PowerTrend

// This Pine Script® code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © peterdmv
//
// Recreation of Webby's Power Trend indicator (Mike Webster, IBD/O'Neil). Reimplemented for educational purposes.
//
// Release: v1

//@version=6
indicator("PowerTrend", overlay=true)

// --- Inputs ---
emaLen       = input.int(21,  "EMA Length",                       minval=1)
smaLen       = input.int(50,  "SMA Length",                       minval=1)
lowEmaDays   = input.int(10,  "Low Above EMA (consecutive days)", minval=1)
emaSmadays   = input.int(5,   "EMA Above SMA (consecutive days)", minval=1)
highLookback = input.int(252, "Recent High Lookback (days)",      minval=10)

// --- Core indicators ---
ema21 = ta.ema(close, emaLen)
sma50 = ta.sma(close, smaLen)

// --- Consecutive-day counters ---
var int lowAboveEmaCount = 0
var int emaAboveSmaCount = 0

lowAboveEmaCount := low > ema21 ? lowAboveEmaCount + 1 : 0
emaAboveSmaCount := ema21 > sma50 ? emaAboveSmaCount + 1 : 0

// --- Four start conditions ---
// 1. Daily low above 21 EMA for N consecutive days
cond1 = lowAboveEmaCount >= lowEmaDays
// 2. 21 EMA above 50 SMA for N consecutive days
cond2 = emaAboveSmaCount >= emaSmadays
// 3. 50 SMA trending upward
cond3 = sma50 > sma50[1]
// 4. Closes up on the day
cond4 = close > open

// --- End / circuit-breaker conditions ---
// Primary: 21 EMA crosses back under 50 SMA
endPrimary = ta.crossunder(ema21, sma50)

// Circuit breaker: closes below 50 SMA while more than 10% off recent high
recentHigh = ta.highest(high, highLookback)
pctOffHigh = (recentHigh - close) / recentHigh * 100
endCircuit = close < sma50 and pctOffHigh > 10.0

// --- PowerTrend state machine ---
var bool inPowerTrend = false

if inPowerTrend
    if endPrimary or endCircuit
        inPowerTrend := false
else
    if cond1 and cond2 and cond3 and cond4
        inPowerTrend := true

// --- Visual output ---
ema21Plot = plot(ema21, "21 EMA", color.new(color.blue, 0), 1)
sma50Plot = plot(sma50, "50 SMA", color.new(color.orange, 0), 1)

fill(ema21Plot, sma50Plot,
     color = ema21 > sma50 ? color.new(color.green, 90) : color.new(color.red, 90),
     title = "EMA/SMA Spread")

bgcolor(inPowerTrend ? color.new(color.green, 85) : na, title = "PowerTrend Active")

plotshape(not inPowerTrend[1] and inPowerTrend,
     title    = "PowerTrend Start",
     style    = shape.arrowup,
     location = location.belowbar,
     color    = color.green,
     size     = size.normal)

plotshape(inPowerTrend[1] and not inPowerTrend,
     title    = "PowerTrend End",
     style    = shape.arrowdown,
     location = location.abovebar,
     color    = color.red,
     size     = size.normal)

// --- Alerts ---
alertcondition(not inPowerTrend[1] and inPowerTrend,
     title   = "PowerTrend Started",
     message = "PowerTrend activated — all four conditions met")

alertcondition(inPowerTrend[1] and not inPowerTrend and endPrimary,
     title   = "PowerTrend Ended (EMA cross)",
     message = "PowerTrend ended — 21 EMA crossed below 50 SMA")

alertcondition(inPowerTrend[1] and not inPowerTrend and endCircuit,
     title   = "PowerTrend Ended (Circuit Breaker)",
     message = "PowerTrend ended — circuit breaker triggered (close < 50 SMA and >10% off high)")