COV Bands ~ C H I P ACOV Bands ~ C H I P A is a custom volatility and trend identification tool designed to capture directional shifts using the Coefficient of Variation (COV), calculated from standard deviation relative to a mean price baseline.
Key features include:
A configurable SMA-based mean baseline to anchor volatility measurements clearly.
Adjustable upper and lower band multipliers to independently calibrate sensitivity and responsiveness for bullish or bearish breakouts.
Dynamic bands derived from price-relative volatility (COV), enabling adaptive identification of significant price deviations.
User-controlled standard deviation length to manage sensitivity and smoothness of volatility signals.
Direct candle coloring, providing immediate visual feedback using vibrant electric blue for bullish momentum and bright red for bearish momentum.
This indicator is particularly useful for detecting meaningful price movements, breakout signals, and potential reversals when the market moves significantly beyond its typical volatility boundaries.
Note: This indicator has not undergone formal robustness or optimization testing. Therefore, future performance in live trading environments isn't guaranteed.
Volatility
Stocks ATR V2 📘 Description — Stocks AT SL V2
“Stocks AT SL V2” is a risk management indicator designed to help traders define dynamic stop-loss levels based on actual market volatility and advanced statistical analysis of price movements.
⸻
🎯 Purpose
This tool provides a rational and adaptive framework for stop-loss placement, taking into account:
Market volatility, measured by the Average True Range (ATR),
And a statistical safety buffer, based on the 95th percentile of historical price retracements.
⸻
⚙️ Methodology
ATR Calculation:
The indicator uses a 14-period ATR to measure recent average volatility.
Safety Factor (k) Estimation:
The script computes a set of ratios between the candle’s minimal retracement (relative to the previous close) and the current ATR.
The 95th percentile of these ratios is extracted to define a multiplicative factor k, representing common price extremes.
Final Stop-Loss:
The stop-loss is set at a distance of k × ATR below (or above) the entry price.
This helps reduce false stop-outs while allowing room for natural market movement—even in volatile conditions.
⸻
✅ Benefits
Automatically adapts to volatility.
Reflects real candlestick structure (not just arbitrary distances).
Standardizes risk across different stocks or currency pairs.
Gabriel's Squeeze Momentum PRO📌 Gabriel’s Squeeze Momentum PRO
A full-spectrum market compression, momentum, and seasonality suite engineered for cycle-aware traders.
🚀 What Is It?
Gabriel’s Squeeze Momentum PRO is an advanced trading indicator that detects volatility compression, calculates adaptive momentum, and reveals hidden seasonal opportunities. It builds on and transcends the traditional SQZMOM by incorporating spectral filters (Ehlers/MESA), Goertzel transforms, Pivot reversal logic, and optional seasonality overlays based on rolling-year returns. The script adapts to all timeframes and asset classes—stocks, futures, crypto, and forex.
🔍 Key Modules
🔸 1. Dynamic Squeeze Detection (RAFA Framework)
Identifies 5 squeeze types: Wide (🟠), Normal (🔴), Narrow (🟡), Very Narrow (🟣), and Fired (🟢).
Uses adaptive Bollinger Band and Keltner Channel thresholds unique to each timeframe (15m to 1M).
BB multiplier is adjusted dynamically via Goertzel and RMS-volatility signals.
Comes with RAFA alerts: Ready (compression), Aim (Jurik trigger), and Fire (breakout).
🔸 2. Adaptive Momentum Engine
Core momentum line: Linear regression of mid-price deviation from SMA + highest/lowest mean.
Signal line: Jurik Moving Average (JMA) with adaptive phasing and power smoothing.
Multiple normalization modes:
Unbounded (raw)
Min-Max (0–100)
RSX-based (centered -50 * 2)
Standard Deviations (via Butterworth/EMA RMS)
Optional Directional Momentum Mode: highlights histogram slope/angle with four-tier color coding.
🔸 3. MESA-Based Dynamic Bands
Calculates dominant fast and slow cycles via Maximum Entropy Spectral Analysis.
Computes a composite cyclic memory and percentile-based overbought/oversold levels.
Enables dynamic OS/OB bands that adjust with the market rhythm.
🔸 4. Multi-Timeframe MA Ribbon
Fully customizable ribbon with 5 MA slots per timeframe.
Supports 10 MA types: SMA, EMA, WMA, VWMA, RMA, DEMA, TEMA, LSMA, KAMA, TRAMA.
Includes Symmetrical MA smoothing via ta.swma() for visual consistency across volatile markets.
Optional trend coloring and ribbon overlays.
🔸 5. Goertzel + RMS-Filtered ROC
Rate of change line for momentum differentials with scaling multiplier.
Option to use Goertzel frequency detection to dynamically adjust the adaptive length.
📈 Additional Features
🔹 Williams VIX Fix Integration
Includes both standard and Inverse WVF for top/bottom detection.
Highlights both Aggressive (AE) and Filtered (FE) entry/exit zones.
Alerts and optional OBV-based squeeze dots included.
Useful for spotting reversals, early volatility expansions, and sentiment shifts.
🔹 Grab Bar System
Inspired by Michael Covel's trend-following logic.
Colors bars based on EMA(34) or RMA(28) channels to visually identify entry zones.
Overlayed trend direction markers on bar close.
🔹 Reversal Signal Lines
Plots DM-style pivot projections on momentum crossovers with configurable MA length.
Color-coded bullish and bearish setups.
🧠 Seasonality Toolkit (Seasonax Mode)
📅 Year-Based Return Modeling
Aggregates historical price returns per calendar year.
Supports 4 independent lookback periods (e.g., 5y, 10y, 15y, 30y).
Automatically filters outliers via IQR method (customizable factor setting).
📉 Detrending Options
Choose from:
Off: Raw seasonal trend
Linear: Removes regression slope
MA: Removes centered moving average
🎯 Entry/Exit Highlights
Highlights the most bullish/bearish seasonal windows using rolling return ranges.
Labels best seasonal entry and exit points on the chart.
🧰 Visual Grid & Legend
Clean grid overlay with monthly divisions.
Inline legend with custom line styles, sizes, and colors for each year set.
⚙️ Customization Highlights
Feature Options / Notes
Normalization Unbounded, Min-Max, RSX, Standard Deviation
MA Ribbon Enable/disable, Symmetry smoothing, full color & type customization
Momentum Direction Mode Directional histogram vs. baseline coloring
Reversal Logic Toggle per timeframe with custom JMA length
Cauchy Smoothing Gamma adjustable (0.1–6), optionally volume-weighted
Goertzel Filtering For adaptive momentum length and rate of change signal scaling
Timeframe Logic Fully adapts thresholds, lengths, and styles based on current chart timeframe
Seasonality Mode Custom lookbacks, overlays, trend removal, best/worst windows
📊 Alerts Included
🔔 Momentum Crossovers: Bullish/Bearish Reversals
🔔 Squeeze States: Wide, Normal, Narrow, Very Narrow, and Fired
🔔 WVF Events: Raw, Aggressive, Filtered, Inverted (Top Detection)
🔔 New Month + EOM Warnings: Seasonality-aware shift alerts
✅ Use Cases
Use Case How It Helps
🔹 Squeeze Breakout Trader Detects compression zones and high-probability breakouts
🔹 Cycle-Based Swing Trader Uses MESA filters + band dynamics to time pullbacks and mean reversion
🔹 Volatility Strategist Tracks multi-tier squeeze states across intraday to monthly charts
🔹 Seasonal Analyst Highlights best/worst periods using historical seasonality and anomaly logic
🔹 Reversal Sniper Uses signal cross + DM-pivots for precise reversal line placement
🎓 Advanced Math Behind It
Spectral Analysis: MESA (John Ehlers), Goertzel Transform
High/Low-Pass Filtering: 2-pole Butterworth + Super Smoother
Momentum Deviation: Linear regression + SMA + Cauchy-weighted midlines
Cyclic Band Percentiles: Rolling histograms, percentile mapping
Seasonal Aggregation: Rolling years + IQR outlier pruning
Volatility Proxy: RMS + adaptive deviation = signal-agnostic band precision
Mark Friday the 13thMarks all Friday the 13th days on the chart.
Could be used to see if Friday the 13th has any impact on the market.
Candle Range % vs 8-Candle AvgCandle % Indicator – Measure Candle Strength by Range %
**Overview:**
The *Candle % Indicator* helps traders visually and analytically gauge the strength or significance of a price candle relative to its recent historical context. This is particularly useful for detecting breakout moves, volatility shifts, or overextended candles that may signal exhaustion.
**What It Does:**
* Calculates the **percentage range** of the current candle compared to the **average range of the past N candles**.
* Highlights candles that exceed a user-defined threshold (e.g., 150% of the average range).
* Useful for **filtering out extreme candles** that might represent anomalies or unsustainable moves.
* Can be combined with other strategies (like EMA crossovers, support/resistance breaks, etc.) to improve signal quality.
**Use Case Examples:**
***Filter out fakeouts** in breakout strategies by ignoring candles that are overly large and may revert.
***Volatility control**: Avoid entries when market conditions are erratic.
**Confluence**: Combine with EMA or RSI signals for refined entries.
**How to Read:**
* If a candle is larger than the average range by more than the set percentage (default 150%), it's flagged (e.g., no entry signal or optional visual marker).
* Ideal for intraday, swing, or algorithmic trading setups.
**Customizable Inputs:**
**Lookback Period**: Number of previous candles to calculate the average range.
**% Threshold**: Maximum percentage a candle can exceed the average before being filtered or marked.
RSI Shifting Band Oscillator | QuantMAC📊 RSI Shifting Band Oscillator | QuantMAC
🎯 Overview
The RSI Shifting Band Oscillator represents a breakthrough in adaptive technical analysis, combining the innovative dual-stage RSI processing with dynamic volatility bands to create an oscillator that automatically adjusts to changing market momentum conditions. This cutting-edge indicator goes beyond traditional static approaches by using smoothed RSI to dynamically shift band width based on momentum transitions, providing superior signal accuracy across different market regimes.
🔧 Key Features
Revolutionary Dual RSI Technology: Proprietary two-stage RSI calculation with exponential smoothing that measures momentum transitions in real-time
Dynamic Adaptive Bands: Self-adjusting volatility bands that expand and contract based on RSI distance from equilibrium
Dual Trading Modes: Flexible Long/Short or Long/Cash strategies for different trading preferences
Advanced Performance Analytics: Comprehensive metrics including Sharpe, Sortino, and Omega ratios
Smart Visual System: Dynamic color coding with 9 professional color schemes
Precision Backtesting: Date range filtering with detailed historical performance analysis
Real-time Signal Generation: Clear entry/exit signals with customizable threshold sensitivity
Position Sizing Intelligence: Half Kelly criterion for optimal risk management
📈 How The Dual RSI Technology Works
The Dual RSI system is the heart of this indicator's innovation. Unlike traditional RSI implementations, this approach analyzes the smoothed momentum transitions between different RSI states, providing early warning signals for momentum regime changes.
RSI Calculation Process:
Calculate traditional RSI using specified length and price source
Apply exponential moving average smoothing to reduce noise
Measure RSI distance from neutral 50 level to determine momentum strength
Use RSI deviation to dynamically adjust standard deviation multipliers
Create adaptive bands that respond to momentum conditions
Generate normalized oscillator values for clear signal interpretation
The genius of this dual RSI approach lies in its ability to detect when markets are transitioning between momentum and consolidation periods before traditional indicators catch up. This provides traders with a significant edge in timing entries and exits.
