Dynamic Value Zone Oscillator (DVZO) - @CRYPTIK1Dynamic Value Zone Oscillator (DVZO) @CRYPTIK1
Introduction: What is the DVZO?
The Dynamic Value Zone Oscillator (DVZO) is a powerful momentum indicator that reframes the classic "overbought" and "oversold" concept. Instead of relying on a fixed lookback period like a standard RSI or Stochastics, the DVZO measures the current price relative to a significant, higher-timeframe Value Zone (e.g., the previous week's entire price range).
This gives you a more contextual and structural understanding of price. The core question it answers is not just "Is the price moving up or down quickly?" but rather, "Where is the current price in relation to its recently established area of value?"
This allows traders to identify true "premium" (overbought) and "discount" (oversold) levels with greater accuracy, leading to higher-probability reversal and trend-following signals.
The Core Concept: Price vs. Value
The market is constantly trying to find equilibrium or "fair value." The DVZO is built on the principle that the high and low of a significant prior period (like the previous day, week, or month) create a powerful area of perceived value.
The Value Zone: The range between the high and low of the selected higher timeframe. The midpoint of this zone is the equilibrium (0 line on the oscillator).
Premium Territory (Distribution Zone): When price breaks above the Value Zone High (+100 line), it is trading at a premium. This is an area where sellers are more likely to become active and buyers may be over-extending.
Discount Territory (Accumulation Zone): When price breaks below the Value Zone Low (-100 line), it is trading at a discount. This is an area where buyers are more likely to see value and sellers may be exhausted.
By anchoring its analysis to these significant structural levels, the DVZO filters out much of the noise from lower-timeframe price fluctuations.
Key Features
The Oscillator:
The main blue line visualizes exactly where the current price is within the context of the Value Zone.
+100: The high of the Value Zone.
0: The midpoint/equilibrium of the Value Zone.
-100: The low of the Value Zone.
Automatic Divergence Detection:
The DVZO automatically identifies and plots bullish and bearish divergences on both the price chart and the oscillator itself.
Bullish Divergence: Price makes a new low, but the DVZO makes a higher low. This is a strong signal that downside momentum is fading and a reversal to the upside is likely.
Bearish Divergence: Price makes a new high, but the DVZO makes a lower high. This indicates that upside momentum is waning and a pullback is probable.
Value Migration Histogram:
The purple histogram in the background visualizes the width of the Value Zone.
Expanding Histogram: Volatility is increasing, and the accepted value range is getting wider.
Contracting Histogram: Volatility is decreasing, and the price is coiling in a tight range, often in anticipation of a major breakout.
How to Use the DVZO: Trading Strategies
1. Reversion Trading
This is the most direct way to use the indicator.
Look for Buys: When the DVZO line drops below -100, the price is in the "Accumulation Zone." Wait for the price to show signs of strength (e.g., a bullish candle pattern) and the DVZO line to start turning back up towards the -100 level. This is a high-probability mean reversion setup.
Look for Sells: When the DVZO line moves above +100, the price is in the "Distribution Zone." Look for signs of weakness (e.g., a bearish engulfing candle) and the DVZO line to start turning back down towards the +100 level.
2. Divergence Trading
Divergences are powerful confirmation signals.
Entry Signal: When a Bullish Divergence appears, it provides a strong entry signal for a long position, especially if it occurs within the Accumulation Zone (below -100).
Exit/Short Signal: When a Bearish Divergence appears, it can serve as a signal to take profit on long positions or to look for a short entry, especially if it occurs in the Distribution Zone (above +100).
3. Best Practices & Settings
Timeframe Synergy: The DVZO is most effective when your chart timeframe is lower than your selected Value Zone Source.
For Day Trading (e.g., 1H, 4H chart): Use the "Previous Day" Value Zone.
For Swing Trading (e.g., 1D, 12H chart): Use the "Previous Week" or "Previous Month" Value Zone.
Confirmation is Key: The DVZO is a powerful tool, but it should not be used in isolation. Always combine its signals with other forms of analysis, such as market structure, support/resistance levels, and candlestick patterns, for confirmation.
Oversold
EMA Oscillator [Alpha Extract]A precision mean reversion analysis tool that combines advanced Z-score methodology with dual threshold systems to identify extreme price deviations from trend equilibrium. Utilizing sophisticated statistical normalization and adaptive percentage-based thresholds, this indicator provides high-probability reversal signals based on standard deviation analysis and dynamic range calculations with institutional-grade accuracy for systematic counter-trend trading opportunities.
🔶 Advanced Statistical Normalization
Calculates normalized distance between price and exponential moving average using rolling standard deviation methodology for consistent interpretation across timeframes. The system applies Z-score transformation to quantify price displacement significance, ensuring statistical validity regardless of market volatility conditions.
// Core EMA and Oscillator Calculation
ema_values = ta.ema(close, ema_period)
oscillator_values = close - ema_values
rolling_std = ta.stdev(oscillator_values, ema_period)
z_score = oscillator_values / rolling_std
🔶 Dual Threshold System
Implements both statistical significance thresholds (±1σ, ±2σ, ±3σ) and percentage-based dynamic thresholds calculated from recent oscillator range extremes. This hybrid approach ensures consistent probability-based signals while adapting to varying market volatility regimes and maintaining signal relevance during structural market changes.
// Statistical Thresholds
mild_threshold = 1.0 // ±1σ (68% confidence)
moderate_threshold = 2.0 // ±2σ (95% confidence)
extreme_threshold = 3.0 // ±3σ (99.7% confidence)
// Percentage-Based Dynamic Thresholds
osc_high = ta.highest(math.abs(z_score), lookback_period)
mild_pct_thresh = osc_high * (mild_pct / 100.0)
moderate_pct_thresh = osc_high * (moderate_pct / 100.0)
extreme_pct_thresh = osc_high * (extreme_pct / 100.0)
🔶 Signal Generation Framework
Triggers buy/sell alerts when Z-score crosses extreme threshold boundaries, indicating statistically significant price deviations with high mean reversion probability. The system generates continuation signals at moderate levels and reversal signals at extreme boundaries with comprehensive alert integration.
// Extreme Signal Detection
sell_signal = ta.crossover(z_score, selected_extreme)
buy_signal = ta.crossunder(z_score, -selected_extreme)
// Dynamic Color Coding
signal_color = z_score >= selected_extreme ? #ff0303 : // Extremely Overbought
z_score >= selected_moderate ? #ff6a6a : // Overbought
z_score >= selected_mild ? #b86456 : // Mildly Overbought
z_score > -selected_mild ? #a1a1a1 : // Neutral
z_score > -selected_moderate ? #01b844 : // Mildly Oversold
z_score > -selected_extreme ? #00ff66 : // Oversold
#00ff66 // Extremely Oversold
🔶 Visual Structure Analysis
Provides a six-tier color gradient system with dynamic background zones indicating mild, moderate, and extreme conditions. The histogram visualization displays Z-score intensity with threshold reference lines and zero-line equilibrium context for precise mean reversion timing.
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4H
1D
🔶 Adaptive Threshold Selection
Features intelligent threshold switching between statistical significance levels and percentage-based dynamic ranges. The percentage system automatically adjusts to current volatility conditions using configurable lookback periods, while statistical thresholds maintain consistent probability-based signal generation across market cycles.
🔶 Performance Optimization
Utilizes efficient rolling calculations with configurable EMA periods and threshold parameters for optimal performance across all timeframes. The system includes comprehensive alert functionality with customizable notification preferences and visual signal overlay options.
🔶 Market Oscillator Interpretation
Z-score > +3σ indicates statistically significant overbought conditions with high reversal probability, while Z-score < -3σ signals extreme oversold levels suitable for counter-trend entries. Moderate thresholds (±2σ) capture 95% of normal price distributions, making breaches statistically significant for systematic trading approaches.
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🔶 Intelligent Signal Management
Automatic signal filtering prevents false alerts through extreme threshold crossover requirements, while maintaining sensitivity to genuine statistical deviations. The dual threshold system provides both conservative statistical approaches and adaptive market condition responses for varying trading styles.
Why Choose EMA Oscillator ?
This indicator provides traders with statistically-grounded mean reversion analysis through sophisticated Z-score normalization methodology. By combining traditional statistical significance thresholds with adaptive percentage-based extremes, it maintains effectiveness across varying market conditions while delivering high-probability reversal signals based on quantifiable price displacement from trend equilibrium, enabling systematic counter-trend trading approaches with defined statistical confidence levels and comprehensive risk management parameters.
