Adaptive Trend Mapper-ATM (Arjo)

Adaptive Trend Mapper (ATM) is a multi-factor trend, momentum, and compression-analysis tool designed to help traders visually map the strength and direction of market pressure.
Instead of simply combining existing indicators, ATM creates a new composite framework that blends momentum imbalance, directional strength, volatility contraction, and adaptive smoothing into a single, unified model.

Originality and usefulness

Adaptive Trend Mapper (ATM) does not replicate any one indicator.
It generates two custom indices—Bull Pressure Index and Bear Pressure Index—derived from a mathematical combination of RSI, inverse-RSI, and ADX. These indices behave differently from traditional oscillators:

• They represent directional pressure on a 0–100 scale, not momentum.
  
• They are designed to converge/diverge, forming a basis for the built-in Squeeze Detection Engine.
• They can be optionally step-compressed, making the movement easier to read on fast or small charts.
  

The script also integrates a custom SuperSmoother trend model (not TradingView’s built-in function), which acts as an adaptive trend curve on the chart.

All calculations are combined intentionally—not as a mashup—to create a framework that allows traders to understand trend strength, compression phases, and micro-trend shifts in one place.

How the Indicator Works

1. Bull & Bear Pressure Indices:
These indices measure directional imbalance:

• Bull Index = ADX strength weighted against inverse-RSI
  
• Bear Index = ADX strength weighted against normal RSI
  

This produces two opposing pressure curves that rise or fall depending on whether buyers or sellers dominate.

You can optionally smooth these using:

• SMA / EMA / WMA / RMA via the “Smoothing Settings” panel.
  

2. Squeeze & Compression Detection:
A squeeze is detected when:

1. ADX stays below a user-defined threshold
   
2. Bull–Bear Index difference shrinks
   
3. Average difference is falling (convergence)
   

This is a volatility-contraction model inspired by squeeze logic but applied to directional pressure, not Bollinger Bands/Keltner Channels.
3. Adaptive Trend Curve (SuperSmoother Engine)
The indicator applies a two-pole SuperSmoother filter to the price, then smooths it again using EMA.
The slope color flips between bullish and bearish and is displayed using:

1. A thin SuperSmoother curve
   
2. A thicker band for visual context
   

4. EMA-50 Trend Context:
An optional EMA-50 helps identify broad directional bias.
5. Step-Based Scaling
You can quantize the Bull/Bear indices using custom step intervals.
This makes the indicator easier to read on noisy intraday charts.

How to Use the Indicator

1. Trend Analysis

• A rising Bull Index shows strengthening upward pressure
  
• A rising Bear Index shows strengthening downward pressure
  
• Wide divergence between the indices signals a strong trend
  

2. Compression / Squeeze Analysis

• Yellow background = volatility compression + pressure convergence
  
• Breakouts from this zone often precede directional expansion
  

3. Trendline Reading

• SuperSmoother line color flip = micro trend shift
  
• EMA-50 slope gives macro-trend direction
  
• Perfect for combining trend and momentum maps on the same chart
  

4. Visual Interpretation

• Cyan/teal → strong bullish pressure
  
• Purple/red/orange → various levels of bearish control
  
• Neutral/teal background → weak ADX
  
• Yellow background → squeeze zone
  

Open-Source Notes
This script uses:

TradingView built-in RSI, ADX/DMI, and smoothing functions
A SuperSmoother implementation based on known DSP filter coefficients

All remaining logic, signal methods, composite indices, and compression model are original developments by ARJO.

The script is published open-source to comply with TradingView’s reuse policy.
Disclaimer
This tool is for educational and analytical purposes only.
It does not generate buy or sell signals.
Always use proper risk management.
Happy Trading (ARJO)