⚙️ Comprehensive Parameter Control
RSI Settings:
RSI Length: Controls the lookback period for momentum analysis (default: 14)
RSI Smoothing: Reduces noise in RSI calculations using EMA (default: 20)
Source: Price input selection (close, open, high, low, etc.)
Oscillator Settings:
Base Length: Foundation moving average for band calculations (default: 40)
Standard Deviation Length: Period for volatility measurement (default: 26)
SD Multiplier: Base band width adjustment (default: 2.7)
Oscillator Multiplier: Scaling factor for oscillator values (default: 100)
Signal Thresholds:
Long Threshold: Bullish signal trigger level (default: 90)
Short Threshold: Bearish signal trigger level (default: 56)
🎨 Advanced Visual System
Main Chart Elements:
Dynamic Shifting Bands: Upper and lower bands that automatically adjust width based on RSI momentum
Adaptive Fill Zone: Color-coded area between bands showing current market state
Basis Line: Moving average foundation displayed as subtle reference points
Smart Bar Coloring: Candles change color based on oscillator state for instant visual feedback
Oscillator Pane:
Normalized RSI Oscillator: Main signal line centered around zero with dynamic coloring
Threshold Lines: Horizontal reference lines for entry/exit levels
Zero Line: Central reference for oscillator neutrality
Color State Indication: Line colors change based on bullish/bearish conditions
📊 Professional Performance Metrics
The built-in analytics suite provides institutional-grade performance measurement:
Net Profit %: Total strategy return percentage
Maximum Drawdown %: Worst peak-to-trough decline
Win Rate %: Percentage of profitable trades
Profit Factor: Ratio of gross profits to gross losses
Sharpe Ratio: Risk-adjusted return measurement
Sortino Ratio: Downside-focused risk adjustment
Omega Ratio: Probability-weighted performance ratio
Half Kelly %: Optimal position sizing recommendation
Total Trades: Complete transaction count
🎯 Strategic Trading Applications
Long/Short Mode: ⚡
Maximizes profit potential by capturing both upward and downward price movements. The dual RSI technology helps identify when momentum is strengthening or weakening, allowing for optimal position switches between long and short.
Long/Cash Mode: 🛡️
Conservative approach ideal for retirement accounts or risk-averse traders. The indicator's adaptive nature helps identify the best times to be invested versus sitting in cash, protecting capital during adverse market conditions.
🚀 Unique Advantages
Traditional Indicators vs RSI Shifting Bands:
Static vs Dynamic: While most indicators use fixed parameters, RSI bands adapt in real-time
Lagging vs Leading: Dual RSI detects momentum transitions before they fully manifest
One-Size vs Adaptive: The same settings work across different market conditions
Simple vs Intelligent: Advanced momentum analysis provides superior market insight
💡 Professional Setup Guide
For Day Trading (Short-term):
RSI Length: 10-12
RSI Smoothing: 15-18
Base Length: 25-30
Thresholds: Long 85, Short 60
For Swing Trading (Medium-term):
RSI Length: 14-16 (default range)
RSI Smoothing: 20-25
Base Length: 40-50
Thresholds: Long 90, Short 56 (defaults)
For Position Trading (Long-term):
RSI Length: 18-21
RSI Smoothing: 25-30
Base Length: 60-80
Thresholds: Long 92, Short 50
🧠 Advanced Trading Techniques
RSI Divergence Analysis:
Watch for divergences between price action and smoothed RSI readings. When price makes new highs/lows but RSI doesn't confirm, it often signals upcoming reversals.
Band Width Interpretation:
Expanding Bands: Increasing momentum, expect larger price moves
Contracting Bands: Decreasing momentum, prepare for potential breakouts
Band Touches: Price touching outer bands often signals reversal opportunities
Multi-Timeframe Analysis:
Use RSI oscillator on higher timeframes for trend direction and lower timeframes for precise entry timing.
⚠️ Important Risk Disclaimers
Past performance is not indicative of future results. This indicator represents advanced technical analysis but should never be used as the sole basis for trading decisions.
Critical Risk Factors:
Market Conditions: No indicator performs equally well in all market environments
Backtesting Limitations: Historical performance may not reflect future market behavior
Momentum Risk: Adaptive indicators can be sensitive to extreme momentum conditions
Parameter Sensitivity: Different settings may produce significantly different results
Capital Risk: Always use appropriate position sizing and stop-loss protection
📚 Educational Benefits
This indicator provides exceptional learning opportunities for understanding:
Advanced RSI analysis and momentum measurement techniques
Adaptive indicator design and implementation
The relationship between momentum transitions and price movements
Professional risk management using Kelly Criterion principles
Modern oscillator interpretation and signal generation
🔍 Market Applications
The RSI Shifting Band Oscillator works across various markets:
Forex: Excellent for currency pair momentum analysis
Stocks: Individual equity and index trading
Commodities: Adaptive to commodity market momentum cycles
Cryptocurrencies: Handles extreme momentum variations effectively
Futures: Professional derivatives trading applications
🔧 Technical Innovation
The RSI Shifting Band Oscillator represents years of research into adaptive technical analysis. The proprietary dual RSI calculation method has been optimized for:
Computational Efficiency: Fast calculation even on high-frequency data
Noise Reduction: Advanced smoothing without excessive lag
Market Adaptability: Automatic adjustment to changing conditions
Signal Clarity: Clear, actionable trading signals
🔔 Updates and Evolution
The RSI Shifting Band Oscillator | QuantMAC continues to evolve with regular updates incorporating the latest research in adaptive technical analysis. The code is thoroughly documented for transparency and educational purposes.
Trading Notice: Financial markets involve substantial risk of loss. The RSI Shifting Band Oscillator is a sophisticated technical analysis tool designed to assist in trading decisions but cannot guarantee profitable outcomes.
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Master The Markets With Adaptive Intelligence! 🎯📈
ATR RopeATR Rope is inspired by DonovanWall's "Range Filter". It implements a similar concept of filtering out smaller market movements and adjusting only for larger moves. In addition, this indicator goes one step deeper by producing actionable zones to determine market state. (Trend vs. Consolidation)
> Background
When reading up on the Range Filter indicator, it reminded me exactly of a Rope stabilization drawing tool in a program I use frequently. Rope stabilization essentially attaches a fixed length "rope" to your cursor and an anchor point (Brush). As you move your cursor, you are pulling the brush behind it. The cursor (of course) will not pull the brush until the rope is fully extended, this behavior filters out jittery movements and is used to produce smoother drawing curves.
If compared visually side-by-side, you will notice that this indicator bears striking resemblance to its inspiration.
> Goal
Other than simply distinguishing price movements between meaningful and noise, this indicator strives to create a rigid structure to frame market movements and lack-there-of, such as when to anticipate trend, and when to suspect consolidation.
Since the indicator works based on an ATR range, the resulting ATR Channel does well to get reactions from price at its extremes. Naturally, when consolidating, price will remain within the channel, neither pushing the channel significantly up or down. Likewise, when trending, price will continue to push the channel in a single direction.
With the goal of keeping it quick and simple, this indicator does not do any smoothing of data feeds, and is simply based on the deviation of price from the central rope. Adjusting the rope when price extends past the threshold created by +/- ATR from the rope.
> Features & Behaviors
- ATR Rope
ATR Rope is displayed as a 3 color single line.
This can be considered the center line, or the directional line, whichever you'd prefer.
The main point of the Rope display is to indicate direction, however it also is factually the center of the current working range.
- ATR Rope Color
When the rope's value moves up, it changes to green (uptrend), when down, red (downtrend).
When the source crosses the rope, it turns blue (flat).
With these simple rules, we've formed a structure to view market movements.
- Consolidation Zones
Consolidation Zones generate from "Flat" areas, and extend into subsequent trend areas. Consolidation is simply areas where price has crossed the Rope and remains inside the range. Over these periods, the upper and lower values are accumulated and averaged together to form the "Consolidation Zone" values. These zones are draw live, so values are averaged as the flat areas progress and don't repaint, so all values seen historically are as they would appear live.
- ATR Channel
ATR Channel displays the upper and lower bounds of the working range.
When the source moves beyond this range, the rope is adjusted based on the distance from the source to the channel. This range can be extremely useful to view, but by default it is hidden.
> Application
This indicator is not created to provide signals, or serve as a "complete" system.
(People who didn't read this far will still comment for signals. :) )
This is created to be used alongside manual interpretation and intuition. This indicator is not meant to constrain any users into a box, and I would actually encourage an open mind and idea generation, as the application of this indicator can take various forms.
> Examples
As you would probably already know, price movement can be fast impulses, and movement can be slow bleeds. In the screenshot below, we are using movements from and to consolidation zones to classify weak trend and strong trend. As you can see, there are also areas of consolidation which get broken out of and confirmed for the larger moves.
Author's Note: In each of these examples, I have outlined the start and end of each session. These examples come from 1 Min Future charts, and have specifically been framed with day trading in mind.
"Breakout Retest" or "Support/Resistance Flips" or "Structure Retests" are all generally the same thing, with different traders referring to them by different names, all of which can be seen throughout these examples.
In the next example, we have a day which started with an early reversal leading into long, slow, trend. Notice how each area throughout the trend essentially moves slightly higher, then consolidates while holding support of the previous zone. This day had a few sharp movements, however there was a large amount of neutrality throughout this day with continuous higher lows.
In contrast to the previous example, next up, we have a very choppy day. Throughout which we see a significant amount of retests before fast directional movements. We also see a few examples of places where previous zones remained relevant into the future. While the zones only display into the resulting trend area, they do not become immediately meaningless once they stop drawing.
> Abstract
In the screenshot below, I have stacked 2 of these indicators, using the high as the source for one and the low as the source for the other. I've hidden lines of the high and low channels to create a 4 lined channel based on the wicks of price.
This is not necessary to use the indicator, but should help provide an idea of creative ways the simple indicator could be used to produce more complicated analysis.
If you've made it this far, I would hope it's clear to you how this indicator could provide value to your trading.
Thank you to DonovonWall for the inspiration.
Enjoy!
LevelUp^ RS Line New High ScreenerThe RS Line new high screener helps to identify stocks that are outperforming a benchmark index — most commonly the S&P 500 — by analyzing the Relative Strength (RS) Line. The RS Line is a visual indicator that plots the ratio of a stock’s price to that of a chosen benchmark, showing how the stock is performing relative to the broader market.
🔹 Key Benefits of RS Line New High Screener
▪ Identify Market Leaders Early
A new high in the RS Line often precedes a price breakout, highlighting stocks that are gaining strength relative to the market. This can provide traders with an early signal of potential new leaders.
▪ Potential Institutional Accumulation
Stocks with rising RS Lines are often being accumulated by institutional investors, which can provide additional support for future price advances.
▪ Confirm Strength During Market Corrections
Stocks with rising RS Lines during market downturns often become the strongest performers when the market recovers. The screener helps pinpoint these resilient stocks, which tend to “pop” when selling pressure subsides.
▪ Visualize Outperformance
The RS Line gives a clear visual representation of a stock’s relative performance, making it easier to distinguish between true leaders and laggards, even when overall prices are volatile.
▪ Support Risk Management
Divergences between price and RS Line (e.g., price making new highs but RS Line not confirming) can warn of weakening momentum, helping traders avoid false breakouts or potential reversals.
▪ Enhanced Screening and Filtering
Screeners can quickly filter large universes of stocks for those with the strongest relative strength, saving time and focusing attention on the most promising opportunities.
