Trend Indicators

Trend indicators identify the direction and strength of a price trend. Each section below covers what the indicator does, its parameters, and an example strategy you can build (or paste into the AI Agent).

For Candle Type, Source, Period, Timeframe, and Offset - common to all indicators - see Indicator Parameters Explained.

1. EMA (Exponential Moving Average)

A moving average that weights recent prices more heavily, making it more responsive to current market changes than an SMA.

• Identifies short term trends and momentum
• Acts as dynamic support and resistance
• The classic crossover pair (fast EMA × slow EMA) is one of the most used entry signals

Parameters: Candle Type, Source, Period, Timeframe, Offset - all standard.

Example strategy - EMA 20/50 crossover:

	Condition
Entry	EMA(20) crosses above EMA(50), 5m timeframe
Exit	EMA(20) crosses below EMA(50)

For the click-by-click build, see the Canvas worked example or the Quickstart.

2. SMA (Simple Moving Average)

The average price over a period, with all candles weighted equally. Smoother and slower than EMA - better for trend confirmation, support/resistance, and longer term direction.

Parameters: standard set.

Example strategy - SMA 9/21 crossover (NIFTY, 5m):

	Condition
Entry	SMA(9) crosses above SMA(21)
Exit	SMA(9) crosses below SMA(21)

3. WMA (Weighted Moving Average)

Like SMA, but weights recent prices more heavily (linearly), making it more responsive to new information.

Parameters: standard set.

Example strategy - Dual WMA crossover (NIFTY spot, 5m):

	Condition
Entry	WMA(9) crosses above WMA(21)
Exit	WMA(9) crosses below WMA(21)

4. VWMA (Volume Weighted Moving Average)

A moving average that weights price by trading volume - price moves on high volume count for more. Often more reliable for trend confirmation than a plain SMA, because volume backed moves are more significant.

Parameters: standard set.

Example strategy - price crossover:

	Condition
Entry	Close crosses above VWMA(20) - upward momentum confirmed by volume
Exit	Close crosses below VWMA(20)

5. Supertrend

A trend-following indicator built on ATR (volatility). The line flips sides when the trend changes: below price = uptrend (typically green), above price = downtrend (typically red).

Parameters:

Parameter	Default	Description
Period	10	ATR lookback period
Multiplier	3	Distance of the line from price. Higher = fewer, more reliable signals; lower = more, noisier signals
Candle Type, Timeframe, Offset	—	Standard

Example strategy - Supertrend flip (NIFTY spot, 5m):

	Condition
Entry	Close crosses above Supertrend(10, 3)
Exit	Close crosses below Supertrend(10, 3)

note

Supertrend shines in trending markets but produces false flips in sideways markets. Pair it with a trend strength filter like ADX for confirmation.

6. ADX (Average Directional Index)

Measures the strength of a trend, not its direction. Three lines:

• ADX - trend strength. Above 25 = strong trend; below 20 = weak/ranging market.
• +DI - strength of upward movement
• -DI - strength of downward movement

Use ADX to filter out trades in choppy markets, and the DI crossover for direction.

Parameters:

Parameter	Default	Description
period	14	Lookback period
adx_component	ADX	Which line the condition uses: ADX, PLUS_DI, or MINUS_DI

Example strategy - ADX filtered DI crossover (NIFTY, 5m):

	Condition
Entry	ADX(14) > 25 AND +DI(14) crosses above -DI(14)
Exit	+DI(14) crosses below -DI(14)

7. VWAP (Volume Weighted Average Price)

The day's average price weighted by volume; resets each trading day. Institutional traders use it as a fair value benchmark: price above VWAP = bullish for the session, below = bearish. Intraday only.

Parameters: Source (the standard formula uses HLC3; other sources selectable). Optional standard deviation bands can be added around the line.

Example strategy - VWAP crossover (intraday):

	Condition
Entry	Close crosses above VWAP
Exit	Close crosses below VWAP

warning

VWAP or VWMA doesn't work with Spot chart for indexes as no volume is available in spot charts.

8. DEMA (Double Exponential Moving Average)

An EMA with most of its lag removed. DEMA subtracts a smoothed copy of the EMA from itself, so it turns faster than an EMA of the same period while staying smooth.

