Indicator Overview

The Alpha Flow is a sophisticated trend-following overlay designed to identify structural shifts in market direction by filtering out secondary price action. This indicator employs a dynamic "flow" system that combines exponential volatility tracking with a trailing stop-loss mechanism to isolate high-conviction trend phases.

By calculating a volatility-adjusted basis and trailing level, the script creates a visual channel of flow. This allows traders to distinguish between standard consolidations and genuine trend reversals. The colour-coded interface provides immediate feedback on the current market regime, distinguishing between golden accumulation/expansion phases and red distribution/contraction cycles.

How To Use

Traders can use the Alpha Flow to stay on the right side of the primary trend while using the trailing levels as dynamic zones for risk management.

• Flow Regime Identification: The primary signal is the colour of the basis line and cloud. A golden "Bull" label indicates a sustained uptrend where price is successfully holding above the trailing stop. A red "Bear" label indicates a breakdown in structural support, suggesting further downside or defensive positioning is required.

• Swing vs. Cycle Trading: The Candle Calculation toggle allows you to adapt the sensitivity to your specific time horizon. Selecting Swing Trading (Daily) increases the responsiveness of the bands for medium-term moves, while Cycle Trading (Weekly) smooths out the noise to focus on macro-market structures.

• Volatility-Adjusted Risk: The dashed trailing stop-loss line represents the point of trend invalidation. Because this line is calculated using standard deviation and smoothing, it widens during frantic market expansion to avoid premature exits and tightens during low-volatility periods to protect capital.