TSM + ADX Trend Power

Logic Behind This Indicator
This indicator combines two momentum/trend tools to identify strong, reliable trends in price movement:

1. TSM (Time Series Momentum)
What it does: Measures the difference between the current price and a smoothed average of past prices.
Formula: EMA(close - EMA(close, 14), 14)
Logic:
If TSM > 0 → Price is above its recent average = upward momentum
If TSM < 0 → Price is below its recent average = downward momentum

2. ADX (Average Directional Index)
What it does: Measures trend strength (not direction).
Logic:
ADX > 25 → Strong trend (either up or down)
ADX < 25 → Weak or no trend (choppy/sideways market)
Combined Logic (TSM + ADX)
The indicator only signals a trend when both conditions are met:

Condition Meaning
Uptrend TSM > 0 AND ADX > 25 → Strong upward momentum
Downtrend TSM < 0 AND ADX > 25 → Strong downward momentum
No signal ADX < 25 → Trend is too weak to trust

What It Aims to Detect

• Strong, sustained trends (not just noise or small moves)
  
• Filters out weak/choppy markets where momentum indicators often give false signals
  
• Entry/exit points:
  
• Green background = Strong uptrend (consider buying/holding)
  
• Red background = Strong downtrend (consider selling/shorting)
  
• No color = Weak trend (stay out or wait)