ALPHATREND Trading Guide
The AlphaTrend is designed to automatically detect prevailing market trends with minimal lag while filtering out false signals from market noise. It combines average true range (ATR) volatility logic with momentum factors derived either from Money Flow Index (MFI) involving volume or Relative Strength Index (RSI) without volume.
What does the indicator show?
- AlphaTrend Line: The primary indicator trace acting as dynamic support or resistance that follows price movements based on trend direction.
- Lag Line: A secondary line trailing the primary alpha trend line to confirm trend stability and identify crossovers.
- Trend Zones: Highlighted colored zones that fill the area between the AlphaTrend line and the lag line, indicating whether the current market state is bullish or bearish.
- Buy / Sell Signals: Explicit markers placed on the chart identifying the exact points where the trend changes direction.
Key Settings
- Multiplier: Controls the distance between price and the stop levels by multiplying the current volatility.
- Common Period: The number of candles used to calculate both volatility (ATR) and the underlying momentum logic (RSI or MFI).
- Change Calc (No Vol): Toggles the basis of momentum calculation between volume-weighted (MFI) and price-only changes (RSI).
How to use Strategy Parameters (Condition Source)
Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.
1. General State & Variables
Metrics evaluating the current trend position and numerical bounds.
at_value— The numeric price point of the main AlphaTrend line.trend_state— A Boolean metric denoting if the ongoing state remains bullish.
2. Triggers
Specific crossover events triggering changes.
buy_signal— A precise trigger when the indicator registers an official buy crossover.sell_signal— A precise trigger when the indicator registers an official sell crossover.
Strategy Example: If you are looking to run a trailing stop strategy to hold a long position, you could add a condition: trend_state == true. This ensures the trade is kept open until the trend changes.