Epsilon Trend is a smooth, noise-resistant trend indicator designed to clearly separate bullish and bearish market phases directly on the price chart. It works by normalizing price within a rolling high–low range, smoothing that normalized value over time, and then projecting it back into real price space. The result is a clean adaptive trend line that reacts to genuine directional movement while filtering out minor fluctuations.

A key feature of Epsilon Trend is its hysteresis logic. Instead of flipping direction on every small change, the indicator requires price to move beyond a defined threshold (epsilon) before a trend change is confirmed. This epsilon value is dynamically derived from current market range, helping to reduce whipsaws during sideways or low-volatility conditions. When bullish conditions dominate, the line is drawn in blue; when bearish conditions take over, the line switches to pink. Only confirmed, closed-bar data is used, ensuring stable, non-repainting behavior.