PROTECTED SOURCE SCRIPT
ProTrend System

# ProTrend System [Antigravity] - Complete Guide
> **Version:** Pine Script v6
> **Author:** Antigravity
> **Type:** All-in-One Trading Indicator
---
## 📋 Table of Contents
1. [Overview](#overview)
2. [Key Features](#key-features)
3. [How to Install](#how-to-install)
4. [Understanding the Dashboard](#understanding-the-dashboard)
5. [Support & Resistance Zones](#support--resistance-zones)
6. [Smart Trendlines](#smart-trendlines)
7. [RSI Divergence Detection](#rsi-divergence-detection)
8. [Trap Detection (Bear/Bull Traps)](#trap-detection)
9. [Market State Explained](#market-state-explained)
10. [AI Score System](#ai-score-system)
11. [BUY & SELL Signals](#buy--sell-signals)
12. [Settings Guide](#settings-guide)
13. [Trading Strategies](#trading-strategies)
14. [FAQ](#faq)
---
## Overview
The **ProTrend System** is an all-in-one trading indicator that combines multiple professional trading concepts into a single, easy-to-use tool. It automatically:
- Finds support and resistance zones
- Draws trendlines with touch validation
- Detects divergences (regular and hidden)
- Spots trap patterns before they catch you
- Calculates an AI confidence score
- Generates BUY/SELL signals with stop-loss and take-profit levels
**Perfect for:** Forex, Stocks, Crypto, Futures, Options
---
## Key Features
| Feature | Description |
|---------|-------------|
| 🎯 Auto S/R Zones | Automatically finds price floors and ceilings |
| 📈 Smart Trendlines | Multi-touch validated lines with breakout alerts |
| 🔄 Divergence Engine | Detects regular + hidden divergences with strength rating |
| 🪤 Trap Detector | Finds bear/bull traps including hidden traps |
| 🧠 AI Score | Confidence meter from 0-20 based on multiple factors |
| 📊 Market State | Shows LONG BUILDUP, SHORT COVERING, etc. |
| 🚀 Signal Generator | Clear BUY/SELL signals with SL/TP levels |
| ⚙️ Auto-Tune | Automatically adjusts settings based on timeframe |
---
## How to Install
1. Open TradingView
2. Click "Pine Editor" at the bottom
3. Delete any existing code
4. Paste the ProTrend System code
5. Click "Add to Chart"
6. Customize settings as needed
---
## Understanding the Dashboard
The dashboard appears in the **bottom-right corner** of your chart:
| Row | Label | What It Shows |
|-----|-------|---------------|
| 1 | **ProTrend AI** | Header (title) |
| 2 | **Trend** | BULLISH / BEARISH / RANGING |
| 3 | **MTF** | Higher timeframe confirmation |
| 4 | **Mkt State** | Market state (see section below) |
| 5 | **Active Zones** | Number of S/R zones on chart |
| 6 | **Momentum** | RSI value with HOT/COLD status |
| 7 | **Strength** | EXPLOSIVE 🚀 / STRONG / WEAK |
| 8 | **AI Score** | Confidence score out of 20 |
| 9 | **Auto-Tune** | ON/OFF with current period |
---
## Support & Resistance Zones
### What Are They?
- **Support (Green Boxes)** = Price levels where falling price tends to stop and bounce UP
- **Resistance (Red Boxes)** = Price levels where rising price tends to stop and bounce DOWN
### How They're Created
1. When price makes a pivot high → Resistance zone is drawn
2. When price makes a pivot low → Support zone is drawn
3. More touches = Darker/stronger zone
4. When price breaks through → Zone is automatically deleted
### Trading With Zones
- **BUY** when price bounces off support (green box)
- **SELL** when price rejects from resistance (red box)
- Stronger zones (darker) = More reliable bounces
---
## Smart Trendlines
### How They Work
The indicator connects the last 3-5 price pivots to create trendlines:
- **Support Trendline (Green)** = Connects lower pivot points
- **Resistance Trendline (Red)** = Connects upper pivot points
### Touch Validation
| Touches | Appearance | Reliability |
|---------|------------|-------------|
| 1-2 | Thin line | Low |
| 3+ | **Thick, bright line** | High ✅ |
### Breakout Detection
When price breaks through a trendline:
- 🚀 `TL BREAK UP` = Bullish breakout (price breaks above resistance)
- 💥 `TL BREAK DOWN` = Bearish breakdown (price breaks below support)
### Channel Detection
If both trendlines have similar slopes, the indicator recognizes it as a **channel** and changes lines to dashed style.
---
## RSI Divergence Detection
### What Is Divergence?
Divergence occurs when **price** and **momentum (RSI)** disagree:
| Type | Price Action | RSI Action | Meaning |
|------|--------------|------------|---------|
| **Regular Bullish** | Lower Low ⬇️ | Higher Low ⬆️ | Reversal UP likely |
| **Hidden Bullish** | Higher Low ⬆️ | Lower Low ⬇️ | Trend continuation UP |
| **Regular Bearish** | Higher High ⬆️ | Lower High ⬇️ | Reversal DOWN likely |
| **Hidden Bearish** | Lower High ⬇️ | Higher High ⬆️ | Trend continuation DOWN |
### Divergence Labels
| Label | Meaning |
|-------|---------|
| `D_REG` | Regular divergence |
| `D_HID` | Hidden divergence |
| `D_REG+` | Multi-swing divergence (3+ pivots) |
| `★` | Weak strength (1-3) |
| `★★` | Medium strength (4-6) |
| `★★★` | Strong strength (7-10) |
### Strength Factors
- RSI gap size (+0-3 points)
- Price gap size (+0-2 points)
- RSI in extreme zone <30 or >70 (+3 points)
- Multi-swing pattern (+2 points)
---
## Trap Detection
### What Are Traps?
Traps occur when price **fakes a breakout** to catch traders on the wrong side:
### Trap Types
| Type | What Happens | Visual Label |
|------|--------------|--------------|
| **Bear Trap (Basic)** | Price breaks below support, then reverses UP | `⚠ BEAR TRAP BASIC` |
| **Bear Trap (Liquidity)** | Trap occurs at a strong S/R zone | `⚠ BEAR TRAP LIQ` |
| **Bear Trap (Hidden)** | 2-bar trap with confirmation candle | `🔒 HIDDEN BEAR TRAP` |
| **Bull Trap (Basic)** | Price breaks above resistance, then reverses DOWN | `⚠ BULL TRAP BASIC` |
| **Bull Trap (Liquidity)** | Trap at strong S/R zone | `⚠ BULL TRAP LIQ` |
| **Bull Trap (Hidden)** | 2-bar trap with confirmation | `🔒 HIDDEN BULL TRAP` |
### Trap Strength Rating
| Stars | Conditions Met |
|-------|----------------|
| ★ | Basic trap only |
| ★★ | Trap + volume OR liquidity zone |
| ★★★ | Hidden trap + all confirmations |
### How to Trade Traps
- **Bear Trap** → Consider BUYING (the "breakdown" was fake)
- **Bull Trap** → Consider SELLING (the "breakout" was fake)
---
## Market State Explained
The market state shows you what **big institutional traders** are doing:
