Flow Trend
Last updated
Last updated
This custom indicator is designed to efficiently identify and follow market trends while avoiding false reversals. It dynamically adjusts to market volatility, ensuring that it stays on the right side of the trend without reacting prematurely to minor market fluctuations.
The indicator displays signals at the key turning points (triangles) with a price value, indicating the bullish or bearish momentum.
The Retest Signals indicator identifies potential continuation points by marking key retest levels of dynamic zones (bands). It provides visual confirmation for traders to analyze whether the price is likely to respect critical zones, aiding in decision-making for entries.
During a trend, a delta volume gauge can be toggled to show the relative strength of bulls and bears power in real time, providing a deeper understanding of the market's driving forces.
Users can choose timeframes from which the FlowTrend is plotted. Selecting a higher timeframe than the current chart provides a broader, longer-term trend perspective with reducing a noise from the bands and clearly see the trends and momentum shifts, while choosing a lower timeframe shows more immediate, short-term market shifts.
The indicator maintains its position relative to the price during strong trends, avoiding early exits or incorrect signals. This allows traders to ride trends effectively until they weaken.
The primary purpose of the indicator is to identify the direction of a trend using the adaptive bands that react to volatility. As long as the price remains on one side of the band, the trend is intact.
Real-Time Volume Trend Monitoring: During a trend, the gauge provides insights into the balance of bull and bear power. It’s especially helpful for spotting early signs of weakening trends.
Trend Continuation or Reversal: A strong trend will generally have minimal opposing pressure in the gauge (e.g., low bear power during an uptrend). When opposing power (bear in an uptrend or bull in a downtrend) starts increasing, this is often a sign that the current trend is losing steam and could reverse or at least consolidate.
Bear Power During Uptrend: As an uptrend progresses, if you see an increase in bear power on the histogram, it indicates that sellers are gradually gaining strength. While this doesn’t necessarily mean the trend will reverse immediately, it signals that the bullish trend is weakening, and you should stay cautious. This could be an early sign that an uptrend is losing momentum and may reverse soon.
Bull Power During Downtrend: Similarly, during a downtrend, if the histogram shows increasing bull power, it suggests that buyers are stepping in and the bearish trend may be weakening. This could indicate an opportunity to prepare for a possible trend reversal.
The Flow Trend indicator offers a dynamic visualization of price movement within key zones, identifying potential areas of reversal or continuation. It combines visual cues with volume data to help traders gauge market sentiment and structure for better decision-making in various trading scenarios.
