Market Anomaly Detector (MAD) PAIDPerformance Highlights
1. Trend Detection
• The indicator successfully captured major bullish and bearish trends with precise timing:
• Example: The sharp downtrend (red background) following a significant breakdown below the upper band was identified early with multiple sell signals in continuation.
• Similarly, the uptrend (green background) was effectively detected with clear buy signals as the price continued to rise above the lower band.
• The combination of Z-Score anomaly detection, momentum (RSI), and multi-timeframe trend confirmation ensures reliable signal generation aligned with the broader trend.
2. Sideways Market Identification
• The grey background zones clearly delineate sideways or consolidating market conditions:
• Example: During periods of price consolidation within the expected range (between the upper and lower bands), the indicator intelligently avoided generating unnecessary signals, reducing noise.
3. Improved Signal Quality
• The continuation-based logic ensures signals are not generated on isolated candles but only when the trend persists:
• Example: Sell signals were only triggered after a confirmed continuation of bearish momentum, avoiding false signals during temporary green candles in a downtrend.
4. Volume and Multi-Timeframe Trend Integration
• The volume filter effectively validated signals during high trading activity:
• Example: Strong sell signals were generated during high-volume sell-offs, reinforcing the indicator’s reliability in volatile conditions.
• Multi-timeframe EMA trend alignment provided an additional layer of confirmation, ensuring signals were not counter to the prevailing higher timeframe trend.
5. Z-Score and Momentum Dashboard
• The real-time dashboard provides traders with actionable insights, displaying:
• Z-Score: Indicates overbought or oversold anomalies in price.
• RSI: Confirms momentum strength, aiding traders in assessing signal validity.
What Sets This Indicator Apart?
• Comprehensive Coverage: The MAD indicator works seamlessly across trending and sideways markets, offering consistent and reliable signals.
• Noise Reduction: The cooldown mechanism and continuation logic effectively minimize false signals, making it ideal for choppy market conditions.
• Adaptability: The integration of Z-Score, RSI, volume, and multi-timeframe trend confirmation ensures the indicator adapts to various market structures and asset classes.