### The 4 States
#### 1. LONG BUILDUP 🟢
> *"Smart money is aggressively BUYING"*
| Price | Volume | Meaning |
|-------|--------|---------|
| ⬆️ UP | ⬆️ UP | Strong bullish conviction |
**Action:** Best time to BUY. Follow the institutional money!
---
#### 2. SHORT COVERING 🟠
> *"Sellers are exiting, but no new buyers are entering"*
| Price | Volume | Meaning |
|-------|--------|---------|
| ⬆️ UP | ⬇️ DOWN | Weak rally, might be temporary |
**Action:** Be cautious with longs. The rally may fade.
---
#### 3. SHORT BUILDUP 🔴
> *"Smart money is aggressively SELLING"*
| Price | Volume | Meaning |
|-------|--------|---------|
| ⬇️ DOWN | ⬆️ UP | Strong bearish conviction |
**Action:** Best time to SELL. Follow the institutional money!
---
#### 4. LONG UNWINDING 🟡
> *"Buyers are exiting, but no new sellers are attacking"*
| Price | Volume | Meaning |
|-------|--------|---------|
| ⬇️ DOWN | ⬇️ DOWN | Weak decline, might bounce |
**Action:** Be cautious with shorts. A bounce may come.
---
## AI Score System
The AI Score combines multiple factors into a single confidence rating:
### Score Components
| Factor | Points | Description |
|--------|--------|-------------|
| Trend Strength | +2 | Price trending (not ranging) |
| RSI < 40 | +1 | Oversold momentum |
| RSI < 30 | +1 | Extremely oversold |
| RSI > 60 | +1 | Overbought momentum |
| RSI > 70 | +1 | Extremely overbought |
| Divergence | +1-5 | Based on divergence strength |
| Multi-Swing Div | +2 | Divergence spans 3+ swings |
| Volume Spike | +2 | High volume confirmation |
| Liquidity Sweep | +3 | Stop-hunt pattern detected |
| Strong Trendline | +2 | 3+ touches on trendline |
| TL Breakout | +3 | Trendline breakout confirmed |
### Score Interpretation
| Score | Color | Signal Quality |
|-------|-------|----------------|
| 0-7 | Gray | Weak setup - avoid or use small size |
| 8-14 | Green | Good setup - trade normally |
| 15-20 | Purple | Excellent setup - **"AI GEM"** 💎 |
---
## BUY & SELL Signals
### BUY Signal Conditions
All of these must be true:
1. ✅ Trend is BULLISH (green background)
2. ✅ Price is at support zone OR on support trendline
3. ✅ Current candle shows rejection wick (long lower shadow)
4. ✅ Market is trending (not choppy)
5. ✅ AI Score meets minimum threshold
### SELL Signal Conditions
All of these must be true:
1. ✅ Trend is BEARISH (red background)
2. ✅ Price is at resistance zone OR on resistance trendline
3. ✅ Current candle shows rejection wick (long upper shadow)
4. ✅ Market is trending (not choppy)
5. ✅ AI Score meets minimum threshold
### Signal Labels
| Label | AI Score | Meaning |
|-------|----------|---------|
| `BUY` / `SELL` | Below threshold | Basic signal |
| `STRONG BUY/SELL` | + Recent divergence | Enhanced signal |
| `AI BUY/SELL` | ≥ Threshold | AI-validated signal |
| `AI GEM` | ≥ 7 (on old scale) | Highest quality 💎 |
### SL/TP Lines
Every signal draws:
- **Red dashed line** = Stop Loss level
- **Teal dashed line** = Take Profit level
- **Gray dotted line** = Entry level
---
## Settings Guide
### Main Settings
| Setting | Default | Description |
|---------|---------|-------------|
| Auto-Tune | ON | Automatically adjusts period based on timeframe |
| Manual Period | 20 | Lookback period if Auto-Tune is OFF |
### S/R Zones
| Setting | Default | Description |
|---------|---------|-------------|
| Show S/R Zones | ON | Display support/resistance boxes |
| Required Touches | 3 | Minimum touches to validate zone |
| Zone Width | 0.5% | Width relative to ATR |
| Max Active Zones | 10 | Limit to prevent chart clutter |
### Trendlines
| Setting | Default | Description |
|---------|---------|-------------|
| Show Trendlines | ON | Display auto trendlines |
| Source | Wick | Use wick highs/lows (or Body) |
| Extend Lines | ON | Project lines into future |
### Signals
| Setting | Default | Description |
|---------|---------|-------------|
| Volatility Filter | ON | Only signal in trending markets |
| Min Slope | 0.25 | Minimum trend angle |
| Require Confirmation | ON | Wait for confirmation candle |
| SL Buffer | 0.5x ATR | Stop loss distance |
| Risk:Reward | 2.0 | TP = 2x the risk |
### AI Filter
| Setting | Default | Description |
|---------|---------|-------------|
| Use AI Filter | ON | Filter signals by AI score |
| Min AI Score | 3 | Minimum score to show signal |
| Show Sweeps | ON | Display liquidity sweeps |
---
## Trading Strategies
### Strategy 1: Zone Bounce
1. Wait for price to reach a **strong S/R zone** (dark color)
2. Look for **rejection wick** candle
3. Check AI Score is **8+**
4. Enter on signal confirmation
5. Use provided SL/TP levels
### Strategy 2: Divergence Reversal
1. Look for **★★★ divergence** label
2. Confirm price is at zone or trendline
3. Wait for **AI GEM** signal
4. Enter with tight stop below divergence low
5. Target 2-3x risk
### Strategy 3: Trap Trade
1. Spot a **trap label** (bear or bull)
2. Enter OPPOSITE direction of the "fake" breakout
3. Stop loss just beyond trap low/high
4. Higher strength traps (★★★) = More reliable
### Strategy 4: Trendline Breakout
1. Wait for **thick trendline** (3+ touches)
2. Watch for 🚀 or 💥 breakout label
3. Confirm with **LONG BUILDUP** or **SHORT BUILDUP** state
4. Enter on pullback to broken trendline
5. Target previous swing or 2x ATR
---
## FAQ
### Q: Why am I not seeing any signals?
**A:** The indicator is selective. Signals only appear when ALL conditions align. This is by design to reduce false signals.
### Q: Can I use this on any timeframe?
**A:** Yes! The Auto-Tune feature automatically adjusts settings for each timeframe. Works best on 5m, 15m, 1H, 4H, and Daily.
### Q: What's the best Risk:Reward ratio?
**A:** Default is 2.0 (you risk 1 to gain 2). For trending markets, you can increase to 3.0.
### Q: Should I take every signal?
**A:** No. Focus on signals with:
- AI Score ≥ 10
- Aligned with Market State (LONG BUILDUP for buys)
- Multiple confirmations (zone + divergence + trendline)
### Q: How do I avoid traps?
**A:** The indicator shows you traps AFTER they form. If you're already in the trap, exit immediately. If you see a trap label, consider trading the OPPOSITE direction.
