ANN 2 signals

The ANN 2 signals indicator is a strategy tool that utilizes dual Artificial Neural Network (ANN) predictions across different timeframes to generate high-confluence trading signals. By requiring both a large timeframe and a small timeframe model to agree on price direction, it aims to filter out market noise and capture trends with greater precision.

Usage

The indicator is primarily used to identify entries when momentum aligns across multiple time horizons. A trade is initiated only when both the large and small timeframe ANN outputs cross the user-defined threshold in the same direction.

• Long Entry: Occurs when both ANN predictions are positive and exceed the threshold.
• Short Entry: Occurs when both ANN predictions are negative and fall below the negative threshold.
• Exit Logic: Positions are automatically closed when either of the two models switches direction or falls back within the threshold, indicating a loss of confluence or momentum.

Details

This script implements two independent Artificial Neural Network models. Each model uses a linear activation function for the input layer and a hyperbolic tangent (Tanh) activation function for the hidden layers to map complex price relationships.

The strategy relies on the principle of multi-timeframe analysis. The "Large timeframe" acts as a structural trend filter, while the "Small timeframe" acts as the tactical trigger. By processing these through separate ANN calculations, the tool ensures that a trade is only active when the micro-trend is supported by the macro-structure.

Settings

• Threshold: Sets the sensitivity for the ANN predictions. Higher values require stronger predicted momentum to trigger a signal.
• Large timeframe: Defines the higher time horizon used for structural trend analysis (e.g., Daily).
• Small timeframe: Defines the lower time horizon used for entry execution and tactical signals (e.g., 60 minutes).

FAQ

How do I interpret the ANN outputs?

The outputs represent the neural network's prediction of price direction. Values above the threshold suggest bullish momentum, while values below the negative threshold suggest bearish momentum.

Can I use this on any asset class?

Yes, the logic is based on mathematical predictions of price movement and can be applied to stocks, forex, crypto, or commodities, though settings like the threshold may need adjustment based on volatility.

How can I access ANN 2 signals?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.