Zero-Lag Trend – SMA Cloud [Volensy] is an overlay trend indicator that combines a low-lag trend line, a smoothed SMA cloud reference, and strict filters (strength, momentum, and volume). Trend direction is visualized via line color and an optional cloud fill, while signals are printed only when the move shows strength and participation.
How It Works
Zero-Lag Trend: Built using a double-EMA structure (EMA1 + (EMA1 − EMA2)) to reduce lag compared to a standard EMA.
Cloud Line: The ZL trend is smoothed with an SMA (Cloud Smoothing Period) to create a slower reference line for the cloud.
Trend EMA Filter: A separate EMA (Trend Filter Length) provides directional bias (bullish above / bearish below).
Strength Filter: Strength is calculated as the percentage distance between the ZL trend and the Trend EMA. Signals require Strength > Signal Sensitivity.
Momentum + Volume Gate: Signals require momentum alignment (price momentum plus ZL rising/falling) and volume expansion (volume > Volume SMA × 1.2).
Signals (Updated Shapes)
This version separates first entries from continuation confirmations by tracking the last signal direction.
Buy Entry: Green triangle-up below the candle when a new long direction starts.
Sell Entry: Red triangle-down above the candle when a new short direction starts.
Buy Confirmation: Blue cross plotted at a fixed ATR offset below price when long conditions continue after a Buy Entry.
Sell Confirmation: Orange cross plotted at a fixed ATR offset above price when short conditions continue after a Sell Entry.
Long/short triggers can come from a price cross of the ZL line or from aligned trend conditions, but all signals still require the Strength filter, Volume confirmation, and matching ZL momentum direction.
What You’ll See on the Chart
ZL Trend line with bull/bear coloring based on its position relative to the cloud line.
Optional cloud fill between the ZL trend and the cloud line (transparency adjustable).
Trend EMA (custom color) for bias and context.
Entry triangles on candles plus confirmation crosses plotted at 0.5 × ATR distance for readability.
Optional volume-based candle coloring (dark/light green & dark/light red) based on candle direction and relative volume.
Info table (top-right): Trend state, last signal direction, Cloud Width, and Strength %.
Settings That Matter
Zero-Lag Length: Higher values smooth more but react slower; lower values react faster but can add noise.
Trend Filter Length: Controls how quickly the EMA bias adapts.
Signal Sensitivity: Minimum Strength % required (higher = fewer signals).
Momentum Length: Tightens or loosens momentum alignment requirements.
Show Cloud / Cloud Smoothing Period: Adjusts how fast the cloud reference reacts.
Cloud Transparency: Controls cloud visibility.
Volume SMA Period / Candle Coloring: Defines “high volume” and how candles are shaded.
Alerts
Buy Entry / Sell Entry
Buy Confirmation / Sell Confirmation
Bullish Cloud Cross (ZL crosses above Cloud)
Bearish Cloud Cross (ZL crosses below Cloud)
Notes
Confirmations are plotted as crosses at a fixed ATR distance (0.5 × ATR) to reduce overlap with candles.
Signals are intentionally selective due to the strength + momentum + volume filters.
Disclaimer
This indicator is for informational and educational purposes only and does not constitute financial advice. Always manage risk and confirm signals with your own analysis.
