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

tip

VWAP pairs well with a momentum confirmation — e.g., only enter the VWAP cross when RSI(14) > 50.