---
## Summary
The ProTrend System combines professional trading concepts into one indicator:
1. **Zones** tell you WHERE to trade
2. **Trendlines** confirm the DIRECTION
3. **Divergence** warns of REVERSALS
4. **Traps** protect you from FAKEOUTS
5. **Market State** shows INSTITUTIONAL activity
6. **AI Score** rates your CONFIDENCE
7. **Signals** tell you WHEN to enter
**Remember:** No indicator is perfect. Always use proper risk management!
---
## 📊 Market State Deep-Dive (For New Traders)
This section provides an in-depth explanation of the Market State feature, which is one of the most powerful yet least understood concepts in trading.
### What Is Market State?
Market State tells you what **big institutional traders** (banks, hedge funds, mutual funds) are doing RIGHT NOW with their positions. While retail traders (like us) can only see price, institutions move enough volume to leave "footprints" we can detect.
Think of it like this:
> *"Price tells you WHAT happened. Market State tells you WHO made it happen and WHY."*
---
### How Is It Calculated?
The indicator analyzes TWO key metrics on each candle:
| Metric | What We Look At | Meaning |
|--------|-----------------|---------|
| **Price Delta** | `Close - Open` | Did the candle close UP or DOWN? |
| **Volume Delta** | `Current Volume - Previous Volume` | Is activity INCREASING or DECREASING? |
By combining these two factors, we can determine the "character" of the market:
```
VOLUME
⬆️ UP ⬇️ DOWN
┌─────────┬─────────┐
⬆️ UP │ LONG │ SHORT │
PRICE │ BUILDUP │COVERING │
├─────────┼─────────┤
⬇️ DOWN │ SHORT │ LONG │
│ BUILDUP │UNWINDING│
└─────────┴─────────┘
```
---
### The 4 Market States Explained In Detail
---
#### 1️⃣ LONG BUILDUP 🟢
**What's Happening:**
> *"Smart money is aggressively BUYING and they're adding NEW positions."*
| Indicator | Value |
|-----------|-------|
| Price | Going UP ⬆️ |
| Volume | Going UP ⬆️ |
| Conviction | HIGH |
| Sustainability | STRONG |
**Real-World Analogy:**
Imagine a stadium concert. Not only are people rushing IN through the gates, but MORE people keep arriving. The crowd (price) grows, and the line (volume) at the entrance grows too.
**What This Means For You:**
- ✅ Strong bullish momentum
- ✅ Institutions are committing capital
- ✅ The move is likely to CONTINUE
- ✅ Best time to enter LONG positions
**Trading Action:**
- Look for BUY signals
- Add to existing long positions
- Higher AI score = more confidence
- Use wider stop losses (trend is strong)
**Visual Pattern on Chart:**
```
┃ ← Large green candle
┃ ┃ ← Increasing size
┃ ┃ ┃
┃ ┃ ┃ Volume bars getting TALLER ▓▓▓▓▓▓▓▓
┃ ┃ ┃ ▓▓▓▓▓▓
▓ ▓ ▓ ▓▓▓▓
```
---
#### 2️⃣ SHORT COVERING 🟠
**What's Happening:**
> *"Price is rising, but NOT because new buyers are entering. Instead, SELLERS are running away (closing their shorts)."*
| Indicator | Value |
|-----------|-------|
| Price | Going UP ⬆️ |
| Volume | Going DOWN ⬇️ |
| Conviction | LOW |
| Sustainability | WEAK |
**Real-World Analogy:**
The stadium is getting quieter, not louder. People aren't rushing IN - they're just the ones already inside moving toward the exits slowly. The apparent "activity" is just people leaving, not new arrivals.
**What This Means For You:**
- ⚠️ The rally is WEAK
- ⚠️ No fresh buying pressure
- ⚠️ Move may REVERSE soon
- ⚠️ This is often a "relief rally" or "dead cat bounce"
**Trading Action:**
- Be CAUTIOUS with new longs
- Take profits on existing longs
- Watch for reversal patterns
- Don't chase the move
**Visual Pattern on Chart:**
```
┃ ← Green candles
┃ ┃ ← But smaller
┃ ┃ ┃
Volume bars getting SHORTER
▓▓▓▓▓▓▓
▓▓▓▓
▓▓
```
**When You See This:**
If you're already in a LONG position → Consider taking partial profits
If you're looking to BUY → Wait for LONG BUILDUP instead
---
#### 3️⃣ SHORT BUILDUP 🔴
**What's Happening:**
> *"Smart money is aggressively SELLING and they're adding NEW short positions."*
| Indicator | Value |
|-----------|-------|
| Price | Going DOWN ⬇️ |
| Volume | Going UP ⬆️ |
| Conviction | HIGH |
| Sustainability | STRONG |
**Real-World Analogy:**
Panic at the stadium! People are rushing OUT through all exits, and MORE people keep trying to leave. The crowd (price) shrinks rapidly while chaos (volume) increases.
**What This Means For You:**
- ✅ Strong bearish momentum
- ✅ Institutions are betting against the asset
- ✅ The decline is likely to CONTINUE
- ✅ Best time to enter SHORT positions or exit LONGS
**Trading Action:**
- Look for SELL signals
- Add to existing short positions
- Exit long positions immediately
- Use wider stop losses on shorts
**Visual Pattern on Chart:**
```
┃
┃ ┃ ← Red candles
┃ ┃ ┃ ← Increasing size (down)
Volume bars getting TALLER
▓▓
▓▓▓▓
▓▓▓▓▓▓
▓▓▓▓▓▓▓▓
```
---
#### 4️⃣ LONG UNWINDING �
**What's Happening:**
> *"Price is dropping, but NOT because new sellers are attacking. Instead, BUYERS are just taking profits (closing their longs)."*
| Indicator | Value |
|-----------|-------|
| Price | Going DOWN ⬇️ |
| Volume | Going DOWN ⬇️ |
| Conviction | LOW |
| Sustainability | WEAK |
**Real-World Analogy:**
The stadium is slowly emptying, but there's no panic. People are calmly walking out, not rushing. The decline is orderly, not aggressive.