🔹 RS Line New High Before Price
With this screener, in addition to finding stocks with the RS Line at a new high, you can also search for stocks where the RS Line is at a new high before price.
Why is this important?
The RS line making a new high ahead of the price is considered a very bullish signal. This setup often precedes price breakouts, giving traders an early entry point with potentially less risk and greater reward.
🔹 Screening Features - Setting Your Search Criteria
There are currently two options that can be customized. Additional customization options will be added in future releases.
▪ Index
The default benchmark index is SPX. However, you can change this to any symbol/index available in TradingView. For example, if you are trading stocks on the National Stock Exchange of India (NSE), you might find it helpful to set the index to NFTY, which tracks the top 50 Indian companies by market capitalization.
▪ Lookback
The lookback specifies how many bars back in time to consider when determining if the RS Line is at a new high. The default is 50 bars. You can set this value to any number in the range of 5 to 250.
🔹 Custom Output
The screen results include the following:
▪ ATR %
▪ 1 day % △
▪ 1 week % △
▪ 1 month % △
▪ YTD % △
The ATR % (average true range) provides a normalized measure of volatility, making it easier to identify stocks that are typically more volatile on a relative basis. Using this value you can filter stocks to volatility ranges that meet your preferences and trading style.
🔹 Installation And Usage
▪ Mark this indicator as a Favorite.
▪ Use the Pine Screener to search for stocks.
▪ Save the search results to a watchlist.
▪ View the watchlist in TradingView.
Donchian x WMA Crossover (2025 Only, Adjustable TP, Real OHLC)Short Description:
Long-only breakout system that goes long when the Donchian Low crosses up through a Weighted Moving Average, and closes when it crosses back down (with an optional take-profit), restricted to calendar year 2025. All signals use the instrument’s true OHLC data (even on Heikin-Ashi charts), start with 1 000 AUD of capital, and deploy 100 % equity per trade.
Ideal parameters configured for Temple & Webster on ASX 30 minute candles. Adjust parameter to suit however best to download candle interval data and have GPT test the pine script for optimum parameters for your trading symbol.
Detailed Description
1. Strategy Concept
This strategy captures trend-driven breakouts off the bottom of a Donchian channel. By combining the Donchian Low with a WMA filter, it aims to:
Enter when volatility compresses and price breaks above the recent Donchian Low while the longer‐term WMA confirms upward momentum.
Exit when price falls back below that same WMA (i.e. when the Donchian Low crosses back down through WMA), but only if the WMA itself has stopped rising.
Optional Take-Profit: you can specify a profit target in decimal form (e.g. 0.01 = 1 %).
2. Timeframe & Universe
In-sample period: only bars stamped between Jan 1 2025 00:00 UTC and Dec 31 2025 23:59 UTC are considered.
Any resolution (e.g. 30 m, 1 h, D, etc.) is supported—just set your preferred timeframe in the TradingView UI.
3. True-Price Execution
All indicator calculations (Donchian Low, WMA, crossover checks, take-profit) are sourced from the chart’s underlying OHLC via request.security(). This guarantees that:
You can view Heikin-Ashi or other styled candles, but your strategy will execute on the real OHLC bars.
Chart styling never suppresses or distorts your backtest results.
4. Position Sizing & Equity
Initial capital: 1 000 AUD
Size per trade: 100 % of available equity
No pyramiding: one open position at a time
5. Inputs (all exposed in the “Inputs” tab):
Input Default Description
Donchian Length 7 Number of bars to calculate the Donchian channel low
WMA Length 62 Period of the Weighted Moving Average filter
Take Profit (decimal) 0.01 Exit when price ≥ entry × (1 + take_profit_perc)
6. How It Works
Donchian Low: ta.lowest(low, DonchianLength) over the specified look-back.
WMA: ta.wma(close, WMALength) applied to true closes.
Entry: ta.crossover(DonchianLow, WMA) AND barTime ∈ 2025.
Exit:
Cross-down exit: ta.crossunder(DonchianLow, WMA) and WMA is not rising (i.e. momentum has stalled).
Take-profit exit: price ≥ entry × (1 + take_profit_perc).
Calendar exit: barTime falls outside 2025.
7. Usage Notes
After adding to your chart, open the Strategy Tester tab to review performance metrics, list of trades, equity curve, etc.
You can toggle your chart to Heikin-Ashi for visual clarity without affecting execution, thanks to the real-OHLC calls.
Euclidean Range [InvestorUnknown]The Euclidean Range indicator visualizes price deviation from a moving average using a geometric concept Euclidean distance. It helps traders identify trend strength, volatility shifts, and potential overextensions in price behavior.
Euclidean Distance
Euclidean distance is a fundamental concept in geometry and machine learning. It measures the "straight-line distance" between two points in space. In time series analysis, it can be used to measure how far one sequence deviates from another over a fixed window.
euclidean_distance(src, ref, len) =>
var float sum_sq_diff = na
sum_sq_diff := 0.0
for i = 0 to len - 1
diff = src - ref
sum_sq_diff += diff * diff
math.sqrt(sum_sq_diff)
In this script, we calculate the Euclidean distance between the price (source) and a smoothed average (reference) over a user-defined window. This gives us a single scalar that reflects the overall divergence between price and trend.
How It Works
Moving Average Calculation: You can choose between SMA, EMA, or HMA as your reference line. This becomes the "baseline" against which the actual price is compared.
Distance Band Construction: The Euclidean distance between the price and the reference is calculated over the Window Length. This value is then added to and subtracted from the average to form dynamic upper and lower bands, visually framing the range of deviation.
Distance Ratios and Z-Scores: Two distance ratios are computed: dist_r = distance / price (sensitivity to volatility); dist_v = price / distance (sensitivity to compression or low-volatility states)
Both ratios are normalized using a Z-score to standardize their behavior and allow for easier interpretation across different assets and timeframes.
Z-Score Plots: Z_r (white line) highlights instances of high volatility or strong price deviation; Z_v (red line) highlights low volatility or compressed price ranges.
Background Highlighting (Optional): When Z_v is dominant and increasing, the background is colored using a gradient. This signals a possible build-up in low volatility, which may precede a breakout.
Use Cases
Detect volatile expansions and calm compression zones.
Identify mean reversion setups when price returns to the average.
Anticipate breakout conditions by observing rising Z_v values.
Use dynamic distance bands as adaptive support/resistance zones.
Notes
The indicator is best used with liquid assets and medium-to-long windows.
Background coloring helps visually filter for squeeze setups.
Disclaimer
This indicator is provided for speculative analysis and educational purposes only. It is not financial advice. Always backtest and evaluate in a simulated environment before live trading.
Bands Vision-XBands Vision-X (BB-Vision-X) – Full Description
Description:
Bands Vision-X is an indicator based on dynamic bands constructed from customizable moving averages and standard deviation, allowing you to visualize potential support and resistance zones, volatility, and market conditions. It uses an adjustable moving average (with multiple options such as SMA, EMA, WMA, JMA, LSMA, DEMA, and TEMA) to define the central line, and upper and lower bands calculated by standard deviation multiplied by an adjustable factor. The bands are smoothed by a Hull Moving Average (HMA) to reduce noise and improve clarity.
How to Use
The bands indicate potential support and resistance levels.
The central line serves as a dynamic price reference.
The distance between bands reflects market volatility.
Touches or breakouts of the bands may signal entry or exit opportunities.
Parameters
Parameter Description Default
Standard Error Band Period Period for moving average and standard deviation 20
Moving Average Type Type of moving average (SMA, EMA, etc.) SMA
Standard Deviation Multiplier Multiplier for standard deviation 2.0
Band Lines Smoothing Period Period for smoothing the bands (HMA) 5
Technical Notes
The JMA function used is not the original Jurik version but an approximate and open implementation based on publicly available TradingView community code.
Developed in Pine Script v6 with optimized and clean code.
Recommendations
Ideal for traders seeking a clear view of volatility and dynamic support/resistance levels.
Should not be used in isolation; it is recommended to combine with volume analysis, price action, or other technical indicators.
Adjust the period and multiplier according to the asset and timeframe for better effectiveness.
Candle Body Strength CounterThis indicator measures the total bullish and bearish candle body strength over a user-defined lookback period. For each bar, it sums the absolute body sizes of bullish candles (where close > open) and bearish candles (where close < open) within the lookback window. The result is two lines: one for bullish body strength and one for bearish body strength, making it easy to spot shifts in market momentum and bias.
Adjustable lookback period (default: 20 bars)
Green line: cumulative bullish body strength
Red line: cumulative bearish body strength
Use this tool to quickly assess which side (bulls or bears) has been stronger over your chosen timeframe.
ICT Directional FVG Indicator (Buffered SL)This is the first indicator I have ever made, and I am very new to Pine Script. I’ve tried my best to create this as a strategy, but I’m still learning, so please be kind and constructive with your feedback!
ICT Directional FVG Indicator (Buffered SL)
This indicator is designed for traders who follow ICT (Inner Circle Trader) concepts, focusing on Fair Value Gaps (FVGs), liquidity sweeps, and session-based trading. It automatically detects bullish and bearish FVGs, highlights them on the chart, and identifies liquidity sweep events. The indicator features three customizable Kill Zones (London, New York, and Asia sessions), each with independent toggles and color-coded backgrounds for clear visual separation.
Key features:
Fair Value Gap Detection: Highlights bullish and bearish FVGs in real time.
Liquidity Sweep Alerts: Marks potential liquidity sweep events for both highs and lows.
Session Kill Zones: Toggle each Kill Zone (London, New York, Asia) independently; background color changes only in enabled zones.
Trade Signal Visualization: Plots entry, stop loss, and take profit levels based on FVG and sweep logic, with a user-defined stop loss buffer.
Customizable Display: Easily enable or disable FVGs, sweeps, trade levels, and each Kill Zone to suit your strategy.
This tool is ideal for ICT-based traders who want a clear, automated view of FVGs, sweeps, and session activity, with full control over which sessions and signals are displayed.
Langlands-Operadic Möbius Vortex (LOMV)Langlands-Operadic Möbius Vortex (LOMV)
Where Pure Mathematics Meets Market Reality
A Revolutionary Synthesis of Number Theory, Category Theory, and Market Dynamics
🎓 THEORETICAL FOUNDATION
The Langlands-Operadic Möbius Vortex represents a groundbreaking fusion of three profound mathematical frameworks that have never before been combined for market analysis:
The Langlands Program: Harmonic Analysis in Markets
Developed by Robert Langlands (Fields Medal recipient), the Langlands Program creates bridges between number theory, algebraic geometry, and harmonic analysis. In our indicator:
L-Function Implementation:
- Utilizes the Möbius function μ(n) for weighted price analysis
- Applies Riemann zeta function convergence principles
- Calculates quantum harmonic resonance between -2 and +2
- Measures deep mathematical patterns invisible to traditional analysis
The L-Function core calculation employs:
L_sum = Σ(return_val × μ(n) × n^(-s))
Where s is the critical strip parameter (0.5-2.5), controlling mathematical precision and signal smoothness.
Operadic Composition Theory: Multi-Strategy Democracy
Category theory and operads provide the mathematical framework for composing multiple trading strategies into a unified signal. This isn't simple averaging - it's mathematical composition using:
Strategy Composition Arity (2-5 strategies):
- Momentum analysis via RSI transformation
- Mean reversion through Bollinger Band mathematics
- Order Flow Polarity Index (revolutionary T3-smoothed volume analysis)
- Trend detection using Directional Movement
- Higher timeframe momentum confirmation
Agreement Threshold System: Democratic voting where strategies must reach consensus before signal generation. This prevents false signals during market uncertainty.
