Trend Alignment Pro [LevelUp]

Trend Alignment Pro™ is designed for traders who focus on trading with the trend. This indicator automates key aspects of fundamental and technical analysis to identify and highlight chart patterns and signals, drawing on the proven techniques of legendary trend-following traders such as William O'Neil, Jesse Livermore, and Stan Weinstein.

The indicator name, Trend Alignment, emphasizes the importance of confirming price action, patterns, and signals across multiple timeframes. It provides both daily and weekly analysis to enable accurate and timely trend identification.

🔹—— Key Features ——🔹

Daily Timeframe

Moving Average Alignment™
▪ Highlight trends based on moving averages and price action.
▪ Specify price in relation to moving averages (e.g. close above).
▪ Specify which moving averages are required to be in an uptrend.
▪ Specify moving average stacking requirements (e.g. fast above slow).
▪ Require active Power Trend (optional).
▪ Set stop-loss and requirements to end Moving Average Alignment.

Power Trend Tools and Analysis
▪ Highlight Power Trends with box or symbols at start/end points.
▪ Auto-tracking of key metrics towards a new Power Trend.

Custom Moving Averages
▪ Specify type (EMA/SMA), length and color.
▪ View 10-week SMA on daily chart.

Stats Table
▪ Comprehensive daily price and percent change stats.

Signals Table
▪ Track important trend signals with clear visuals.

Power Earnings Gap (PEG) Detection
▪ Auto-detect and highlight Power Earnings Gaps.
▪ Customize requirements, such as gap-up percent and earnings surprise.

Weekly Timeframe

Custom Moving Averages
▪ Specify type (EMA/SMA), length and color.

Tight Weeks and Up Weeks
▪ Specify weekly and percent change requirements.

Stats Table
▪ Comprehensive weekly price and percent change stats.

Daily & Weekly Timeframes

Flat Base & Consolidation
▪ Automated detection with defaults based on the active timeframe.

Custom Relative Strength Line
▪ Specify index and lookback range.
▪ Symbols plotted on RS Line indicating new high and new high before price.
▪ Two custom moving averages for daily & weekly timeframes.

Anchored VWAP (AVWAP)
▪ Multiple anchor options: year-to-date, year-to-date low/high.

Pullbacks
▪ Set key requirements and minimum number of bars.

52-Week and All-Time Highs
▪ Bullish indicators indicating outperformance.

Marked Highs & Lows
▪ Identify potential areas of support/resistance.

🔹—— Daily Chart Examples ——🔹

Daily charts are ideal for analyzing short to intermediate term trends and spotting actionable setups as they develop.



🔹—— Weekly Chart Example ——🔹

Weekly charts are helpful for identifying longer-term trends and patterns.


🔹—— Moving Average Alignment (Daily) ——🔹

Moving Average Alignment™ (MAA) is a trend-identification tool that uses moving averages, price action and their relationships to one another to detect momentum and upward trends. MAA offers extensive customization, including the following:

▪ Moving average types (EMA/SMA) and length.
▪ Which moving averages are required to be in an uptrend.
▪ Requirements on the order of moving averages (e.g. fast above slow).
▪ Optional requirement that the stock be in a Power Trend.
▪ Set stop-loss and requirements to signal the end of the MAA.

MAA delivers clear visual confirmation of trend strength and helps identify both the start and potential end of an uptrend.


🔹—— Power Trend (Daily) ——🔹

The concept of a Power Trend was created by Mike Webster, Justin Nielsen and Charles Harris while working with William O’Neil, founder of Investor's Business Daily and creator of the CANSLIM methodology. When a Power Trend is active, there is a stronger than usual uptrend underway.

A Power Trend by definition uses a major index, such as the Nasdaq Composite (IXIC), as the data source for determining a Power Trend's state. The Trend Alignment indicator builds upon this concept by enabling the current chart symbol to be the data source for the Power Trend, thus offering traders a unique and quantifiable signal when a stock is in a strong uptrend.

What Starts A Power Trend
▪ Low is above the 21-EMA for at least 10 days.
▪ 21-EMA is above the 50-SMA for at least five days.
▪ 50-SMA is in an uptrend.
▪ Close up for the day.

What Ends A Power Trend
▪ 21-EMA crosses under 50-SMA and the close is below prior day close.
▪ Close below the 50-SMA and low is 10% below recent high.

One unique feature of the Trend Alignment indicator is that you can track the progress towards a new Power Trend beginning. See the chart below for more details.


