Heat Map Trend (VIDYA MA) [BigBeluga]The Heat Map Trend (VIDYA MA) - BigBeluga indicator is a multi-timeframe trend detection tool based on the Volumetric Variable Index Dynamic Average (VIDYA). This indicator calculates trends using volume momentum, or volatility if volume data is unavailable, and displays the trends across five customizable timeframes. It features a heat map to visualize trends, color-coded candles based on an average of the five timeframes, and a dashboard that shows the current trend direction for each timeframe. This tool helps traders identify trends while minimizing market noise and is particularly useful in detecting faster market changes in shorter timeframes.
🔵 KEY FEATURES & USAGE
◉ Volumetric Variable Index Dynamic Average (VIDYA):
The core of the indicator is the VIDYA moving average, which adjusts dynamically based on volume momentum. If volume data isn't available, the indicator uses volatility instead to smooth the moving average. This allows traders to assess the trend direction with more accuracy, using either volume or volatility, if volume data is not provided, as the basis for the trend calculation.
// VIDYA CALCULATION -----------------------------------------------------------------------------------------
// ATR (Average True Range) and volume calculation
bool volume_check = ta.cum(volume) <= 0
float atrVal = ta.atr(1)
float volVal = volume_check ? atrVal : volume // Use ATR if volume is not available
// @function: Calculate the VIDYA (Volumetric Variable Index Dynamic Average)
vidya(src, len, cmoLen) =>
float cmoVal = ta.sma(ta.cmo(volVal, cmoLen), 10) // Calculate the CMO and smooth it with an SMA
float absCmo = math.abs(cmoVal) // Absolute value of CMO
float alpha = 2 / (len + 1) // Alpha factor for smoothing
var float vidyaVal = 0.0 // Initialize VIDYA
vidyaVal := alpha * absCmo / 100 * src + (1 - alpha * absCmo / 100) * nz(vidyaVal ) // VIDYA formula
◉ Multi-Timeframe Trend Analysis with Heat Map Visualization:
The indicator calculates VIDYA across five customizable timeframes, allowing traders to analyze trends from multiple perspectives. The resulting trends are displayed as a heat map below the chart, where each timeframe is represented by a gradient color. The color intensity reflects the distance of the moving average (VIDYA) from the price, helping traders to identify trends on different timeframes visually. Shorter timeframes in the heat map are particularly useful for detecting faster market changes, while longer timeframes help to smooth out market noise and highlight the general trend.
Trend Direction:
Heat Map Reading:
◉ Dashboard for Multi-Timeframe Trend Directions:
The built-in dashboard displays the trend direction for each of the five timeframes, showing whether the trend is up or down. This quick overview provides traders with valuable insights into the current market conditions across multiple timeframes, helping them to assess whether the market is aligned or if there are conflicting trends. This allows for more informed decisions, especially during volatile periods.
◉ Color-Coded Candles Based on Multi-Timeframe Averages:
Candles are dynamically colored based on the average of the VIDYA across all five timeframes. When the price is in an uptrend, the candles are colored blue, while in a downtrend, they are colored red. If the VIDYA averages suggest a possible trend shift, the candles are displayed in orange to highlight a potential change in momentum. This color coding simplifies the process of identifying the dominant trend and spotting potential reversals.
BTC:
SP500:
◉ UP and DOWN Signals for Trend Direction Changes:
The indicator provides clear UP and DOWN signals to mark trend direction changes. When the average VIDYA crosses above a certain threshold, an UP signal is plotted, indicating a shift to an uptrend. Conversely, when it crosses below, a DOWN signal is shown, highlighting a transition to a downtrend. These signals help traders to quickly identify shifts in market direction and respond accordingly.
🔵 CUSTOMIZATION
VIDYA Length and Momentum Settings:
Adjust the length of the VIDYA moving average and the period for calculating volume momentum. These settings allow you to fine-tune how sensitive the indicator is to market changes, helping to match it with your preferred trading style.
Timeframe Selection:
Select five different timeframes to analyze trends simultaneously. This gives you the flexibility to focus on short-term trends, long-term trends, or a combination of both depending on your trading strategy.
Candle and Heat Map Color Customization:
Change the colors of the candles and heat map to fit your personal preferences. This customization allows you to align the visuals of the indicator with your overall chart setup, making it easier to analyze market conditions.
🔵 CONCLUSION
The Heat Trend (VIDYA MA) - BigBeluga indicator provides a comprehensive, multi-timeframe view of market trends, using VIDYA moving averages that adapt to volume momentum or volatility. Its heat map visualization, combined with a dashboard of trend directions and color-coded candles, makes it an invaluable tool for traders looking to understand both short-term market fluctuations and longer-term trends. By showing the overall market direction across multiple timeframes, it helps traders avoid market noise and focus on the bigger picture while being alert to faster shifts in shorter timeframes.