Möbius Function: Number Theory in Action
The Möbius function μ(n) forms the mathematical backbone:
- μ(n) = 1 if n is a square-free positive integer with even number of prime factors
- μ(n) = -1 if n is a square-free positive integer with odd number of prime factors
- μ(n) = 0 if n has a squared prime factor
This creates oscillating weights that reveal hidden market periodicities and harmonic structures.
🔧 COMPREHENSIVE INPUT SYSTEM
Langlands Program Parameters
Modular Level N (5-50, default 30):
Primary lookback for quantum harmonic analysis. Optimized by timeframe:
- Scalping (1-5min): 15-25
- Day Trading (15min-1H): 25-35
- Swing Trading (4H-1D): 35-50
- Asset-specific: Crypto 15-25, Stocks 30-40, Forex 35-45
L-Function Critical Strip (0.5-2.5, default 1.5):
Controls Riemann zeta convergence precision:
- Higher values: More stable, smoother signals
- Lower values: More reactive, catches quick moves
- High frequency: 0.8-1.2, Medium: 1.3-1.7, Low: 1.8-2.3
Frobenius Trace Period (5-50, default 21):
Galois representation lookback for price-volume correlation:
- Measures harmonic relationships in market flows
- Scalping: 8-15, Day Trading: 18-25, Swing: 25-40
HTF Multi-Scale Analysis:
Higher timeframe context prevents trading against major trends:
- Provides market bias and filters signals
- Improves win rates by 15-25% through trend alignment
Operadic Composition Parameters
Strategy Composition Arity (2-5, default 4):
Number of algorithms composed for final signal:
- Conservative: 4-5 strategies (higher confidence)
- Moderate: 3-4 strategies (balanced approach)
- Aggressive: 2-3 strategies (more frequent signals)
Category Agreement Threshold (2-5, default 3):
Democratic voting minimum for signal generation:
- Higher agreement: Fewer but higher quality signals
- Lower agreement: More signals, potential false positives
Swiss-Cheese Mixing (0.1-0.5, default 0.382):
Golden ratio φ⁻¹ based blending of trend factors:
- 0.382 is φ⁻¹, optimal for natural market fractals
- Higher values: Stronger trend following
- Lower values: More contrarian signals
OFPI Configuration:
- OFPI Length (5-30, default 14): Order Flow calculation period
- T3 Smoothing (3-10, default 5): Advanced exponential smoothing
- T3 Volume Factor (0.5-1.0, default 0.7): Smoothing aggressiveness control
Unified Scoring System
Component Weights (sum ≈ 1.0):
- L-Function Weight (0.1-0.5, default 0.3): Mathematical harmony emphasis
- Galois Rank Weight (0.1-0.5, default 0.2): Market structure complexity
- Operadic Weight (0.1-0.5, default 0.3): Multi-strategy consensus
- Correspondence Weight (0.1-0.5, default 0.2): Theory-practice alignment
Signal Threshold (0.5-10.0, default 5.0):
Quality filter producing:
- 8.0+: EXCEPTIONAL signals only
- 6.0-7.9: STRONG signals
- 4.0-5.9: MODERATE signals
- 2.0-3.9: WEAK signals
🎨 ADVANCED VISUAL SYSTEM
Multi-Dimensional Quantum Aura Bands
Five-layer resonance field showing market energy:
- Colors: Theme-matched gradients (Quantum purple, Holographic cyan, etc.)
- Expansion: Dynamic based on score intensity and volatility
- Function: Multi-timeframe support/resistance zones
Morphism Flow Portals
Category theory visualization showing market topology:
- Green/Cyan Portals: Bullish mathematical flow
- Red/Orange Portals: Bearish mathematical flow
- Size/Intensity: Proportional to signal strength
- Recursion Depth (1-8): Nested patterns for flow evolution
Fractal Grid System
Dynamic support/resistance with projected L-Scores:
- Multiple Timeframes: 10, 20, 30, 40, 50-period highs/lows
- Smart Spacing: Prevents level overlap using ATR-based minimum distance
- Projections: Estimated signal scores when price reaches levels
- Usage: Precise entry/exit timing with mathematical confirmation
Wick Pressure Analysis
Rejection level prediction using candle mathematics:
- Upper Wicks: Selling pressure zones (purple/red lines)
- Lower Wicks: Buying pressure zones (purple/green lines)
- Glow Intensity (1-8): Visual emphasis and line reach
- Application: Confluence with fractal grid creates high-probability zones
Regime Intensity Heatmap
Background coloring showing market energy:
- Black/Dark: Low activity, range-bound markets
- Purple Glow: Building momentum and trend development
- Bright Purple: High activity, strong directional moves
- Calculation: Combines trend, momentum, volatility, and score intensity
Six Professional Themes
- Quantum: Purple/violet for general trading and mathematical focus
- Holographic: Cyan/magenta optimized for cryptocurrency markets
- Crystalline: Blue/turquoise for conservative, stability-focused trading
- Plasma: Gold/magenta for high-energy volatility trading
- Cosmic Neon: Bright neon colors for maximum visibility and aggressive trading
📊 INSTITUTIONAL-GRADE DASHBOARD
Unified AI Score Section
- Total Score (-10 to +10): Primary decision metric
- >5: Strong bullish signals
- <-5: Strong bearish signals
- Quality ratings: EXCEPTIONAL > STRONG > MODERATE > WEAK
- Component Analysis: Individual L-Function, Galois, Operadic, and Correspondence contributions
Order Flow Analysis
Revolutionary OFPI integration:
- OFPI Value (-100% to +100%): Real buying vs selling pressure
- Visual Gauge: Horizontal bar chart showing flow intensity
- Momentum Status: SHIFTING, ACCELERATING, STRONG, MODERATE, or WEAK
- Trading Application: Flow shifts often precede major moves
Signal Performance Tracking
- Win Rate Monitoring: Real-time success percentage with emoji indicators
- Signal Count: Total signals generated for frequency analysis
- Current Position: LONG, SHORT, or NONE with P&L tracking
- Volatility Regime: HIGH, MEDIUM, or LOW classification
Market Structure Analysis
- Möbius Field Strength: Mathematical field oscillation intensity
- CHAOTIC: High complexity, use wider stops
- STRONG: Active field, normal position sizing
- MODERATE: Balanced conditions
- WEAK: Low activity, consider smaller positions
- HTF Trend: Higher timeframe bias (BULL/BEAR/NEUTRAL)
- Strategy Agreement: Multi-algorithm consensus level
Position Management
When in trades, displays:
- Entry Price: Original signal price
- Current P&L: Real-time percentage with risk level assessment
- Duration: Bars in trade for timing analysis
- Risk Level: HIGH/MEDIUM/LOW based on current exposure
🚀 SIGNAL GENERATION LOGIC
Balanced Long/Short Architecture
The indicator generates signals through multiple convergent pathways:
Long Entry Conditions:
- Score threshold breach with algorithmic agreement
- Strong bullish order flow (OFPI > 0.15) with positive composite signal
- Bullish pattern recognition with mathematical confirmation
- HTF trend alignment with momentum shifting
- Extreme bullish OFPI (>0.3) with any positive score
Short Entry Conditions:
- Score threshold breach with bearish agreement
- Strong bearish order flow (OFPI < -0.15) with negative composite signal
- Bearish pattern recognition with mathematical confirmation
- HTF trend alignment with momentum shifting
- Extreme bearish OFPI (<-0.3) with any negative score
Exit Logic:
- Score deterioration below continuation threshold
- Signal quality degradation
- Opposing order flow acceleration
- 10-bar minimum between signals prevents overtrading
⚙️ OPTIMIZATION GUIDELINES
Asset-Specific Settings
Cryptocurrency Trading:
- Modular Level: 15-25 (capture volatility)
- L-Function Precision: 0.8-1.3 (reactive to price swings)
- OFPI Length: 10-20 (fast correlation shifts)
- Cascade Levels: 5-7, Theme: Holographic
Stock Index Trading:
- Modular Level: 25-35 (balanced trending)
- L-Function Precision: 1.5-1.8 (stable patterns)
- OFPI Length: 14-20 (standard correlation)
- Cascade Levels: 4-5, Theme: Quantum
Forex Trading:
- Modular Level: 35-45 (smooth trends)
- L-Function Precision: 1.6-2.1 (high smoothing)
- OFPI Length: 18-25 (disable volume amplification)
- Cascade Levels: 3-4, Theme: Crystalline
Timeframe Optimization
Scalping (1-5 minute charts):
- Reduce all lookback parameters by 30-40%
- Increase L-Function precision for noise reduction
- Enable all visual elements for maximum information
- Use Small dashboard to save screen space
Day Trading (15 minute - 1 hour):
- Use default parameters as starting point
- Adjust based on market volatility
- Normal dashboard provides optimal information density
- Focus on OFPI momentum shifts for entries
Swing Trading (4 hour - Daily):
- Increase lookback parameters by 30-50%
- Higher L-Function precision for stability
- Large dashboard for comprehensive analysis
- Emphasize HTF trend alignment
🏆 ADVANCED TRADING STRATEGIES
The Mathematical Confluence Method
1. Wait for Fractal Grid level approach
2. Confirm with projected L-Score > threshold
3. Verify OFPI alignment with direction
4. Enter on portal signal with quality ≥ STRONG
5. Exit on score deterioration or opposing flow
The Regime Trading System
1. Monitor Aether Flow background intensity
2. Trade aggressively during bright purple periods
3. Reduce position size during dark periods
4. Use Möbius Field strength for stop placement
5. Align with HTF trend for maximum probability
The OFPI Momentum Strategy
1. Watch for momentum shifting detection
2. Confirm with accelerating flow in direction
3. Enter on immediate portal signal
4. Scale out at Fibonacci levels
5. Exit on flow deceleration or reversal
⚠️ RISK MANAGEMENT INTEGRATION
Mathematical Position Sizing
- Use Galois Rank for volatility-adjusted sizing
- Möbius Field strength determines stop width
- Fractal Dimension guides maximum exposure
- OFPI momentum affects entry timing
Signal Quality Filtering
- Trade only STRONG or EXCEPTIONAL quality signals
- Increase position size with higher agreement levels
- Reduce risk during CHAOTIC Möbius field periods
- Respect HTF trend alignment for directional bias
🔬 DEVELOPMENT JOURNEY
Creating the LOMV was an extraordinary mathematical undertaking that pushed the boundaries of what's possible in technical analysis. This indicator almost didn't happen. The theoretical complexity nearly proved insurmountable.
The Mathematical Challenge
Implementing the Langlands Program required deep research into:
- Number theory and the Möbius function
- Riemann zeta function convergence properties
- L-function analytical continuation
- Galois representations in finite fields
The mathematical literature spans decades of pure mathematics research, requiring translation from abstract theory to practical market application.
The Computational Complexity
Operadic composition theory demanded:
- Category theory implementation in Pine Script
- Multi-dimensional array management for strategy composition
- Real-time democratic voting algorithms
- Performance optimization for complex calculations
The Integration Breakthrough
Bringing together three disparate mathematical frameworks required:
- Novel approaches to signal weighting and combination
- Revolutionary Order Flow Polarity Index development
- Advanced T3 smoothing implementation
- Balanced signal generation preventing directional bias
Months of intensive research culminated in breakthrough moments when the mathematics finally aligned with market reality. The result is an indicator that reveals market structure invisible to conventional analysis while maintaining practical trading utility.
