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Mean Absolute Deviation Trend | Lyro RS
Mean Absolute Deviation Trend
Introduction
Mean Absolute Deviation (MAD) Trend is a precision tool designed to capture directional bias using the Mean Absolute Deviation from a dynamic moving average. It identifies trend shifts by measuring average volatility around price, highlighting bullish and bearish phases through adaptive bands.
Signal Insight
The ๐๐๐ ๐ฃ๐ป๐ฎ๐ท๐ญ plots a dynamic bands around a user-defined moving average, using Mean Absolute Deviation (MAD) to reflect volatility-adjusted boundaries.
A bullish signal is generated when price breaks above the upper MAD bandโindicating positive momentum and potential trend continuation to the upside.
A bearish signal occurs when price falls below the lower MAD bandโsignaling increased downside pressure and possible trend continuation to the downside.
This approach gives traders a volatility-sensitive trend filter that can enhance signal quality across different market environments.
Real-World Example
๐๐๐ ๐ฃ๐ป๐ฎ๐ท๐ญ delivers a clear and timely long signal, capturing a +22.90% move. Upon exit, it seamlessly flips to a short position, securing an additional +13.34%โdemonstrating its strength in both trending directions.
Framework
The ๐๐๐ ๐ฃ๐ป๐ฎ๐ท๐ญ indicator identifies directional shifts by measuring price deviation from a dynamic moving average. At its core, it calculates the Mean Absolute Deviation (MAD) of price around a user-selected moving average.
The indicator builds adaptive upper and lower bands by multiplying the MAD value above and below the moving average. When price crosses above the upper band, it triggers a bullish signal. When price crosses below the lower band, it signals bearish momentum which gives a bearish signal.
This method provides an elegant balance between volatility sensitivity and trend clarity, adapting in real-time to changing market behavior. The moving average type and band sensitivity can be tuned to fit various strategiesโfrom scalping to swing trading.
Recommended Settings
Long-Term Investing: 1D, EMA, 40, 2
Mid-Term Investing: 1D, Default Settings
Swing Trading: 4h, EMA, 20, 2.5
Day/Intraday Trading: 15mins, 25, 2.5
โ ๏ธ WARNING โ ๏ธ: THIS INDICATOR, OR ANY OTHER WE (LYRO RS) PUBLISH, IS NOT FINANCIAL OR INVESTMENT ADVICE. EVERY INDICATOR SHOULD BE COMBINED WITH PRICE ACTION, FUNDAMENTALS, OTHER TECHNICAL ANALYSIS TOOLS & PROPER RISK. MANAGEMENT.
Introduction
Mean Absolute Deviation (MAD) Trend is a precision tool designed to capture directional bias using the Mean Absolute Deviation from a dynamic moving average. It identifies trend shifts by measuring average volatility around price, highlighting bullish and bearish phases through adaptive bands.
Signal Insight
The ๐๐๐ ๐ฃ๐ป๐ฎ๐ท๐ญ plots a dynamic bands around a user-defined moving average, using Mean Absolute Deviation (MAD) to reflect volatility-adjusted boundaries.
A bullish signal is generated when price breaks above the upper MAD bandโindicating positive momentum and potential trend continuation to the upside.
A bearish signal occurs when price falls below the lower MAD bandโsignaling increased downside pressure and possible trend continuation to the downside.
This approach gives traders a volatility-sensitive trend filter that can enhance signal quality across different market environments.
Real-World Example
๐๐๐ ๐ฃ๐ป๐ฎ๐ท๐ญ delivers a clear and timely long signal, capturing a +22.90% move. Upon exit, it seamlessly flips to a short position, securing an additional +13.34%โdemonstrating its strength in both trending directions.
Framework
The ๐๐๐ ๐ฃ๐ป๐ฎ๐ท๐ญ indicator identifies directional shifts by measuring price deviation from a dynamic moving average. At its core, it calculates the Mean Absolute Deviation (MAD) of price around a user-selected moving average.
The indicator builds adaptive upper and lower bands by multiplying the MAD value above and below the moving average. When price crosses above the upper band, it triggers a bullish signal. When price crosses below the lower band, it signals bearish momentum which gives a bearish signal.
This method provides an elegant balance between volatility sensitivity and trend clarity, adapting in real-time to changing market behavior. The moving average type and band sensitivity can be tuned to fit various strategiesโfrom scalping to swing trading.
Recommended Settings
Long-Term Investing: 1D, EMA, 40, 2
Mid-Term Investing: 1D, Default Settings
Swing Trading: 4h, EMA, 20, 2.5
Day/Intraday Trading: 15mins, 25, 2.5
โ ๏ธ WARNING โ ๏ธ: THIS INDICATOR, OR ANY OTHER WE (LYRO RS) PUBLISH, IS NOT FINANCIAL OR INVESTMENT ADVICE. EVERY INDICATOR SHOULD BE COMBINED WITH PRICE ACTION, FUNDAMENTALS, OTHER TECHNICAL ANALYSIS TOOLS & PROPER RISK. MANAGEMENT.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalitร . Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice รจ soggetta al nostro Regolamento.
Declinazione di responsabilitร
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalitร . Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice รจ soggetta al nostro Regolamento.
Declinazione di responsabilitร
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.