HMA Ribbon State Engine — Quick Documentation

📌 Overview

HMA Ribbon is upgraded into a state engine that identifies:

Trend direction

Momentum (expansion / contraction)

Market phase (trend vs balance)

⚙️ Core Logic

HMA Calculation

HMA = WMA(2 * WMA(src, n/2) - WMA(src, n), sqrt(n))

Trend

Bullish → Fast HMA > Slow HMA

Bearish → Fast HMA < Slow HMA

Momentum (Width)

Width = |Fast - Slow|

Expanding → Strength increasing

Contracting → Strength weakening

🧠 StatesStateConditionMeaningBull StrongBull + ExpandingStrong uptrendBull WeakBull + ContractingWeakening uptrendBear StrongBear + ExpandingStrong downtrendBear WeakBear + ContractingWeakening downtrendNeutralLow width / frequent flipBalance / rotation

🎯 Usage

Trade with Bull/Bear Strong only

Avoid trades in Weak states

Use transitions for entries

Combine with:

IB breakout

Value area context

OTF confirmation

⚠️ Notes

Width is not normalized → varies by instrument

Works best with structure (Market Profile, IB levels)

✅ Key Idea

Not a crossover tool — a market state detector