TWP Market Trend Display

█ OVERVIEW

This script displays simple notifications -- Long Bias, Short Bias, Neutral Bias -- based on exponential moving averages. It tends to be a great idea to come into a trading session with a soft directional bias or another way of looking at it is how is the market trending. When trading it is always helpful to be aware of significant price levels of the players participating on larger timeframes. This is a companion tool to be used in conjunction with the Standard Fibonacci Pivot Points.

█ CONCEPTS

I will not go into the concept of moving averages but rather the simple theory behind how they are used here which is pulled from Brian Shannon's Technical Analysis.

The market experiences four market phases -- accumulation, markup, distribution, decline. The moving averages are used as a proxy to emulate these four phases.

For the accumulation phase
- MA1 > MA2
- MA2 < MA3

For the markup phase
- MA1 > MA2
- MA2 > MA3

For the distribution phase
- MA1 < MA2
- MA2 > MA3

For the decline phase
- MA1 < MA2
- MA2 < MA3

One can choose to see this output purely as text in table by itself or with the addition of the moving averages.

█ FEATURES

1 — Moving Average Resolution - Left, Right, Both, None

2 — Moving Average Source

3 — Text
  • Size selection
  • Color selection

4 — Display
  • Frame color selection
  • Display position selection

5 — Alerts
  • Market session selection

█ HOW TO USE

 • The tool is meant to assist in determining market bias which is a key part of the trading process. The great part is that the tool can fit any trading style or process given what mood the market is in can help one make better trading decisions.

█ LIMITATIONS

 • There is no assurance that price will stop at, reverse, or reach a specific pivot level