The Trend-Noise Balance study is a trend-analyzing technical indicator which relates trend to noise in an oscillator format. It is based on calculation of cumulative price change (CPC); this value is reset to zero after each trend reversal indicated by Trend Periods (values switching from -1 to 1 or vice versa).

Values around the +50 level indicate that trend and noise are in equilibrium, while values close to 100 can signify strong trending conditions, and values close to 0 suggest that the trend is weak.

Input Parameters

Parameter Description
fast length The number of bars used in calculation of fast EMA of Trending Periods.
slow length The number of bars used in calculation of slow EMA of Trending Periods.
trend length The number of bars upon which the trend is defined.
noise type Defines mechanism of defining noise: linear or root mean square.
noise length The number of bars upon which noise is determined.
correction factor Multiplier used in noise calculation.


Plot Description
TNB The Trend-Noise Balance plot.
HalfLine The +50 level.

Further Reading

1. "Trend-Quality Indicator" by David Sepiashvili. Technical Analysis of Stocks & Commodities, April 2004.


*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.