Dual Market and Trend Filter

Short Description:

A combined market timing and trend strength indicator. The upper panel (“Market Traffic Light”) analyzes overall market health, while the lower panel (“Minervini Trend Template”) evaluates individual stock quality. Designed to improve timing, filter weak setups, and reduce emotional trading decisions.

Description

Concept

Most traders buy strong stocks at the wrong time or trade in a weak market. This indicator solves that problem by combining market timing and stock strength analysis in one visual tool.
The Market Traffic Light (top-right) evaluates market health, and the Minervini Trend Template (bottom-right) measures the trend quality of the active chart symbol.
Only when both are green – meaning market and stock alignment – are conditions optimal for new entries.

1. Market Traffic Light (Global Market Analysis)

The Market Traffic Light works independently of your chart and evaluates three key dimensions:

1. VIX – Volatility Index
Reflects market sentiment between calm and panic.

Below 20 = calm and safe

25–30 = caution

Above 30 = panic → automatically turns red

2. A/D Line (Advance–Decline Line)
Measures market breadth — how many stocks are rising versus falling.
If the A/D Line is above its 50-day moving average, the market is broad and healthy.
You can freely adjust the symbol (e.g. USI:ADD, INDEX:ADD, TVC:ADD) and period.

3. Momentum (RSI + Williams %R)
Checks short-term momentum using both Nasdaq 100 and S&P 500 (or any custom symbols).
When both show strength, the market turns green.
Users can also switch to CFD or European indices (e.g. DAX, EuroStoxx) and fine-tune RSI/Williams %R sensitivity.

Important Note:
No traditional trend indicators such as EMA or SuperTrend are included, as they tend to lag. This design ensures faster reaction to shifts in sentiment and momentum. In historical testing, the Market Traffic Light identified all major corrections and crashes very early.

2. Minervini Trend Template (Stock-Level Analysis)

The lower panel applies the famous Mark Minervini SEPA trend criteria to measure trend quality.
It checks:

Price above 50, 150, and 200-day moving averages

Correct MA alignment (short > mid > long)

Rising 200-day MA

Price within the upper 25% of its 52-week range

Relative Strength (RS) > 70

Scoring System:

8/8 = Perfect trend

6–7/8 = Strong

Below 6 = Weak

This helps traders instantly identify stocks worth monitoring for setups like the Volatility Contraction Pattern (VCP).

3. How to Use It

Add the indicator to your chart.

Check the Market Traffic Light:

Green → market conditions are favorable

Red → stand aside or reduce exposure

Review the Minervini Trend Template:

7–8 of 8 → stock is trend-strong

Trade only when both are green.
This workflow dramatically reduces false entries and improves discipline.

4. Alerts & Visual Features

Optional background color (green for long, red for short)

Real-time VIX panic alerts above level 30

Configurable panels (position, text size, transparency)

Long/Short alert conditions included

5. Advantages

Combines global market timing and individual stock filtering

Early warning for risk-off environments

Objective confirmation for trend strategies

Fully customizable for different regions and symbols

Ideal companion for breakout or VCP trading systems

6. Disclaimer & Risk Warning

This script is for educational and analytical purposes only.
It does not constitute financial advice or trading recommendations.
Trading financial instruments involves substantial risk and may result in the loss of all invested capital.
The author is not responsible for any losses or damages resulting from the use or interpretation of this script.
Users are solely responsible for their own trading decisions and should apply proper risk management at all times.

7. License & Invite-Only Access

This script is Invite-Only. Access is granted manually by the author via TradingView messages only.