Neural Trend Engine [JOAT]

Neural Trend Engine - Multi-Layer Adaptive Trend Detection

Neural Trend Engine uses a multi-layer filtering approach inspired by neural network concepts. It combines multiple adaptive moving averages with proprietary momentum and volatility weighting to generate trend signals with reduced lag and improved confidence scoring.

Why This Script is Protected

This script is published as closed-source to protect the proprietary signal composition algorithm and the specific weighting methodology from unauthorized republishing. The unique combination of adaptive layer calculations, momentum normalization, and volatility integration represents original work that goes beyond standard indicator implementations.

What Makes This Indicator Unique

Unlike simple moving average crossover systems, Neural Trend Engine:

• Uses three Kaufman Adaptive Moving Averages (KAMA) that automatically adjust their smoothing based on market efficiency
  
• Combines layer alignment, momentum, and volatility into a single "neural signal"
  
• Provides signal strength percentages so you know the conviction level of each signal
  
• Creates a visual trend cloud that makes direction immediately obvious
  

What This Indicator Does

• Plots three adaptive moving average "layers" that respond dynamically to market efficiency
  
• Creates a trend cloud between fast and slow layers for visual trend identification
  
• Generates weighted composite signals from layer alignment, momentum, and volatility
  
• Displays buy/sell labels with signal strength percentages
  
• Provides a comprehensive dashboard with multi-component breakdown
  
• Colors the neural line and cloud based on current trend direction
  

Core Methodology

The indicator employs a three-layer adaptive system where each layer responds to market conditions at different speeds:

• Fast Layer (default: 8) — Quick response for short-term direction changes
  
• Medium Layer (default: 21) — Intermediate trend reference
  
• Slow Layer (default: 55) — Long-term trend anchor
  

Each layer uses efficiency-based adaptation, meaning they become more responsive during trending conditions and smoother during choppy markets.

The neural signal is a proprietary composite that weighs three distinct market components:

• Momentum Component (default: 40%) — Measures directional price velocity, normalized to its recent range
  
• Trend Component (default: 35%) — Evaluates alignment between the three adaptive layers
  
• Volatility Component (default: 25%) — Incorporates market volatility state into signal generation
  

These components are combined using a weighted formula that has been calibrated to balance responsiveness with noise reduction.

Signal Generation

Direction changes occur when the smoothed neural signal crosses a configurable strength threshold:

• Bullish — Signal exceeds positive threshold with layer alignment confirmation
  
• Bearish — Signal drops below negative threshold with layer alignment confirmation
  
• Neutral — Signal remains within threshold range, indicating consolidation
  

Signal strength percentages indicate the conviction level of each signal, helping traders assess trade quality. Higher percentages suggest stronger trend conviction.

Visual Features

• Trend Cloud — Filled area between fast and slow layers, colored by trend direction
  
• Neural Line with Glow — Weighted average of all three layers with glow effect
  
• Medium Layer — Subtle white line showing intermediate trend
  
• Signal Labels — BUY/SELL labels with strength percentages at signal points
  
• Small Markers — Alternative triangle markers when labels are disabled
  

Color Scheme

• Bullish Color — Default: #26A69A (teal green) — Used for bullish trends and signals
  
• Bearish Color — Default: #EF5350 (red) — Used for bearish trends and signals
  
• Cloud Fill — 85% transparent version of trend color
  
• Neural Line Glow — 60% transparent version for glow effect
  

Dashboard Information

The on-chart table (top-right corner) displays:

• Current direction (BULLISH, BEARISH, or NEUTRAL)
  
• Neural signal percentage
  
• Layer alignment status (ALIGNED UP, ALIGNED DOWN, or MIXED)
  
• Momentum direction and percentage
  
• Trend strength percentage
  

Inputs Overview

Neural Layers:

• Fast Layer — Period for fast adaptive MA (default: 8, range: 2-50)
  
• Medium Layer — Period for medium adaptive MA (default: 21, range: 5-100)
  
• Slow Layer — Period for slow adaptive MA (default: 55, range: 10-200)
  
• Source — Price source for calculations (default: close)
  

Sensitivity:

• Momentum Weight — Weight for momentum component (default: 0.4)
  
• Trend Weight — Weight for trend/layer alignment (default: 0.35)
  
• Volatility Weight — Weight for volatility component (default: 0.25)
  
• ATR Period — Period for volatility calculations (default: 14)
  

Visual Settings:

• Bullish/Bearish Colors — Customizable color scheme
  
• Show Trend Cloud — Toggle the filled cloud area
  
• Show Signal Labels — Toggle BUY/SELL labels with percentages
  
• Show Neural Line — Toggle the main trend line
  
• Show Dashboard — Toggle the information table
  

Alerts:

• Await Bar Confirmation — Wait for bar close before triggering (recommended)
  
• Min Signal Strength — Threshold for direction changes (default: 0.3 = 30%)
  

How to Use It

For Trend Following:

• Follow the trend cloud color for overall market direction
  
• Enter long when cloud turns bullish (teal) and signal strength is high
  
• Enter short when cloud turns bearish (red) and signal strength is high
  
• Use the neural line as a trailing stop reference
  

For Signal Trading:

• Wait for BUY/SELL labels to appear
  
• Check the signal strength percentage—higher is better
  
• Confirm with dashboard showing aligned layers
  
• Avoid signals during MIXED layer alignment
  

For Confirmation:

• Use Neural Trend Engine to confirm signals from other systems
  
• Strong confirmation when all three layers are aligned
  
• Dashboard shows momentum and trend strength for additional context
  

Alerts Available

• NTE Buy Signal — Bullish direction change detected
  
• NTE Sell Signal — Bearish direction change detected
  
• NTE Direction Change — Any trend direction change
  

Best Practices

• Higher signal strength percentages indicate more reliable signals
  
• Wait for layer alignment (shown in dashboard) before entering trades
  
• Use on higher timeframes for more reliable trend identification
  
• Combine with support/resistance levels for entry timing
  

This indicator is provided for educational purposes. It does not constitute financial advice. Past performance does not guarantee future results. Always conduct your own analysis and use proper risk management before making trading decisions.

— Made with passion by officialjackofalltrades