[boitl] Trendfilter

🧭 Trend Filter – Curve View (1D / 1H + M15 Check)

A multi-timeframe trend filter that blends daily, hourly, and 15-minute data into a smooth, color-coded curve displayed in a separate panel.
It visualizes both trend direction and strength while accounting for overextension, providing a reliable “context indicator” for entries and filters.

🔍 Concept

The indicator evaluates three timeframes:

1D (Daily) → SMA200 for long-term trend bias

1H (Hourly) → EMA50 for medium-term confirmation

15M (Intraday) → EMA20 + ATR to detect overextension or mean reversion zones

It computes a continuous trend score between −1 and +1:

+1 → Strong bullish alignment (D1 & H1 both up)

−1 → Strong bearish alignment (D1 & H1 both down)

≈ 0 → Neutral, conflicting, or overextended conditions

The score is smoothed and normalized for a clean visual curve —
green for bullish, red for bearish, with dynamic transparency based on strength.

⚙️ Logic Overview
Timeframe Indicator Purpose
1D SMA200 Long-term trend direction
1H EMA50 Medium-term confirmation
15M EMA20 + ATR Overextension control

Alignment between D1 and H1 defines clear trend bias

Conflicts between them reduce the trend score

M15 overextension (price far from EMA20) softens the signal further

The result is a responsive trend-strength oscillator, ideal for multi-timeframe setups.

🧩 Use Cases

As a trend filter for strategies (e.g. allow entries only if score > 0.3 or < −0.3)

As a visual confirmation of higher-timeframe direction

To avoid trades during conflict or exhaustion

💡 Visualization

Single curve (area plot):

Green = bullish bias

Red = bearish bias

Transparency increases with weaker trend

Background colors:

🟠 Orange → D1/H1 conflict

🔴 Light red → M15 overextension active

Optional: binary alignment line (+1 / 0 / −1) for simplified display

⚙️ Parameters

Proximity to EMA20 (M15) = X×ATR → defines “near” condition

Overextension threshold = X×ATR → sets exhaustion boundary

EMA smoothing → reduces noise for a smoother score

Toggle overextension impact on/off