**What This Means For You:**
- ⚠️ The drop is WEAK
- ⚠️ No aggressive selling pressure
- ⚠️ Bounce is LIKELY soon
- ⚠️ This is often just profit-taking or consolidation
**Trading Action:**
- Be CAUTIOUS with new shorts
- Don't panic sell longs
- Watch for support levels
- Prepare for potential reversal
**Visual Pattern on Chart:**
```
┃ ┃
┃ ┃ ┃ ← Red candles
┃ ┃ ← But smaller
Volume bars getting SHORTER
▓▓▓▓▓▓▓▓
▓▓▓▓▓▓
▓▓▓▓
```
---
### Market State Trading Matrix
Use this table to quickly decide what to do:
| Current State | Signal Type | Action | Confidence |
|---------------|-------------|--------|------------|
| LONG BUILDUP + BUY | ✅ Take it! | Full position | HIGH 💪 |
| LONG BUILDUP + SELL | ❌ Skip | Against momentum | LOW |
| SHORT COVERING + BUY | ⚠️ Cautious | Small position | MEDIUM |
| SHORT COVERING + SELL | ✅ Consider | Reversal likely | MEDIUM |
| SHORT BUILDUP + SELL | ✅ Take it! | Full position | HIGH 💪 |
| SHORT BUILDUP + BUY | ❌ Skip | Against momentum | LOW |
| LONG UNWINDING + SELL | ⚠️ Cautious | Small position | MEDIUM |
| LONG UNWINDING + BUY | ✅ Consider | Bounce likely | MEDIUM |
---
### Real Trading Examples
#### Example 1: Perfect LONG BUILDUP Trade
```
Scenario: BTC/USDT 1H Chart
1. Market State shows: LONG BUILDUP 🟢
2. Price touches support zone
3. AI Score: 14/20
4. BUY signal appears
Action: Enter long with confidence!
Result: Strong trend continuation ✅
```
#### Example 2: Avoiding a Trap with SHORT COVERING
```
Scenario: AAPL 15m Chart
1. Price suddenly spikes up +2%
2. You think: "I should buy!"
3. But Market State shows: SHORT COVERING 🟠
4. No new buyers, just shorts closing
Action: WAIT - don't chase!
Result: Price reverses in 30 mins ✅
```
---
## 🎓 Advanced Trading Concepts
### Concept 1: Multi-Timeframe (MTF) Confirmation
The dashboard shows **MTF (240)** or **MTF (W)** which represents the higher timeframe trend:
| Your Chart | MTF Checked |
|------------|-------------|
| 1m - 60m | 4-Hour (240) |
| 4H+ | Weekly (W) |
**Best Practice:**
- Only take LONG trades when MTF = BULLISH
- Only take SHORT trades when MTF = BEARISH
- Mixed signals = Stay out or reduce size
---
### Concept 2: Confluence Trading
The most reliable trades have multiple confirmations ("confluence"):
| # of Confirmations | Reliability | Suggested Action |
|--------------------|-------------|------------------|
| 1 | Low | Skip or tiny size |
| 2 | Medium | Normal position |
| 3+ | High | Full position 💪 |
**Example of High Confluence Trade:**
1. ✅ Price at support zone
2. ✅ Bullish divergence (★★★)
3. ✅ LONG BUILDUP state
4. ✅ AI Score 15+
5. ✅ MTF = BULLISH
This is a **5-confluence** trade = Very high probability!
---
### Concept 3: The "Sweep & Reversal" Pattern
One of the most reliable patterns this indicator detects:
**Pattern Steps:**
1. Price sweeps below a pivot low (liquidity grab)
2. Indicator shows "SWEEP" label
3. Price closes back above the level
4. Bear trap is confirmed
5. Market State shows LONG BUILDUP
→ **STRONG BUY SETUP**
The opposite works for sells (sweep above pivot high → bull trap → SHORT BUILDUP).
---
### Concept 4: Using AI Score Dynamically
The AI Score isn't just a filter - use it to size your positions:
| AI Score | Position Size | Risk Level |
|----------|---------------|------------|
| 3-7 | 25% of normal | Low conviction |
| 8-12 | 50% of normal | Medium conviction |
| 13-17 | 100% of normal | High conviction |
| 18-20 | 150% of normal | "AI GEM" - Rare setup 💎 |
**Example:**
- Normal risk per trade: 2%
- AI Score = 18: Risk 3% (1.5x)
- AI Score = 6: Risk 0.5% (0.25x)
---
### Concept 5: Time-Based Filters
The indicator works on all timeframes, but some are more reliable:
| Timeframe | Noise Level | Recommended Use |
|-----------|-------------|-----------------|
| 1m | Very High | Scalping only (experienced) |
| 5m | High | Quick trades, tight stops |
| 15m | Medium | Day trading (best balance) |
| 1H | Low | Swing setups |
| 4H | Very Low | Position trading |
| Daily | Minimal | Investment decisions |
**Pro Tip:** If you're new, start with 15m or 1H charts. The signals are cleaner and less noisy.
---
### Concept 6: Volume Spike Interpretation
The "Vol" diamond labels indicate high-volume rejection candles:
| Volume Spike + Candle Type | Meaning |
|---------------------------|---------|
| Vol + Bullish Rejection | Strong buying interest |
| Vol + Bearish Rejection | Strong selling pressure |
| Vol + No Rejection | Indecision, wait for clarity |
**Key Insight:**
Volume without wick rejection is often just noise. Volume WITH rejection is a statement of intent.
---
### Concept 7: Reading the Trend Strength
The dashboard shows **Strength** as:
| Label | Slope Value | Meaning |
|-------|-------------|---------|
| WEAK | < 0.5 | Trend losing momentum |
| STRONG | 0.5 - 1.0 | Healthy trend |
| EXPLOSIVE 🚀 | > 1.0 | Very strong momentum |
**How to Use:**
- EXPLOSIVE + LONG BUILDUP = Strong continuation trades
- WEAK + Any state = Potential reversal or consolidation
- STRONG = Normal trend-following trades
---
## 📝 Quick Reference Card
### Signals to TAKE:
- ✅ AI Score 10+
- ✅ At zone OR trendline
- ✅ BUILDUP state matches direction
- ✅ MTF confirms
### Signals to SKIP:
- ❌ AI Score < 6
- ❌ COVERING/UNWINDING state
- ❌ No zone or trendline nearby
- ❌ MTF conflicts
### Risk Management Rules:
1. Never risk more than 2% per trade
2. Use the provided SL/TP lines
3. Scale position size by AI Score
4. Cut losses quickly if Market State changes
---
## 🏆 Master Checklist Before Every Trade
Before entering ANY trade, go through this checklist:
```
□ 1. Is there a signal on the chart? (BUY/SELL label)
□ 2. Is AI Score >= 8? (Check dashboard)
□ 3. Is Market State favorable? (BUILDUP = good)
□ 4. Does MTF confirm? (Same direction as trade)
□ 5. Is price at a zone OR trendline?
□ 6. Is trend strength STRONG or EXPLOSIVE?
