Trend Noise Balance Study

By Samantha Baltodano

TL;DR:

The Trend-Noise Balance study is a technical indicator that compares trend strength to noise in prices and is based on the cumulative price change. 

It can show whether the trend is strong or weak, with values around 50 indicating equilibrium and values close to 100 or 0 indicating strong or weak trends, respectively.

What Is the Trend Noise Balance Study?

The Trend-Noise Balance study is a trend-analyzing technical indicator that compares trend to noise in an oscillator format. 

It is based on a calculation of the 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.

Summary

• The Trend-Noise Balance study is a trend-analyzing indicator that compares trend to noise.
• It is based on the cumulative price change (CPC) and resets to zero after each trend reversal indicated by the Trend Periods indicator.
• Values around +50 indicate trend and noise are in equilibrium, while values close to 100 suggest strong trending conditions and values close to 0 indicate a weak trend.

Trend Noise Balance is just one of many studies that Archaide automates. For a full list of strategies and studies available click here.

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