ATAI Volume Pressure Analyzer V 1.0 — Pure Up/DownATAI Volume Pressure Analyzer V 1.0 — Pure Up/Down
Overview
Volume is a foundational tool for understanding the supply–demand balance. Classic charts show only total volume and don’t tell us what portion came from buying (Up) versus selling (Down). The ATAI Volume Pressure Analyzer fills that gap. Built on Pine Script v6, it scans a lower timeframe to estimate Up/Down volume for each host‑timeframe candle, and presents “volume pressure” in a compact HUD table that’s comparable across symbols and timeframes.
1) Architecture & Global Settings
Global Period (P, bars)
A single global input P defines the computation window. All measures—host‑TF volume moving averages and the half‑window segment sums—use this length. Default: 55.
Timeframe Handling
The core of the indicator is estimating Up/Down volume using lower‑timeframe data. You can set a custom lower timeframe, or rely on auto‑selection:
◉ Second charts → 1S
◉ Intraday → 1 minute
◉ Daily → 5 minutes
◉ Otherwise → 60 minutes
Lower TFs give more precise estimates but shorter history; higher TFs approximate buy/sell splits but provide longer history. As a rule of thumb, scan thin symbols at 5–15m, and liquid symbols at 1m.
2) Up/Down Volume & Derived Series
The script uses TradingView’s library function tvta.requestUpAndDownVolume(lowerTf) to obtain three values:
◉ Up volume (buyers)
◉ Down volume (sellers)
◉ Delta (Up − Down)
From these we define:
◉ TF_buy = |Up volume|
◉ TF_sell = |Down volume|
◉ TF_tot = TF_buy + TF_sell
◉ TF_delta = TF_buy − TF_sell
A positive TF_delta indicates buyer dominance; a negative value indicates selling pressure. To smooth noise, simple moving averages of TF_buy and TF_sell are computed over P and used as baselines.
3) Key Performance Indicators (KPIs)
Half‑window segmentation
To track momentum shifts, the P‑bar window is split in half:
◉ C→B: the older half
◉ B→A: the newer half (toward the current bar)
For each half, the script sums buy, sell, and delta. Comparing the two halves reveals strengthening/weakening pressure. Example: if AtoB_delta < CtoB_delta, recent buying pressure has faded.
[ 4) HUD (Table) Display /i]
Colors & Appearance
Two main color inputs define the theme: a primary color and a negative color (used when Δ is negative). The panel background uses a translucent version of the primary color; borders use the solid primary color. Text defaults to the primary color and flips to the negative color when a block’s Δ is negative.
Layout
The HUD is a 4×5 table updated on the last bar of each candle:
◉ Row 1 (Meta): indicator name, P length, lower TF, host TF
◉ Row 2 (Host TF): current ↑Buy, ↓Sell, ΔDelta; plus Σ total and SMA(↑/↓)
◉ Row 3 (Segments): C→B and B→A blocks with ↑/↓/Δ
◉ Rows 4–5: reserved for advanced modules (Wings, α/β, OB/OS, Top
5) Advanced Modules
5.1 Wings
“Wings” visualize volume‑driven movement over C→B (left wing) and B→A (right wing) with top/bottom lines and a filled band. Slopes are ATR‑per‑bar normalized for cross‑symbol/TF comparability and converted to angles (degrees). Coloring mirrors HUD sign logic with a near‑zero threshold (default ~3°):
◉ Both lines rising → blue (bullish)
◉ Both falling → red (bearish)
◉ Mixed/near‑zero → gray
Left wing reflects the origin of the recent move; right wing reflects the current state.
5.2 α / β at Point B
We compute the oriented angle between the two wings at the midpoint B:
β is the bottom‑arc angle; α = 360° − β is the top‑arc angle.
◉ Large α (>180°) or small β (<180°) flags meaningful imbalance.
◉ Intuition: large α suggests potential selling pressure; small β implies fragile support. HUD cells highlight these conditions.
5.3 OB/OS Spike
OverBought/OverSold (OB/OS) labels appear when directional volume spikes align with a 7‑oscillator vote (RSI, Stoch, %R, CCI, MFI, DeMarker, StochRSI).
◉ OB label (red): unusually high sell volume + enough OB votes
◉ OS label (teal): unusually high buy volume + enough OS votes
Minimum votes and sync window are user‑configurable; dotted connectors can link labels to the candle wick.
5.4 Top3 Volume Peaks
Within the P window the script ranks the top three BUY peaks (B1–B3) and top three SELL peaks (S1–S3).
◉ B1 and S1 are drawn as horizontal resistance (at B1 High) and support (at S1 Low) zones with adjustable thickness (ticks/percent/ATR).
◉ The HUD dedicates six cells to show ↑/↓/Δ for each rank, and prints the exact High (B1) and Low (S1) inline in their cells.
6) Reading the HUD — A Quick Checklist
◉ Meta: Confirm P and both timeframes (host & lower).
◉ Host TF block: Compare current ↑/↓/Δ against their SMAs.
◉ Segments: Contrast C→B vs B→A deltas to gauge momentum change.
◉ Wings: Right‑wing color/angle = now; left wing = recent origin.
◉ α / β: Look for α > 180° or β < 180° as imbalance cues.
◉ OB/OS: Note labels, color (red/teal), and the vote count.
◉Top3: Keep B1 (resistance) and S1 (support) on your radar.
Use these together to sketch scenarios and invalidation levels; never rely on a single signal in isolation.
[ 7) Example Highlights (What the table conveys) /i]
◉ Row 1 shows the indicator name, the analysis length P (default 55), and both TFs used for computation and display.
◉ B1 / S1 blocks summarize each side’s peak within the window, with Δ indicating buyer/seller dominance at that peak and inline price (B1 High / S1 Low) for actionable levels.
◉ Angle cells for each wing report the top/bottom line angles vs. the horizontal, reflecting the directional posture.
◉ Ranks B2/B3 and S2/S3 extend context beyond the top peak on each side.
◉ α / β cells quantify the orientation gap at B; changes reflect shifting buyer/seller influence on trend strength.
Together these visuals often reveal whether the “wings” resemble a strong, upward‑tilted arm supported by buyer volume—but always corroborate with your broader toolkit
8) Practical Tips & Tuning
◉ Choose P by market structure. For daily charts, 34–89 bars often works well.
◉ Lower TF choice: Thin symbols → 5–15m; liquid symbols → 1m.
◉ Near‑zero angle: In noisy markets, consider 5–7° instead of 3°.
◉ OB/OS votes: Daily charts often work with 3–4 votes; lower TFs may prefer 4–5.
◉ Zone thickness: Tie B1/S1 zone thickness to ATR so it scales with volatility.
◉ Colors: Feel free to theme the primary/negative colors; keep Δ<0 mapped to the negative color for readability.
Combine with price action: Use this indicator alongside structure, trendlines, and other tools for stronger decisions.
Technical Notes
Pine Script v6.
◉ Up/Down split via TradingView/ta library call requestUpAndDownVolume(lowerTf).
◉ HUD‑first design; drawings for Wings/αβ/OBOS/Top3 align with the same sign/threshold logic used in the table.
Disclaimer: This indicator is provided solely for educational and analytical purposes. It does not constitute financial advice, nor is it a recommendation to buy or sell any security. Always conduct your own research and use multiple tools before making trading decisions.
Fundur - Market Sentiment BIndicator Overview
The Market Sentiment B indicator is a sophisticated multi-timeframe momentum oscillator that provides comprehensive market analysis through advanced wave theory and sentiment measurement. Unlike traditional single-timeframe indicators, Market Sentiment B analyzes 11 different timeframes simultaneously to create a unified view of market momentum and sentiment.
What Makes Market Sentiment B Unique
Multi-Timeframe Convergence : The indicator combines data from 11 different periods (8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987) based on mathematical sequences that naturally occur in market cycles.
Advanced Wave Analysis : The histogram component tracks momentum waves with precise peak and trough identification, allowing traders to spot both major moves and smaller precursor waves.
Sentiment Extremes Detection : When all 11 timeframes reach extreme levels simultaneously, the indicator highlights these rare conditions with background coloring, signaling potential major reversals.
Dynamic Zone Analysis : The indicator divides market conditions into Premium (80+), Discount (20-), and Liquidity zones (40-60), providing clear context for trade entries and exits.