• Use it where an EMA reacts too late, such as fast crossovers on lower timeframes
• Faster turns also mean more false signals in sideways markets

Parameters: Candle Type, Source, Period (default 20), Timeframe, Offset - all standard.

How DEMA is calculated

EMA1 = EMA(Source, Period)
EMA2 = EMA(EMA1, Period)
DEMA = 2 × EMA1 − EMA2

Example strategy - DEMA 9/21 crossover:

	Condition
Entry	DEMA(9) crosses above DEMA(21)
Exit	DEMA(9) crosses below DEMA(21)

9. TEMA (Triple Exponential Moving Average)

Takes the DEMA idea one step further, with three layers of EMA smoothing. TEMA hugs price even more closely than DEMA and reacts fastest of the three.

Parameters: Candle Type, Source, Period (default 20), Timeframe, Offset - all standard.

How TEMA is calculated

EMA1 = EMA(Source, Period)
EMA2 = EMA(EMA1, Period)
EMA3 = EMA(EMA2, Period)
TEMA = 3 × EMA1 − 3 × EMA2 + EMA3

Example strategy - price crossover:

	Condition
Entry	Close crosses above TEMA(20)
Exit	Close crosses below TEMA(20)

10. HMA (Hull Moving Average)

A moving average built from weighted averages to be both fast and smooth, which usually trade off against each other. HMA turns close to price turning points without the jagged look of a short EMA.

• Its slope is the most common signal: HMA turning up = bullish, turning down = bearish
• Read the slope by comparing HMA with its own previous value (Offset 1)

Parameters: Candle Type, Source, Period (default 20), Timeframe, Offset - all standard.

How HMA is calculated

halfLength = round(Period / 2)
sqrtLength = round(√Period)
raw        = 2 × WMA(Source, halfLength) − WMA(Source, Period)
HMA        = WMA(raw, sqrtLength)

Example strategy - HMA slope turn:

	Condition
Entry	HMA(20) crosses above HMA(20) with Offset 1 - the HMA turns up
Exit	HMA(20) crosses below HMA(20) with Offset 1 - the HMA turns down

Which fast moving average?

From slowest to fastest at the same period: SMA → EMA → DEMA → TEMA. HMA is about as fast as TEMA but smoother. Faster averages catch moves earlier and give more false signals, so test a couple in the Chart Preview before choosing one.

11. Parabolic SAR

SAR stands for "Stop And Reverse". Parabolic SAR plots a trailing level that sits below price in an uptrend and above price in a downtrend. When price crosses it, the trend flips and the level jumps to the other side.

• Each time the trend makes a new extreme, the level moves closer to price, faster and faster - hence "parabolic"
• Popular as a trailing stop and as a trend-flip entry
• Works best in trending markets; in sideways markets it flips often

Parameters:

Parameter	Default	Description
Start	0.02	The starting acceleration factor - how fast the level moves toward price at the start of a trend
Increment	0.02	How much the acceleration factor increases each time the trend makes a new high (or low)
Maximum	0.20	The cap on the acceleration factor
Timeframe, Offset	—	Standard

Parabolic SAR has no Source parameter, because it always uses each candle's High and Low. Candle Type is fixed to OHLC.

How Parabolic SAR is calculated

AF is the acceleration factor; EP is the extreme point (the highest High in an uptrend, or the lowest Low in a downtrend).

SAR(t) = SAR(t−1) + AF × (EP − SAR(t−1))

• Uptrend: when a candle makes a new high, EP updates and AF rises by Increment, up to Maximum. SAR never goes above the Low of the last two candles.
• Downtrend: when a candle makes a new low, EP updates and AF rises by Increment, up to Maximum. SAR never goes below the High of the last two candles.
• Reversal: in an uptrend, if the Low touches or crosses SAR, the trend flips to down (and the reverse in a downtrend). On a flip, SAR resets to the previous trend's EP, EP becomes the current extreme, and AF resets to Start.

Example strategy - SAR flip (NIFTY spot, 5m):

	Condition
Entry	Close crosses above Parabolic SAR(0.02, 0.02, 0.20)
Exit	Close crosses below Parabolic SAR(0.02, 0.02, 0.20)

note

A higher Start or Increment makes SAR hug price more tightly, giving earlier exits but more whipsaws. The defaults (0.02 / 0.02 / 0.20) are the standard settings used on most charting platforms.