TPI | TRW

⯁ OVERVIEW
The TPI | TRW indicator is a custom momentum and trend strength tool designed to assess the prevailing market trend by averaging price data over a flexible period. It generates a score based on how the current price compares to a range of moving averages (SMAs, WMAs), and it normalizes this score to highlight the strength and direction of the trend.

◆ KEY FEATURES

• Trend Strength Scoring: Calculates a score by comparing the current price to multiple SMAs, providing a quantitative measure of trend strength.
  

  array<float> values = array.new<float>()
  float        score  = 0.
  
  for i = 0 to period by 1
      float ma = switch i_maType
          "SMA" => ta.sma(close, period+i)
          "WMA" => ta.wma(close, period+i)
  
      values.push(ma)
  
      for s in values
          if close > s 
              score += 1
      for s in values
          if close < s 
              score -= 1

• Dynamic Range Normalization: Normalizes the trend score to a range between -1 and 1, simplifying the interpretation of trend strength.
  
• Visual Trend Gradient: Utilizes a color gradient to represent the trend direction and intensity, offering an intuitive visual cue for trend analysis.
  
• Customizable Lookback Period: Allows users to adjust the lookback period, enabling the indicator to be tailored to different market conditions and trading styles.
  

◆ USAGE

• Trend Confirmation: Use the score to confirm the direction and strength of the current market trend.
  
• Reversal Detection: Monitor changes in the score and color gradient for potential trend reversals or weakening momentum. (Green - uptrend, Yellow - ranging, Red - downtrend)
  

⯁ CONCLUSION
The TPI | TRW indicator offers traders a versatile tool for assessing market momentum and trend strength. By leveraging a custom scoring system that compares the current price to a series of MAs, it provides valuable insights into market dynamics, helping traders make more informed decisions.