The Alchemist's Trend [wjdtks255]

📊 The Alchemist's Trend [wjdtks255] - Filtered Trading Guide
This indicator, named The Alchemist's Trend, is a High-Confidence Trend-Following Strategy designed to maximize reliability. It generates a final entry signal only when the QQE (Quantitative Qualitative Estimation) momentum signal is validated by four robust filters: Long-Term Trend (MA200), Mid-Term Trend (HMA), Momentum Strength (CCI), and Higher Timeframe (HTF) Trend.

1. Indicator Mechanism and Core Components
A. Chart Visualization and Trend Identification
Trend Line (HMA): Appears as a Yellow or Purple Thick Line. It represents the direction of the current short/mid-term market trend. Candle colors follow this line.

MA 200: Appears as a Dotted Line (color configurable in settings). It is the Long-Term Trend Line. Price above it suggests a long-term bullish view; below it, a long-term bearish view.

Candle Background: Appears as Light Yellow or Purple. It matches the Trend Line direction, providing a visual cue of the trend's strength.

B. The Four-Filter System
For a confirmed entry signal ('L' or 'S') to fire, the following four conditions must all align in the same direction:

QQE (Momentum Base): Generates the primary Long/Short crossover signal.

MA & HMA (Trend Alignment):

For Long Entries: Price must be above both the MA200 and the HMA Trend Line.

For Short Entries: Price must be below both the MA200 and the HMA Trend Line.

CCI (Momentum Strengthening):

For Long Entries: CCI value must be above +50. (Confirms strong buying momentum)

For Short Entries: CCI value must be below -50. (Confirms strong selling momentum)

HTF (Higher Timeframe Trend): Checks if the price on the set higher timeframe (default 4H) is above its own Trend Line, confirming alignment with the broader market direction.

2. Trading Strategy and Usage Rules
This indicator aims to maximize signal reliability over frequency.

🔔 Entry Rule
Enter a trade only when the 'L' or 'S' label appears on the chart AND the Action panel on the dashboard displays LONG SIGNAL or SHORT SIGNAL.

Long Entry (L):

Condition: 'L' label appears (All Long conditions met).

Verification: Confirm the Trend Line and candle color are in the yellow range.

Short Entry (S):

Condition: 'S' label appears (All Short conditions met).

Verification: Confirm the Trend Line and candle color are in the purple range.

🛡️ Risk and Position Management
Stop-Loss (SL): A common practice is to place the Stop-Loss below the low of the signal candle (for Long) or above the high of the signal candle (for Short), or beyond a recent significant support/resistance level.

Exit Strategy (Three Options):

Opposite Signal: Close the position immediately if the opposite signal ('S' during a Long, or 'L' during a Short) occurs.

RSI Extremes: Consider taking partial profits if the RSI reaches 70 (for Long) or 30 (for Short), indicating potential exhaustion.

Trend Line Crossover: Exit the position if the price breaks or crosses the Trend Line, causing the candle color to change.

🖥️ Dashboard Utilization Tips
The dashboard provides contextual information to validate the signal:

RSI: Signals occurring within the neutral 30-70 zone suggest a stronger developing trend. If near 70/30, consider the risk of reversal.

Vol Status ('High'): If the volume status is 'High' when the signal fires, the signal's power is likely high, indicating a higher probability of significant movement.

Day High/Low: Use these values as a secondary reference for setting initial Stop-Loss or Take-Profit targets.