AVS Loop Analysis
AVS Loop is an advanced trend detection system that combines an EMA grid methodology with discrete trend analysis. By evaluating 1,440 EMA pair comparisons and applying expanding z-score normalization, it generates non-repainting signals that identify bullish and bearish market regimes.
Understanding AVS Loop
EMA Grid System
The system evaluates 1,440 different EMA pair combinations (32 short-term EMAs from 3-34 periods compared against 45 long-term EMAs from 5-49 periods). Each comparison generates a +1 (bullish) or -1 (bearish) score. The average of all 1,440 scores creates a comprehensive trend measurement that's robust against false signals from any single EMA pair.
Discrete Trend System
In addition to the EMA grid, AVS Loop incorporates a rolling comparison system that looks back 10-60 periods using median smoothing. This discrete component captures trend persistence and strength. Both the EMA grid and discrete system are normalized using expanding z-scores, ensuring historical values never change when new data arrives (non-repainting).
Color-Coded Zones
The combined signal is visualized with background color zones: green indicates bullish conditions (combined signal >= 0) and red shows bearish conditions (combined signal < 0). These zones overlay both the price chart and the signal panel, providing clear visual representation of the identified trend regime. Color transitions mark potential trend changes.
Trading Applications
AVS Loop excels at identifying major trend shifts while filtering out short-term noise. Traders use green zones for maintaining long exposure and adding to positions on pullbacks. Red zones suggest defensive positioning or waiting for trend confirmation before re-entering. The dual-panel layout with synchronized axes allows correlation between price action, the combined signal strength, and the identified trend regime.