MultiTrend Detector

Weighted Analysis System

The indicator uses a sophisticated weighting system to determine the overall trend:

• Supertrend has the highest weight (±3) since it's considered the primary trend indicator
• MACD and ADX contribute medium weight (±2)
• RSI provides supplementary weight (±1)

This weighting system results in five possible trend states:

• Strong Bullish (weight ≥ 4)
• Bullish (weight ≥ 2)
• Neutral (-2 < weight < 2)
• Bearish (weight ≤ -2)
• Strong Bearish (weight ≤ -4)

Real-time Alerts

The system automatically notifies traders when the trend changes direction (bullish to bearish, bearish to neutral, etc.) through:

• Pop-up alerts
• Push notifications
• Sound alerts

Benefits for Traders

1. Comprehensive Analysis: Instead of relying on a single indicator, the system combines multiple perspectives to provide a more robust trend assessment.
2. Reduced False Signals: The weighted approach helps filter out market noise and reduces false signals that might occur with any single indicator.
3. Visual Dashboard: The on-chart dashboard provides a quick overview of all indicator readings and the overall trend assessment.
4. Timely Notifications: Automatic alerts for trend changes help traders stay informed without constantly monitoring charts.
5. Adaptable to Different Markets: Works across different instruments and timeframes, making it versatile for various trading strategies.

Trading Entries Based on the MultiTrend Detector

For Trend Following Strategies

1. Long Entries:
   • Enter when the overall trend changes from bearish or neutral to bullish
   • Ideally wait for "Strong Bullish" signals for higher probability entries
   • Confirm with Supertrend showing bullish and MACD above zero line
   • Consider entries when price pulls back to the Supertrend line (acting as support)

1. Short Entries:
   • Enter when the overall trend changes from bullish or neutral to bearish
   • Ideally wait for "Strong Bearish" signals for higher probability entries
   • Confirm with Supertrend showing bearish and MACD below zero line
   • Consider entries when price rallies to the Supertrend line (acting as resistance)

For Counter-trend Strategies

1. Look for divergences:
   • Watch for RSI showing divergence against price movement in strong trends
   • Enter counter-trend when RSI shows "Overbought" during an uptrend or "Oversold" during a downtrend
   • Use with caution and smaller position sizes

For Breakout Strategies

1. Consolidation breakouts:
   • Wait for the trend to be neutral for an extended period (consolidation)
   • Enter in the direction of the new trend when it breaks out to bullish or bearish
   • Confirm with ADX rising above 25 (indicating strengthening trend)

Risk Management Guidelines

1. Stop Loss Placement:
   • For long positions: Place stops below the Supertrend line
   • For short positions: Place stops above the Supertrend line
   • Alternative: Use ATR to set a fixed distance for stops

1. Take Profit Targets:
   • First target: 1.5-2x the risk amount
   • Extended target: Hold until a trend change signal appears
2. Position Sizing:
   • Consider increasing position size for "Strong" trend signals
   • Reduce position size during "Neutral" periods or when ADX is below 20

This MultiTrend Detector system allows traders to make more informed decisions by combining the strengths of multiple technical indicators while minimizing the weaknesses of any single approach. The automated alerts help traders act promptly on emerging opportunities without having to constantly monitor their charts.