kruskakli

Trend Quality

The quality of the current trend is calculated by adding or subtracting
one point to the total value depending on the following criteras:

1. EMA-8, MA-20, MA-50, MA-100, MA-200 , each get a point if they are increasing.
2. EMA-8 > MA-20 > MA-20 > MA-50 > MA-100 > MA-200 , each condition that is true gets one point.

On top of the Trend Quality value we apply a "weekly" (5 periods) and
a "monthly" (22 periods) moving average.

When above a value of 5, a strong trend is indicated and hence
a trend following strategy should be used.

Use this to Buy when bouncing back from e.g MA-20 or a confirming
consolidation/ candlestick /trendline pattern.

When the trend decreases below Zero a trend shift may have occured.

Idea, curtesy: Tobbe Rosèn
Release Notes: Adding the following rules based on Mark Minervini:

3. The current stock price is at least 30 percent above its 52-week low, gets one point
4. The current stock price is within at least 25 percent of its 52-week high, gets one point.
5. The 200-day moving average line is trending up for at least 2.5 "months", gets one point.
6. Close > MA-50 , gets one point

The trigger value has thus been moved to 9 for when a strong Trend Quality is in action.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?

Comments

500 coins
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Can this be used intraday?
+4 Reply
this is a very good idea, thanks for sharing
+1 Reply
nice script... added to favorite :)
+1 Reply
Thx for sharing this.. Very promising.
Seeing as this uses the weekly and monthly MAs, it doesn't seem to work properly intraday, does it?
Any idea on how to make it work on the 1h for example? Thx again.
Reply
Thanks for this script. I am using it in columns mode.
Reply
I really like the concept but when I added to chart its showing at the bottom and it's not showing as showing in above screenshot. Please help me do I need to do any changes?
I added to many stocks and tried but no luck
Reply
kruskakli Shravan69
@Shravan69, Hm...I don't understand. You say the Trend Quality indicator is shown at the bottom. But that is how it should be.
+1 Reply
Awesome, job and great script. Do we have a sell example?
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