TRADE ORBIT:- TREND REVERSAL INDICATOR

This indicator combines EMA momentum, Stochastic oscillator behavior, and trend-strength histogram analysis to identify when the market is trending, weakening, or potentially reversing.

✅ Main Components

EMA Difference

Calculates strength as the difference between a fast EMA and slow EMA

Positive → Uptrend

Negative → Downtrend

Stochastics (%K & %D)

Identifies overbought (>80) / oversold (<20) conditions

Signals crossovers:

%K crosses above %D → bullish

%K crosses below %D → bearish

Trend Strength Histogram

Shows the momentum change in color + height:

Condition Color Meaning
Uptrend strength increasing Strong Green Strong buying pressure
Uptrend strength weakening Light Green Buying losing momentum
Downtrend strength increasing Strong Red Strong selling pressure
Downtrend strength weakening Light Red Selling losing momentum
Divergence Yellow Trend may reverse

Divergence Detection

Bullish weakening >80 → Yellow

Uptrend losing strength → risk of reversal

Bearish weakening <20 → Yellow

Downtrend losing strength → risk of reversal

Buy/Sell Signals

Buy: Stoch %K cross above %D below 20

Sell: Stoch %K cross below %D above 80

✅ How to Use

Trade in direction of histogram strength

Exit / reduce position when yellow appears → possible reversal

Confirm with Stoch cross + EMA direction

✅ Best Use Cases

Trend continuation and fade detection

Early reversal warning

Overbought/oversold decision zones