ProxyTrend Indicator Mechanics

• Trend Detection
  ProxyTrend determines directional bias by calculating adaptive trend levels that respond to changes in price structure. When the market transitions from bullish to bearish conditions or vice versa, the indicator marks these shifts with clear visual cues. This gives traders a direct view of both the active trend and points where the trend may be reversing, improving decision-making for swing and longer-term positioning.
  

• ATR-based structure
  ProxyTrend relies on an ATR framework to define its trend boundaries and adapt to changing market conditions. By measuring the average true range over a selected period, the indicator adjusts its levels according to current volatility rather than fixed distances. This produces responsive thresholds that expand during high-volatility phases and contract during calmer periods. As a result, ProxyTrend captures meaningful shifts in directional bias while avoiding premature flips caused by routine price noise. The ATR component ensures that trend transitions are based on statistically relevant movement, improving signal stability and helping traders stay aligned with sustained market trends.

• Momentum candles
  Complementing the trend detection, the indicator incorporates momentum-driven candle coloring to provide a clear visual read on shifts in short-term directional force. When the indicator detects a momentum uptick that aligns with upward pressure, candles are marked in bright green. Conversely, when momentum rotates into sustained downside pressure, candles transition to red. These momentum candles highlight periods where price movement carries increased directional strength, making it easier for traders to distinguish meaningful shifts from ordinary fluctuations. By visually isolating these momentum phases, ProxyTrend enhances trend interpretation and helps traders better assess the quality and persistence of ongoing market movement.
  

• Customizable parameters
  The indicator allows traders to adjust trend sensitivity and volatility-based thresholds to match their preferred timeframe and approach. Parameters such as ATR length, multiplier, and momentum visibility can be tailored to create either a tighter or more conservative trend structure. Designed primarily for swing trading and broader trend-following strategies, these customization options give traders the flexibility to align the tool with market conditions while maintaining a consistent, disciplined framework for capturing meaningful directional moves.