Universal Trend+ [BackQuant]

Universal Trend+ [BackQuant]

This indicator blends several well-known technical ideas into a single composite trend and momentum model. It can be show primarily as an overlay or a oscillator:

In which it produces two things:

1. a composite oscillator that summarizes multiple signals into one normalized score
   
2. a regime signal rendered on the chart as a colored ribbon with optional 𝕃 and 𝕊 markers
   

The goal is to simplify decision-making by having multiple, diverse measurements vote in a consistent framework, rather than relying on any single indicator in isolation.

What it does

• Computes five independent components, each reading a different aspect of price behavior
  
• Converts each component into a standardized bullish / neutral / bearish vote
  
• Averages the available votes to a composite score
  
• Compares that score to user thresholds to label the environment bullish, neutral, or bearish
  
• Colors a fast/slow moving-average ribbon by the current regime, optionally paints candles, and can plot the composite oscillator in a lower pane
  

The five components (conceptual)

• 1)RSI Momentum Bias
  A classic momentum gauge on a selectable source and lookback. The component emphasizes whether conditions are persistently strong or weak and applies a neutral buffer to avoid reacting to trivial moves. Output is expressed as a vote: bullish, neutral, or bearish.
  

• 2) Rate-of-Change Impulse
  A smoothed rate-of-change that focuses on short bursts in acceleration. It is used to detect impulsive pushes rather than slow drift. Extreme readings cast a directional vote, mid-range readings abstain.
  

• 3) EMA Oscillator
  A slope-style trend gauge formed by contrasting a fast and a slow EMA on a chosen source, normalized so that the sign and relative magnitude matter more than absolute price. A small dead-zone reduces whipsaws.
  

• 4) T3-Based Normalized Oscillator
  A T3 smoother is transformed into a bounded oscillator via rolling normalization, then optionally smoothed by a user-selectable MA. This highlights directional drift while keeping scale consistent across symbols and regimes.
  

• 5) DEMA + ATR Bands State
  A double-EMA core is wrapped in adaptive ATR bands to create a stepping state that reacts when pressure exceeds a volatility envelope. The component contributes an event-style vote on meaningful shifts.
  

Each component is designed to measure something different: trend slope, momentum impulse, normalized drift, and volatility-aware pressure. Their diversity is the point.

Composite scoring model

Standardization: Each component is mapped to -1 (bearish), 0 (neutral), or +1 (bullish) using bands and guards to cut noise.

Aggregation: The composite score is the average of the available votes. If a component is inactive on a bar, the composite uses the votes that are present.

Decision layer: Two user thresholds define your action bands.

• Above the upper band → bullish regime
  
• Below the lower band → bearish regime
  
• Between the bands → neutral
  

This separation between measurement, aggregation, and decision avoids over-fitting any single threshold and makes the tool adaptable across assets and timeframes.

Plots and UI

• Composite oscillator (optional lower pane): A normalized line that trends between bearish and bullish zones with user thresholds drawn for context.
  
• Signal ribbon (on price): A fast/slow MA pair tinted by the current regime to give an at-a-glance market state.
  
• Markers: Optional 𝕃 and 𝕊 labels when the regime flips.
  
• Candle painting and background tint: Optional visual reinforcement of state.
  
• Color and style controls: User inputs for long/short colors, threshold line color, and visibility toggles.
  

How it can be used

• 1) Regime filter
  Use the composite regime to define bias. Trade only long in a bullish regime, only short in a bearish regime, and stand aside or scale down in neutral. This simple filter often reduces whipsaw.
  
• 2) Confirmation layer
  Keep your entry method the same (breaks, pullbacks, liquidity sweeps, order-flow cues) but require agreement from the composite regime or a fresh flip in the 𝕃/𝕊 markers.
  
• 3) Momentum breakouts
  Look for the composite oscillator to leave neutrality while the EMA oscillator is already positive and the ATR-band state has flipped. Confluence across components is the intent.
  
• 4) Pullback entries within trend
  In a bullish regime, consider entries on shallow composite dips that recover before breaching the lower band. Reverse the logic in a bearish regime.
  
• 5) Exits and risk
  Common choices are:
  

• reduce on a return to neutral,
  
• exit on an opposite regime flip, or
  
• trail behind your own stop model (ATR, structure, session levels) while using the ribbon for context.
  

• 6) Multi-timeframe workflow
  Select a higher timeframe for bias with this indicator, and time executions on a lower timeframe. The indicator itself stays on a single chart; you can load a second chart or pane if you prefer a strict top-down process.
  

Strengths

1. Diversified evidence: Five independent perspectives keep the model from hinging on one idea.
   
2. Noise control: Neutral buffers and a composite layer reduce reaction to minor wiggles.
   
3. Clarity: A single oscillator and a clearly colored ribbon present a complex assessment in a simple form.
   
4. Adaptable: Thresholds and lookbacks let you tune for faster or slower markets.
   

Practical tuning

• Thresholds: Wider bands produce fewer regime flips and longer holds. Narrower bands increase sensitivity.
  
• Lookbacks: Shorter lookbacks emphasize recent action; longer lookbacks emphasize stability.
  
• T3 normalization window and volume factor: Increase the window to suppress noise on choppy symbols; tweak the factor to adjust the smoother’s response.
  
• ATR factor for the band state: Raise it to demand more decisive pressure before registering a shift; lower it to respond earlier.
  

Alerts
Built-in alerts trigger when the regime flips long or short. If you prefer confirmed signals, set your alerts to bar close on your timeframe. Intrabar the composite can move with price; bar-close confirmation stabilizes behavior.

Limitations

• Sideways markets: Even with buffers, any trend model can chop in range-bound conditions.
  
• Lag vs sensitivity trade-off: Tighter thresholds react faster but flip more often; wider thresholds are steadier but later.
  
• Asset specificity: Volatility regimes differ. Expect to retune ATR and normalization settings when switching symbols or timeframes.
  

Final Remarks
Universal Trend+ is meant to act like a disciplined voting committee. Each component contributes a different angle on the same underlying question: is the market pressing up, pressing down, or doing neither with conviction. By standardizing and aggregating those views, you get a single regime read that plays well with many entry styles and risk frameworks, while keeping the heavy math under the hood.