Trend Strength Over Time

How it works

The script calculates trend strength by comparing percentile values across different timeframes. It establishes conditions for bullish and bearish trends by tracking price movements and maintaining counts for strong and weak trend signals.

Volume strength is computed using simple moving averages normalized against a longer 144-period baseline. Multiple SMAs are weighted to emphasize shorter-term volume movements, providing a nuanced assessment of market participation and momentum.

Why it may be useful

This indicator provides traders with a comprehensive view of market dynamics by integrating both price and volume analysis. It offers a multi-dimensional perspective on trend strength, helping traders understand not just price movement but also the underlying market sentiment and participation.

By quantifying bullish and bearish forces and incorporating volume analysis, the indicator helps traders make more informed decisions. It reduces reliance on single-dimensional indicators by offering a holistic view of market conditions and potential trend reversals.

When to explore it

The indicator works best in markets with clear trending characteristics, where price and volume show consistent patterns. It is particularly effective in identifying emerging trends and potential trend reversals across different timeframes, from short-term scalping to longer-term swing trading.

Traders should use this signal in conjunction with other technical analysis tools to confirm signals and validate market interpretations. It is most reliable in liquid markets with sufficient trading volume and during periods of stable market conditions.

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