[blackcat] L3 M.H. Pee Trend Continuation Factor

5. Sept. 2021

Level: 3

Background

Developed by M. H. Pee, the Trend Continuation Factor aims to help traders identify whether the market is trending, and, in case it is, in what direction it is headed. It can be used in any time frame, with every currency pair and is suitable for beginner traders.


Function

The indicator is comprised of two lines, namely the PlusTCF and MinusTCF, which separately correspond to bullish and bearish momentum, respectively. If the PlusTCF line is positive, then the prevailing trend is bullish, while a positive MinusTCF line signifies a bearish trend. Logically, both lines cannot be positive at the same time because the market cannot be in a bullish and a bearish trend simultaneously. However, they both can be negative at a current moment, implying that the market has consolidated in a trading range.

As for trading this indicator, it is generally interpreted and acted upon in a similar way as trading the Average Directional Movement Index. The most basic trading strategy involving the TCF is to enter long positions when the PlusTCF line is positive and to enter short positions when the MinusTCF is positive.

Traders also tend to regard the crossovers of the PlusTCF and MinusTCF lines as entry signals in the direction of the advancing line. Thus, if the PlusTCF crosses the MinusTCF and becomes positive, you should initiate a long entry, and vice versa.

Key Signal

PlusTCF Line --> bullish momentum line in yellow;
MinusTCF Line --> bearish momentum line in fuchsia.

Alerts are available.


Remarks

This is a Level 3 free and open source indicator.

Feedbacks are appreciated.

vor 5 Tagen

Versionshinweise

OVERVIEW
The Pee Trend Continuation Factor indicator helps traders identify trend continuation opportunities by analyzing price changes over a specified period. It calculates both positive and negative trend continuation factors using custom formulas and plots them for visual analysis. The script provides clear buy and sell signals based on crossovers between these factors, making it an effective tool for trend-following strategies.

This indicator uses the Average Linear Moving Average (ALMA) to smooth out the calculated factors, ensuring more reliable signals. Additionally, it includes labels and alerts to notify users of potential trading opportunities in real-time 📈💸.

FEATURES

Customizable price source, length, and smooth length inputs.
Calculation of positive and negative trend continuation factors.
Visual plotting of both factors with fill areas for better trend visualization.
Generation of buy and sell signals based on factor crossovers.
Real-time labels and alerts for trading notifications.
HOW TO USE

Add the Pee Trend Continuation Factor indicator to your TradingView chart.
Adjust the following inputs as needed:
Price Source: Select the desired price data (e.g., Close, Open, High, Low, etc.).
Length: Set the lookback period for calculating the trend factors.
Smooth Length: Define the smoothing period for the ALMA calculation.
Observe the plotted lines and filled areas to analyze trends.
Look for crossover points between the positive and negative factors for trade signals.
Use the generated labels and alerts to execute trades accordingly.
LIMITATIONS

The indicator may generate false signals during choppy or ranging market conditions.
Proper risk management should be employed when using this indicator for trading decisions.
Backtest the indicator thoroughly before applying it to live trading.
NOTES

The script uses the ALMA function for smoothing, which requires careful selection of parameters for optimal performance.
Ensure that the selected max bars back setting accommodates the chosen length input for accurate calculations.