OPEN-SOURCE SCRIPT
TTT - Trend Identification Moving Averages
What This Indicator Does
This indicator is designed to help traders identify and stay aligned with the dominant market trend by combining multiple moving averages with volume analysis. It provides a structured framework to evaluate trend direction, momentum, and participation—without relying on news, fundamentals, or opinions.
The Philosophy Behind It
Markets move in trends—and those trends tend to persist far longer than most investors expect. The biggest mistake traders make is trying to predict reversals instead of recognizing and following the current trend.
This tool is built on a simple principle: Trade with the trend, not against it.
As outlined in Technical Trading Mastery, price action reflects all known information, often reversing well before economic data or news confirms the move . By focusing on price and trend structure, traders can position themselves on the right side of the market rather than reacting emotionally.
How It Works
1. Multi-Timeframe Trend Structure
This indicator uses a combination of short-, intermediate-, and long-term moving averages:
5 EMA → Short-term momentum
20 EMA → Near-term trend direction
50 EMA → Intermediate trend
150 SMA → Long-term market direction
These averages act as dynamic support and resistance levels while also defining trend alignment .
2. Trend Confirmation Logic
The relationship between moving averages helps define market conditions:
- When shorter-term averages are above longer-term averages → Uptrend
- When shorter-term averages fall below longer-term averages → Downtrend
- When averages compress or move sideways → Consolidation / indecision
A key concept:
- When the 50 EMA is above the 150 SMA, the market is considered in a healthy uptrend
- When the 50 EMA falls below the 150 SMA, it signals a potential shift to a bearish environment
This provides a clear, rules-based way to stay aligned with the dominant trend.
3. Entry & Pullback Context
Trends do not move in straight lines—they move in waves. Price will naturally pull back toward moving averages during trends.
These areas can act as:
- Support in uptrends
- Resistance in downtrends
This allows traders to evaluate whether price is:
- Extending (higher risk)
- Pulling back (potential opportunity)
- Breaking trend (potential warning)
4. Volume as Participation Insight
Volume is displayed to provide context behind price movement.
- Rising price with increasing volume → stronger participation
- Rising price with declining volume → weaker conviction
- Sharp volume spikes → potential emotional or institutional activity
Markets are driven by waves of capital flow and crowd psychology, not just price alone . Volume helps reveal when those waves are gaining or losing strength.
Why This Matters
Most traders struggle not because they lack indicators—but because they lack structure and discipline.
This indicator simplifies decision-making by focusing on three key elements:
- Trend direction (Are you aligned with the market?)
- Price location (Are you chasing or buying weakness?)
- Participation (Is there real conviction behind the move?)
Instead of reacting to headlines or emotions, this framework encourages a rules-based approach to understanding market behavior.
How To Use It
- Focus on trading in the direction of the dominant trend
- Use moving averages as a guide for trend alignment and structure
- Observe how price reacts near key averages for potential continuation or warning signals
- Use volume to confirm whether moves are supported by participation
Final Perspective
This tool is not about predicting tops or bottoms.
It is about recognizing trends, understanding market structure, and staying positioned with the flow of capital.
Because in the end, the market rewards those who follow it—not those who fight it.
This indicator is designed to help traders identify and stay aligned with the dominant market trend by combining multiple moving averages with volume analysis. It provides a structured framework to evaluate trend direction, momentum, and participation—without relying on news, fundamentals, or opinions.
The Philosophy Behind It
Markets move in trends—and those trends tend to persist far longer than most investors expect. The biggest mistake traders make is trying to predict reversals instead of recognizing and following the current trend.
This tool is built on a simple principle: Trade with the trend, not against it.
As outlined in Technical Trading Mastery, price action reflects all known information, often reversing well before economic data or news confirms the move . By focusing on price and trend structure, traders can position themselves on the right side of the market rather than reacting emotionally.
How It Works
1. Multi-Timeframe Trend Structure
This indicator uses a combination of short-, intermediate-, and long-term moving averages:
5 EMA → Short-term momentum
20 EMA → Near-term trend direction
50 EMA → Intermediate trend
150 SMA → Long-term market direction
These averages act as dynamic support and resistance levels while also defining trend alignment .
2. Trend Confirmation Logic
The relationship between moving averages helps define market conditions:
- When shorter-term averages are above longer-term averages → Uptrend
- When shorter-term averages fall below longer-term averages → Downtrend
- When averages compress or move sideways → Consolidation / indecision
A key concept:
- When the 50 EMA is above the 150 SMA, the market is considered in a healthy uptrend
- When the 50 EMA falls below the 150 SMA, it signals a potential shift to a bearish environment
This provides a clear, rules-based way to stay aligned with the dominant trend.
3. Entry & Pullback Context
Trends do not move in straight lines—they move in waves. Price will naturally pull back toward moving averages during trends.
These areas can act as:
- Support in uptrends
- Resistance in downtrends
This allows traders to evaluate whether price is:
- Extending (higher risk)
- Pulling back (potential opportunity)
- Breaking trend (potential warning)
4. Volume as Participation Insight
Volume is displayed to provide context behind price movement.
- Rising price with increasing volume → stronger participation
- Rising price with declining volume → weaker conviction
- Sharp volume spikes → potential emotional or institutional activity
Markets are driven by waves of capital flow and crowd psychology, not just price alone . Volume helps reveal when those waves are gaining or losing strength.
Why This Matters
Most traders struggle not because they lack indicators—but because they lack structure and discipline.
This indicator simplifies decision-making by focusing on three key elements:
- Trend direction (Are you aligned with the market?)
- Price location (Are you chasing or buying weakness?)
- Participation (Is there real conviction behind the move?)
Instead of reacting to headlines or emotions, this framework encourages a rules-based approach to understanding market behavior.
How To Use It
- Focus on trading in the direction of the dominant trend
- Use moving averages as a guide for trend alignment and structure
- Observe how price reacts near key averages for potential continuation or warning signals
- Use volume to confirm whether moves are supported by participation
Final Perspective
This tool is not about predicting tops or bottoms.
It is about recognizing trends, understanding market structure, and staying positioned with the flow of capital.
Because in the end, the market rewards those who follow it—not those who fight it.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.