Multi-Timeframe Trend Analysis [Aaron Diaz]

🧠 Indicator Review: Multi-Timeframe Trend Analysis [Aaron Diaz]
📌 What Does It Do?

The "Multi-Timeframe Trend Analysis" indicator by Aaron Diaz performs a trend assessment across multiple timeframes using Exponential Moving Averages (EMAs) as internal logic. Instead of plotting EMAs on the chart, this version only displays a clean dashboard that shows whether each EMA is trending up or down, keeping your chart clutter-free.

🧾 Based on the original indicator by BigBeluga, this version was modified by Aaron Diaz to remove the EMA plots and focus solely on actionable trend information via a table.

🔍 How It Works

It calculates 5 different EMAs (default: 20, 30, 40, 50, 60 periods).

For each EMA, it checks if it’s trending up (EMA > EMA 2 candles ago) or down.

These signals are then evaluated across 5 customizable timeframes (e.g., 1h, 2h, 3h, etc.).

A dashboard/table appears on the top-right corner of your screen, showing:

🢁 = Uptrend for that EMA and timeframe.

🢃 = Downtrend.

It uses color codes (green = bullish, purple = bearish) to make trend reading fast and intuitive.

🧱 Technical Foundations

Exponential Moving Averages (EMAs):

EMAs give more weight to recent prices, making them highly responsive to current trends.

Widely used to detect momentum and reversals.

Multi-Timeframe Analysis (MTF):

Helps confirm trend strength by analyzing multiple timeframes.

Reduces false signals and noise found in a single timeframe.

📈 Suggested Strategy: "MTF Trend Confluence"
🎯 Goal:

Only trade when multiple timeframes confirm the same directional bias.
✅ Long Entry Rules:

At least 3 out of 5 timeframes must show 🢁 on at least 4 of the 5 EMAs.

Confirm entry with:

A bullish candlestick pattern.

A breakout above recent resistance.

Optional filter: RSI or MACD not in overbought zone.

🔻 Short Entry Rules:

At least 3 timeframes must show 🢃 on at least 4 EMAs.

Confirm with:

A bearish candle or breakdown below support.

Optional filter: RSI or MACD not in oversold zone.

🛑 Exit Rules:

Take Profit at key support/resistance levels or at a 2:1 risk-reward ratio.

Stop Loss below/above the last swing or fixed % (e.g., 1.5–2%).

Exit early if the dashboard shows a shift in trend across key timeframes.

🧪 Example Use Case

You're trading on a 15-minute chart:

The dashboard shows 🢁 across 1h, 2h, and 3h timeframes for EMA20, EMA30, and EMA40.

Price breaks a local resistance level.

You enter long and target the next liquidity zone, placing your stop-loss below the most recent swing low.

⚠️ Important Notes

This is not a signal generator—it’s a trend confirmation tool.

Best used for swing or intraday trend trading.

Avoid using it in ranging or sideways markets.