Description
The Trend Quality study is another representation of Trend-Noise Balance technical indicator. It plots a histogram showing the ratio of trend to noise calculated with Trend-Noise Balance on trend sections suggested by Trend Periods study.
High positive values suggest strong uptrend, low negative values signify strong downtrend, and values fluctuating around the zero level indicate that trend and noise are in equilibrium, i.e., non-trending conditions might be present.
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. |
Plots
| Plot | Description |
|---|---|
TQ
|
The Trend Quality plot. |
ZeroLine
|
The zero level. |
Further Reading
1. "Trend-Quality Indicator" by David Sepiashvili. Technical Analysis of Stocks & Commodities, April 2004.
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.