Core Components
1. Market Sentiment B Line (Main Signal)
The primary oscillator line that represents the averaged sentiment across all timeframes. This line uses advanced mathematical filtering to smooth out noise while preserving important trend changes.
Key Features:
Oscillates between 0-100
Color-coded: Green when rising, Red when falling
Shows divergences with colored dots
Premium zone: 80+, Discount zone: 20-
2. Momentum Waves (Secondary Signal)
A smoothed version of the Market Sentiment B line that acts as a trend-following component. This line helps identify the underlying momentum direction.
Key Features:
Blue coloring during bullish expansion (above 50 and rising)
Orange coloring during bearish expansion (below 50 and falling)
Filled areas show expansion and contraction phases
Critical 50-line crossovers signal momentum shifts
3. Histogram (Wave Analysis)
The difference between Market Sentiment B and Momentum Waves, displayed as a histogram that reveals the relationship between current sentiment and underlying momentum.
Key Features:
Green bars: Positive momentum (Market Sentiment above Momentum Waves)
Red bars: Negative momentum (Market Sentiment below Momentum Waves)
Wave height labels show the strength of each wave
Divergence patterns identify potential reversals
4. Divergence System
Advanced divergence detection that identifies both regular and hidden divergences, with special "Golden Divergences" for the strongest signals.
Types:
Regular Divergences : Price makes new highs/lows while indicator doesn't
Hidden Divergences : Continuation patterns in trending markets
Golden Divergences : High-probability reversal signals (orange dots)
5. Zone Analysis
The indicator divides market conditions into distinct zones:
Premium Zone (80-100) : Potential selling area
Liquidity Zone (40-60) : Neutral/consolidation area (highlighted in orange)
Discount Zone (0-20) : Potential buying area
Extreme Conditions : Background coloring when all timeframes align
Setup Guide
Initial Installation
Open TradingView and navigate to your desired chart
Click the "Indicators" button or press "/" key
Search for "Fundur - Market Sentiment B"
Click on the indicator to add it to your chart
The indicator will appear in a separate pane below your chart
Essential Settings Configuration
Main Settings
Show Histogram Wave Values : Enable to see wave strength numbers
Wave Value Text Size : Choose from tiny, small, normal, or large
Wave Label Offset : Adjust label positioning (default: 2)
Market Sentiment Thresholds
Only Show Indicators at Market Sentiment Extremes : Filter signals to extreme zones only
Extreme levels are automatically set at 80 (high) and 20 (low)
Small Wave Strategy
Enable Small Wave Swing Strategy : Focus on smaller, early-warning waves
Small Wave Label Color : Customize the color for small wave labels
Divergence Analysis
Show Regular Divergences : Enable standard divergence detection
Show Gold Divergence Dots : Enable high-probability golden signals
Show Divergence Dots : Show all divergence markers
Histogram Settings
Enable Histogram : Toggle the histogram display
Divergence Types : Choose which types to display (Bullish/Bearish Reversals and Continuations)
Recommended Initial Setup
Enable all main components (Histogram, Divergences, Momentum Waves)
Set wave value text size to "small" for clarity
Enable golden divergence dots for premium signals
Start with all alert categories enabled, then customize based on your trading style
Basic Trading Guide
Understanding the Zones
Premium Zone Trading (80-100)
When to Consider Selling:
Market Sentiment B enters 80+ zone
Bearish divergences appear
Histogram shows weakening momentum (smaller green waves)
Background turns red (extreme conditions)
What to Look For:
Bearish pivot signals (orange triangles pointing down)
Golden divergence dots at tops
Momentum Waves turning bearish
Discount Zone Trading (0-20)
When to Consider Buying:
Market Sentiment B enters 0-20 zone
Bullish divergences appear
Histogram shows strengthening momentum (smaller red waves)
Background turns green (extreme conditions)
What to Look For:
Bullish pivot signals (blue triangles pointing up)
Golden divergence dots at bottoms
Momentum Waves turning bullish
Liquidity Zone Trading (40-60)
Consolidation and Breakout Zone:
Orange-filled area indicates neutral sentiment
Wait for clear breaks above 60 or below 40
Use for range-bound trading strategies
Look for momentum wave direction changes
Key Signal Types
1. Zone Crossovers
Above 60 : Bullish momentum building
Below 40 : Bearish momentum building
50-line crosses : Primary trend changes
2. Divergence Signals
Golden dots : Strongest reversal signals that align accross different timeframes
Colored dots : Standard divergence warnings
Hidden divergences : Trend continuation signals
3. Histogram Patterns
Increasing green bars : Building bullish momentum
Increasing red bars : Building bearish momentum
Smaller waves : Early warning signals of deteriorating interest
Basic Entry Rules
Long Entries
Market Sentiment B in discount zone (0-20) OR
Bullish divergence confirmed OR
Break above 40 from oversold conditions OR
Golden divergence dot at bottom
Short Entries
Market Sentiment B in premium zone (80-100) OR
Bearish divergence confirmed OR
Break below 60 from overbought conditions OR
Golden divergence dot at top
Exit Rules
Exit longs when entering premium zone
Exit shorts when entering discount zone
Close positions on opposite divergence signals
Use histogram wave tops/bottoms for fine-tuning exits
Advanced Analysis Setups
Setup 1: Scalping Configuration
Purpose : Quick intraday trades focusing on small moves
Settings :
Enable Small Wave Strategy
Show indicators only at extremes: OFF
Combine multiple alerts: ON
Focus on 1-5 minute timeframes
Signals to Watch :
Small wave histogram peaks/troughs
Quick zone crossovers (40/60 line breaks)
Momentum wave direction changes
Short-term divergences
Setup 2: Swing Trading Configuration
Purpose : Medium-term trend following and reversal trading
Settings :
Show indicators only at extremes: ON
Enable all divergence types
Focus on 15-minute to 4-hour timeframes
Golden divergence alerts: HIGH priority
Signals to Watch :
Premium/discount zone entries
Golden divergence signals
Extreme condition backgrounds
Major histogram wave formations
Setup 3: Position Trading Configuration
Purpose : Long-term trend identification and major reversal spots
Settings :
Only alert in extremes: ON
Focus on golden divergences only
Use daily and weekly timeframes
Minimize noise with extreme filtering
Signals to Watch :
Extreme condition backgrounds (red/green)
Major golden divergence signals
Long-term momentum wave trends
Weekly/monthly zone transitions
Setup 4: Reversal Hunting Configuration
Purpose : Catching major market turns at key levels
Settings :
Enable all divergence types
Show golden divergence dots: ON
Extreme filtering: ON
Small wave strategy: OFF
Signals to Watch :
Multiple divergence confirmations
Golden divergence + extreme zones
All-timeframe extreme conditions
Major histogram wave exhaustion
Setup 5: Trend Following Configuration
Purpose : Riding momentum in established trends
Settings :
Momentum waves: HIGH priority
Hidden divergences: ON
Continuation patterns focus
Zone crossover alerts
Signals to Watch :
Momentum wave expansion phases
Hidden divergence continuations
Liquidity zone breakouts
Sustained momentum patterns
Alert System
The Market Sentiment B indicator features a comprehensive alert system with over 30 different alert types organized into logical categories.