□ 7. Is there any trap warning? (If yes, trade opposite)
□ 8. Have I set my stop loss? (Use the red line)
□ 9. Is my position size correct? (Based on AI Score)
□ 10. Am I okay losing this money? (Risk management)
```
**If you can check ALL 10 boxes → Take the trade with confidence!**
---
*Happy Trading! �🚀*
*Remember: The best traders are not the ones who are always right, but the ones who manage risk well when they're wrong.*
> **Version:** Pine Script v6
> **Author:** Antigravity
> **Type:** All-in-One Trading Indicator
---
## 📋 Table of Contents
1. [Overview](#overview)
2. [Key Features](#key-features)
3. [How to Install](#how-to-install)
4. [Understanding the Dashboard](#understanding-the-dashboard)
5. [Support & Resistance Zones](#support--resistance-zones)
6. [Smart Trendlines](#smart-trendlines)
7. [RSI Divergence Detection](#rsi-divergence-detection)
8. [Trap Detection (Bear/Bull Traps)](#trap-detection)
9. [Market State Explained](#market-state-explained)
10. [AI Score System](#ai-score-system)
11. [BUY & SELL Signals](#buy--sell-signals)
12. [Settings Guide](#settings-guide)
13. [Trading Strategies](#trading-strategies)
14. [FAQ](#faq)
---
## Overview
The **ProTrend System** is an all-in-one trading indicator that combines multiple professional trading concepts into a single, easy-to-use tool. It automatically:
- Finds support and resistance zones
- Draws trendlines with touch validation
- Detects divergences (regular and hidden)
- Spots trap patterns before they catch you
- Calculates an AI confidence score
- Generates BUY/SELL signals with stop-loss and take-profit levels
**Perfect for:** Forex, Stocks, Crypto, Futures, Options
---
## Key Features
| Feature | Description |
|---------|-------------|
| 🎯 Auto S/R Zones | Automatically finds price floors and ceilings |
| 📈 Smart Trendlines | Multi-touch validated lines with breakout alerts |
| 🔄 Divergence Engine | Detects regular + hidden divergences with strength rating |
| 🪤 Trap Detector | Finds bear/bull traps including hidden traps |
| 🧠 AI Score | Confidence meter from 0-20 based on multiple factors |
| 📊 Market State | Shows LONG BUILDUP, SHORT COVERING, etc. |
| 🚀 Signal Generator | Clear BUY/SELL signals with SL/TP levels |
| ⚙️ Auto-Tune | Automatically adjusts settings based on timeframe |
---
## How to Install
1. Open TradingView
2. Click "Pine Editor" at the bottom
3. Delete any existing code
4. Paste the ProTrend System code
5. Click "Add to Chart"
6. Customize settings as needed
---
## Understanding the Dashboard
The dashboard appears in the **bottom-right corner** of your chart:
| Row | Label | What It Shows |
|-----|-------|---------------|
| 1 | **ProTrend AI** | Header (title) |
| 2 | **Trend** | BULLISH / BEARISH / RANGING |
| 3 | **MTF** | Higher timeframe confirmation |
| 4 | **Mkt State** | Market state (see section below) |
| 5 | **Active Zones** | Number of S/R zones on chart |
| 6 | **Momentum** | RSI value with HOT/COLD status |
| 7 | **Strength** | EXPLOSIVE 🚀 / STRONG / WEAK |
| 8 | **AI Score** | Confidence score out of 20 |
| 9 | **Auto-Tune** | ON/OFF with current period |
---
## Support & Resistance Zones
### What Are They?
- **Support (Green Boxes)** = Price levels where falling price tends to stop and bounce UP
- **Resistance (Red Boxes)** = Price levels where rising price tends to stop and bounce DOWN
### How They're Created
1. When price makes a pivot high → Resistance zone is drawn
2. When price makes a pivot low → Support zone is drawn
3. More touches = Darker/stronger zone
4. When price breaks through → Zone is automatically deleted
### Trading With Zones
- **BUY** when price bounces off support (green box)
- **SELL** when price rejects from resistance (red box)
- Stronger zones (darker) = More reliable bounces
---
## Smart Trendlines
### How They Work
The indicator connects the last 3-5 price pivots to create trendlines:
- **Support Trendline (Green)** = Connects lower pivot points
- **Resistance Trendline (Red)** = Connects upper pivot points
### Touch Validation
| Touches | Appearance | Reliability |
|---------|------------|-------------|
| 1-2 | Thin line | Low |
| 3+ | **Thick, bright line** | High ✅ |
### Breakout Detection
When price breaks through a trendline:
- 🚀 `TL BREAK UP` = Bullish breakout (price breaks above resistance)
- 💥 `TL BREAK DOWN` = Bearish breakdown (price breaks below support)
### Channel Detection
If both trendlines have similar slopes, the indicator recognizes it as a **channel** and changes lines to dashed style.
---
## RSI Divergence Detection
### What Is Divergence?
Divergence occurs when **price** and **momentum (RSI)** disagree:
| Type | Price Action | RSI Action | Meaning |
|------|--------------|------------|---------|
| **Regular Bullish** | Lower Low ⬇️ | Higher Low ⬆️ | Reversal UP likely |
| **Hidden Bullish** | Higher Low ⬆️ | Lower Low ⬇️ | Trend continuation UP |
| **Regular Bearish** | Higher High ⬆️ | Lower High ⬇️ | Reversal DOWN likely |
| **Hidden Bearish** | Lower High ⬇️ | Higher High ⬆️ | Trend continuation DOWN |
### Divergence Labels
| Label | Meaning |
|-------|---------|
| `D_REG` | Regular divergence |
| `D_HID` | Hidden divergence |
| `D_REG+` | Multi-swing divergence (3+ pivots) |
| `★` | Weak strength (1-3) |
| `★★` | Medium strength (4-6) |
| `★★★` | Strong strength (7-10) |
### Strength Factors
- RSI gap size (+0-3 points)
- Price gap size (+0-2 points)
- RSI in extreme zone <30 or >70 (+3 points)
- Multi-swing pattern (+2 points)
---
## Trap Detection
### What Are Traps?
Traps occur when price **fakes a breakout** to catch traders on the wrong side:
### Trap Types
| Type | What Happens | Visual Label |
|------|--------------|--------------|
| **Bear Trap (Basic)** | Price breaks below support, then reverses UP | `⚠ BEAR TRAP BASIC` |
| **Bear Trap (Liquidity)** | Trap occurs at a strong S/R zone | `⚠ BEAR TRAP LIQ` |
| **Bear Trap (Hidden)** | 2-bar trap with confirmation candle | `🔒 HIDDEN BEAR TRAP` |
| **Bull Trap (Basic)** | Price breaks above resistance, then reverses DOWN | `⚠ BULL TRAP BASIC` |
| **Bull Trap (Liquidity)** | Trap at strong S/R zone | `⚠ BULL TRAP LIQ` |
| **Bull Trap (Hidden)** | 2-bar trap with confirmation | `🔒 HIDDEN BULL TRAP` |
### Trap Strength Rating
| Stars | Conditions Met |
|-------|----------------|
| ★ | Basic trap only |
| ★★ | Trap + volume OR liquidity zone |
| ★★★ | Hidden trap + all confirmations |
### How to Trade Traps
- **Bear Trap** → Consider BUYING (the "breakdown" was fake)
- **Bull Trap** → Consider SELLING (the "breakout" was fake)
---
## Market State Explained
The market state shows you what **big institutional traders** are doing:
### The 4 States
#### 1. LONG BUILDUP 🟢
> *"Smart money is aggressively BUYING"*
| Price | Volume | Meaning |
|-------|--------|---------|
| ⬆️ UP | ⬆️ UP | Strong bullish conviction |
**Action:** Best time to BUY. Follow the institutional money!
---
#### 2. SHORT COVERING 🟠
> *"Sellers are exiting, but no new buyers are entering"*
| Price | Volume | Meaning |
|-------|--------|---------|
| ⬆️ UP | ⬇️ DOWN | Weak rally, might be temporary |
**Action:** Be cautious with longs. The rally may fade.
---
#### 3. SHORT BUILDUP 🔴
> *"Smart money is aggressively SELLING"*
| Price | Volume | Meaning |
|-------|--------|---------|
| ⬇️ DOWN | ⬆️ UP | Strong bearish conviction |
**Action:** Best time to SELL. Follow the institutional money!
---
#### 4. LONG UNWINDING 🟡
> *"Buyers are exiting, but no new sellers are attacking"*
| Price | Volume | Meaning |
|-------|--------|---------|
| ⬇️ DOWN | ⬇️ DOWN | Weak decline, might bounce |
**Action:** Be cautious with shorts. A bounce may come.
---
## AI Score System
The AI Score combines multiple factors into a single confidence rating:
### Score Components
| Factor | Points | Description |
|--------|--------|-------------|
| Trend Strength | +2 | Price trending (not ranging) |
| RSI < 40 | +1 | Oversold momentum |
| RSI < 30 | +1 | Extremely oversold |
| RSI > 60 | +1 | Overbought momentum |
| RSI > 70 | +1 | Extremely overbought |
| Divergence | +1-5 | Based on divergence strength |
| Multi-Swing Div | +2 | Divergence spans 3+ swings |
| Volume Spike | +2 | High volume confirmation |
| Liquidity Sweep | +3 | Stop-hunt pattern detected |
| Strong Trendline | +2 | 3+ touches on trendline |
| TL Breakout | +3 | Trendline breakout confirmed |
### Score Interpretation
| Score | Color | Signal Quality |
|-------|-------|----------------|
| 0-7 | Gray | Weak setup - avoid or use small size |
| 8-14 | Green | Good setup - trade normally |
| 15-20 | Purple | Excellent setup - **"AI GEM"** 💎 |
---
## BUY & SELL Signals
### BUY Signal Conditions
All of these must be true:
1. ✅ Trend is BULLISH (green background)
2. ✅ Price is at support zone OR on support trendline
3. ✅ Current candle shows rejection wick (long lower shadow)
4. ✅ Market is trending (not choppy)
5. ✅ AI Score meets minimum threshold
### SELL Signal Conditions
All of these must be true:
1. ✅ Trend is BEARISH (red background)
2. ✅ Price is at resistance zone OR on resistance trendline
3. ✅ Current candle shows rejection wick (long upper shadow)
4. ✅ Market is trending (not choppy)
5. ✅ AI Score meets minimum threshold
### Signal Labels
| Label | AI Score | Meaning |
|-------|----------|---------|
| `BUY` / `SELL` | Below threshold | Basic signal |
| `STRONG BUY/SELL` | + Recent divergence | Enhanced signal |
| `AI BUY/SELL` | ≥ Threshold | AI-validated signal |
| `AI GEM` | ≥ 7 (on old scale) | Highest quality 💎 |
### SL/TP Lines
Every signal draws:
- **Red dashed line** = Stop Loss level
- **Teal dashed line** = Take Profit level
- **Gray dotted line** = Entry level
---
## Settings Guide
### Main Settings
| Setting | Default | Description |
|---------|---------|-------------|
| Auto-Tune | ON | Automatically adjusts period based on timeframe |
| Manual Period | 20 | Lookback period if Auto-Tune is OFF |
### S/R Zones
| Setting | Default | Description |
|---------|---------|-------------|
| Show S/R Zones | ON | Display support/resistance boxes |
| Required Touches | 3 | Minimum touches to validate zone |
| Zone Width | 0.5% | Width relative to ATR |
| Max Active Zones | 10 | Limit to prevent chart clutter |
### Trendlines
| Setting | Default | Description |
|---------|---------|-------------|
| Show Trendlines | ON | Display auto trendlines |
| Source | Wick | Use wick highs/lows (or Body) |
| Extend Lines | ON | Project lines into future |
### Signals
| Setting | Default | Description |
|---------|---------|-------------|
| Volatility Filter | ON | Only signal in trending markets |
| Min Slope | 0.25 | Minimum trend angle |
| Require Confirmation | ON | Wait for confirmation candle |
| SL Buffer | 0.5x ATR | Stop loss distance |
| Risk:Reward | 2.0 | TP = 2x the risk |
### AI Filter
| Setting | Default | Description |
|---------|---------|-------------|
| Use AI Filter | ON | Filter signals by AI score |
| Min AI Score | 3 | Minimum score to show signal |
| Show Sweeps | ON | Display liquidity sweeps |
---
## Trading Strategies
### Strategy 1: Zone Bounce
1. Wait for price to reach a **strong S/R zone** (dark color)
2. Look for **rejection wick** candle
3. Check AI Score is **8+**
4. Enter on signal confirmation
5. Use provided SL/TP levels
### Strategy 2: Divergence Reversal
1. Look for **★★★ divergence** label
2. Confirm price is at zone or trendline
3. Wait for **AI GEM** signal
4. Enter with tight stop below divergence low
5. Target 2-3x risk
### Strategy 3: Trap Trade
1. Spot a **trap label** (bear or bull)
2. Enter OPPOSITE direction of the "fake" breakout
3. Stop loss just beyond trap low/high
4. Higher strength traps (★★★) = More reliable
### Strategy 4: Trendline Breakout
1. Wait for **thick trendline** (3+ touches)
2. Watch for 🚀 or 💥 breakout label
3. Confirm with **LONG BUILDUP** or **SHORT BUILDUP** state
4. Enter on pullback to broken trendline
5. Target previous swing or 2x ATR
---
## FAQ
### Q: Why am I not seeing any signals?
**A:** The indicator is selective. Signals only appear when ALL conditions align. This is by design to reduce false signals.
### Q: Can I use this on any timeframe?
**A:** Yes! The Auto-Tune feature automatically adjusts settings for each timeframe. Works best on 5m, 15m, 1H, 4H, and Daily.
### Q: What's the best Risk:Reward ratio?
**A:** Default is 2.0 (you risk 1 to gain 2). For trending markets, you can increase to 3.0.
### Q: Should I take every signal?
**A:** No. Focus on signals with:
- AI Score ≥ 10
- Aligned with Market State (LONG BUILDUP for buys)
- Multiple confirmations (zone + divergence + trendline)
### Q: How do I avoid traps?
**A:** The indicator shows you traps AFTER they form. If you're already in the trap, exit immediately. If you see a trap label, consider trading the OPPOSITE direction.
