JOAT Pressure Composite [JOAT]

JOAT Pressure Composite [JOAT]

Introduction

JOAT Pressure Composite is an open-source accumulation-distribution and participation oscillator built to measure whether buying or selling pressure is strengthening, weakening, rotating, or diverging from price.

It is designed to expose internal sponsorship behind price movement rather than price movement alone.

The script combines weighted close-location flow, relative-volume sponsorship, volume sigma, effort, efficiency, momentum bias, VWAP bias, and confirmed higher-timeframe context into one composite pressure model.

The problem it solves is hidden participation.

Price can rise on weak effort.

Price can fall on poor sponsorship.

Price can continue moving while internal pressure deteriorates.

Pressure Composite tries to expose those changes earlier by measuring how much of the move is actually being sponsored by participation.

The oscillator pane carries the composite, signal line, envelope, flow ribbon, and extreme states.

At the same time, the indicator projects tailored information onto the main chart.

Price divergence is labeled clearly.

Expansion and absorption states are labeled directly on candles.

Anchored VWAP and trend context are overlaid on price so the oscillator and chart remain connected.



Core Concepts

1. Weighted Pressure Engine

The base flow uses close-location value and weighted volume.

2. Pressure Z-Score

The raw pressure series is normalized with a Z-score.

3. Sigma and Effort Layers

Volume sigma and effort help distinguish aggressive participation from ordinary rotation.

4. Efficiency Bias

The script measures whether price is moving efficiently over the selected lookback.

5. VWAP Bias

Distance from anchored VWAP is normalized in ATR terms.

6. Confirmed Divergence Logic

Pivot-based divergence compares oscillator highs and lows to price highs and lows.

7. Expansion and Absorption Labels

The chart prints Bid Expansion, Offer Expansion, Bull Absorption, and Bear Absorption labels directly on price.

8. Confirmed Higher-Timeframe Context

The script pulls confirmed HTF composite states only.



Features

• Composite pressure model: blends pressure, effort, sigma, efficiency, and VWAP bias
• Flow ribbon: shows whether pressure is widening or fading
• Envelope and extreme states: separates normal expansion from aggressive pressure
• Confirmed divergence detection: compares oscillator pivots to price pivots
• Clear divergence labeling: bullish and bearish pressure divergence is labeled directly on price
• Expansion / absorption labels: market states are marked on actual candles
• Anchored VWAP context: projected onto the chart for alignment
• Fast / slow trend context: price-side guides remain visible while using the oscillator
• Confirmed HTF states: non-repainting higher-timeframe pressure context
• No dashboard: information is pushed into the chart and oscillator instead of a table

Input Parameters

Composite Engine:

• Smoothing Type
• Flow Smoothing
• Normalization Length
• Relative Volume Baseline
• Relative Volume Boost
• Volume Sigma Length
• Effort Smoothing
• Efficiency Length
• Signal Length
• Envelope Length
• Envelope Multiplier
• Extreme Multiplier
• Pivot Length
• Divergence Scan
• ATR Length

Qualification / Display:

• Use Trend Gate
• Trend Fast EMA
• Trend Slow EMA
• Use VWAP Gate
• Minimum Spread
• Show Histogram
• Show Signal Line
• Show Envelope
• Show Flow Ribbon
• Show Divergence
• Tint Price Bars
• Shade Momentum States
• Show Price Context
• Show Price Event Labels

How to Use This Indicator

Step 1: Read the composite vs signal relationship to judge widening or fading pressure.

Step 2: Check whether the state is expansion or absorption.

Step 3: Watch labeled divergences closely, especially after extension.

Step 4: Use anchored VWAP and trend overlays to connect the oscillator back to price structure.

Step 5: Use confirmed HTF context as a quality filter rather than a prediction tool.

Indicator Limitations

• Divergences can persist before price responds
• Confirmed higher-timeframe context intentionally lags unfinished HTF candles
• Low-volume environments can flatten the composite even while price drifts
• Pressure quality does not guarantee immediate reversal or continuation

Originality Statement

This script is original in how it integrates weighted close-location flow, RVOL sponsorship, sigma, effort, efficiency, VWAP distance, confirmed HTF context, and direct price-chart state labeling into one coherent participation framework.

The components are combined because they all address one question:

how much real sponsorship exists behind current price movement.

Disclaimer

This indicator is provided for educational and informational purposes only.

It is not financial advice.

Pressure readings and divergences do not guarantee reversal or continuation.

Use the script as context and confirmation, not as a promise of outcome.

Best Use Cases

• Measuring whether price movement is being sponsored by real participation
• Spotting divergence between price and internal pressure
• Reading expansion versus absorption conditions
• Combining participation context with VWAP and trend structure

Interpretation Notes

The strongest bullish pressure states usually include positive pressure, supportive spread, constructive effort, and favorable price context above value.

The strongest bearish pressure states are the mirror image.

Divergences are most useful when they appear after extension or at major contextual levels.

Absorption labels should be treated as warnings that apparent directional continuation may be losing quality.

Publication Notes

This script is intended to be published with a clean chart where the oscillator, labeled divergence, and at least one price-context label are clearly visible.

Because there is no dashboard, the publication image should make the chart-side annotations easy to read.

Keep the chart clean so the viewer can immediately understand that the script links oscillator behavior back to price.

-Made with passion by jackofalltrades\