Alert Categories
Market Sentiment B Line Alerts
Golden Divergences : Highest priority reversal signals
Standard Divergences : Regular divergence patterns
Bearish/Bullish Pivots : Momentum pivot points
Premium/Discount Zone : Zone entry/exit alerts
Extreme Conditions : Rare all-timeframe extremes
Liquidity Zone : 40-60 zone movement alerts
Momentum Waves Alerts
Premium/Discount Zones : 80+/20- level alerts
Liquidity Zone Movement : 40-60 zone alerts
Expansion Phases : Bullish/bearish expansion alerts
Direction Changes : 50-line crossover alerts
Cross Alerts : MSB vs Momentum crossovers
Histogram Alerts
State Changes : Bullish/bearish turns
Peak/Trough Detection : Wave top/bottom alerts
Divergence Alerts : Histogram-specific divergences
Hidden Divergences : Continuation pattern alerts
Smaller Wave Alerts : Early warning signals
Alert Configuration Tips
For Day Trading
Enable quick state change alerts
Focus on histogram and small wave alerts
Use combined alerts to reduce noise
Disable extreme-only filtering
For Swing Trading
Enable zone crossover alerts
Focus on divergence and pivot alerts
Use extreme-only filtering
Prioritize golden divergence alerts
For Position Trading
Enable only golden divergences and extreme conditions
Use extreme-only filtering
Focus on major zone transitions
Disable minor wave alerts
Trading Strategies
Strategy 1: Premium/Discount Zone Reversal
Setup : Wait for Market Sentiment B to reach extreme zones
Entry :
Long: Enter discount zone (0-20) with bullish divergence
Short: Enter premium zone (80-100) with bearish divergence
Exit : Opposite zone reached or momentum wave reversal
Risk Management : Stop loss at recent swing high/low
Strategy 2: Golden Divergence Power Plays
Setup : Wait for golden divergence dots to appear
Entry : Enter in direction opposite to divergence (reversal play)
Confirmation : Wait for momentum wave to confirm direction
Exit : When sentiment reaches opposite zone
Risk Management : Tight stops below/above divergent pivot
Strategy 3: Momentum Wave Trend Following
Setup : Identify strong momentum wave expansion phases
Entry : Enter on pullbacks to 50-line during expansion
Continuation : Hold while expansion phase continues
Exit : When expansion phase ends or opposite expansion begins
Risk Management : Trail stops using wave peaks/troughs
Strategy 4: Small Wave Early Entry
Setup : Enable Small Wave Strategy for early signals
Entry : Enter on small wave formations before major moves
Confirmation : Wait for main sentiment line to follow
Exit : When major wave forms or opposite signal appears
Risk Management : Quick exits if main indicator doesn't confirm
Strategy 5: Extreme Condition Contrarian
Setup : Wait for background color changes (extreme conditions)
Entry : Counter-trend when ALL timeframes are extreme
Confirmation : Look for early divergence signs
Exit : When background color disappears
Risk Management : Position size smaller due to counter-trend nature
FAQ & Troubleshooting
Frequently Asked Questions
Q: Why don't I see any signals on my chart?
A: Check if "Only Show Indicators at Market Sentiment Extremes" is enabled. If so, signals only appear when the indicator is above 80 or below 20.
Q: What's the difference between golden and standard divergences?
A: Golden divergences (orange dots) are higher-probability signals that meet additional criteria for strength and momentum alignment. Standard divergences are regular price/indicator disagreements.
Q: How do I reduce alert noise?
A: Enable "Only Alert In Extremes" in the alert settings, or use "Combine Multiple Alerts" to consolidate multiple signals into single messages.
Q: What timeframe works best with this indicator?
A: The indicator works on all timeframes. For day trading, use 1-15 minutes. For swing trading, use 1-4 hours. For position trading, use daily or weekly.
Q: Why are the histogram wave values important?
A: Wave values show the strength of momentum. Declining wave values (smaller peaks) often precede trend changes, while increasing values confirm trend strength.
Troubleshooting Common Issues
Issue: Indicator not loading
Solution: Ensure you're using TradingView Pro or higher
Check that max_bars_back is set appropriately
Refresh the chart and re-add the indicator
Issue: Too many alerts firing
Solution: Enable extreme-only filtering
Disable less important alert categories
Use combined alerts feature
Issue: Missing divergence signals
Solution: Check that divergence detection is enabled
Ensure you're looking in the correct zones
Verify that extreme filtering isn't hiding signals
Issue: Histogram not displaying
Solution: Check that "Enable Histogram" is turned ON
Verify histogram divergence types are enabled
Ensure the chart has sufficient historical data
Best Practices
Start Simple : Begin with basic zone trading before using advanced features
Paper Trade First : Test strategies with paper trading before risking capital
Combine with Price Action : Use the indicator alongside support/resistance levels
Respect Risk Management : Never risk more than you can afford to lose
Keep Learning : Market conditions change; adapt your usage accordingly
Performance Optimization
Use appropriate timeframes for your trading style
Enable only necessary alert types
Consider using extreme filtering during high-volatility periods
Regularly review and adjust settings based on market conditions
Conclusion
The Market Sentiment B indicator represents a sophisticated approach to market analysis, combining multiple timeframes, advanced wave theory, and comprehensive divergence detection into a single powerful tool. Whether you're a scalper looking for quick opportunities or a position trader seeking major reversals, this indicator provides the insights needed to make informed trading decisions.
Remember that no indicator is perfect, and the Market Sentiment B should be used as part of a comprehensive trading plan that includes proper risk management, fundamental analysis awareness, and sound money management principles.
Happy Trading!
Disclaimer: Trading involves substantial risk and is not suitable for all investors. Past performance is not indicative of future results. Always practice proper risk management and never trade with money you cannot afford to lose.
iDea Stochastic Divergence Pro iDea TradeThis indicator automatically detects and highlights bullish and bearish divergences using the Stochastic oscillator.
Main features:
Automatic detection of bullish & bearish divergences
Clear visual signals: red (bearish) and green (bullish) lines
Overbought/oversold zone dots
Price filter option for more reliable divergences
Alerts for reversal and divergence completion
Customizable thresholds and smoothing settings
How to use:
Look for red or green divergence lines for potential trend reversals. Dots in overbought/oversold areas signal possible turning points. Combine with your own analysis for best results.
Note:
This script does not provide buy/sell signals. It is for technical analysis only and is not financial advice. Please use proper risk management.
Protected script. Source code is hidden but free for all TradingView users.
Reversal Radar
**Reversal Radar - Multi-Indicator Confirmation System**
This script combines five proven technical analysis methods into a unified reversal signal, reducing false signals through multi-indicator confirmation.
**INDICATORS USED:**
1. ADX/Directional Movement System
Determines trend direction via +DI and -DI comparison. Signal only during downtrend condition (DI- > DI+). Filters out sideways markets.
2. Custom Linear Regression Momentum
Proprietary momentum calculation based on linear regression. Measures price deviation from Keltner Channel midline. Signal on negative but rising momentum (beginning trend reversal).
3. Williams VIX Fix (WVF)
Identifies panic-selling phases. Calculates relative distance to recent high. Signal when exceeding Bollinger Bands or historical percentiles.
4. RSI Oversold Filter
Default RSI < 35 (adjustable 30-40). Filters only oversold zones for reversal setups.
5. MACD Confirmation
Signal only when MACD below zero line and below signal line. Confirms ongoing weakness before potential reversal.
**FUNCTIONALITY:**
The system generates a BUY signal only when ALL activated filters are simultaneously met. Each indicator can be individually enabled/disabled. Flexible parameter adjustment for different markets/timeframes. Reduces false signals through multi-confirmation.
**APPLICATION:**
Suitable for swing trading on higher timeframes (4H, Daily), reversal strategies in oversold markets, and combination with additional confirmation indicators.
Setup: Activate desired filters, adjust parameters to market/timeframe, check BUY signal as entry opportunity. Additional confirmation through volume/support recommended.
**INNOVATION:**
The Custom Linear Regression Momentum is a proprietary development combining Keltner Channel logic with linear regression for more precise momentum detection than standard oscillators.
**DISCLAIMER:**
This tool serves as technical analysis support. No signal should be traded without additional confirmation and risk management.
Mayfair Reversal Change✅ Mayfair Reversal Change — By EastWave Capital
Description:
The Mayfair Reversal Change indicator is a tool designed to help traders identify potential market turning points using Stochastic Oscillator behavior and filtered price action logic. It acts as a reversal signal filter and is particularly effective when the market is overextended (overbought/oversold) and about to revert from exhaustion zones.
🔍 How It Works:
This script monitors the Stochastic %K and %D crossovers and adds a custom logic layer to filter only high-quality reversal points:
Stochastic Filter Conditions:
Uses smoothed stochastic settings:
%K smoothing = 3
%D smoothing = 3
Only shows signals after %K crosses back below 80 (for Sell) or above 20 (for Buy)
This prevents signals from appearing too early during an active overbought or oversold phase.
Directional Confirmation Logic:
Bullish signal is printed only when %K re-enters below 20 after a confirmed stochastic crossover.
Bearish signal appears only when %K re-enters above 80.
This reduces false signals that occur during continued trending moves.
Toggle Switch:
A user-toggle input is included to enable or disable the reversal filter logic.
This gives flexibility for traders who want to test signals with or without the stochastic condition.
📈 How to Use:
Timeframes: Recommended for 5M, 15M, and 30M
Markets: Compatible with any market — FX, Gold, Indices, Crypto
Entry Approach:
Wait for signal after price has reached a potential extreme area.
