TREND SIGNALS UALGO Trading Guide

The Trend Signals with TP/SL [UAlgo] is an all-in-one trend-following overlay. It utilizes an ATR-based dynamic band (similar to SuperTrend) to determine the overall market direction, while simultaneously calculating an EMA Cloud to visualize momentum. Upon detecting a trend switch, it automatically calculates a Stop Loss and three Take Profit levels, projecting them forward onto the chart.

What does the indicator show?

• EMA Cloud: A shaded region plotted between the highs and lows of moving averages. Its color shifts between green and red based on MACD momentum, providing early warnings of exhaustion.
• Buy / Sell Signals: Prominent text labels printed directly on the chart when the ATR-based macro trend flips direction.
• Trade Lines (Entry, TP, SL): Horizontal lines drawn from the entry point showing the active Trade Plan (Entry baseline, Stop Loss, and up to three Take Profit zones).

Key Settings

• Sensitivity: The multiplier for the ATR. A higher value generates a wider trend band, keeping you in trades longer but reacting slower to reversals.
• Cloud Length: The moving average lookback period used for rendering the EMA Cloud.
• Stop Loss %: Determines the percentage distance for the initial Stop Loss. The Take Profits (TP1, TP2, TP3) are then calculated automatically as 1x, 2x, and 3x multiples of this Stop Loss distance.
• Show Last TP/SL Only: When enabled, visual clutter is reduced by only displaying the trade lines for the currently active signal.

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. Trend Reversals (Signals)

The exact moments the algorithm determines the trend has flipped.

• Buy Signal — Triggers when the price breaks out above the upper ATR trend band, indicating the start of a new uptrend.
• Sell Signal — Triggers when the price breaks down below the lower ATR trend band, indicating the start of a new downtrend.

Strategy Example: You can easily automate entries by adding Buy Signal is True for a Long trade. When combining with other tools, use the Trend Direction variable (which outputs 1 or -1) as an ongoing filter.

2. Position Tracking & Trailing States

Variables that actively track the state of the projected trade.

• Position — Outputs 1 if an active Long trade is open (price hasn't hit SL or TP3), -1 for Short, and 0 if no trade is currently running.
• Stop Loss / TP1 / TP2 / TP3 — The absolute price values of the projected trade management levels.

Strategy Example: If you are building a custom exit strategy, you can use these values directly. For instance, setting an exit condition of Price crosses below Stop Loss allows your Strategy Tester to perfectly mimic the indicator's built-in risk management.