Market Trend Environment (Qullamaggie Method) (Multi-Option)

Well-known trader Qullamaggie emphasizes the importance of tracking the overall market (especially the NASDAQ and SPY) to confirm the best conditions for trading breakouts.

He looks for strong market trends using the 10-day SMA (Simple Moving Average) above the 20-day SMA on the NASDAQ or SPY.
When NASDAQ’s 10-day SMA is above the 20-day SMA, it indicates a bullish environment, which increases the probability of successful breakouts in individual stocks.
When NASDAQ is weak, breakouts tend to fail, so traders stay cautious or avoid trading aggressively.
🔹 Correlation Between Stock Breakouts & Market Trends
According to MasterTradingFlow on YouTube:
📌 80% of stock breakouts happen when SPY’s 10-day SMA is above the 20-day SMA → Meaning a strong market significantly increases the odds of success.
📌 However, 76% of breakdowns also happen when the 10-day is above the 20-day → This means momentum stocks can go both ways, and risk management is crucial.

🔹 Alternative Strategy: Price Above Rising 20-Day SMA
Some traders prefer a simpler approach:

Instead of using the 10-day vs 20-day crossover, they track when price is above a rising 20-day SMA.
This method ensures they only trade when the market is in a clear uptrend with strong momentum.
This is a more trend-following approach and avoids false signals in choppy conditions.
🔹 How This Indicator Works
✅ Two Tracking Methods (Choose One or Use Both)
1️⃣ SMA 10 Above SMA 20: Classic trend confirmation.
2️⃣ Price Above Rising 20-Day SMA: Ensures price is in an uptrend.

You can use one or both conditions together for stronger confirmation.
Works with NASDAQ, SPY, BTC, Crypto Market Cap, Sectors, or Any Other Asset.
✅ Customization & Flexibility

Choose Your Market Reference (NASDAQ, SPY, BTC, or any pair).
Enable/Disable Each Condition Separately.
Custom Background Colors for Each Condition.