AMT Trend Bender
Trend detection via WMA and shifted EMA relationship
Built on the relationship between the Weighted Moving Average (WMA) and a shifted Exponential Moving Average (EMA). By comparing the position of the WMA relative to a shifted EMA, the indicator provides a visual representation of potential market trends.
The Concept
Trend Bender detects trend changes by analyzing the relationship between two moving averages — a Weighted Moving Average and a shifted Exponential Moving Average. When the WMA leads above the shifted EMA, the market is trending up; when it drops below, the market is trending down. Bar coloring makes trend direction immediately visible.
How to Read It
Bars are colored based on the moving average relationship.
- Bullish colored bars indicate the WMA is above the shifted EMA — uptrend in progress
- Bearish colored bars indicate the WMA is below the shifted EMA — downtrend in progress
- Color transitions mark potential trend change points
- The shift parameter introduces a timing element that helps filter whipsaws
Practical Tips
Adjust the EMA Shift value to match your trading timeframe — larger shifts smooth out noise but add lag. The WMA and EMA lengths control sensitivity: shorter lengths react faster to price changes. Apply on intraday charts with 1-tick data for best results. Pair with volume confirmation studies to validate trend changes.
Requirements
- Can only be used on charts with a chart data type of 'Intraday Chart'
- Recommended 'Intraday Data Storage Time Unit' setting '1 Tick'
Input & Settings
| No. | Input Name | Function |
|---|---|---|
| 1 | WMA: Length | Defines the length (number of periods) for the Weighted Moving Average (WMA) calculation. |
| 2 | WMA: Input Data | Specifies the input data series (like closing price, high, low, etc.) to be used for the WMA calculation. |
| 3 | EMA: Length | Defines the length (number of periods) for the Exponential Moving Average (EMA) calculation. |
| 4 | EMA: Input Data | Specifies the input data series (like closing price, high, low, etc.) to be used for the EMA calculation. |
| 5 | EMA: Shift | Determines the number of periods by which the EMA is shifted. A positive value shifts the EMA to the right (future), while a negative value shifts it to the left (past). This input allows users to compare the WMA with a shifted version of the EMA, introducing a lag or lead. |
Defines the length (number of periods) for the Weighted Moving Average (WMA) calculation.
Specifies the input data series (like closing price, high, low, etc.) to be used for the WMA calculation.
Defines the length (number of periods) for the Exponential Moving Average (EMA) calculation.
Specifies the input data series (like closing price, high, low, etc.) to be used for the EMA calculation.
Determines the number of periods by which the EMA is shifted. A positive value shifts the EMA to the right (future), while a negative value shifts it to the left (past). This input allows users to compare the WMA with a shifted version of the EMA, introducing a lag or lead.
Subgraphs
| No. | Subgraph Name | Function & Comments |
|---|---|---|
| 1 | Bullish | Default: Color Bar. Represents bullish signals in the market. When conditions are met, this subgraph will display a visual cue. |
| 2 | Bearish | Default: Color Bar. Represents bearish signals in the market. When certain conditions are fulfilled, this subgraph will show a visual cue. |
Default: Color Bar. Represents bullish signals in the market. When conditions are met, this subgraph will display a visual cue.
Default: Color Bar. Represents bearish signals in the market. When certain conditions are fulfilled, this subgraph will show a visual cue.
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