Watch video here: https://youtu.be/wiNVEsoDpKk?si=F9c425jZ02ezRUOD
The MTF Filter indicator is a multi timeframe “confluence of conditions” indicator which identifies directional bias, momentum, and trending conditions. The software includes multiple criteria that can be selected individually or in combination and when the criteria are met a bullish or bearish background shading color gives you an easy way to visualize the trend direction.
Here is a chart showing a moving average crossover trend:
In this example, we have chosen to define the trend direction based on a 20/50 period EMA crossover. There is no requirement to add the 2 EMAs to the chart (the MT Filter indicator performs the calculations internally) but they were added to this chart for illustration purposes. You can see how the chart background changes color when the 2 lines cross.
Here is another example using a single EMA on Renko bars:
Here the trend rule requires the entire bar to be on the correct side of the EMA in order to flood the background color (that is why some bars have no shading).
You can also shade the background based on momentum measurements. In the following example, we are using the VMLean momentum indicator (see separate post):
VMLean is a hybrid momentum indicator and it is built into the MTFilter software. In the example above, we are defining the directional bias based on whether the VMLean histogram is above or below the Zeroline (The VMLean subpanel was added just for illustration but it is not required since the MTFilter software performs the VMLean calculations internally.
Here is a full list of the available criteria included in the MT Filter software:
VMLean Histogram above/below the Zeroline
VMLean MACD BB’s above/below the Zeroline
Both VMLean histogram and MACD BB’s above/below the Zeroline
VMLean MACD BB’s above upper/below lower Bollinger Band
VMLean MACD BB’s above/below the Bollinger Band midline
Fast EMA above/below Slow MA
Close Above/Below Fast MA
Close above/below Slow MA
Low Above/High below Fast MA
Low Above/High below Slow MA
Swing Structure Trend Bias
Additional features:
You can define any combination of the above criteria or use them individually (only when all selected criteria are met will you get the shading)
You can display the background shading behind the price bars or you can place them in a subpanel
Instead of using the chart bars, you can define a higher timeframe (or even a different bartype) as input to the MA and VMLean calculations (Minute Range or Renko are supported)
You can download the zip file (see link below) so you can import the software directly into the Tickblaze platform to use in your trading. If you want to access the source code, you can find everything you need here:
https://github.com/Tickblaze/Tickblaze.Scripts.ARC.
Please like, comment and share this post so others can benefit from the free scripts in our community!