ENTROPY TREND FLUX Trading Guide

The Entropy Trend Flux is a quantitative technical analysis tool. entropy_trend_flux.js A modern indicator based on Information Theory (Shannon Entropy). Measures the degree of order/disorder in price movements.

What does the indicator show?

• Market Structure & Momentum: Visualizes prevailing trend directions and key reversal zones.
• BUY / SELL Signals: Highlights confirmed entry and exit opportunities based on quantitative rules.
• Dynamic Boundaries: Provides adaptive levels for managing trade risk and reward expectations.

Key Settings

• Entropy Window (entropyWindow): Controls the calculation period and sensitivity for market detection.
• Smoothing Period (ssPeriod): Controls the calculation period and sensitivity for market detection.
• Glow Multiplier (glowMult): Controls the calculation period and sensitivity for market detection.
• Normalization Scale (scale): Controls the calculation period and sensitivity for market detection.
• Source (source): Controls the calculation period and sensitivity for market detection.
• EMA 1 Period (Buy/Sell) (ema1Period): Controls the calculation period and sensitivity for market detection.
• EMA 2 Period (Buy/Sell) (ema2Period): Controls the calculation period and sensitivity for market detection.
• Trend Flux (flux): Controls the calculation period and sensitivity for market detection.
• Entropy (0-1) (entropy): Controls the calculation period and sensitivity for market detection.
• Buy Signal (buySignal): Controls the calculation period and sensitivity for market detection.
• Sell Signal (sellSignal): Controls the calculation period and sensitivity for market detection.
• Bullish Trend (Green) (fluxBull): Controls the calculation period and sensitivity for market detection.
• Bearish Trend (Red) (fluxBear): Controls the calculation period and sensitivity for market detection.
• Chaos Trend (Gray) (chaos): Controls the calculation period and sensitivity for market detection.
• Entropy Line (entropyLine): Controls the calculation period and sensitivity for market detection.
• Bullish Glow (fluxGlowBull): Controls the calculation period and sensitivity for market detection.
• Bearish Glow (fluxGlowBear): Controls the calculation period and sensitivity for market detection.
• Flux Amplitude (flux): Controls the calculation period and sensitivity for market detection.
• Order Level (1-Entropy) (order): Controls the calculation period and sensitivity for market detection.
• Green Bar Active (Bullish Trend) (isBullActive): Controls the calculation period and sensitivity for market detection.
• Red Bar Active (Bearish Trend) (isBearActive): Controls the calculation period and sensitivity for market detection.
• Gray Bar Active (Chaos/Consolidation) (isChaosActive): Controls the calculation period and sensitivity for market detection.
• Buy Signal (3 Green Bars + EMA13 < EMA50) (buySignal): Controls the calculation period and sensitivity for market detection.
• Sell Signal (3 Red Bars + EMA13 > EMA50) (sellSignal): Controls the calculation period and sensitivity for market detection.
• Last Trend was Bull (isLastBull): Controls the calculation period and sensitivity for market detection.
• Last Trend was Bear (isLastBear): Controls the calculation period and sensitivity for market detection.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, this indicator can be used both as a direct signal source and as a market-state filter.

1. Signal Events

• buySignal - Buy Signal event signal.
• sellSignal - Sell Signal event signal.
• isBullActive - Green Bar Active (Bullish Trend) event signal.
• isBearActive - Red Bar Active (Bearish Trend) event signal.
• isChaosActive - Gray Bar Active (Chaos/Consolidation) event signal.
• buySignal - Buy Signal (3 Green Bars + EMA13 < EMA50) event signal.
• sellSignal - Sell Signal (3 Red Bars + EMA13 > EMA50) event signal.
• isLastBull - Last Trend was Bull event signal.
• isLastBear - Last Trend was Bear event signal.

2. Filters and Trade Levels

• entropyWindow - Entropy Window value used for structural qualification or thresholds.
• ssPeriod - Smoothing Period value used for structural qualification or thresholds.
• glowMult - Glow Multiplier value used for structural qualification or thresholds.
• scale - Normalization Scale value used for structural qualification or thresholds.
• source - Source value used for structural qualification or thresholds.
• ema1Period - EMA 1 Period (Buy/Sell) value used for structural qualification or thresholds.
• ema2Period - EMA 2 Period (Buy/Sell) value used for structural qualification or thresholds.
• flux - Trend Flux value used for structural qualification or thresholds.
• entropy - Entropy (0-1) value used for structural qualification or thresholds.
• flux - Flux Amplitude value used for structural qualification or thresholds.
• order - Order Level (1-Entropy) value used for structural qualification or thresholds.

Strategy Example: Enter Long when buySignal is true and trendFilter == 1, ensuring trades align with dominant momentum.