build new).
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