TREND FAILURE CONFIRMATION Trading Guide

The Trend Failure Confirmation is a quantitative technical analysis tool. Trend Failure Confirmation (TFC) Detects when a mature trend stops extending and then fails with confirmation. The model combines:

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

• Trend EMA Length (trendLen): Controls the calculation period and sensitivity for market detection.
• ATR Length (atrLen): Controls the calculation period and sensitivity for market detection.
• Efficiency Length (erLen): Controls the calculation period and sensitivity for market detection.
• Slope Lookback (slopeLookback): Controls the calculation period and sensitivity for market detection.
• Extension ATR (extensionAtr): Controls the calculation period and sensitivity for market detection.
• ER Smoothing (erSmooth): Controls the calculation period and sensitivity for market detection.
• Exhaustion Threshold (exhaustThr): Controls the calculation period and sensitivity for market detection.
• Confirm Threshold (confirmThr): Controls the calculation period and sensitivity for market detection.
• Signal EMA Length (signalLen): Controls the calculation period and sensitivity for market detection.
• TFC Score (tfc): Controls the calculation period and sensitivity for market detection.
• Signal (signal): Controls the calculation period and sensitivity for market detection.
• Bull Confirm (upper): Controls the calculation period and sensitivity for market detection.
• Bear Confirm (lower): Controls the calculation period and sensitivity for market detection.
• Zero (zero): Controls the calculation period and sensitivity for market detection.
• TFC Score (tfc): Controls the calculation period and sensitivity for market detection.
• Signal Line (signal): Controls the calculation period and sensitivity for market detection.
• Bull Failure Strength (bullStrength): Controls the calculation period and sensitivity for market detection.
• Bear Failure Strength (bearStrength): Controls the calculation period and sensitivity for market detection.
• Bull Confirm (bullConfirm): Controls the calculation period and sensitivity for market detection.
• Bear Confirm (bearConfirm): Controls the calculation period and sensitivity for market detection.
• Bull Early Exhaustion (bullExhaust): Controls the calculation period and sensitivity for market detection.
• Bear Early Exhaustion (bearExhaust): 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

• bullConfirm - Bull Confirm event signal.
• bearConfirm - Bear Confirm event signal.
• bullExhaust - Bull Early Exhaustion event signal.
• bearExhaust - Bear Early Exhaustion event signal.

2. Filters and Trade Levels

• trendLen - Trend EMA Length value used for structural qualification or thresholds.
• atrLen - ATR Length value used for structural qualification or thresholds.
• erLen - Efficiency Length value used for structural qualification or thresholds.
• slopeLookback - Slope Lookback value used for structural qualification or thresholds.
• extensionAtr - Extension ATR value used for structural qualification or thresholds.
• erSmooth - ER Smoothing value used for structural qualification or thresholds.
• exhaustThr - Exhaustion Threshold value used for structural qualification or thresholds.
• confirmThr - Confirm Threshold value used for structural qualification or thresholds.
• signalLen - Signal EMA Length value used for structural qualification or thresholds.
• tfc - TFC Score value used for structural qualification or thresholds.
• signal - Signal value used for structural qualification or thresholds.
• upper - Bull Confirm value used for structural qualification or thresholds.
• lower - Bear Confirm value used for structural qualification or thresholds.
• zero - Zero value used for structural qualification or thresholds.
• tfc - TFC Score value used for structural qualification or thresholds.
• signal - Signal Line value used for structural qualification or thresholds.
• bullStrength - Bull Failure Strength value used for structural qualification or thresholds.
• bearStrength - Bear Failure Strength value used for structural qualification or thresholds.

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