🎯 PRACTICAL IMPLEMENTATION
Getting Started
1. Apply indicator with default settings
2. Select appropriate theme for your markets
3. Observe dashboard metrics during different market conditions
4. Practice signal identification without trading
5. Gradually adjust parameters based on observations
Signal Confirmation Process
- Never trade on score alone - verify quality rating
- Confirm OFPI alignment with intended direction
- Check fractal grid level proximity for timing
- Ensure Möbius field strength supports position size
- Validate against HTF trend for bias confirmation
Performance Monitoring
- Track win rate in dashboard for strategy assessment
- Monitor component contributions for optimization
- Adjust threshold based on desired signal frequency
- Document performance across different market regimes
🌟 UNIQUE INNOVATIONS
1. First Integration of Langlands Program mathematics with practical trading
2. Revolutionary OFPI with T3 smoothing and momentum detection
3. Operadic Composition using category theory for signal democracy
4. Dynamic Fractal Grid with projected L-Score calculations
5. Multi-Dimensional Visualization through morphism flow portals
6. Regime-Adaptive Background showing market energy intensity
7. Balanced Signal Generation preventing directional bias
8. Professional Dashboard with institutional-grade metrics
📚 EDUCATIONAL VALUE
The LOMV serves as both a practical trading tool and an educational gateway to advanced mathematics. Traders gain exposure to:
- Pure mathematics applications in markets
- Category theory and operadic composition
- Number theory through Möbius function implementation
- Harmonic analysis via L-function calculations
- Advanced signal processing through T3 smoothing
⚖️ RESPONSIBLE USAGE
This indicator represents advanced mathematical research applied to market analysis. While the underlying mathematics are rigorously implemented, markets remain inherently unpredictable.
Key Principles:
- Use as part of comprehensive trading strategy
- Implement proper risk management at all times
- Backtest thoroughly before live implementation
- Understand that past performance does not guarantee future results
- Never risk more than you can afford to lose
The mathematics reveal deep market structure, but successful trading requires discipline, patience, and sound risk management beyond any indicator.
🔮 CONCLUSION
The Langlands-Operadic Möbius Vortex represents a quantum leap forward in technical analysis, bringing PhD-level pure mathematics to practical trading while maintaining visual elegance and usability.
From the harmonic analysis of the Langlands Program to the democratic composition of operadic theory, from the number-theoretic precision of the Möbius function to the revolutionary Order Flow Polarity Index, every component works in mathematical harmony to reveal the hidden order within market chaos.
This is more than an indicator - it's a mathematical lens that transforms how you see and understand market structure.
Trade with mathematical precision. Trade with the LOMV.
*"Mathematics is the language with which God has written the universe." - Galileo Galilei*
*In markets, as in nature, profound mathematical beauty underlies apparent chaos. The LOMV reveals this hidden order.*
— Dskyz, Trade with insight. Trade with anticipation.
Fear-Greed ThermometerFear-Greed Thermometer
This indicator measures market sentiment between fear and greed by combining three key factors: volatility, average volume, and percentage price change. Each factor is normalized and averaged to produce an index ranging from 0 to 100 that reflects the overall level of market fear or greed.
How to use:
Index above 50: Indicates greed dominance. The market tends to be more optimistic, signaling potential bullish conditions or overbought levels.
Index below 50: Indicates fear dominance. The market is more cautious or pessimistic, pointing to potential bearish conditions or oversold levels.
Neutral line (50): Acts as a reference for transitions between fear and greed phases.
Features:
Dynamic background: The chart background changes color according to sentiment — green for greed, red for fear — making it easy to visually gauge the index.
Customizable: Adjust the calculation periods for volatility, volume, and price change to fit your analysis style.
Tips:
Use alongside other technical tools to confirm entry and exit points.
Watch for divergences between the index and price to anticipate possible reversals.
Monitoring extreme levels can help identify market turning points.
This indicator is not a buy or sell recommendation but an additional tool to help understand the overall market sentiment.
Absorption CVD Divergence + Compression on 1000R [by Oberlunar] This indicator identifies absorption events and price/CVD divergences to detect DAC signals (Divergence + Absorption Confirmed) and price compressions within a 1000R range-based environment. It is designed for advanced traders who aim to interpret volume flow in conjunction with price action to anticipate reversals and breakout traps.
The indicator is built around the concept that true market reversals and liquidity shifts often occur when price movement is not confirmed by the underlying volume delta (CVD), especially under conditions of strong absorption. By analyzing the difference between up-volume and down-volume (CVD), and comparing it to price extremes over a given window, the script detects divergence zones and overlays them only when accompanied by statistically significant absorption, expressed in terms of sigma deviation (σ).
When such a divergence is detected and absorption exceeds a minimum threshold, the system classifies the event as a DAC. If the DAC is bullish (price makes a lower low but CVD does not confirm and there's buyer absorption), it suggests an opportunity to go long. Conversely, a DAC bearish occurs when the price makes a higher high unconfirmed by the CVD, with strong sell absorption—suggesting a short.
Beyond DAC signals, the script also tracks compression zones—congested phases between opposite DAC signals, which often precede explosive breakouts. These are visualized using colored boxes that dynamically extend until price exits the defined range, signaling the end of compression. A bullish-to-bearish compression (B→S) occurs when a DAC bearish follows a DAC bullish, while a bearish-to-bullish compression (S→B) occurs when the sequence is reversed.
The tool is especially effective in range-based charting (e.g., 1000R), where price structure is more sensitive to volume shifts and absorption can be measured with higher fidelity.
Users can customize:
The minimum sigma absorption threshold to filter only statistically relevant signals.
The lookback window for divergence detection.
Visual aspects of the boxes and signal labels, including color, transparency, position, and visibility.
Ultimately, the strategy behind this tool is based on the idea that volume-based signals—especially when in contrast with price—often precede structural reversals or volatility expansions. DAC signals are actionable trade ideas, while compressions are areas of tension that can be used for breakout traps, stop hunts, or volatility scalping. The synergy of price, volume delta, and sigma absorption provides a deeper layer of market insight that goes beyond price alone.
Oberlunar 👁️🌟
Adaptive MACD Deluxe [AlgoAlpha]OVERVIEW
This script is an advanced rework of the classic MACD indicator, designed to be more adaptive, visually informative, and customizable. It enhances the original MACD formula using a dynamic feedback loop and a correlation-based weighting system that adjusts in real-time based on how deterministic recent price action is. The signal line is flexible, offering several smoothing types including Heiken Ashi, while the histogram is color-coded with gradients to help users visually identify momentum shifts. It also includes optional normalization by volatility, allowing MACD values to be interpreted as relative percentage moves, making the indicator more consistent across different assets and timeframes.
CONCEPTS
This version of MACD introduces a deterministic weight based on R-squared correlation with time, which modulates how fast or slow the MACD adapts to price changes. Higher correlation means smoother, slower MACD responses, and low correlation leads to quicker reaction. The momentum calculation blends traditional EMA math with feedback and damping components to create a smoother, less noisy series. Heiken Ashi is optionally used for signal smoothing to better visualize short-term trend bias. When normalization is enabled, the MACD is scaled by an EMA of the high-low range, converting it into a bounded, volatility-relative indicator. This makes extreme readings more meaningful across markets.
FEATURES
The script offers six distinct options for signal line smoothing: EMA, SMA, SMMA (RMA), WMA, VWMA, and a custom Heiken Ashi mode based on the MACD series. Each option provides a different response speed and smoothing behavior, allowing traders to match the indicator’s behavior to their strategy—whether it's faster reaction or reduced noise.
Normalization is another key feature. When enabled, MACD values are scaled by a volatility proxy, converting the indicator into a relative percentage. This helps standardize the MACD across different assets and timeframes, making overbought and oversold readings more consistent and easier to interpret.
Threshold zones can be customized using upper and lower boundaries, with inner zones for early warnings. These zones are highlighted on the chart with subtle background fills and directional arrows when MACD enters or exits key levels. This makes it easier to spot strong or weak reversals at a glance.
Lastly, the script includes multiple built-in alerts. Users can set alerts for MACD crossovers, histogram flips above or below zero, and MACD entries into strong or weak reversal zones. This allows for hands-free monitoring and quick decision-making without staring at the chart.
USAGE
To use this script, choose your preferred signal smoothing type, enable normalization if you want MACD values relative to volatility, and adjust the threshold zones to fit your asset or timeframe. Use the colored histogram to detect changes in momentum strength—brighter colors indicate rising strength, while faded colors imply weakening. Heiken Ashi mode smooths out noise and provides clearer signals, especially useful in choppy conditions. Use alert conditions for crossover and reversal detection, or monitor the arrow markers for entries into potential exhaustion zones. This setup works well for trend following, momentum trading, and reversal spotting across all market types.
4H & 1D Sig_chartbugRohmoohyun is alive
Auxiliary Indicator for Buy/Sell Signals Using Bollinger Bands and Moving Averages.
Recommended for NASDAQ, Gold, Oil, BTC, Stocks on 4-hour or higher timeframes.
For Ethereum, Ripple, and other volatile altcoins, it is advisable to also check the daily chart.
Indicator Idea: This strategy utilizes two types of indicators: Bollinger Bands as a volatility (or momentum) indicator, and Moving Averages as a trend indicator. A triangle signal is generated in zones where the Bollinger Bands converge (squeeze). After a candle closes, a Rocket icon will appear, at which point a trading strategy can be devised based on the prevailing trend indicated by the Moving Averages.
Indicator Feature: When used on timeframes of 4 hours or higher, this indicator is extremely powerful for establishing trading criteria, especially when combined with trend analysis and support/resistance zones.
Basic Trading Method: Enter a position at the Rocket icon + Immediately set a stop-loss (e.g., at the previous low/high, a maximum loss threshold like 2% of capital, or at a level planned for a second entry to average down) + Take partial profit (e.g., 50%) at your desired TP level, then move the stop-loss to your entry price (break-even) and hold the remainder of the position.
Recommended Timeframes: 5-minute, 4-hour, 1-day.
Trading Strategy
Pullback Trading / Trend Reversal Trading.
Instrument Selection (Commodities & Indices, Crypto, NASDAQ-listed Stocks).
Understand Instrument Characteristics (The three categories behave differently, so backtesting before use is essential).
a) Bullish Alignment (Price > 20MA > 200MA)
: Focus primarily on long (buy) positions.
: If attempting a counter-trend (short) trade, do so only with multiple confirmations, such as RSI/Disparity divergence and a major resistance zone. Use a tight stop-loss.
b) Bearish Alignment (Price < 20MA < 200MA)
: The opposite of the above; focus on short (sell) positions.
c) During a Bullish Trend, Price is Between MAs (200MA < Price < 20MA)
: This indicates either a consolidation phase within an uptrend or a potential early sign of a reversal to a downtrend. Consider both possibilities.
: A possible approach is to allocate capital with a 60% bias to long positions and a 40% bias to short positions (unlike in full bullish/bearish alignments where counter-trend trading has a poor risk/reward ratio).
: If it turns out to be a reversal point, you can enter a position at the very beginning of a new trend, allowing for a longer ride.
: It's recommended to take partial profits rather than closing the entire position. For instance, close half and move the stop-loss to your entry price to eliminate risk while keeping profit potential open.
d) During a Bearish Trend, Price is Between MAs (200MA > Price > 20MA)
: The opposite of the above.
