QuanTAlib/lib/dynamics/ttm_trend/TtmTrend.md

TTM_TREND: TTM Trend Indicator

John Carter's TTM Trend - A fast EMA-based trend indicator with color-coded direction.

Historical Context

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.

Algorithm

Core Calculation

alpha = 2 / (period + 1)
EMA = alpha × source + (1 - alpha) × prevEMA

Or equivalently:

EMA = alpha × (source - EMA) + EMA

Trend Detection

trend = sign(EMA - prevEMA)
  +1 = bullish (EMA rising)
  -1 = bearish (EMA falling)
   0 = neutral (EMA unchanged)

Strength Measurement

strength = |EMA - prevEMA| / prevEMA × 100%

Default Parameters

Parameter	Value	Description
Period	6	EMA lookback period (very fast)
Source	HLC/3	Typical price (High + Low + Close) / 3

Outputs

Output	Type	Description
Value	double	Current EMA value
Trend	int	Trend direction: +1, -1, or 0
Strength	double	Percent change between EMA values
IsHot	bool	True after warming up (2 bars)

Color Coding

Color	Condition	Meaning
🟢 Green	Trend > 0	EMA rising (bullish)
🔴 Red	Trend < 0	EMA falling (bearish)
⚫ Gray	Trend = 0	EMA unchanged (neutral)

Performance

Metric	Value
Time complexity	O(1) per bar
Space complexity	O(1)
Warmup period	2 bars
Allocations	Zero in hot path

Usage Examples

Basic Usage

var ttm = new TtmTrend(period: 6);

// Update with typical price
var result = ttm.Update(new TValue(time, typicalPrice));

// Or update with bar (uses HLC/3 automatically)
var result = ttm.Update(bar);

// Access trend direction
if (ttm.Trend > 0) { /* bullish */ }
else if (ttm.Trend < 0) { /* bearish */ }

Batch Processing

var results = TtmTrend.Batch(barSeries, period: 6);

With Indicator Instance

var (results, indicator) = TtmTrend.Calculate(barSeries, period: 6);
bool isBullish = indicator.Trend > 0;
double strength = indicator.Strength;

Trading Applications

1. Trend Following: Trade in the direction of the EMA color
2. Trend Confirmation: Use with other TTM indicators (Squeeze, Wave)
3. Entry Timing: Enter on color change with confirmation
4. Exit Signal: Exit when color changes against position

Category

Dynamics - Measures trend direction and momentum using fast EMA smoothing.

See Also

• TTM_SQUEEZE: TTM Squeeze
• TTM_WAVE: TTM Wave
• TTM_LRC: TTM Linear Regression Channel
• SUPER: SuperTrend