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Trend · INDICATOR

Trend Fading

The indicator breaks the move into ZigZag segments, catches trend exhaustion by volume and delta, and prints a counter-trend signal — an entry against a move that has run out of steam (fading).

ATAS · .NET 7Indicator · trend/ZigZagcounter-trend + test
2026-07-02T20:51:23.827902 image/svg+xml Matplotlib v3.11.0, https://matplotlib.org/
Multi-level ZigZag: base trends, peak markers and 2 counter-signals — ▼ short at the top, ▲ long at the bottom.
WHY IT MATTERS
1
It reads the structure for you

Builds a ZigZag line across the extremes, marks out base trends and tags the peaks — for each segment it accumulates volume, delta, ticks. No manual chart markup.

2026-07-02T20:51:24.123979 image/svg+xml Matplotlib v3.11.0, https://matplotlib.org/
2
Catches trend exhaustion

Compares the current base trend with the previous one by the selected pattern — volume has dried up, delta is diverging or has flipped sign. Condition met — a counter-signal against the move.

2026-07-02T20:51:24.149285 image/svg+xml Matplotlib v3.11.0, https://matplotlib.org/
3
You verify before real money

Test mode runs the strategy over history: trades, profit, profit factor, win rate — profit logs tag P/L right on the chart.

2026-07-02T20:51:24.170455 image/svg+xml Matplotlib v3.11.0, https://matplotlib.org/
KEY FEATURES
Multi-level ZigZagBase trends + peak markers with per-segment stats (volume, delta, ticks, bars).
4 pattern modesVolume · Divergence · Revers · AvVolume — each catches exhaustion in its own way.
Counter-signals (fading)▲ at the bottom against a drop · ▼ at the top against a rally — direction is set by the arrow shape.
Max-volume lineHorizontal level of the largest accumulated volume in the signal's range — where absorption happened.
Sensitivity tuningRequired Change, Calc Mode (Relative · Absolute · Ticks), Min Filter, Ignore Wicks — to fit the instrument and timeframe.
Test mode with statsSL/TP in ticks, commission, slippage · trades, profit factor, win rate, profit logs.
Same signal, different condition — Divergence pattern: price made a new high, but delta is weaker than the previous trend → ▼ short at the top
2026-07-02T20:51:24.018878 image/svg+xml Matplotlib v3.11.0, https://matplotlib.org/
The pattern mode (Volume · Divergence · Revers · AvVolume) changes the entry condition, not the look of the arrow. The ▲/▼ shape is uniform — it sets the direction, not the color.
The pattern changes the condition, not the arrow

In Divergence mode price prints a new high, but the segment's delta is weaker than the previous trend — the rally is fading. The entry condition is set by the mode (Volume · Divergence · Revers · AvVolume); direction is always read from the ▲/▼ shape, not the color.

Test mode: trade levels (entry · stop · take) + a stats panel in the corner of the chart
2026-07-02T20:51:24.079651 image/svg+xml Matplotlib v3.11.0, https://matplotlib.org/
A built-in backtest — you run the strategy over history before real money: trades, profit factor, win rate. Profit logs tag P/L right next to closed trades.
Backtest before real money

Test mode runs the strategy over history with SL/TP in ticks, commission and slippage — the output is trades, profit factor, win rate. Profit logs tag P/L right next to closed trades.

HOW IT WORKS
1Builds ZigZag by threshold

Every move ≥ the Required Change threshold reverses the line and closes a segment — the skeleton of the structure, no manual markup.

2Computes segment stats

For each closed segment it accumulates volume, delta, ticks, bars and places a peak marker at the extreme.

3Compares with the prior trend

Current base trend vs the previous one by the selected pattern: lower volume · diverging delta · delta sign flipped · lower average volume.

4Prints a counter-signal

Exhaustion condition met → an arrow against the move (▲ at the bottom / ▼ at the top) and a max-volume line.

2026-07-02T20:51:23.903829 image/svg+xml Matplotlib v3.11.0, https://matplotlib.org/
Anatomy of the entry: downward ZigZag segment → bottom (peak marker) → lower volume than the previous = exhaustion → ▲ LONG counter-signal + max-volume line.
Anatomy of a counter-signal

A downward ZigZag segment closes with a peak marker at the bottom; that segment's cumulative volume is lower than the previous base trend — a sign of exhaustion. Then a ▲ LONG counter-signal and a max-volume line are drawn.

Indigo line — ZigZag — the skeleton of the move across swing extremes (highs/lows)
Diamond + base trend — peak marker with segment stats; the thick line is the main move
▲ / ▼ indigo — counter-signal: ▲ long at the bottom · ▼ short at the top — against an exhausted trend
Indigo horizontal line — the max-volume level in the signal's range (absorption)
Green / red candle — market data: close above / below the open
IN PRACTICE
2026-07-02T20:51:23.968289 image/svg+xml Matplotlib v3.11.0, https://matplotlib.org/
Counter-trend long: the drop ran out of steam (volume ↓), ▲ at the ZigZag bottom, entry · stop below the bottom · take above → +26 ticks.
Counter-trend long off exhaustion

A falling ZigZag segment ran out of steam — volume lower than the previous trend; at the bottom a ▲ entry against the move goes in, stop below the bottom, take above. A decision based on ZigZag structure and volume, not emotion → +26 ticks.

Entry on the reversal, once a falling trend has run out of steam (Volume pattern)

You want to enter on a trend reversal, but not on gut feel: you need an objective sign that the move is exhausted — and structure markup without the manual work.

  1. Set the Volume pattern and the Required Change threshold (30% or in ticks), turn on the base lines
  2. Wait for a downward ZigZag segment where volume is lower than in the previous base trend
  3. At the ZigZag bottom you get a ▲ counter-signal + a max-volume line — the absorption point
  4. Verify entry/stop/take over history in test mode, then enter against the drop
Result: The falling trend ran out of steam (volume dried up) — entry on the reversal up, +26 ticks. A decision based on ZigZag structure and volume, not emotion.
SETUP & INTEGRATION
Fully configurable
Pattern · Required Change · Calc ModeMin Filter · Ignore Wicks · DaysSignals · base linesMax-volume lineTest · SL/TP · commissionAlerts · send to bot

Pattern mode, threshold and ZigZag calc method, minimum trend filter, display of signals and base lines, the max-volume line, test mode with risk and commission, alerts — tuned to your instrument and style.

PlatformATAS (.NET 7) — indicator on the chart
Signalscounter-arrows + max-volume line, alerts to file, send to bot
Access3-month / annual subscription · manual renewal
Verify it over history — then trade against an exhausted trend.Subscription 3 mo / year, manual renewal.
★ Full bundle
SEE ALSO