---
## Summary
The ProTrend System combines professional trading concepts into one indicator:
1. **Zones** tell you WHERE to trade
2. **Trendlines** confirm the DIRECTION
3. **Divergence** warns of REVERSALS
4. **Traps** protect you from FAKEOUTS
5. **Market State** shows INSTITUTIONAL activity
6. **AI Score** rates your CONFIDENCE
7. **Signals** tell you WHEN to enter
**Remember:** No indicator is perfect. Always use proper risk management!
---
## 📊 Market State Deep-Dive (For New Traders)
This section provides an in-depth explanation of the Market State feature, which is one of the most powerful yet least understood concepts in trading.
### What Is Market State?
Market State tells you what **big institutional traders** (banks, hedge funds, mutual funds) are doing RIGHT NOW with their positions. While retail traders (like us) can only see price, institutions move enough volume to leave "footprints" we can detect.
Think of it like this:
> *"Price tells you WHAT happened. Market State tells you WHO made it happen and WHY."*
---
### How Is It Calculated?
The indicator analyzes TWO key metrics on each candle:
| Metric | What We Look At | Meaning |
|--------|-----------------|---------|
| **Price Delta** | `Close - Open` | Did the candle close UP or DOWN? |
| **Volume Delta** | `Current Volume - Previous Volume` | Is activity INCREASING or DECREASING? |
By combining these two factors, we can determine the "character" of the market:
```
VOLUME
⬆️ UP ⬇️ DOWN
┌─────────┬─────────┐
⬆️ UP │ LONG │ SHORT │
PRICE │ BUILDUP │COVERING │
├─────────┼─────────┤
⬇️ DOWN │ SHORT │ LONG │
│ BUILDUP │UNWINDING│
└─────────┴─────────┘
```
---
### The 4 Market States Explained In Detail
---
#### 1️⃣ LONG BUILDUP 🟢
**What's Happening:**
> *"Smart money is aggressively BUYING and they're adding NEW positions."*
| Indicator | Value |
|-----------|-------|
| Price | Going UP ⬆️ |
| Volume | Going UP ⬆️ |
| Conviction | HIGH |
| Sustainability | STRONG |
**Real-World Analogy:**
Imagine a stadium concert. Not only are people rushing IN through the gates, but MORE people keep arriving. The crowd (price) grows, and the line (volume) at the entrance grows too.
**What This Means For You:**
- ✅ Strong bullish momentum
- ✅ Institutions are committing capital
- ✅ The move is likely to CONTINUE
- ✅ Best time to enter LONG positions
**Trading Action:**
- Look for BUY signals
- Add to existing long positions
- Higher AI score = more confidence
- Use wider stop losses (trend is strong)
**Visual Pattern on Chart:**
```
┃ ← Large green candle
┃ ┃ ← Increasing size
┃ ┃ ┃
┃ ┃ ┃ Volume bars getting TALLER ▓▓▓▓▓▓▓▓
┃ ┃ ┃ ▓▓▓▓▓▓
▓ ▓ ▓ ▓▓▓▓
```
---
#### 2️⃣ SHORT COVERING 🟠
**What's Happening:**
> *"Price is rising, but NOT because new buyers are entering. Instead, SELLERS are running away (closing their shorts)."*
| Indicator | Value |
|-----------|-------|
| Price | Going UP ⬆️ |
| Volume | Going DOWN ⬇️ |
| Conviction | LOW |
| Sustainability | WEAK |
**Real-World Analogy:**
The stadium is getting quieter, not louder. People aren't rushing IN - they're just the ones already inside moving toward the exits slowly. The apparent "activity" is just people leaving, not new arrivals.
**What This Means For You:**
- ⚠️ The rally is WEAK
- ⚠️ No fresh buying pressure
- ⚠️ Move may REVERSE soon
- ⚠️ This is often a "relief rally" or "dead cat bounce"
**Trading Action:**
- Be CAUTIOUS with new longs
- Take profits on existing longs
- Watch for reversal patterns
- Don't chase the move
**Visual Pattern on Chart:**
```
┃ ← Green candles
┃ ┃ ← But smaller
┃ ┃ ┃
Volume bars getting SHORTER
▓▓▓▓▓▓▓
▓▓▓▓
▓▓
```
**When You See This:**
If you're already in a LONG position → Consider taking partial profits
If you're looking to BUY → Wait for LONG BUILDUP instead
---
#### 3️⃣ SHORT BUILDUP 🔴
**What's Happening:**
> *"Smart money is aggressively SELLING and they're adding NEW short positions."*
| Indicator | Value |
|-----------|-------|
| Price | Going DOWN ⬇️ |
| Volume | Going UP ⬆️ |
| Conviction | HIGH |
| Sustainability | STRONG |
**Real-World Analogy:**
Panic at the stadium! People are rushing OUT through all exits, and MORE people keep trying to leave. The crowd (price) shrinks rapidly while chaos (volume) increases.
**What This Means For You:**
- ✅ Strong bearish momentum
- ✅ Institutions are betting against the asset
- ✅ The decline is likely to CONTINUE
- ✅ Best time to enter SHORT positions or exit LONGS
**Trading Action:**
- Look for SELL signals
- Add to existing short positions
- Exit long positions immediately
- Use wider stop losses on shorts
**Visual Pattern on Chart:**
```
┃
┃ ┃ ← Red candles
┃ ┃ ┃ ← Increasing size (down)
Volume bars getting TALLER
▓▓
▓▓▓▓
▓▓▓▓▓▓
▓▓▓▓▓▓▓▓
```
---
#### 4️⃣ LONG UNWINDING �
**What's Happening:**
> *"Price is dropping, but NOT because new sellers are attacking. Instead, BUYERS are just taking profits (closing their longs)."*
| Indicator | Value |
|-----------|-------|
| Price | Going DOWN ⬇️ |
| Volume | Going DOWN ⬇️ |
| Conviction | LOW |
| Sustainability | WEAK |
**Real-World Analogy:**
The stadium is slowly emptying, but there's no panic. People are calmly walking out, not rushing. The decline is orderly, not aggressive.
