Adaptive Trend Compression (Arjo)

Adaptive Trend Mapper (ATM) is a multi-purpose trend and momentum tool designed to help traders study trend strength, identify compression phases, and observe shifts in buying and selling pressure. It helps identify emerging breakouts early

The script combines RSI-based momentum, ADX strength, bull/bear pressure indices, and a squeeze-style compression model. It also includes a smoothed trend line based on a SuperSmoother filter and an optional EMA-50 overlay for trend context.

Key Features

Bull & Bear Pressure Index
Derived using ADX and an inverse-RSI approach to highlight directional strength in a normalized scale.
Squeeze & Compression Detection
Detects periods where directional pressure converges while ADX remains weak, often marking low-volatility phases.
Adaptive Smoothing Engine
Bull/Bear indices can be smoothed using SMA/EMA/WMA/RMA, allowing traders to reduce noise when required.
SuperSmoother Trend Line
A filtered trend curve helps highlight short-term directional bias.
Includes color-coding based on trend slope and a wide underlying band for visual clarity.
EMA-50 Option
Standard trend context tool for higher-level direction.

Step-Based Scaling (Optional)
Bull and Bear indices can be rounded to custom step intervals, making them easier to visualize on smaller charts.

How to Use

• Rising Bull Index indicates increasing upward pressure.
  
• Rising Bear Index indicates increasing downward pressure.
  
• A squeeze zone marks compression phases where directional conviction is low.
  
• A breakout from a squeeze often aligns with the start of new strong directional movement.
  
• The SuperSmoother trend line helps track micro-trend shifts, while EMA-50 provides macro context.
  

Disclaimer

• This tool is intended for educational and analytical purposes.
  
• It is not a buy/sell signal generator and doesn’t make predictions.
  
• All trading decisions should be based on your own judgment and risk management.
  

Happy Trading (Arjo)