Instrument-Specific Characteristics
Commodities & Indices (NASDAQ, Oil, Gold)
: The indicator was primarily developed and tested on NASDAQ and Gold, so it tends to work well with them.
: However, NASDAQ often exhibits strong, one-way trends, so a trend-following approach is highly recommended.
: Gold and Oil tend to have significant reversals from key support/resistance zones.
Crypto
: These assets are extremely volatile, so use this indicator with caution and skill.
: It performs reasonably well with BTC. For anything from Ethereum downwards, the price action can be chaotic, so it's crucial to use the daily chart and other confirming factors.
: Instead of frequent day trading, focus on long-term positions, reduce the number of trades, and aim for entries with a good average price.
NASDAQ-listed Stocks
: Recommended for a long-term, accumulation-style investment approach.
: Use the indicator not as a signal that "it will pump immediately!" but rather as a sign that "this is a decent entry point to build a position."
: Alternatively, it can be used for more active swing trading (buy, sell, repeat).
Important Disclaimers
This is an auxiliary indicator, as the name implies. Do not trust it blindly.
When entering a position, immediately set your stop-loss or have a plan for a single additional entry (max one recommended).
Always use it in conjunction with other forms of analysis.
Track your performance (win rate, risk/reward ratio) based on this strategy.
Continuously refine and improve your approach.
Oculus Quantum RangeOculus Quantum Range
The Oculus Quantum Range is a sophisticated indicator designed to track dynamic support and resistance levels, based on market volatility and price action. It uses the Average True Range (ATR) to define a dynamic range, giving traders powerful breakout and breakdown targets for more informed decision-making.
Key Features:
Dynamic Support & Resistance Levels: The indicator calculates key dynamic levels using the highest high and lowest low over a user-defined period (default: 20 bars). These levels adjust according to market volatility, helping to reflect current market conditions.
Breakout & Breakdown Targets: The system calculates breakout and breakdown targets based on the ATR, adding flexibility to the classic support and resistance levels. The targets are plotted above and below the dynamic range.
Volume Confirmation: The breakout and breakdown targets are confirmed when there is a spike in volume, enhancing the reliability of these trade signals.
Pivot Levels: The middle level (pivot) is plotted as the average of the highest high and the lowest low over the range period, offering an additional reference point for traders.
How to Use:
Breakout Entry:
When the price crosses above the Dynamic Top Line (Resistance), a breakout is considered. The breakout target is calculated and plotted above the resistance level.
A confirmed breakout is when the price crosses the resistance with volume higher than the 20-period volume average.
Breakdown Entry:
When the price crosses below the Dynamic Bottom Line (Support), a breakdown is considered. The breakdown target is calculated and plotted below the support level.
A confirmed breakdown is when the price crosses the support with volume higher than the 20-period volume average.
Pivot Zone:
The middle level (pivot) acts as a reference zone, showing potential areas where price action may pause or reverse before continuing toward breakout or breakdown targets.
Alert Conditions:
Breakout Alert: Triggered when the price crosses above the dynamic top line (resistance).
Breakdown Alert: Triggered when the price crosses below the dynamic bottom line (support).
Visualization:
The Dynamic Top Line (Resistance) is plotted in red.
The Middle Level (Pivot) is plotted in blue.
The Dynamic Bottom Line (Support) is plotted in green.
Breakout Targets are plotted in purple above the resistance, and Breakdown Targets are plotted in orange below the support.
Confirmed Breakout/Breakdown are marked with green and red lines respectively, and the background will change to green or red for a visual cue.
This indicator is perfect for traders looking to make timely decisions based on price action, volatility, and volume. It’s ideal for identifying potential breakout and breakdown opportunities with clear, dynamic targets.
Choppiness ZONE OverlayPurpose
This script overlays choppiness zones directly onto the price chart to help traders identify whether the market is trending or ranging. It is designed to filter out low-probability trades during high choppiness conditions.
How It Works
Calculates the Choppiness Index over a user-defined period using ATR and price range.
Divides choppiness into four zones:
30 to 40: Low choppiness, possible trend initiation, shown in yellow.
40 to 50: Moderate choppiness, transition zone, shown in orange.
50 to 60: High choppiness, weakening momentum, shown in red.
60 and above: Extreme choppiness, avoid trading, shown in purple.
Highlights each zone with customizable color fills between the high and low of the selected range.
Triggers a real-time alert when choppiness exceeds 60.
Features
Customizable choppiness zones and color settings.
Real-time alert when market becomes extremely choppy (choppiness ≥ 60).
Visual zone overlay on the price chart.
Compatible with all timeframes.
Lightweight and responsive for scalping, intraday, or swing trading.
Tip
Use this tool as a volatility or trend filter. Combine it with momentum or trend-following indicators to improve trade selection.
Golden Key: Opening Channel DashboardGolden Key: Opening Channel Dashboard
Complementary to the original Golden Key – The Frequency
Upgrade of 10 Monday's 1H Avg Range + 30-Day Daily Range
This indicator provides a structured dashboard to monitor the opening channel range and related metrics on 15m and 5m charts. Built to work alongside the Golden Key methodology, it focuses on pip precision, average volatility, and SL sizing.
What It Does
Detects first 4 candles of the session:
15m chart → first 4 Monday candles (1 hour)
5m chart → first 4 candles of each day (20 minutes)
Calculates pip range of the opening move
Stores and averages the last 10 such ranges
Calculates daily range average over 10 or 30 days
Generates SL size based on your multiplier setting
Auto-adjusts for FX, JPY, and XAUUSD pip sizes
Displays all values in a clean table in the top-right
How to Use It
Add to a 15m or 5m chart
Compare the current opening range to the average
Use the daily average to assess broader volatility
Define SL size using the opening range x multiplier
Customize display colors per table row
About This Script
This is not a visual box-style indicator. It is designed to complement the original “Golden Key – The Frequency” by focusing on metric output. It is also an upgraded version of the earlier "10 Monday’s 1H Avg Range" script, now supporting multi-timeframe logic and additional customization.
Disclaimer
This is a technical analysis tool. It does not provide trading advice. Use it in combination with your own research and strategy.
VWAP Supply & Demand Zones PRO**Overview:**
This script represents a major evolution of the original "VWAP Supply and Demand Zones" indicator. Initially created to explore price interaction with VWAP, it has now matured into a robust and feature-rich tool for identifying high-probability zones of institutional buying and selling pressure. The update introduces volume and momentum validation, dynamic zone management, alert logic, and a visual dashboard (HUD) — all designed for improved precision and clarity. The structural improvements, anti-repainting logic, and significant added utility warranted releasing this as a new script rather than a minor update.
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### What It Does:
This indicator dynamically detects **supply and demand zones** using VWAP-based logic combined with **volume** and **momentum confirmation**. When price crosses VWAP with strength, it identifies the potential zone of excess demand (below VWAP) or supply (above VWAP), marking it visually with colored regions on the chart.
Each zone is extended for a user-defined duration, monitored for touch interactions (tests), and tracked for possible breaks. The script helps traders interpret price behavior around these institutional zones as either **reversal** opportunities or **continuation** confirmation depending on context and strategy preference.
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### How It Works:
* **VWAP Basis**: Zones are anchored at VWAP at the time of a significant cross.
* **Volume & Momentum Filters**: Crosses are only considered valid if backed by above-average volume and notable price momentum.
* **Zone Drawing**: Validated supply and demand zones are drawn as boxes on the chart. Each is extended forward for a customizable number of bars.
* **Touch Counting**: Zones track the number of price touches. Alerts are issued after a user-defined number of tests.
* **Break Detection**: If price closes significantly beyond a zone boundary, the zone is marked as broken and visually dimmed.
* **Visual Dashboard (HUD)**: A compact real-time HUD displays VWAP value, active zone counts, and current market bias.
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### How to Use It:
**Reversal Trading:**
* Look for price **rejecting** a zone after touching it.
* Use rejection candles or secondary indicators (e.g., RSI divergence) to confirm.
* These setups may offer low-risk entries when price respects the zone.
**Continuation Trading:**
* A **break of a zone** suggests strong directional bias.
* Use confirmed zone breaks to enter in the direction of momentum.
* Ideal in trending environments, especially with high volume and ATR movement.
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### Key Inputs:
* **VWAP Length**: Moving VWAP period (default: 20)
* **Zone Width %**: Percentage size of zone buffer (default: 0.5%)
* **Min Touches**: How many times price must test a zone before alerts trigger
* **Zone Extension**: How far into the future zones are projected
* **Volume & ATR Filters**: Ensure only strong, valid crossovers create zones
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### Alerts:
You can enable alerts for:
* **New zone creation**
* **Zone tests (after minimum touch count)**
* **Zone breaks**
* **VWAP crosses**
* **Active presence inside a zone (entry conditions)**
These alerts help automate market monitoring, making it suitable for discretionary or systematic workflows.
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### Why It's a New Script:
This is not a cosmetic update. The internal logic, signal generation, filtering methodology, visual engine, and UX framework have been entirely rebuilt from the ground up. The result is a highly adaptive, precision-oriented tool — appropriate for intraday scalpers and swing traders alike. It goes far beyond the original in terms of functionality and reliability, justifying a fresh release.
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### Suitable Markets and Timeframes:
* Works across all liquid markets (crypto, equities, futures, forex)
* Best used on timeframes where volume data is stable (5m and above recommended)
* Recalibrate inputs for optimal detection across instruments
Market Zone Analyzer[BullByte]Understanding the Market Zone Analyzer
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1. Purpose of the Indicator
The Market Zone Analyzer is a Pine Script™ (version 6) indicator designed to streamline market analysis on TradingView. Rather than scanning multiple separate tools, it unifies four core dimensions—trend strength, momentum, price action, and market activity—into a single, consolidated view. By doing so, it helps traders:
• Save time by avoiding manual cross-referencing of disparate signals.
• Reduce decision-making errors that can arise from juggling multiple indicators.
• Gain a clear, reliable read on whether the market is in a bullish, bearish, or sideways phase, so they can more confidently decide to enter, exit, or hold a position.
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2. Why a Trader Should Use It
• Unified View: Combines all essential market dimensions into one easy-to-read score and dashboard, eliminating the need to piece together signals manually.
• Adaptability: Automatically adjusts its internal weighting for trend, momentum, and price action based on current volatility. Whether markets are choppy or calm, the indicator remains relevant.
• Ease of Interpretation: Outputs a simple “BULLISH,” “BEARISH,” or “SIDEWAYS” label, supplemented by an intuitive on-chart dashboard and an oscillator plot that visually highlights market direction.
• Reliability Features: Built-in smoothing of the net score and hysteresis logic (requiring consecutive confirmations before flips) minimize false signals during noisy or range-bound phases.
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3. Why These Specific Indicators?
This script relies on a curated set of well-established technical tools, each chosen for its particular strength in measuring one of the four core dimensions:
1. Trend Strength:
• ADX/DMI (Average Directional Index / Directional Movement Index): Measures how strong a trend is, and whether the +DI line is above the –DI line (bullish) or vice versa (bearish).
• Moving Average Slope (Fast MA vs. Slow MA): Compares a shorter-period SMA to a longer-period SMA; if the fast MA sits above the slow MA, it confirms an uptrend, and vice versa for a downtrend.
• Ichimoku Cloud Differential (Senkou A vs. Senkou B): Provides a forward-looking view of trend direction; Senkou A above Senkou B signals bullishness, and the opposite signals bearishness.
