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114 lines
2.9 KiB
Markdown
114 lines
2.9 KiB
Markdown
# TTM_TREND: TTM Trend Indicator
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> John Carter's TTM Trend - A fast EMA-based trend indicator with color-coded direction.
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## Historical Context
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John Carter developed the TTM (Trade the Markets) Trend indicator as a clean visual tool for identifying short-term trend direction. Popularized through his book *Mastering the Trade* and the thinkorswim platform, it provides a simple but effective way to see trend changes at a glance using color-coded lines.
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## Algorithm
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### Core Calculation
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```
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alpha = 2 / (period + 1)
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EMA = alpha × source + (1 - alpha) × prevEMA
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```
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Or equivalently:
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```
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EMA = alpha × (source - EMA) + EMA
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```
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### Trend Detection
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```
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trend = sign(EMA - prevEMA)
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+1 = bullish (EMA rising)
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-1 = bearish (EMA falling)
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0 = neutral (EMA unchanged)
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```
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### Strength Measurement
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```
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strength = |EMA - prevEMA| / prevEMA × 100%
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```
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## Default Parameters
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| Parameter | Value | Description |
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|:----------|:------|:------------|
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| Period | 6 | EMA lookback period (very fast) |
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| Source | HLC/3 | Typical price (High + Low + Close) / 3 |
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## Outputs
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| Output | Type | Description |
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|:-------|:-----|:------------|
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| Value | double | Current EMA value |
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| Trend | int | Trend direction: +1, -1, or 0 |
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| Strength | double | Percent change between EMA values |
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| IsHot | bool | True after warming up (2 bars) |
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## Color Coding
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| Color | Condition | Meaning |
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|:------|:----------|:--------|
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| 🟢 Green | Trend > 0 | EMA rising (bullish) |
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| 🔴 Red | Trend < 0 | EMA falling (bearish) |
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| ⚫ Gray | Trend = 0 | EMA unchanged (neutral) |
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## Performance
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| Metric | Value |
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|:-------|:------|
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| Time complexity | O(1) per bar |
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| Space complexity | O(1) |
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| Warmup period | 2 bars |
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| Allocations | Zero in hot path |
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## Usage Examples
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### Basic Usage
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```csharp
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var ttm = new TtmTrend(period: 6);
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// Update with typical price
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var result = ttm.Update(new TValue(time, typicalPrice));
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// Or update with bar (uses HLC/3 automatically)
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var result = ttm.Update(bar);
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// Access trend direction
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if (ttm.Trend > 0) { /* bullish */ }
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else if (ttm.Trend < 0) { /* bearish */ }
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```
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### Batch Processing
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```csharp
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var results = TtmTrend.Batch(barSeries, period: 6);
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```
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### With Indicator Instance
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```csharp
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var (results, indicator) = TtmTrend.Calculate(barSeries, period: 6);
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bool isBullish = indicator.Trend > 0;
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double strength = indicator.Strength;
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```
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## Trading Applications
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1. **Trend Following**: Trade in the direction of the EMA color
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2. **Trend Confirmation**: Use with other TTM indicators (Squeeze, Wave)
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3. **Entry Timing**: Enter on color change with confirmation
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4. **Exit Signal**: Exit when color changes against position
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## Category
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**Dynamics** - Measures trend direction and momentum using fast EMA smoothing.
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## See Also
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- [TTM_SQUEEZE: TTM Squeeze](../ttm_squeeze/TtmSqueeze.md)
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- [TTM_WAVE: TTM Wave](../../oscillators/ttm_wave/TtmWave.md)
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- [TTM_LRC: TTM Linear Regression Channel](../../channels/ttm_lrc/TtmLrc.md)
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- [SUPER: SuperTrend](../super/Super.md)
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