TKP T3 Trend With Psar Barcolor

The Bjorgum Reversal indicator provides a comprehensive trend identification and reversal system by combining T3 Moving Averages, Parabolic SAR, and True Strength Index (TSI) momentum.

Usage

The Usage section describes how the script can be used to identify market shifts and trend strength. The tool utilizes color-coded candles and visual shapes to signal potential entries and exits.

Trend Identification

The indicator uses two T3 Moving Averages (Fast and Slow) to define the primary trend. When the Fast T3 is above the Slow T3, a bullish trend is indicated by a colored cloud between the lines. Conversely, when the Fast T3 is below the Slow T3, a bearish trend is signaled.

Reversal Signals

Bar coloring is the primary method for identifying reversals:

• Bullish Trend: Bars appear in the "Bull Trend Color" when price is above the T3 average and the fast average is above the slow average.
• Bearish Trend: Bars appear in the "Bear Trend Color" when price is below the T3 average and the fast average is below the slow average.
• Reversal Warning: Bars turn yellow when the price crosses the T3 moving average, suggesting a potential change in momentum before the T3 averages themselves cross.

Momentum and Volatility

• TSI Curls: Triangle shapes appear above or below bars based on the True Strength Index. These represent momentum "headwinds" or "tailwinds" as the TSI value curls relative to its signal line.
• Parabolic SAR: Small circles appear on the chart to provide trailing stop-loss values and further confirmation of trend direction.

Details

The Bjorgum Reversal is built upon several core technical concepts:

1. T3 Moving Average: Developed by Tim Tillson, the T3 offers lower lag and less overshoot than standard EMAs, providing a smoother representation of price action.
2. True Strength Index (TSI): This momentum oscillator is used to detect "curls," which occur when momentum begins to shift before a price reversal is fully realized.
3. Heikin-Ashi Integration: The tool includes an optional Heikin-Ashi overlay. When enabled, it calculates synthetic price bars that filter out market noise, helping traders stay in trends longer.
4. Signal Logic: Reversals are initiated when the price crosses the T3 averages and are confirmed when the two T3 averages cross each other.

Settings

TSI Inputs

• TSI Long Length: Sets the smoothing period for the long-term EMA used in the TSI calculation.
• TSI Short Length: Sets the smoothing period for the short-term EMA used in the TSI calculation.
• TSI Signal Length: Determines the period for the TSI's signal line EMA.

PSAR Inputs

• Start: The initial increment value for the Parabolic SAR.
• Step Setting (Sensitivity): Adjusts how quickly the SAR moves toward the price.
• Maximum Step: Sets the upper limit for the SAR acceleration factor.

T3 MA Lengths

• aLength: The period for the Fast T3 Moving Average.
• lengthMa: The period for the Slow T3 Moving Average.

Bar Color

• Bull Trend Color: Color for candles during a confirmed uptrend.
• Bear Trend Color: Color for candles during a confirmed downtrend.
• Bullish/Bearish Reversal Color: Color for candles when a potential reversal is detected (default yellow).

Heikin-Ashi Bar Overlay

• Overlays HA bars: Toggles the display of Heikin-Ashi candles over the standard price chart.
• Real Price Line: Displays a horizontal line at the actual closing price when using Heikin-Ashi candles to ensure price accuracy.

FAQ

How do I interpret the yellow bars? Yellow bars indicate that the closing price has crossed the T3 Moving Average. This serves as a leading indicator that a trend reversal may be starting, but is not yet confirmed by the crossing of the two T3 averages.

What do the triangles signify? Upward triangles signify a "TSI Curl Up," while downward triangles signify a "TSI Curl Down." These indicate shifts in momentum that may precede price movement.

How do I access the Bjorgum Reversal indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.