Valence MACE | WMA Consensus Engine
# Valence MACE | WMA Consensus Engine
**Overview**
Valence MACE (Moving Average Consensus Engine) is a systematic trend-following indicator designed to identify directional market regimes through the combined analysis of multiple Weighted Moving Averages (WMAs).
Rather than relying on a single moving average, MACE constructs a composite trend measure from 50 individually calculated WMAs, distributed across a configurable range of lookback periods.
The objective is to identify broader market trends while reducing sensitivity to short-term price fluctuations.
**Methodology**
The indicator calculates 50 Weighted Moving Averages, with default lookback periods ranging from **40 to 300**.
These periods are distributed geometrically, allowing the engine to incorporate both shorter-term and longer-term price information.
Unlike Simple Moving Averages, WMAs assign greater importance to recent price observations, making the composite more responsive to changes in market direction.
Each WMA contributes equally to the final composite, producing a unified representation of the underlying trend.
**ATR Noise Filter**
An Average True Range (ATR) filter is applied around the composite WMA to reduce unnecessary changes in directional signals during periods of market noise.
The indicator operates using two primary states:
- **LONG (Green):** Price closes above the upper ATR-adjusted composite WMA boundary.
- **CASH (Red):** Price closes below the lower ATR-adjusted composite WMA boundary.
When price remains between these boundaries, the indicator maintains its previously confirmed state.
This approach introduces a volatility-adjusted buffer intended to reduce excessive switching between market regimes.
**RSI Reversion Module**
An independent RSI-based module identifies potential mean-reversion opportunities during oversold market conditions.
Using a default RSI length of 33 and an oversold threshold of 33, the indicator displays a *PROBABLE REVERSION* label when RSI crosses below the specified threshold.
These labels are informational and do not influence the primary LONG/CASH trend signals.
**Signal Confirmation**
All directional state changes are confirmed at candle close.
The indicator does not use future-looking data or intentionally repaint historical signals. Intrabar price fluctuations do not generate confirmed LONG/CASH transitions.
**Customisation**
Users can adjust the number and range of WMAs, ATR filter settings, RSI parameters and visual preferences.
The indicator also supports automated TradingView alerts for LONG, CASH and probable-reversion events.
**Disclaimer**
Valence MACE is a systematic market analysis tool intended for research and informational purposes. Signals do not guarantee future market performance, and users should conduct their own independent analysis before making investment decisions.
**Overview**
Valence MACE (Moving Average Consensus Engine) is a systematic trend-following indicator designed to identify directional market regimes through the combined analysis of multiple Weighted Moving Averages (WMAs).
Rather than relying on a single moving average, MACE constructs a composite trend measure from 50 individually calculated WMAs, distributed across a configurable range of lookback periods.
The objective is to identify broader market trends while reducing sensitivity to short-term price fluctuations.
**Methodology**
The indicator calculates 50 Weighted Moving Averages, with default lookback periods ranging from **40 to 300**.
These periods are distributed geometrically, allowing the engine to incorporate both shorter-term and longer-term price information.
Unlike Simple Moving Averages, WMAs assign greater importance to recent price observations, making the composite more responsive to changes in market direction.
Each WMA contributes equally to the final composite, producing a unified representation of the underlying trend.
**ATR Noise Filter**
An Average True Range (ATR) filter is applied around the composite WMA to reduce unnecessary changes in directional signals during periods of market noise.
The indicator operates using two primary states:
- **LONG (Green):** Price closes above the upper ATR-adjusted composite WMA boundary.
- **CASH (Red):** Price closes below the lower ATR-adjusted composite WMA boundary.
When price remains between these boundaries, the indicator maintains its previously confirmed state.
This approach introduces a volatility-adjusted buffer intended to reduce excessive switching between market regimes.
**RSI Reversion Module**
An independent RSI-based module identifies potential mean-reversion opportunities during oversold market conditions.
Using a default RSI length of 33 and an oversold threshold of 33, the indicator displays a *PROBABLE REVERSION* label when RSI crosses below the specified threshold.
These labels are informational and do not influence the primary LONG/CASH trend signals.
**Signal Confirmation**
All directional state changes are confirmed at candle close.
The indicator does not use future-looking data or intentionally repaint historical signals. Intrabar price fluctuations do not generate confirmed LONG/CASH transitions.
**Customisation**
Users can adjust the number and range of WMAs, ATR filter settings, RSI parameters and visual preferences.
The indicator also supports automated TradingView alerts for LONG, CASH and probable-reversion events.
**Disclaimer**
Valence MACE is a systematic market analysis tool intended for research and informational purposes. Signals do not guarantee future market performance, and users should conduct their own independent analysis before making investment decisions.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.