DEMA Flow [Alpha Extract]

A sophisticated trend identification system that combines Double Exponential Moving Average methodology with advanced HL median filtering and ATR-based band detection for precise trend confirmation. Utilizing dual-layer smoothing architecture and volatility-adjusted breakout zones, this indicator delivers institutional-grade flow analysis with minimal lag while maintaining exceptional noise reduction. The system's intelligent band structure with asymmetric ATR multipliers provides clear trend state classification through price position analysis relative to dynamic threshold levels.

🔶 Advanced DEMA Calculation Engine

Implements double exponential moving average methodology using cascaded EMA calculations to significantly reduce lag compared to traditional moving averages. The system applies dual smoothing through sequential EMA processing, creating a responsive yet stable trend baseline that maintains sensitivity to genuine market structure changes while filtering short-term noise.

// Core DEMA Framework
dema(src, length) =>
    EMA1 = ta.ema(src, length)
    EMA2 = ta.ema(EMA1, length)
    DEMA_Value = 2 * EMA1 - EMA2
    DEMA_Value

// Primary Calculation
DEMA = dema(close, DEMA_Length)

2H

🔶 HL Median Filter Smoothing Architecture
Features sophisticated high-low median filtering using rolling window analysis to create ultra-smooth trend baselines with outlier resistance. The system constructs dynamic arrays of recent DEMA values, sorts them for median extraction, and handles both odd and even window lengths for optimal smoothing consistency across all market conditions.

// HL Median Filter Logic
hlMedian(src, length) =>
    window = array.new_float()
    for i = 0 to length - 1
        array.push(window, src)
    array.sort(window)
    
    // Median Extraction
    lenW = array.size(window)
    median = lenW % 2 == 1 ?
             array.get(window, lenW / 2) :
             (array.get(window, lenW/2 - 1) + array.get(window, lenW/2)) / 2
    
// Smooth DEMA Calculation
Smooth_DEMA = hlMedian(DEMA_Value, HL_Filter_Length)

🔶 ATR Band Construction Framework

Implements volatility-adaptive band structure using Average True Range calculations with asymmetric multiplier configuration for optimal trend identification. The system creates upper and lower threshold bands around the smoothed DEMA baseline with configurable ATR multipliers, enabling precise trend state determination through price breakout analysis.

// ATR Band Calculation
atrBands(src, atr_length, upper_mult, lower_mult) =>
    ATR = ta.atr(atr_length)
    Upper_Band = src + upper_mult * ATR
    Lower_Band = src - lower_mult * ATR
    [Upper_Band, Lower_Band]

// Band Generation
[Upper_Band, Lower_Band] = atrBands(Smooth_DEMA, ATR_Length, Upper_ATR_Mult, Lower_ATR_Mult)

15min

🔶 Intelligent Flow Signal Engine

Generates binary trend states through band breakout detection, transitioning to bullish flow when price exceeds upper band and bearish flow when price breaches lower band. The system maintains flow state persistence until opposing band breakout occurs, providing clear trend classification without whipsaw signals during normal volatility fluctuations.

🔶 Comprehensive Visual Architecture

Provides multi-dimensional flow visualization through color-coded DEMA line, trend-synchronized candle coloring, and bar color overlay for complete chart integration. The system uses institutional color scheme with neon green for bullish flow, neon red for bearish flow, and neutral gray for undefined states with configurable band visibility.

🔶 Asymmetric Band Configuration

Features intelligent asymmetric ATR multiplier system with default upper multiplier of 2.1 and lower multiplier of 1.5, optimizing for market dynamics where upside breakouts often require stronger momentum confirmation than downside breaks. This configuration reduces false signals while maintaining sensitivity to genuine flow changes.

🔶 Dual-Layer Smoothing Methodology

Combines DEMA's inherent lag reduction with HL median filtering to create exceptional smoothing without sacrificing responsiveness. The system first applies double exponential smoothing for initial noise reduction, then applies median filtering to eliminate outliers and create ultra-clean flow baseline suitable for high-frequency and institutional trading applications.

🔶 Alert Integration System

Features comprehensive alert framework for flow state transitions with customizable notifications for bullish and bearish flow confirmations. The system provides real-time alerts on crossover events with clear directional indicators and exchange/ticker integration for multi-symbol monitoring capabilities.

🔶 Performance Optimization Framework

Utilizes efficient array management with optimized median calculation algorithms and minimal variable overhead for smooth operation across all timeframes. The system includes intelligent bar indexing for median filter initialization and streamlined flow state tracking for consistent performance during extended analysis periods.

🔶 Why Choose DEMA Flow [Alpha Extract]?

This indicator delivers sophisticated flow identification through dual-layer smoothing architecture and volatility-adaptive band methodology. By combining DEMA's reduced-lag characteristics with HL median filtering and ATR-based breakout zones, it provides institutional-grade flow analysis with exceptional noise reduction and minimal false signals. The system's asymmetric band structure and comprehensive visual integration make it essential for traders seeking systematic trend-following approaches across cryptocurrency, forex, and equity markets with clear entry/exit signals and comprehensive alert capabilities for automated trading strategies.