**What This Means For You:**
- ⚠️ The drop is WEAK
- ⚠️ No aggressive selling pressure
- ⚠️ Bounce is LIKELY soon
- ⚠️ This is often just profit-taking or consolidation
**Trading Action:**
- Be CAUTIOUS with new shorts
- Don't panic sell longs
- Watch for support levels
- Prepare for potential reversal
**Visual Pattern on Chart:**
```
┃ ┃
┃ ┃ ┃ ← Red candles
┃ ┃ ← But smaller
Volume bars getting SHORTER
▓▓▓▓▓▓▓▓
▓▓▓▓▓▓
▓▓▓▓
```
---
### Market State Trading Matrix
Use this table to quickly decide what to do:
| Current State | Signal Type | Action | Confidence |
|---------------|-------------|--------|------------|
| LONG BUILDUP + BUY | ✅ Take it! | Full position | HIGH 💪 |
| LONG BUILDUP + SELL | ❌ Skip | Against momentum | LOW |
| SHORT COVERING + BUY | ⚠️ Cautious | Small position | MEDIUM |
| SHORT COVERING + SELL | ✅ Consider | Reversal likely | MEDIUM |
| SHORT BUILDUP + SELL | ✅ Take it! | Full position | HIGH 💪 |
| SHORT BUILDUP + BUY | ❌ Skip | Against momentum | LOW |
| LONG UNWINDING + SELL | ⚠️ Cautious | Small position | MEDIUM |
| LONG UNWINDING + BUY | ✅ Consider | Bounce likely | MEDIUM |
---
### Real Trading Examples
#### Example 1: Perfect LONG BUILDUP Trade
```
Scenario: BTC/USDT 1H Chart
1. Market State shows: LONG BUILDUP 🟢
2. Price touches support zone
3. AI Score: 14/20
4. BUY signal appears
Action: Enter long with confidence!
Result: Strong trend continuation ✅
```
#### Example 2: Avoiding a Trap with SHORT COVERING
```
Scenario: AAPL 15m Chart
1. Price suddenly spikes up +2%
2. You think: "I should buy!"
3. But Market State shows: SHORT COVERING 🟠
4. No new buyers, just shorts closing
Action: WAIT - don't chase!
Result: Price reverses in 30 mins ✅
```
---
## 🎓 Advanced Trading Concepts
### Concept 1: Multi-Timeframe (MTF) Confirmation
The dashboard shows **MTF (240)** or **MTF (W)** which represents the higher timeframe trend:
| Your Chart | MTF Checked |
|------------|-------------|
| 1m - 60m | 4-Hour (240) |
| 4H+ | Weekly (W) |
**Best Practice:**
- Only take LONG trades when MTF = BULLISH
- Only take SHORT trades when MTF = BEARISH
- Mixed signals = Stay out or reduce size
---
### Concept 2: Confluence Trading
The most reliable trades have multiple confirmations ("confluence"):
| # of Confirmations | Reliability | Suggested Action |
|--------------------|-------------|------------------|
| 1 | Low | Skip or tiny size |
| 2 | Medium | Normal position |
| 3+ | High | Full position 💪 |
**Example of High Confluence Trade:**
1. ✅ Price at support zone
2. ✅ Bullish divergence (★★★)
3. ✅ LONG BUILDUP state
4. ✅ AI Score 15+
5. ✅ MTF = BULLISH
This is a **5-confluence** trade = Very high probability!
---
### Concept 3: The "Sweep & Reversal" Pattern
One of the most reliable patterns this indicator detects:
**Pattern Steps:**
1. Price sweeps below a pivot low (liquidity grab)
2. Indicator shows "SWEEP" label
3. Price closes back above the level
4. Bear trap is confirmed
5. Market State shows LONG BUILDUP
→ **STRONG BUY SETUP**
The opposite works for sells (sweep above pivot high → bull trap → SHORT BUILDUP).
---
### Concept 4: Using AI Score Dynamically
The AI Score isn't just a filter - use it to size your positions:
| AI Score | Position Size | Risk Level |
|----------|---------------|------------|
| 3-7 | 25% of normal | Low conviction |
| 8-12 | 50% of normal | Medium conviction |
| 13-17 | 100% of normal | High conviction |
| 18-20 | 150% of normal | "AI GEM" - Rare setup 💎 |
**Example:**
- Normal risk per trade: 2%
- AI Score = 18: Risk 3% (1.5x)
- AI Score = 6: Risk 0.5% (0.25x)
---
### Concept 5: Time-Based Filters
The indicator works on all timeframes, but some are more reliable:
| Timeframe | Noise Level | Recommended Use |
|-----------|-------------|-----------------|
| 1m | Very High | Scalping only (experienced) |
| 5m | High | Quick trades, tight stops |
| 15m | Medium | Day trading (best balance) |
| 1H | Low | Swing setups |
| 4H | Very Low | Position trading |
| Daily | Minimal | Investment decisions |
**Pro Tip:** If you're new, start with 15m or 1H charts. The signals are cleaner and less noisy.
---
### Concept 6: Volume Spike Interpretation
The "Vol" diamond labels indicate high-volume rejection candles:
| Volume Spike + Candle Type | Meaning |
|---------------------------|---------|
| Vol + Bullish Rejection | Strong buying interest |
| Vol + Bearish Rejection | Strong selling pressure |
| Vol + No Rejection | Indecision, wait for clarity |
**Key Insight:**
Volume without wick rejection is often just noise. Volume WITH rejection is a statement of intent.
---
### Concept 7: Reading the Trend Strength
The dashboard shows **Strength** as:
| Label | Slope Value | Meaning |
|-------|-------------|---------|
| WEAK | < 0.5 | Trend losing momentum |
| STRONG | 0.5 - 1.0 | Healthy trend |
| EXPLOSIVE 🚀 | > 1.0 | Very strong momentum |
**How to Use:**
- EXPLOSIVE + LONG BUILDUP = Strong continuation trades
- WEAK + Any state = Potential reversal or consolidation
- STRONG = Normal trend-following trades
---
## 📝 Quick Reference Card
### Signals to TAKE:
- ✅ AI Score 10+
- ✅ At zone OR trendline
- ✅ BUILDUP state matches direction
- ✅ MTF confirms
### Signals to SKIP:
- ❌ AI Score < 6
- ❌ COVERING/UNWINDING state
- ❌ No zone or trendline nearby
- ❌ MTF conflicts
### Risk Management Rules:
1. Never risk more than 2% per trade
2. Use the provided SL/TP lines
3. Scale position size by AI Score
4. Cut losses quickly if Market State changes
---
## 🏆 Master Checklist Before Every Trade
Before entering ANY trade, go through this checklist:
```
□ 1. Is there a signal on the chart? (BUY/SELL label)
□ 2. Is AI Score >= 8? (Check dashboard)
□ 3. Is Market State favorable? (BUILDUP = good)
□ 4. Does MTF confirm? (Same direction as trade)
□ 5. Is price at a zone OR trendline?
□ 6. Is trend strength STRONG or EXPLOSIVE?
□ 7. Is there any trap warning? (If yes, trade opposite)
□ 8. Have I set my stop loss? (Use the red line)
□ 9. Is my position size correct? (Based on AI Score)
□ 10. Am I okay losing this money? (Risk management)
```
**If you can check ALL 10 boxes → Take the trade with confidence!**
---
*Happy Trading! �🚀*
*Remember: The best traders are not the ones who are always right, but the ones who manage risk well when they're wrong.*
Script protetto
Questo script è pubblicato come codice protetto. Tuttavia, è possibile utilizzarle liberamente e senza alcuna limitazione – ulteriori informazioni qui.
Declinazione di responsabilità
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Script protetto
Questo script è pubblicato come codice protetto. Tuttavia, è possibile utilizzarle liberamente e senza alcuna limitazione – ulteriori informazioni qui.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.