AlgoAlex811 wrote: Fri Mar 21, 2025 9:41 pm KEMAD by QuantumResearch

https://it.tradingview.com/script/FDRwG ... mResearch/

The QuantumResearch KEMAD Indicator is a sophisticated trend-following and volatility-based tool designed for traders who demand precision in detecting market trends and price reversals. By leveraging advanced techniques implemented in PineScript, this indicator integrates a Kalman filter, an Exponential Moving Average (EMA), and dynamic ATR-based deviation bands to produce clear, actionable trading signals.

1. Overview

The KEMAD Indicator aims to:
Reduce Market Noise: Employ a Kalman filter to smooth price data.

Identify Trends: Use an EMA of the filtered price to define the prevailing market direction.

Set Dynamic Thresholds: Adjust breakout levels with ATR-based deviation bands.

Generate Signals: Provide clear long and short trading signals along with intuitive visual cues.

2. How It Works

A. Kalman Filter Smoothing
Purpose: The Kalman filter refines the selected price source (e.g., close price) by reducing short-term fluctuations, thus offering a clearer view of the underlying price movement.

Customization: Users can adjust key parameters such as:

Process Noise: Controls the filter’s sensitivity to recent changes.

Measurement Noise: Determines how responsive the filter is to incoming price data.

Filter Order: Sets the number of data points considered in the smoothing process.


B. EMA-Based Trend Detection

Primary Trend EMA: A 25-period EMA is applied to the Kalman-filtered price, serving as the core trend indicator.

Signal Mechanism:
Long Signal: Triggered when the price exceeds the EMA plus an ATR-based upper deviation.

Short Signal: Triggered when the price falls below the EMA minus an ATR-based lower deviation.

In this MT5 version there is no bar coloring option, but you have a buffer for trend direction.