Adaptive Trend Finder - Pulse Frequency(Basic)

27. Dez. 2024

The Adaptive Pulse Frequency & Amplitude Trend Indicator is a Pine Script-based tool designed for lower timeframe volume analysis and trend detection. By analyzing volume dynamics and identifying significant "pulses" in market activity, this indicator provides insights into bullish and bearish trends. Here's an overview of its key features and components:

1. Lower Timeframe Volume Analysis
Custom Timeframe Input: The indicator scans lower timeframe data to approximate Up/Down volume, with an optional override to set a custom timeframe.
Volume Delta Calculation: Tracks changes in volume (deltaVolume), representing the difference between up and down volume for each bar.

2. Adaptive Pulse Detection
Rolling Percentile Threshold: Dynamically calculates a threshold based on the pulsePercentile of the absolute delta volume within a specified lookback period (pulseLookback).
Pulse Identification: Bars where the absolute delta volume exceeds the adaptive threshold are classified as "pulses," indicating significant market activity.
Bullish Pulse: Positive delta volume exceeding the threshold.
Bearish Pulse: Negative delta volume exceeding the threshold.

3. Frequency & Amplitude Analysis
Pulse Frequency: Measures the number of bullish or bearish pulses within a rolling window (freqLookback), providing insights into the activity level.
Pulse Amplitude: Computes the cumulative volume delta for bullish and bearish pulses over a defined period (ampLookback), offering a finer view of market strength:
Bullish Amplitude: Sum of positive delta volume for bullish pulses.
Bearish Amplitude: Sum of absolute delta volume for bearish pulses.

4. Trend Logic
Trend Classification:
Bullish Trend: Higher bullish pulse frequency and amplitude.
Bearish Trend: Higher bearish pulse frequency and amplitude.
Neutral Trend: Mixed or inconclusive signals.
Advanced Metrics: Combines frequency and amplitude for robust trend assessment.

5. Visualization
Dynamic Threshold: Plots the adaptive threshold for real-time pulse detection.
Trend Visualization: Colors the chart background based on the identified trend (Bullish, Bearish, Neutral).
Amplitude and Frequency Lines: Displays separate plots for:
Net Frequency (Bullish - Bearish pulses).
Net Amplitude (Bullish amplitude - Bearish amplitude).
Individual bullish and bearish amplitudes for reference.
Use Case
This indicator is ideal for traders seeking to:

Analyze market activity on lower timeframes.
Identify shifts in bullish/bearish momentum through volume dynamics.
Enhance trend-following strategies with adaptive frequency and amplitude metrics.
With its focus on precision and adaptability, the Adaptive Pulse Frequency & Amplitude Trend Indicator is a powerful tool for volume-based market analysis.