Overview

Staying in any trend to maximise your profits, is the hardest thing to do in trading, without question. Which is why we developed the Quantum Trend Monitor indicator, to help you do just that.

The Quantum Trend Monitor is in fact two indicators in one. It’s been designed to help you stay in trends once they begin, but also to signal when a trend is potentially coming to an end, or is simply pausing before continuing further. The indicator is best used in conjunction with the Quantum Trends Indicator. The Trend Monitor aims to smooth out the minor pullbacks and reversals which are all part and parcel of the price action, helping to keep you in the trend to maximise the profit potential from every position. This is function of the solid bar, which displays four colors. When the market is trending strongly, the Trend Monitor is either bright red or bright blue. When the market is in transition or at a pause point, the Trend Monitor is either dark red or dark blue. If the Trend Monitor transitions from one bright color to another, (from red to blue, or form blue to red) this is signaling the current trend has potentially come to an end. The Trend Monitor smooths out the ups and downs in a trend, which will be reflected in your Quantum Trends, which then provides the ‘fine detail’ of every move.

The second element of the Trend Monitor is the yellow trend line, which displays the ‘strength’ of the trend, and gives an additional perspective on the trend itself. The trend line moves above and below the ‘mean’ which is displayed as a white dotted line on the indicator. As the trend develops, so the yellow trend line moves above and below the mean level, and as it reaches the extremes, this is another potential signal the trend is becoming exhausted. The trend line indicator can be applied directly on the Quantum Trend Monitor itself, as shown above to keep your charts clean and clear, or separately in another window. As with all the Quantum trading indicators, the Quantum Trend Monitor is best used in multiple timeframes which will give you visual signals to changes in trend, both upstream and downstream of your principle trading chart.

  • The Quantum Trend Monitor indicator works in all timeframes
  • The indicator can be ‘fine-tuned’ to your own preferences in terms of the speed with which the indicator will react to possible changes in trend
  • For clarity, we find it is best applied to the bottom of the chart

Format

By clicking the indicator’s Format button, you can configure the Quantum Trend Monitor Indicator’s inputs and style according to your preferences. The Format button appears as a small cog/gear icon beside the name of the indicator at the chart. Clicking the button shows a dialog box for configuring the Inputs and Style options.

Inputs

Sensitivity to Congestion

This parameter has been provided to allow you to fine-tune the indicator to your own trading style and attitude to risk. Increasing its value makes the indicator more sensitive to detecting congestion phases of price action. In this case, you will see more of the dark blue and dark red areas which are early signs of potential weakness in the respective trends.

This is a purely personal choice. We have included a user input which gives you full control, whether you want to be alerted earlier to potential weakness or pauses in the trend, or are happy to wait before such changes are signaled slightly later, and over shorter periods on the indicator. Whichever you prefer, you decide so the indicator can be matched to your own trading style and approach to risk.

The indicator features an oscillating trend line (between 0 and 100) – the first half of the indicator. The line’s slopes coincide with the signals in the trend bar, and running both line and bar plots together makes a great combination in determining the different trends on the chart. You can untick the Show Trend Line input to hide the trend line.

Show Trend Bar

You can monitor the trend across the chart by observing the changing colors of the trend bar which is the indicator’s other half. Its color can be any of the following depending on the state of the trend:

  • Blue – strong bullish trend
  • Red – strong bearish trend
  • Dark blue – diminishing bullish trend
  • Dark red – diminishing bearish trend

Running the trend bar and trend line together makes the indicator all the more powerfu, but you have the option to hide the trend bar completely by unticking the Show Trend Bar input.

Style

TradingView allows you to customize the indicator’s appearance by changing the properties of each of its plots/lines.

Background Color

This plot forms the trend bar which changes color depending on the state of the trend.

  • Color 1 is set to blue which is the color assigned to strong bullish trend signal. You can click the color box to choose another color from a palette.
  • Color 2 is set to red which is the color assigned to strong bearish trend signal. You can click the color box to choose another color from a palette.
  • Color 3 is set to dark blue which is the color assigned to diminishing bullish trend signal. You can click the color box to choose another color from a palette.
  • Color 4 is set to dark red which is the color assigned to diminishing bearish trend signal. You can click the color box to choose another color from a palette.
  • Please do not change the settings of Color 0 and Color 5 properties. Changing these may break the trend bar.

Zero Line

This is a horizontal dotted line along the 0 level of the vertical axis. The trend is bullish when the trend line is above the zero line and bearish if the trend line is below it.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to white. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the knob to the right to increase the line’s thickness.
  • Type of plot is set to Circles. You can choose other types by clicking the drop-down menu.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature but this is unnecessary for this indicator.

Trend Line

This plots a trend line that oscillates between 0 and 100. Its slopes coincide with the signals shown by the trend bar.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to yellow. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the knob to the right to increase the line’s thickness.
  • Type of plot is set to Line. Please do not change this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature but this is unnecessary for this indicator.

Precision

This determines the number of decimal places the indicator uses to display the current value of its lines. You can adjust this by choosing from a drop-down list.

Scale

You can choose either Pin to Right or Pin to Left.

  • Pin to Right is the default option. This displays the indicator labels at the right-hand side of the indicator.
  • Pin to Left displays the indicator labels at the left-hand side of the indicator.