🔹—— Power Earnings Gap (Daily) ——🔹

A Power Earnings Gap refers to a stock experiencing a significant price gap-up, on high volume, following an earnings report. This typically occurs when the stock opens at least 5-10% (or more) above the prior day's close, forming a gap-up bar on the chart that signals strong retail and/or institutional buying and the start or continuation of a major uptrend. It's a bullish pattern seen in leading growth stocks that often continue to outperform.

There are extensive customization options including required gap-up percent, minimum volume change over the average volume and preferred earnings surprise requirements.


🔹—— Relative Strength Line ▪ RS Line (Daily & Weekly) ——🔹

The Relative Strength Line (RS Line), another concept popularized by William O’Neil, is a technical indicator used in stock analysis to measure a stock's performance relative to a benchmark index, such as the S&P 500. An upward-trending RS Line indicates the stock is outperforming the market, while a downward trend shows underperformance. This helps identify potential leaders or laggards regardless of market conditions.

RS Line New High
When the RS Line reaches a new high, this signals that the stock's relative strength against the benchmark is at its highest point over the current lookback range — clear evidence of market leadership.

RS Line New High Before Price
When the RS Line hits a new high ahead of the stock's price reaching a new high, this can be a leading indicator of impending price strength, as it shows the stock gaining momentum relative to the market before that strength is reflected in its price. This signal shows early outperformance and potential market leadership, often preceding a breakout or trend continuation.

New High and New High Before Price Symbols
Easily spot RS Line new highs and new highs before price; a small circle on the RS Line indicates new highs and a small square highlights new high before price.

Highlight Breaks of Moving Averages
There are two custom moving averages of the RS Line that can be configured. Looking for breaks above or below these moving averages can be helpful to effectively manage positions, such as scaling out of a trade systematically.


🔹—— Tight Weeks and Up Weeks (Weekly) ——🔹

In William O'Neil's CANSLIM methodology, tight weekly closes and up weeks are key technical indicators used to evaluate stock chart patterns and identify potential buying opportunities. Tight and up weeks may indicate institutional accumulation and price strength.

Tight closes on a weekly timeframe refer to consecutive weeks where closing prices stay within a narrow 1-1.5% range of the prior week's close, often with declining volume. This signals buyer control and accumulation, making it a bullish indicator, particularly in patterns like three-weeks-tight after an initial breakout.

When a stock closes higher than the prior week, this signals positive momentum. Multiple up weeks often indicate sustained buying and may help to spotlight emerging leaders. Increased volume on up weeks show institutional support and increase the potential for a breakout.


🔹—— Automated Anchored VWAP ▪ AVWAP (Daily & Weekly) ——🔹

Based on the work of Brian Shannon, CMT, the anchored VWAP (AVWAP) shows the average price a stock has traded at, weighted by volume, starting from a specific point in time, the anchor. AVWAP can be helpful for trend confirmation and reversals, breakout and breakdown signals as well as risk management for placing stops.

The AVWAP works with any exchange around the globe, respecting trading days, hours and holidays. Use the AVWAP with the TradingView Replay feature for historical and post-mortem analysis.


🔹—— Marked Highs and Lows (Daily & Weekly) ——🔹

Pivot highs and pivot lows are core principles in technical analysis for identifying potential turning points, support/resistance, and trends. Shown on the chart as either price or a triangle symbol, these visual cues help to quickly spot significant price levels.

Pivots highlight historical turning points in price, serving as reliable zones for potential bounces or breakouts. They can also help determine overall market direction, for example, higher highs and higher lows in uptrends. Pivots also represent where demand overwhelms supply or vice versa.


🔹—— Price Stats and Signals Tables (Daily & Weekly) ——🔹

Comprehensive daily and weekly price stats. Daily charts also includes real-time signals to monitor the trend as well as quarterly earnings and sales data.



🔹—— Custom Alerts ——🔹

The Trend Alignment indicator supports custom alerts:
▪ Moving Average Alignment started.
▪ Moving Average Alignment ended.
▪ Power Trend started.
▪ Power Trend ended.
▪ Power Earnings Gap started.

🔹—— Best Practices ——🔹

▪ Look for confirmation of an uptrend on multiple timeframes.
▪ Use multiple signals and/or patterns for confirmation of the trend.
▪ Relative strength is key to find stocks outperforming the market.
▪ Focus on companies with earnings and sales acceleration.
▪ Avoid chasing extended stocks.
▪ Always define risk before entering a trade — know where you’ll exit.
▪ Size positions based on volatility and conviction, not emotion.
▪ Be patient — trends take time to develop.