The Trend-Noise Balance study is a trend-analyzing technical indicator which relates trend to noise in an oscillator format. It is based on calculation of cumulative price change (CPC); this value is reset to zero after each trend reversal indicated by Trend Periods (values switching from -1 to 1 or vice versa).
Values around the +50 level indicate that trend and noise are in equilibrium, while values close to 100 can signify strong trending conditions, and values close to 0 suggest that the trend is weak.
||The number of bars used in calculation of fast EMA of Trending Periods.|
||The number of bars used in calculation of slow EMA of Trending Periods.|
||The number of bars upon which the trend is defined.|
||Defines mechanism of defining noise: linear or root mean square.|
||The number of bars upon which noise is determined.|
||Multiplier used in noise calculation.|
||The Trend-Noise Balance plot.|
||The +50 level.|
1. "Trend-Quality Indicator" by David Sepiashvili. Technical Analysis of Stocks & Commodities, April 2004.
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.