2. Momentum:
• Relative Strength Index (RSI): Identifies overbought (above its dynamically calculated upper bound) or oversold (below its lower bound) conditions; changes in RSI often precede price reversals.
• Stochastic %K: Highlights shifts in short-term momentum by comparing closing price to the recent high/low range; values above its upper band signal bullish momentum, below its lower band signal bearish momentum.
• MACD Histogram: Measures the difference between the MACD line and its signal line; a positive histogram indicates upward momentum, a negative histogram indicates downward momentum.
3. Price Action:
• Highest High / Lowest Low (HH/LL) Range: Over a defined lookback period, this captures breakout or breakdown levels. A closing price near the recent highs (with a positive MA slope) yields a bullish score, and near the lows (with a negative MA slope) yields a bearish score.
• Heikin-Ashi Doji Detection: Uses Heikin-Ashi candles to identify indecision or continuation patterns. A small Heikin-Ashi body (doji) relative to recent volatility is scored as neutral; a larger body in the direction of the MA slope is scored bullish or bearish.
• Candle Range Measurement: Compares each candle’s high-low range against its own dynamic band (average range ± standard deviation). Large candles aligning with the prevailing trend score bullish or bearish accordingly; unusually small candles can indicate exhaustion or consolidation.
4. Market Activity:
• Bollinger Bands Width (BBW): Measures the distance between BB upper and lower bands; wide bands indicate high volatility, narrow bands indicate low volatility.
• Average True Range (ATR): Quantifies average price movement (volatility). A sudden spike in ATR suggests a volatile environment, while a contraction suggests calm.
• Keltner Channels Width (KCW): Similar to BBW but uses ATR around an EMA. Provides a second layer of volatility context, confirming or contrasting BBW readings.
• Volume (with Moving Average): Compares current volume to its moving average ± standard deviation. High volume validates strong moves; low volume signals potential lack of conviction.
By combining these tools, the indicator captures trend direction, momentum strength, price-action nuances, and overall market energy, yielding a more balanced and comprehensive assessment than any single tool alone.
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4. What Makes This Indicator Stand Out
• Multi-Dimensional Analysis: Rather than relying on a lone oscillator or moving average crossover, it simultaneously evaluates trend, momentum, price action, and activity.
• Dynamic Weighting: The relative importance of trend, momentum, and price action adjusts automatically based on real-time volatility (Market Activity State). For example, in highly volatile conditions, trend and momentum signals carry more weight; in calm markets, price action signals are prioritized.
• Stability Mechanisms:
• Smoothing: The net score is passed through a short moving average, filtering out noise, especially on lower timeframes.
• Hysteresis: Both Market Activity State and the final bullish/bearish/sideways zone require two consecutive confirmations before flipping, reducing whipsaw.
• Visual Interpretation: A fully customizable on-chart dashboard displays each sub-indicator’s value, regime, score, and comment, all color-coded. The oscillator plot changes color to reflect the current market zone (green for bullish, red for bearish, gray for sideways) and shows horizontal threshold lines at +2, 0, and –2.
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5. Recommended Timeframes
• Short-Term (5 min, 15 min): Day traders and scalpers can benefit from rapid signals, but should enable smoothing (and possibly disable hysteresis) to reduce false whipsaws.
• Medium-Term (1 h, 4 h): Swing traders find a balance between responsiveness and reliability. Less smoothing is required here, and the default parameters (e.g., ADX length = 14, RSI length = 14) perform well.
• Long-Term (Daily, Weekly): Position traders tracking major trends can disable smoothing for immediate raw readings, since higher-timeframe noise is minimal. Adjust lookback lengths (e.g., increase adxLength, rsiLength) if desired for slower signals.
Tip: If you keep smoothing off, stick to timeframes of 1 h or higher to avoid excessive signal “chatter.”
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6. How Scoring Works
A. Individual Indicator Scores
Each sub-indicator is assigned one of three discrete scores:
• +1 if it indicates a bullish condition (e.g., RSI above its dynamically calculated upper bound).
• 0 if it is neutral (e.g., RSI between upper and lower bounds).
• –1 if it indicates a bearish condition (e.g., RSI below its dynamically calculated lower bound).
Examples of individual score assignments:
• ADX/DMI:
• +1 if ADX ≥ adxThreshold and +DI > –DI (strong bullish trend)
• –1 if ADX ≥ adxThreshold and –DI > +DI (strong bearish trend)
• 0 if ADX < adxThreshold (trend strength below threshold)
• RSI:
• +1 if RSI > RSI_upperBound
• –1 if RSI < RSI_lowerBound
• 0 otherwise
• ATR (as part of Market Activity):
• +1 if ATR > (ATR_MA + stdev(ATR))
• –1 if ATR < (ATR_MA – stdev(ATR))
• 0 otherwise
Each of the four main categories shares this same +1/0/–1 logic across their sub-components.
B. Category Scores
Once each sub-indicator reports +1, 0, or –1, these are summed within their categories as follows:
• Trend Score = (ADX score) + (MA slope score) + (Ichimoku differential score)
• Momentum Score = (RSI score) + (Stochastic %K score) + (MACD histogram score)
• Price Action Score = (Highest-High/Lowest-Low score) + (Heikin-Ashi doji score) + (Candle range score)
• Market Activity Raw Score = (BBW score) + (ATR score) + (KC width score) + (Volume score)
Each category’s summed value can range between –3 and +3 (for Trend, Momentum, and Price Action), and between –4 and +4 for Market Activity raw.
C. Market Activity State and Dynamic Weight Adjustments
Rather than contributing directly to the netScore like the other three categories, Market Activity determines how much weight to assign to Trend, Momentum, and Price Action:
1. Compute Market Activity Raw Score by summing BBW, ATR, KCW, and Volume individual scores (each +1/0/–1).
2. Bucket into High, Medium, or Low Activity:
• High if raw Score ≥ 2 (volatile market).
• Low if raw Score ≤ –2 (calm market).
• Medium otherwise.
3. Apply Hysteresis (if enabled): The state only flips after two consecutive bars register the same high/low/medium label.
4. Set Category Weights:
• High Activity: Trend = 50 %, Momentum = 35 %, Price Action = 15 %.
• Low Activity: Trend = 25 %, Momentum = 20 %, Price Action = 55 %.
• Medium Activity: Use the trader’s base weight inputs (e.g., Trend = 40 %, Momentum = 30 %, Price Action = 30 % by default).
D. Calculating the Net Score
5. Normalize Base Weights (so that the sum of Trend + Momentum + Price Action always equals 100 %).
6. Determine Current Weights based on the Market Activity State (High/Medium/Low).
7. Compute Each Category’s Contribution: Multiply (categoryScore) × (currentWeight).
8. Sum Contributions to get the raw netScore (a floating-point value that can exceed ±3 when scores are strong).
9. Smooth the netScore over two bars (if smoothing is enabled) to reduce noise.
10. Apply Hysteresis to the Final Zone:
• If the smoothed netScore ≥ +2, the bar is classified as “Bullish.”
• If the smoothed netScore ≤ –2, the bar is classified as “Bearish.”
• Otherwise, it is “Sideways.”
• To prevent rapid flips, the script requires two consecutive bars in the new zone before officially changing the displayed zone (if hysteresis is on).
E. Thresholds for Zone Classification
• BULLISH: netScore ≥ +2
• BEARISH: netScore ≤ –2
• SIDEWAYS: –2 < netScore < +2
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7. Role of Volatility (Market Activity State) in Scoring
Volatility acts as a dynamic switch that shifts which category carries the most influence:
1. High Activity (Volatile):
• Detected when at least two sub-scores out of BBW, ATR, KCW, and Volume equal +1.
• The script sets Trend weight = 50 % and Momentum weight = 35 %. Price Action weight is minimized at 15 %.
• Rationale: In volatile markets, strong trending moves and momentum surges dominate, so those signals are more reliable than nuanced candle patterns.
2. Low Activity (Calm):
• Detected when at least two sub-scores out of BBW, ATR, KCW, and Volume equal –1.
• The script sets Price Action weight = 55 %, Trend = 25 %, and Momentum = 20 %.
• Rationale: In quiet, sideways markets, subtle price-action signals (breakouts, doji patterns, small-range candles) are often the best early indicators of a new move.
3. Medium Activity (Balanced):
• Raw Score between –1 and +1 from the four volatility metrics.
• Uses whatever base weights the trader has specified (e.g., Trend = 40 %, Momentum = 30 %, Price Action = 30 %).
Because volatility can fluctuate rapidly, the script employs hysteresis on Market Activity State: a new High or Low state must occur on two consecutive bars before weights actually shift. This avoids constant back-and-forth weight changes and provides more stability.
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8. Scoring Example (Hypothetical Scenario)
• Symbol: Bitcoin on a 1-hour chart.
• Market Activity: Raw volatility sub-scores show BBW (+1), ATR (+1), KCW (0), Volume (+1) → Total raw Score = +3 → High Activity.
• Weights Selected: Trend = 50 %, Momentum = 35 %, Price Action = 15 %.
• Trend Signals:
• ADX strong and +DI > –DI → +1
• Fast MA above Slow MA → +1
• Ichimoku Senkou A > Senkou B → +1
→ Trend Score = +3
• Momentum Signals:
• RSI above upper bound → +1
• MACD histogram positive → +1
• Stochastic %K within neutral zone → 0
→ Momentum Score = +2
• Price Action Signals:
• Highest High/Lowest Low check yields 0 (close not near extremes)
• Heikin-Ashi doji reading is neutral → 0
• Candle range slightly above upper bound but trend is strong, so → +1
→ Price Action Score = +1
• Compute Net Score (before smoothing):
• Trend contribution = 3 × 0.50 = 1.50
• Momentum contribution = 2 × 0.35 = 0.70
• Price Action contribution = 1 × 0.15 = 0.15
• Raw netScore = 1.50 + 0.70 + 0.15 = 2.35
• Since 2.35 ≥ +2 and hysteresis is met, the final zone is “Bullish.”
Although the netScore lands at 2.35 (Bullish), smoothing might bring it slightly below 2.00 on the first bar (e.g., 1.90), in which case the script would wait for a second consecutive reading above +2 before officially classifying the zone as Bullish (if hysteresis is enabled).
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9. Correlation Between Categories
The four categories—Trend Strength, Momentum, Price Action, and Market Activity—often reinforce or offset one another. The script takes advantage of these natural correlations:
• Bullish Alignment: If ADX is strong and pointed upward, fast MA is above slow MA, and Ichimoku is positive, that usually coincides with RSI climbing above its upper bound and the MACD histogram turning positive. In such cases, both Trend and Momentum categories generate +1 or +2. Because the Market Activity State is likely High (given the accompanying volatility), Trend and Momentum weights are at their peak, so the netScore quickly crosses into Bullish territory.
• Sideways/Consolidation: During a low-volatility, sideways phase, ADX may fall below its threshold, MAs may flatten, and RSI might hover in the neutral band. However, subtle price-action signals (like a small breakout candle or a Heikin-Ashi candle with a slight bias) can still produce a +1 in the Price Action category. If Market Activity is Low, Price Action’s weight (55 %) can carry enough influence—even if Trend and Momentum are neutral—to push the netScore out of “Sideways” into a mild bullish or bearish bias.
• Opposing Signals: When Trend is bullish but Momentum turns negative (for example, price continues up but RSI rolls over), the two scores can partially cancel. Market Activity may remain Medium, in which case the netScore lingers near zero (Sideways). The trader can then wait for either a clearer momentum shift or a fresh price-action breakout before committing.