Confirm with chart structure, support/resistance, or SMC zone.
Enter on confirmation, placing stop loss beyond the swing high/low.
Combine with trendline breaks or price imbalances (FVG) for extra confluence.
Can be used in combination with the Mayfair FX Scalper script for dual-layer confirmation.
⚠️ Important Notes:
Signals are visual only and should be confirmed with proper strategy.
This indicator does not execute or manage trades automatically.
Designed to assist with reversal setups but should not be used in isolation.
Always manage risk, use SL/TP, and avoid over-leveraging.
AMV Volume AssistantThe AMV Volume Assistant is a custom tool that visualizes volume delta strength using percentile-based scoring. It helps identify potential overbought and oversold conditions by measuring how strong recent buying or selling pressure is compared to historical volume behavior.
What it does:
Tracks delta accumulation using lower timeframe data split into buying and selling volume based on candle direction.
Converts this accumulation into a percentile score to show relative strength or weakness.
Colors the background green or red when the smoothed score crosses key thresholds (+3 or -3), highlighting moments of possible volume exhaustion or continuation.
Use case:
This tool is useful for intraday traders who want a simple way to spot strong buying or selling pressure and assess when the move may be overextended. It works best as a supporting indicator alongside your main strategy or trend framework.
This tool works best on futures such as CME_MINI:NQ1! due to the accuracy of volume data provided.
IMPORTANT: On lower tf's such as the 1 minute timeframes, 5s data is needed so a premium subscription is required for the use of this indicator.
[ BETA ][ IND ][ LIB ] Dynamic LookBack RSI RangeGet visual confirmation with this indicator if the current range selected had been oversold or overbough in the latest n bars
Volume Overbought/Oversold Zones📊 What You’ll See on the Chart
Red Background or Red Triangle ABOVE a Candle
🔺 Means: Overbought Volume
→ Volume on that bar is much higher than average (as defined by your settings).
→ Suggests strong activity, possible exhaustion in the trend or an emotional spike.
→ It’s a warning: consider watching for signs of reversal, especially if price is already stretched.
Green Background or Green Triangle BELOW a Candle
🔻 Means: Oversold Volume
→ Volume on that bar is much lower than normal.
→ Suggests the market may be losing momentum, or few sellers are left.
→ Could signal an upcoming reversal or recovery if confirmed by price action.
Orange Line Below the Candles (Volume Moving Average)
📈 Shows the "normal" average volume over the last X candles (default is 20).
→ Helps you visually compare each bar’s volume to the average.
Gray Columns (Actual Volume Bars)
📊 These are your regular volume bars — they rise and fall based on how active each candle is.
🔍 What This Indicator Does (In Simple Words)
This indicator looks at trading volume—which is how many shares/contracts were traded in a given period—and compares it to what's considered "normal" for recent history. When volume is unusually high or low, it highlights those moments on the chart.
It tells you:
• When volume is much higher than normal → market might be overheated or experiencing a buying/selling frenzy.
• When volume is much lower than normal → market might be quiet, potentially indicating lack of interest or indecision.
These conditions are marked visually, so you can instantly spot them.
💡 How It Helps You As a Trader
1. Spotting Exhaustion in Trends (Overbought Signals)
If a market is going up and suddenly volume spikes way above normal, it may mean:
• The move is getting crowded (lots of buyers are already in).
• A reversal or pullback could be near because smart money may be taking profits.
Trading idea: Wait for high-volume up bars, then look for price weakness to consider a short or exit.
2. Identifying Hidden Opportunities (Oversold Signals)
If price is falling but volume drops unusually low, it might mean:
• Panic is fading.
• Sellers are losing energy.
• A bounce or trend reversal could happen soon.
Trading idea: After a volume drop in a downtrend, watch for bullish price patterns or momentum shifts to consider a buy.
3. Confirming or Doubting Breakouts
Volume is critical for confirming breakouts:
• If price breaks a key level with strong volume, it's more likely to continue.
• A breakout without volume could be a fake-out.
This indicator highlights volume surges that can help you confirm such moves.
📈 How to Use It in Practice
• Combine it with candlestick patterns, support/resistance, or momentum indicators.
• Use the background colors or shapes as a visual cue to pause and analyze.
• Adjust the sensitivity to suit fast-moving markets (like crypto) or slow ones (like large-cap stocks).
Aqua MTF Stochastic Oscillator——————————————————————————————————————————————————————————
The Aqua Multi-Timeframe (MTF) Stochastic Oscillator is a comprehensive momentum analysis tool that synthesizes
stochastic data from up to five distinct, user-configurable sources and timeframes into a single, unified view.
--- CORE CONCEPT ---
Traditional oscillators provide insight into one specific timeframe. This indicator overcomes that limitation by
aggregating momentum readings from multiple timeframes. The core principle is to gauge the confluence of momentum
across different market cycles. A strong trend is often characterized by aligned momentum across short-term,
medium-term, and long-term perspectives. This tool visualizes that alignment in a clear, intuitive oscillator.
--- METHODOLOGY ---
For each of the five analysis slots, the script calculates the Stochastic %K line and its corresponding %D signal line.
To allow for direct comparison and weighting, each of these standard 0-100 oscillator values is then normalized
to a bipolar scale of -100 to +100, where 0 represents the neutral midline.
These normalized scores are then blended, according to user-defined weights, into two master composite lines:
1. A master "Score Line" representing the weighted average of the raw %K momentum values.
2. A master "Signal Line" representing the weighted average of the smoothed %D signal values.
--- KEY FEATURES ---
• Multi-Timeframe & Multi-Symbol Analysis: Configure up to five slots, each with its own symbol, timeframe, price source, and stochastic settings.
• Normalized Momentum Scale: All stochastic values are re-scaled to a -100 to +100 range, providing a standardized measure of momentum. Values above 0 indicate bullish momentum, while values below 0 indicate bearish momentum.
• Weighted Composite Score: User-defined weights allow for prioritizing certain timeframes, creating a custom-tailored final momentum reading.
• Dynamic Color-Coding: The color of the master Score Line and each individual timeframe's line instantly changes based on its position relative to its signal line (%K vs. %D). This provides immediate visual feedback on momentum acceleration (bullish) or deceleration (bearish).
--- HOW TO INTERPRET ---
• Crossovers: The interaction between the master Score Line and the Signal Line can be used to identify potential shifts in momentum, similar to a traditional MACD.
• Line Color: The color of the master Score Line itself serves as a primary signal. A bullish color indicates that overall raw momentum is leading smoothed momentum, and vice-versa.
• Overbought/Oversold Levels: Extreme readings near the +100 or -100 levels suggest that the aggregated momentum may be overextended and due for a reversion.
• Zero Line Crosses: When the oscillator crosses above the zero line, it signals that the balance of momentum has shifted to positive territory. A cross below zero signals a shift to negative territory.
• Divergence: Look for divergences where price makes a new high or low, but the oscillator fails to confirm it. This can often signal a pending reversal.
Author: Aquaritek
——————————————————————————————————————————————————————————
Intermarket Correlation Oscillator (ICO)The Intermarket Correlation Oscillator (ICO) is a TradingView indicator that helps traders analyze the relationship between two assets, such as stocks, indices, or cryptocurrencies, by measuring their price correlation. It displays this correlation as an oscillator ranging from -1 to +1, making it easy to spot whether the assets move together, oppositely, or independently. A value near +1 indicates strong positive correlation (assets move in the same direction), near -1 shows strong negative correlation (opposite movements), and near 0 suggests no correlation. This tool is ideal for confirming trends, spotting divergences, or identifying hedging opportunities across markets.
How It Works?
The ICO calculates the Pearson correlation coefficient between the chart’s primary asset (e.g., Apple stock) and a secondary asset you choose (e.g., SPY for the S&P 500) over a specified number of bars (default: 20). The oscillator is plotted in a separate pane below the chart, with key levels at +0.8 (overbought, strong positive correlation) and -0.8 (oversold, strong negative correlation). A midline at 0 helps gauge neutral correlation. When the oscillator crosses these levels or the midline, labels ("OB" for overbought, "OS" for oversold) and alerts notify you of significant shifts. Shaded zones highlight extreme correlations (red for overbought, green for oversold) if enabled.
Why Use the ICO?
Trend Confirmation: High positive correlation (e.g., SPY and QQQ both rising) confirms market trends.
