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Market Tone

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For high frequency trading it is still helpful to go with longer-term trends.

This smoothed long-range EMA changes color based on whether it is rising or falling. The intent is to use this as a switch in upcoming scripts to affect buying behavior. For example, turn off avg_protection when the market is trending up to fill up your bags for greater gross profit when you cash out, but turn avg_protection back on when the market takes a bearish turn.

It also changes sensitivity based on whether you are bullish or bearish.

Select "Risk Averse" to turn on avg_protection as soon as the uptrend appears to lose steam, and wait until a "confirmed" reversal (increase lookbackLength to wait for stronger confirmations) before turning avg_protection off.

Select "Risk Seeking" to keep avg_protection on until the bearish tone is "confirmed," and turn it back off at the first sign the market is swinging back up.

Cheers!
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