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Sine Weighted Trend Navigator [QuantAlgo]

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๐ŸŸข Overview

The Sine Weighted Trend Navigator utilizes trigonometric mathematics to create a trend-following system that adapts to various market volatility. Unlike traditional moving averages that apply uniform weights, this indicator employs sine wave calculations to distribute weights across historical price data, creating a more responsive yet smooth trend measurement. Combined with volatility-adjusted boundaries, it produces actionable directional signals for traders and investors across various market conditions and asset classes.
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๐ŸŸข How It Works

At its core, the indicator applies sine wave mathematics to weight historical prices. The system generates angular values across the lookback period and transforms them through sine calculations, creating a weight distribution pattern that naturally emphasizes recent price action while preserving smoothness. The phase shift feature allows rotation of this weighting pattern, enabling adjustment of the indicator's responsiveness to different market conditions.

Surrounding this sine-weighted calculation, the system establishes volatility-responsive boundaries through market volatility analysis. These boundaries expand and contract based on current market conditions, creating a dynamic framework that helps distinguish meaningful trend movements from random price fluctuations.

The trend determination logic compares the sine-weighted value against these adaptive boundaries. When the weighted value exceeds the upper boundary, it signals upward momentum. When it drops below the lower boundary, it indicates downward pressure. This comparison drives the color transitions of the main trend line, shifting between bullish (green) and bearish (red) states to provide clear directional guidance on price charts.
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๐ŸŸข How to Use
  • Green/Bullish Trend Line: Rising momentum indicating optimal conditions for long positions (buy)
  • Red/Bearish Trend Line: Declining momentum signaling favorable timing for short positions (sell)
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  • Steepening Green Line: Accelerating bullish momentum with increasing sine-weighted values indicating strengthening upward pressure and high-probability trend continuation
  • Steepening Red Line: Intensifying bearish momentum with declining sine-weighted calculations suggesting persistent downward pressure and optimal shorting opportunities
  • Flattening Trend Lines: Gradual reduction in directional momentum regardless of color may indicate approaching consolidation or trend exhaustion requiring position management review

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๐ŸŸข Pro Tips for Trading and Investing

โ†’ Preset Strategy Selection: Utilize the built-in presets strategically - Scalping preset for ultra-responsive 1-15 minute charts, Default preset for balanced general trading, and Swing Trading preset for 1-4 hour charts and multi-day positions.

โ†’ Phase Shift Optimization: Fine-tune the phase shift parameter based on market bias - use positive values (0.1-0.5) in trending bull markets to enhance uptrend sensitivity, negative values (-0.1 to -0.5) in bear markets for improved downtrend detection, and zero for balanced neutral market conditions.

โ†’ Multiplier Calibration: Adjust the multiplier according to market volatility and trading style. Use lower values (0.5-1.0) for tight, responsive signals in stable markets, higher values (2.0-3.0) during earnings seasons or high-volatility periods to filter noise and reduce whipsaws.

โ†’ Sine Period Adaptation: Customize the sine weighted period based on your trading timeframe and market conditions. Use 5-14 for day trading to capture short-term momentum shifts, 14-25 for swing trading to balance responsiveness with reliability, and 25-50 for position trading to maintain long-term trend clarity.

โ†’ Multi-Timeframe Sine Validation: Apply the indicator across multiple timeframes simultaneously, using higher timeframes (4H/Daily) for overall trend bias and lower timeframes (15m/1H) for entry timing, ensuring sine-weighted calculations align across different time horizons.

โ†’ Alert-Driven Systematic Execution: Leverage the built-in trend change alerts to eliminate emotional decision-making and capture every mathematically-confirmed trend transition, particularly valuable for traders managing multiple instruments or those unable to monitor charts continuously.

โ†’ Risk Management: Increase position sizes during strong directional sine-weighted momentum while reducing exposure during frequent color changes that indicate mathematical uncertainty or ranging market conditions lacking clear directional bias.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.