Divergence Detection: Negative correlation (e.g., DXY rising while stocks fall) signals potential reversals.
Hedging: Identify negatively correlated assets to balance your portfolio.
Market Insights: Understand how assets like stocks, bonds, or crypto interact.
Easy Steps to Use the ICO in TradingView
Add the Indicator:
Open TradingView and load your chart (e.g., AAPL on a daily timeframe).
Go to the Pine Editor at the bottom of the TradingView window.
Copy and paste the ICO script provided earlier.
Click "Add to Chart" to display the oscillator below your price chart.
Configure Settings:
Click the gear icon next to the indicator’s name in the chart pane to open settings.
Secondary Symbol: Choose an asset to compare with your chart’s symbol (e.g., "SPY" for S&P 500, "DXY" for USD Index, or "BTCUSD" for Bitcoin). Default is SPY.
Correlation Lookback Period: Set the number of bars for calculation (default: 20). Use 10-14 for short-term trading or 50 for longer-term analysis.
Overbought/Oversold Levels: Adjust thresholds (default: +0.8 for overbought, -0.8 for oversold) to suit your strategy. Lower values (e.g., ±0.7) give more signals.
Show Midline/Zones: Check boxes to display the zero line and shaded overbought/oversold zones for visual clarity.
Interpret the Oscillator:
Above +0.8: Strong positive correlation (red zone). Assets move together.
Below -0.8: Strong negative correlation (green zone). Assets move oppositely.
Near 0: No clear relationship (midline reference).
Labels: "OB" or "OS" appears when crossing overbought/oversold levels, signaling potential correlation shifts.
Set Up Alerts:
Right-click the indicator, select "Add Alert."
Choose conditions like "Overbought Alert" (crossing above +0.8), "Oversold Alert" (crossing below -0.8), or zero-line crossings for bullish/bearish correlation shifts.
Configure notifications (e.g., email, SMS) to stay informed.
Apply to Trading:
Use positive correlation to confirm trades (e.g., buy AAPL if SPY is rising and correlation is high).
Spot divergences for reversals (e.g., stocks dropping while DXY rises with negative correlation).
Combine with other indicators like RSI or moving averages for stronger signals.
Tips for New Users
Start with related assets (e.g., SPY and QQQ for tech stocks) to see clear correlations.
Test on a demo account to understand signals before trading live.
Be aware that correlation is a lagging indicator; confirm signals with price action.
If the secondary symbol doesn’t load, ensure it’s valid on TradingView (e.g., use correct ticker format).
The ICO is a powerful, beginner-friendly tool to explore intermarket relationships, enhancing your trading decisions with clear visual cues and alerts.
MVRV Ratio [Alpha Extract]The MVRV Ratio Indicator provides valuable insights into Bitcoin market cycles by tracking the relationship between market value and realized value. This powerful on-chain metric helps traders identify potential market tops and bottoms, offering clear buy and sell signals based on historical patterns of Bitcoin valuation.
🔶 CALCULATION The indicator processes MVRV ratio data through several analytical methods:
Raw MVRV Data: Collects MVRV data directly from INTOTHEBLOCK for Bitcoin
Optional Smoothing: Applies simple moving average (SMA) to reduce noise
Status Classification: Categorizes market conditions into four distinct states
Signal Generation: Produces trading signals based on MVRV thresholds
Price Estimation: Calculates estimated realized price (Current price / MVRV ratio)
Historical Context: Compares current values to historical extremes
Formula:
MVRV Ratio = Market Value / Realized Value
Smoothed MVRV = SMA(MVRV Ratio, Smoothing Length)
Estimated Realized Price = Current Price / MVRV Ratio
Distance to Top = ((3.5 / MVRV Ratio) - 1) * 100
Distance to Bottom = ((MVRV Ratio / 0.8) - 1) * 100
🔶 DETAILS Visual Features:
MVRV Plot: Color-coded line showing current MVRV value (red for overvalued, orange for moderately overvalued, blue for fair value, teal for undervalued)
Reference Levels: Horizontal lines indicating key MVRV thresholds (3.5, 2.5, 1.0, 0.8)
Zone Highlighting: Background color changes to highlight extreme market conditions (red for potentially overvalued, blue for potentially undervalued)
Information Table: Comprehensive dashboard showing current MVRV value, market status, trading signal, price information, and historical context
Interpretation:
MVRV ≥ 3.5: Potential market top, strong sell signal
MVRV ≥ 2.5: Overvalued market, consider selling
MVRV 1.5-2.5: Neutral market conditions
MVRV 1.0-1.5: Fair value, consider buying
MVRV < 1.0: Potential market bottom, strong buy signal
🔶 EXAMPLES
Market Top Identification: When MVRV ratio exceeds 3.5, the indicator signals potential market tops, highlighting periods where Bitcoin may be significantly overvalued.
Example: During bull market peaks, MVRV exceeding 3.5 has historically preceded major corrections, helping traders time their exits.
Bottom Detection: MVRV values below 1.0, especially approaching 0.8, have historically marked excellent buying opportunities.
Example: During bear market bottoms, MVRV falling below 1.0 has identified the most profitable entry points for long-term Bitcoin accumulation.
Tracking Market Cycles: The indicator provides a clear visualization of Bitcoin's market cycles from undervalued to overvalued states.
Example: Following the progression of MVRV from below 1.0 through fair value and eventually to overvalued territory helps traders position themselves appropriately throughout Bitcoin's market cycle.
Realized Price Support: The estimated realized price often acts as a significant
support/resistance level during market transitions.
Example: During corrections, price often finds support near the realized price level calculated by the indicator, providing potential entry points.
🔶 SETTINGS
Customization Options:
Smoothing: Toggle smoothing option and adjust smoothing length (1-50)
Table Display: Show/hide the information table
Table Position: Choose between top right, top left, bottom right, or bottom left positions
Visual Elements: All plots, lines, and background highlights can be customized for color and style
The MVRV Ratio Indicator provides traders with a powerful on-chain metric to identify potential market tops and bottoms in Bitcoin. By tracking the relationship between market value and realized value, this indicator helps identify periods of overvaluation and undervaluation, offering clear buy and sell signals based on historical patterns. The comprehensive information table delivers valuable context about current market conditions, helping traders make more informed decisions about market positioning throughout Bitcoin's cyclical patterns.
Candle Breakout Oscillator [LuxAlgo]The Candle Breakout Oscillator tool allows traders to identify the strength and weakness of the three main market states: bullish, bearish, and choppy.
Know who controls the market at any given moment with an oscillator display with values ranging from 0 to 100 for the three main plots and upper and lower thresholds of 80 and 20 by default.
🔶 USAGE
The Candle Breakout Oscillator represents the three main market states, with values ranging from 0 to 100. By default, the upper and lower thresholds are set at 80 and 20, and when a value exceeds these thresholds, a colored area is displayed for the trader's convenience.
This tool is based on pure price action breakouts. In this context, we understand a breakout as a close above the last candle's high or low, which is representative of market strength. All other close positions in relation to the last candle's limits are considered weakness.
So, when the bullish plot (in green) is at the top of the oscillator (values above 80), it means that the bullish breakouts (close below the last candle low) are at their maximum value over the calculation window, indicating an uptrend. The same interpretation can be made for the bearish plot (in red), indicating a downtrend when high.
On the other hand, weakness is indicated when values are below the lower threshold (20), indicating that breakouts are at their minimum over the last 100 candles. Below are some examples of the possible main interpretations:
There are three main things to look for in this oscillator:
Value reaches extreme
Value leaves extreme
Bullish/Bearish crossovers
As we can see on the chart, before the first crossover happens the bears come out of strength (top) and the bulls come out of weakness (bottom), then after the crossover the bulls reach strength (top) and the bears weakness (bottom), this process is repeated in reverse for the second crossover.
The other main feature of the oscillator is its ability to identify periods of sideways trends when the sideways values have upper readings above 80, and trending behavior when the sideways values have lower readings below 20. As we just saw in the case of bullish vs. bearish, sideways values signal a change in behavior when reaching or leaving the extremes of the oscillator.
🔶 DETAILS
🔹 Data Smoothing
The tool offers up to 10 different smoothing methods. In the chart above, we can see the raw data (smoothing: None) and the RMA, TEMA, or Hull moving averages.
🔹 Data Weighting
Users can add different weighting methods to the data. As we can see in the image above, users can choose between None, Volume, or Price (as in Price Delta for each breakout).