By dynamically recognizing these correlations and adjusting weights, the indicator ensures that:
• When Trend and Momentum align (and volatility supports it), the netScore leaps strongly into Bullish or Bearish.
• When Trend is neutral but Price Action shows an early move in a low-volatility environment, Price Action’s extra weight in the Low Activity State can still produce actionable signals.
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10. Market Activity State & Its Role (Detailed)
The Market Activity State is not a direct category score—it is an overarching context setter for how heavily to trust Trend, Momentum, or Price Action. Here’s how it is derived and applied:
1. Calculate Four Volatility Sub-Scores:
• BBW: Compare the current band width to its own moving average ± standard deviation. If BBW > (BBW_MA + stdev), assign +1 (high volatility); if BBW < (BBW_MA × 0.5), assign –1 (low volatility); else 0.
• ATR: Compare ATR to its moving average ± standard deviation. A spike above the upper threshold is +1; a contraction below the lower threshold is –1; otherwise 0.
• KCW: Same logic as ATR but around the KCW mean.
• Volume: Compare current volume to its volume MA ± standard deviation. Above the upper threshold is +1; below the lower threshold is –1; else 0.
2. Sum Sub-Scores → Raw Market Activity Score: Range between –4 and +4.
3. Assign Market Activity State:
• High Activity: Raw Score ≥ +2 (at least two volatility metrics are strongly spiking).
• Low Activity: Raw Score ≤ –2 (at least two metrics signal unusually low volatility or thin volume).
• Medium Activity: Raw Score is between –1 and +1 inclusive.
4. Hysteresis for Stability:
• If hysteresis is enabled, a new state only takes hold after two consecutive bars confirm the same High, Medium, or Low label.
• This prevents the Market Activity State from bouncing around when volatility is on the fence.
5. Set Category Weights Based on Activity State:
• High Activity: Trend = 50 %, Momentum = 35 %, Price Action = 15 %.
• Low Activity: Trend = 25 %, Momentum = 20 %, Price Action = 55 %.
• Medium Activity: Use trader’s base weights (e.g., Trend = 40 %, Momentum = 30 %, Price Action = 30 %).
6. Impact on netScore: Because category scores (–3 to +3) multiply by these weights, High Activity amplifies the effect of strong Trend and Momentum scores; Low Activity amplifies the effect of Price Action.
7. Market Context Tooltip: The dashboard includes a tooltip summarizing the current state—e.g., “High activity, trend and momentum prioritized,” “Low activity, price action prioritized,” or “Balanced market, all categories considered.”
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11. Category Weights: Base vs. Dynamic
Traders begin by specifying base weights for Trend Strength, Momentum, and Price Action that sum to 100 %. These apply only when volatility is in the Medium band. Once volatility shifts:
• High Volatility Overrides:
• Trend jumps from its base (e.g., 40 %) to 50 %.
• Momentum jumps from its base (e.g., 30 %) to 35 %.
• Price Action is reduced to 15 %.
Example: If base weights were Trend = 40 %, Momentum = 30 %, Price Action = 30 %, then in High Activity they become 50/35/15. A Trend score of +3 now contributes 3 × 0.50 = +1.50 to netScore; a Momentum +2 contributes 2 × 0.35 = +0.70. In total, Trend + Momentum can easily push netScore above the +2 threshold on its own.
• Low Volatility Overrides:
• Price Action leaps from its base (30 %) to 55 %.
• Trend falls to 25 %, Momentum falls to 20 %.
Why? When markets are quiet, subtle candle breakouts, doji patterns, and small-range expansions tend to foreshadow the next swing more effectively than raw trend readings. A Price Action score of +3 in this state contributes 3 × 0.55 = +1.65, which can carry the netScore toward +2—even if Trend and Momentum are neutral or only mildly positive.
Because these weight shifts happen only after two consecutive bars confirm a High or Low state (if hysteresis is on), the indicator avoids constantly flipping its emphasis during borderline volatility phases.
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12. Dominant Category Explained
Within the dashboard, a label such as “Trend Dominant,” “Momentum Dominant,” or “Price Action Dominant” appears when one category’s absolute weighted contribution to netScore is the largest. Concretely:
• Compute each category’s weighted contribution = (raw category score) × (current weight).
• Compare the absolute values of those three contributions.
• The category with the highest absolute value is flagged as Dominant for that bar.
Why It Matters:
• Momentum Dominant: Indicates that the combined force of RSI, Stochastic, and MACD (after weighting) is pushing netScore farther than either Trend or Price Action. In practice, it means that short-term sentiment and speed of change are the primary drivers right now, so traders should watch for continued momentum signals before committing to a trade.
• Trend Dominant: Means ADX, MA slope, and Ichimoku (once weighted) outweigh the other categories. This suggests a strong directional move is in place; trend-following entries or confirming pullbacks are likely to succeed.
• Price Action Dominant: Occurs when breakout/breakdown patterns, Heikin-Ashi candle readings, and range expansions (after weighting) are the most influential. This often happens in calmer markets, where subtle shifts in candle structure can foreshadow bigger moves.
By explicitly calling out which category is carrying the most weight at any moment, the dashboard gives traders immediate insight into why the netScore is tilting toward bullish, bearish, or sideways.
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13. Oscillator Plot: How to Read It
The “Net Score” oscillator sits below the dashboard and visually displays the smoothed netScore as a line graph. Key features:
1. Value Range: In normal conditions it oscillates roughly between –3 and +3, but extreme confluences can push it outside that range.
2. Horizontal Threshold Lines:
• +2 Line (Bullish threshold)
• 0 Line (Neutral midline)
• –2 Line (Bearish threshold)
3. Zone Coloring:
• Green Background (Bullish Zone): When netScore ≥ +2.
• Red Background (Bearish Zone): When netScore ≤ –2.
• Gray Background (Sideways Zone): When –2 < netScore < +2.
4. Dynamic Line Color:
• The plotted netScore line itself is colored green in a Bullish Zone, red in a Bearish Zone, or gray in a Sideways Zone, creating an immediate visual cue.
Interpretation Tips:
• Crossing Above +2: Signals a strong enough combined trend/momentum/price-action reading to classify as Bullish. Many traders wait for a clear crossing plus a confirmation candle before entering a long position.
• Crossing Below –2: Indicates a strong Bearish signal. Traders may consider short or exit strategies.
• Rising Slope, Even Below +2: If netScore climbs steadily from neutral toward +2, it demonstrates building bullish momentum.
• Divergence: If price makes a higher high but the oscillator fails to reach a new high, it can warn of weakening momentum and a potential reversal.
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14. Comments and Their Necessity
Every sub-indicator (ADX, MA slope, Ichimoku, RSI, Stochastic, MACD, HH/LL, Heikin-Ashi, Candle Range, BBW, ATR, KCW, Volume) generates a short comment that appears in the detailed dashboard. Examples:
• “Strong bullish trend” or “Strong bearish trend” for ADX/DMI
• “Fast MA above slow MA” or “Fast MA below slow MA” for MA slope
• “RSI above dynamic threshold” or “RSI below dynamic threshold” for RSI
• “MACD histogram positive” or “MACD histogram negative” for MACD Hist
• “Price near highs” or “Price near lows” for HH/LL checks
• “Bullish Heikin Ashi” or “Bearish Heikin Ashi” for HA Doji scoring
• “Large range, trend confirmed” or “Small range, trend contradicted” for Candle Range
Additionally, the top-row comment for each category is:
• Trend: “Highly Bullish,” “Highly Bearish,” or “Neutral Trend.”
• Momentum: “Strong Momentum,” “Weak Momentum,” or “Neutral Momentum.”
• Price Action: “Bullish Action,” “Bearish Action,” or “Neutral Action.”
• Market Activity: “Volatile Market,” “Calm Market,” or “Stable Market.”
Reasons for These Comments:
• Transparency: Shows exactly how each sub-indicator contributed to its category score.
• Education: Helps traders learn why a category is labeled bullish, bearish, or neutral, building intuition over time.
• Customization: If, for example, the RSI comment says “RSI neutral” despite an impending trend shift, a trader might choose to adjust RSI length or thresholds.
In the detailed dashboard, hovering over each comment cell also reveals a tooltip with additional context (e.g., “Fast MA above slow MA” or “Senkou A above Senkou B”), helping traders understand the precise rule behind that +1, 0, or –1 assignment.
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15. Real-Life Example (Consolidated)
• Instrument & Timeframe: Bitcoin (BTCUSD), 1-hour chart.
• Current Market Activity: BBW and ATR both spike (+1 each), KCW is moderately high (+1), but volume is only neutral (0) → Raw Market Activity Score = +2 → State = High Activity (after two bars, if hysteresis is on).
• Category Weights Applied: Trend = 50 %, Momentum = 35 %, Price Action = 15 %.
• Trend Sub-Scores:
1. ADX = 25 (above threshold 20) with +DI > –DI → +1.
2. Fast MA (20-period) sits above Slow MA (50-period) → +1.
3. Ichimoku: Senkou A > Senkou B → +1.
→ Trend Score = +3.
• Momentum Sub-Scores:
4. RSI = 75 (above its moving average +1 stdev) → +1.
5. MACD histogram = +0.15 → +1.
6. Stochastic %K = 50 (mid-range) → 0.
→ Momentum Score = +2.
• Price Action Sub-Scores:
7. Price is not within 1 % of the 20-period high/low and slope = positive → 0.
8. Heikin-Ashi body is slightly larger than stdev over last 5 bars with haClose > haOpen → +1.
9. Candle range is just above its dynamic upper bound but trend is already captured, so → +1.
→ Price Action Score = +2.
• Calculate netScore (before smoothing):
• Trend contribution = 3 × 0.50 = 1.50
• Momentum contribution = 2 × 0.35 = 0.70
• Price Action contribution = 2 × 0.15 = 0.30
• Raw netScore = 1.50 + 0.70 + 0.30 = 2.50 → Immediately classified as Bullish.
• Oscillator & Dashboard Output:
• The oscillator line crosses above +2 and turns green.
• Dashboard displays:
• Trend Regime “BULLISH,” Trend Score = 3, Comment = “Highly Bullish.”
• Momentum Regime “BULLISH,” Momentum Score = 2, Comment = “Strong Momentum.”
• Price Action Regime “BULLISH,” Price Action Score = 2, Comment = “Bullish Action.”
• Market Activity State “High,” Comment = “Volatile Market.”
• Weights: Trend 50 %, Momentum 35 %, Price Action 15 %.
• Dominant Category: Trend (because 1.50 > 0.70 > 0.30).
• Overall Score: 2.50, posCount = (three +1s in Trend) + (two +1s in Momentum) + (two +1s in Price Action) = 7 bullish signals, negCount = 0.
• Final Zone = “BULLISH.”
• The trader sees that both Trend and Momentum are reinforcing each other under high volatility. They might wait one more candle for confirmation but already have strong evidence to consider a long.
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Disclaimer
This indicator is strictly a technical analysis tool and does not constitute financial advice. All trading involves risk, including potential loss of capital. Past performance is not indicative of future results. Traders should:
• Always backtest the “Market Zone Analyzer ” on their chosen symbols and timeframes before committing real capital.
• Combine this tool with sound risk management, position sizing, and, if possible, fundamental analysis.
• Understand that no indicator is foolproof; always be prepared for unexpected market moves.
Goodluck
-BullByte!
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