Supertrend, MA & Market Strength by Keiron Richie

This script comprises of three separate indicators to give an improved view; a redesign of the Supertrend indicator to identify up/down trend and changes the background colour to red or green accordingly. This is then overlayed with the Mother of Adaptive Moving averages by John Ehlers (MAMA) which adapts to price movement in an entirely new and unique way. The advantage of this method of adaptation is that it features a fast attack average and a slow decay average so that composite average rapidly ratchets behind price changes and holds the average value until the next ratchet occurs. Since the average fallback is slow I can build trading systems that are virtually free of whipsaw trades.

Additionally, there are up & down arrows below and above the bars respectively which demonstrate overall market strength or weakness. By combining the relative strength in a trend with the true strength of the Nasdaq (NDX) and S&P500 (SPY) we can then compare that against the volatility/fear index (VIX) to show if the market is excerpting pressure on the component in either direction. i.e. if the red arrow shows then the market indexes true strength is decreasing & if the small green arrow shows then the market index is gaining strength which may be likely to impact the component/symbol you are viewing. It’s a very quick and effective method of seeing the strength within the market indexes and how they are effecting your chart.

Because of the nature of the script it is tested and works well on all timeframes with Stocks listed on NASDAQ & S&P500.
Alerts are available for a change of background colour state. i.e Green=Buy, Red=Sell