🔶 SETTINGS
Window: Execution window, 100 candles by default
🔹 Data
Smoothing Method: Choose between none or ten moving averages
Smoothing Length: Length for the moving average
Weighting Method: Choose between None, Volume, or Price
🔹 Thresholds
Top: 80 by default
Bottom: 20 by default
Z-Score Trend Monitor [EdgeTerminal]The Z-Score Trend Monitor measures how far the short-term moving average deviates from the long-term moving average using the spread difference of the two — in standardized units. It’s designed to detect overextension, momentum exhaustion, and potential mean-reversion points by converting the spread between two moving averages into a normalized Z-score and tracking its change and direction over time.
The idea behind this is to catch the changes in the direction of a trend earlier than the usual and lagging moving average lines, allowing you to react faster.
The math behind the indicator itself is very simple. We take the simple moving average of the spread between a long term and short term moving average, and divide it by the difference between the spread and spread mean.
This results in a relatively accurate and early acting trend detector that can easily identify overbought and oversold levels in any timeframe. From our own testing, we recommend using this indicator as a trend confirmation tool.
How to Use It:
Keep an eye on the Z-Score or the blue line. When it goes over 2, it indicates an overbought or near top level, and when it goes below -2, it indicates an oversold or near bottom.
When Z-Score returns to zero or grey line, it suggests mean reversion is in progress.
You can also change the Z-Score criteria from 2 and -2 in the settings to any number you’d like for tighter or wider levels.
For scalping and fast trading setups, we recommend shorter SMAs, such as 5 and 20, and for longer trading setups such as swing trades, we recommend 20 and 100.
Settings:
Short SMA: Lookback period of short term simple moving average for the lower side of the SMA spread.
Short Term Weight: Additional weight or multiplier to suppress the short term SMA calculation. This is used to refine the SMA calculation for more granular and edge cases when needed, usually left at 1, meaning it will take the entire given value in the short SMA field.
Long SMA: Lookback period of long term simple moving average for the upper side of the SMA spread.
Long Term Weight: Additional weight or multiplier to suppress the long term SMA calculation. This is used to refine the long SMA calculation for more granular and edge cases when needed, usually left at 1, meaning it will take the entire given value in the long SMA field.
Z-Score Threshold: The threshold for upper (oversold) and lower (overbought) levels. This can also be set individually from the style page.
Z-Score Lookback Window: The lookback period to calculate spread mean and spread standard deviation
Price Change Sentiment Index [tradeviZion]Price Change Sentiment Index
A technical indicator that measures price changes relative to the day's range.
Indicator Overview
Normalizes price changes on a 0-100 scale
Uses a smoothing period for signal clarity
Shows potential overbought/oversold conditions
Inputs
Smoothing Period (default: 3)
Show Background Colors (on/off)
Overbought Level (default: 75)
Oversold Level (default: 25)
Reading the Indicator
Values above 75: Price change showing strong upward movement
Values below 25: Price change showing strong downward movement
Around 50: Neutral price movement
Technical Details
// Core calculation
changePct = (currClose - prevClose) / (high - low)
normalized = 50 + (changePct * 50)
smoothedNormalized = ta.sma(normalizedClamped, smoothingPeriod)
Usage Notes
Best used with other technical analysis tools
Adjustable smoothing period affects signal sensitivity
Background colors highlight extreme readings
Works on any timeframe
Settings Guide
Smoothing Period:
- Lower values (1-3): More responsive
- Higher values (5-10): Smoother output
Visual Settings: Toggle background colors
Levels: Adjust overbought/oversold thresholds
This indicator is a technical analysis tool. Please conduct your own research and testing before use.
Quad Rotation StochasticQuad Rotation Stochastic
The Quad Rotation Stochastic is a powerful and unique momentum oscillator that combines four different stochastic setups into one tool, providing an incredibly detailed view of market conditions. This multi-timeframe stochastic approach helps traders better anticipate trend continuations, reversals, and momentum shifts with greater precision than traditional single stochastic indicators.
Why this indicator is useful:
Multi-layered Momentum Analysis: Instead of relying on one stochastic, this script tracks four independent stochastic readings, smoothing out noise and confirming stronger signals.
Advanced Divergence Detection: It automatically identifies bullish and bearish divergences for each stochastic, helping traders spot potential reversals early.
Background Color Alerts: When a configurable number (e.g., 3 or 4) of the stochastics agree in direction and position (overbought/oversold), the background colors green (bullish) or red (bearish) to give instant visual cues.
ABCD Pattern Recognition: The script recognizes "shield" patterns when Stochastic 4 remains stuck at extreme levels (above 90 or below 10) for a set time, warning of potential trend continuation setups.
Super Signal Alerts: If all four stochastics align in extreme conditions and slope in the same direction, the indicator plots a special "Super Signal," offering high-confidence entry opportunities.
Why this indicator is unique:
Quad Confirmation Logic: Combining four different stochastics makes this tool much less prone to false signals compared to using a single stochastic.
Customizable Divergence Coloring: Traders can choose to have divergence lines automatically match the stochastic color for clear visual association.
Adaptive ABCD Shields: Innovative use of bar counting while a stochastic remains extreme acts as a "shield," offering a unique way to filter out minor fake-outs.
Flexible Configuration: Each stochastic's sensitivity, divergence settings, and visual styling can be fully customized, allowing traders to adapt it to their own strategy and asset.
Example Usage: Trading Bitcoin with Quad Rotation Stochastic
When trading Bitcoin (BTCUSD), you might set the minimum count (minCount) to 3, meaning three out of four stochastics must be in agreement to trigger a background color.
If the background turns green, and you notice an ABCD Bullish Shield (Green X), you might look for bullish candlestick patterns or moving average crossovers to enter a long trade.
Conversely, if the background turns red and a Super Down Signal appears, it suggests high probability for further downside, giving you strong confirmation to either short BTC or avoid entering new longs.
By combining divergence signals with background colors and the ABCD shields, the Quad Rotation Stochastic provides a layered confirmation system that gives traders greater confidence in their entries and exits — particularly in fast-moving, volatile markets like Bitcoin.
RSI Candlestick Oscillator [LuxAlgo]The RSI Candlestick Oscillator displays a traditional Relative Strength Index (RSI) as candlesticks. This indicator references OHLC data to locate each candlestick point relative to the current RSI Value, leading to a more accurate representation of the Open, High, Low, and Close price of each candlestick in the context of RSI.
In addition to the candlestick display, Divergences are detected from the RSI candlestick highs and lows and can be displayed over price on the chart.
🔶 USAGE
Translating candlesticks into the RSI oscillator is not a new concept and has been attempted many times before. This indicator stands out because of the specific method used to determine the candlestick OHLC values. When compared to other RSI Candlestick indicators, you will find that this indicator clearly and definitively correlates better to the on-chart price action.
Traditionally, the RSI indicator is simply one running value based on (typically) the close price of the chart. By introducing high, low, and open values into the oscillator, we can better gauge the specific price action throughout the intrabar movements.
Interactions with the RSI levels can now take multiple forms, whether it be a full-bodied breakthrough or simply a wick test. Both can provide a new analysis of price action alongside RSI.
An example of wick interactions and full-bodied interactions can be seen below.
As a result of the candlestick display, divergences become simpler to spot. Since the candlesticks on the RSI closely resemble the candlesticks on the chart, when looking for divergence between the chart and RSI, it is more obvious when the RSI and price are diverging.
The divergences in this indicator not only show on the RSI oscillator, but also overlay on the price chart for clearer understanding.
🔹 Filtering Divergence
With the candlesticks generating high and low RSI values, we can better sense divergences from price, since these points are generally going to be more dramatic than the (close) RSI value.
This indicator displays each type of divergence:
Bullish Divergence
Bearish Divergence
Hidden Bullish Divergence
Hidden Bearish Divergence
From these, we get many less-than-useful indications, since every single divergence from price is not necessarily of great importance.
The Divergence Filter disregards any divergence detected that does not extend outside the RSI upper or lower values.
This does not replace good judgment, but this filter can be helpful in focusing attention towards the extremes of RSI for potential reversal spotting from divergence.
🔶 DETAILS
In order to get the desired results for a display that resembles price action while following RSI, we must scale. The scaling is the most important part of this indicator.
