Trading Monster - Trend and Volatility Engine V2

Trading Monster – Trend and Volatility Engine V2 is a trend-following market analysis tool designed to help traders identify dominant directional bias and manage trades using volatility-adaptive levels.

The script uses supertrend strictly as a directional state indicator to classify the market as bullish or bearish. This directional layer is not used as a standalone entry signal, but as a structural foundation to prevent counter-trend decision-making and maintain directional discipline.

The core originality of this tool lies in its volatility-based framework. Instead of relying on fixed stop-losses or static targets, the engine builds adaptive stop-loss and target bands using smoothed volatility around a zero-lag price structure. These bands automatically expand during high-volatility phases and contract during low-volatility phases, allowing risk management to remain aligned with current market conditions rather than predefined values.

An integrated multi-layer trend validation framework operates internally to assess whether the current environment is suitable for trend continuation. This validation process evaluates factors such as multi-timeframe directional alignment, trend persistence, pullback quality, and intraday structural context. The validator is evaluated only on candle close, ensuring stability and avoiding intra-bar noise or repaint-like behavior.

The validation panel is designed as a visual confirmation aid. When the validation layers align consistently in one direction (displayed in green for bullish conditions or red for bearish conditions), it reflects a supportive environment for trend continuation. Mixed or neutral states visually indicate caution and are intended to discourage participation during sideways, low-quality, or transitional market phases.

This script is intended to be used as a decision-support and trade management engine, not as a signal generator. Trades are best considered only after candle-close confirmation and strictly in the direction of the prevailing trend. Counter-trend trading is intentionally discouraged.

The tool is designed with Gold (XAUUSD) price behavior in mind, but its volatility-adaptive logic allows it to be applied to other instruments where trend continuation strategies are used.