To summarize the process:
Identify a range on Price and RSI
Consider them as equal to create a scaling factor
Use the scaling factor to locate RSI's "Price equivalent" Upper, Lower, & Mid on the Chart
Use those prices (specifically the RSI Mid) to check how far each OHLC value lies from it
Use those differences to translate the price back to the RSI Oscillator, pinning the OHLC values at their relative location to our anchor (RSI Mid)
🔹 RSI Channel
To better understand, and for your convenience, the indicator includes the option to display the RSI Channel on the chart. This channel helps to visualize where the scaled RSI values are relative to price.
If you analyze the RSI channel, you are likely to notice that the price movement throughout the channel matches the same movement witnessed in the RSI Oscillator below. This makes sense since they are the exact same thing displayed on different scales.
🔹 Scaling the Open
While the scaling method used is important, and provides a very close view of the real price bar's relative locations on the RSI oscillator… It is designed for a single purpose.
The scaling does NOT make the price candles display perfectly on the RSI oscillator.
The largest place where this is noticeable is with the opening of each candle.
For this reason, we have included a setting that modifies the opening of each RSI candle to be more accurate to the chart's price candles.
This setting positions the current bar's opening RSI candlestick value accurately relative to the price's open location to the previous closing price. As seen below.
🔶 SETTINGS
🔹 RSI Candles
RSI Length: Sets the Length for the RSI Oscillator.
Overbought/Oversold Levels: Sets the Overbought and Oversold levels for the RSI Oscillator.
Scale Open for Chart Accuracy: As described above, scales the open of each candlestick bar to more accurately portray the chart candlesticks.
🔹 Divergence
Show on Chart: Choose to display divergence line on the chart as well as on the Oscillator.
Divergence Length: Sets the pivot width for divergence detection. Normal Fractal Pivot Detection is used.
Divergence Style: Change color and line style for Regular and Hidden divergences, as well as toggle their display.
Divergence Filter: As described above, toggle on or off divergence filtering.
🔹 RSI Channel
Toggle: Display RSI Channel on Chart.
Color: Change RSI Channel Color
Altcoin Reversal or Correction DetectionINDICATOR OVERVIEW: Altcoin Reversal or Correction Detection
Altcoin Reversal or Correction Detection is a powerful crypto-specific indicator designed exclusively for altcoins by analyzing their RSI values across multiple timeframes alongside Bitcoin’s RSI. Since BTC's price movements have a strong influence on altcoins, this tool helps traders better understand whether a reversal or correction signal is truly reliable or just noise. Even if an altcoin appears oversold or overbought, it may continue trending with BTC—so this indicator gives you the full picture.
The indicator is optimized for CRYPTO MARKETS only. Not suitable for BTC itself—this is a precision tool built only for ALTCOINS only.
This indicator is not only for signals but also serves as a tool for observing all the information from different timeframes of BTC and altcoins collectively.
How the Calculation Works: Algorithm Overview
The Altcoin Reversal or Correction Detection indicator relies on an algorithm that compares the RSI values of the altcoin across multiple timeframes with Bitcoin's RSI values. This allows the indicator to identify key market moments where a reversal or correction might occur.
BTC-Altcoin RSI Correlation: The algorithm looks for the correlation between Bitcoin's price movements and the altcoin's price actions, as BTC often influences the direction of altcoins. When both Bitcoin and the altcoin show either overbought or oversold conditions in a significant number of timeframes, the indicator signals the potential for a reversal or correction.
Multi-Timeframe Confirmation: Unlike traditional indicators that may focus on a single timeframe, this tool checks multiple timeframes for both BTC and the altcoin. When the same overbought/oversold conditions are met across multiple timeframes, it confirms the likelihood of a trend reversal or correction, providing a more reliable signal. The more timeframes that align with this pattern, the stronger the signal becomes.
Overbought/Oversold Conditions & Extreme RSI Values: The algorithm also takes into account the size of the RSI values, especially focusing on extreme overbought and oversold levels. The greater the RSI values are in these extreme regions, the stronger the potential reversal or correction signal. This means that not only do multiple timeframes need to confirm the condition, but the magnitude of the overbought or oversold RSI level plays a crucial role in determining the strength of the signal.
Signal Strength Levels: The signals are classified into three levels:
Early Signal
Strong Signal
Very Strong Signal
By taking into account the multi-timeframe analysis of both BTC and the altcoin RSI values, along with the magnitude of these RSI values, the indicator offers a highly reliable method for detecting potential reversals and corrections.
Who Is This Indicator Suitable For?
This indicator can also be used to detect reversal points, but it is especially effective for scalping. It highlights potential correction points, making it perfect for quick entries during smaller market pullbacks or short-term trend shifts, which is more suitable for scalpers looking to capitalize on short-term movements
Integration with other tools
Use this tool alongside key Support and Resistance zones to further enhance your trade by filtering for even better quality entries and focusing only on high-quality reversal or correction setups. It can be also used with other indicators and suitable with other personalised strategies.
Stochastic Overlay - Regression Channel (Zeiierman)█ Overview
The Stochastic Overlay – Regression Channel (Zeiierman) is a next-generation visualization tool that transforms the traditional Stochastic Oscillator into a dynamic price-based overlay.
Instead of leaving momentum trapped in a lower subwindow, this indicator projects the Stochastic oscialltor directly onto price itself — allowing traders to visually interpret momentum, overbought/oversold conditions, and market strength without ever taking their eyes off price action.
⚪ In simple terms:
▸ The Bands = The Stochastic Oscillator — but on price.
▸ The Midline = Stochastic 50 level
▸ Upper Band = Stochastic Overbought Threshold
▸ Lower Band = Stochastic Oversold Threshold
When the price moves above the midline → it’s the same as the oscillator moving above 50
When the price breaks above the upper band → it’s the same as Stochastic entering overbought.
When the price reaches the lower band →, think of it like Stochastic being oversold.
This makes market conditions visually intuitive. You’re literally watching the oscillator live on the price chart.
█ How It Works
The indicator layers 3 distinct technical elements into one clean view:
⚪ Stochastic Momentum Engine
Tracks overbought/oversold conditions and directional strength using:
%K Line → Momentum of price
%D Line → Smoothing filter of %K
Overbought/Oversold Bands → Highlight potential reversal zones
⚪ Volatility Adaptive Bands
Dynamic bands plotted above and below price using:
ATR * Stochastic Scaling → Creates wider bands during volatile periods & tighter bands in calm conditions
Basis → Moving average centerline (EMA, SMA, WMA, HMA, RMA selectable)
This means:
→ In strong trends: Bands expand
→ In consolidations: Bands contract
⚪ Regression Channel
Projects trend direction with different models:
Logarithmic → Captures non-linear growth (perfect for crypto or exponential stocks)
Linear → Classic regression fit
Adaptive → Dynamically adjusts sensitivity
Leading → Projects trend further ahead (aggressive mode)
Channels include:
Midline → Fair value trend
Upper/Lower Bounds → Deviation-based support/resistance
⚪ Heatmap - Bull & Bear Power Strength
Visual heatmeter showing:
% dominance of bulls vs bears (based on close > or < Band Basis)
Automatic normalization regardless of timeframe
Table display on-chart for quick visual insight
Dynamic highlighting when extreme levels are reached
⚪ Trend Candlestick Coloring
Bars auto-color based on trend filter:
Above Basis → Bullish Color
Below Basis → Bearish Color
█ How to Use
⚪ Trend Trading
→ Use Band direction + Regression Channel to identify trend alignment
→ Longs favored when price holds above the Basis
→ Shorts favored when price stays below the Basis
→ Use the Bull & Bear heatmap to asses if the bulls or the bears are in control.
⚪ Mean Reversion
→ Look for price to interact with Upper or Lower Band extremes
→ Stochastic reaching OB/OS zones further supports reversals
⚪ Momentum Confirmation
→ Crossovers between %K and %D can confirm continuation or divergence signals
→ Especially powerful when happening at band boundaries
⚪ Strength Heatmap
→ Quickly visualize current buyer vs seller control
→ Sharp spikes in Bull Power = Aggressive buying
→ Sharp spikes in Bear Power = Heavy selling pressure
█ Why It Useful
This is not a typical Stochastic or regression tool. The tool is designed for traders who want to:
React dynamically to price volatility
Map momentum into volatility context
Use adaptive regression channels across trend styles
Visualize bull vs bear power in real-time
Follow trends with built-in reversal logic
█ Settings
Stochastic Settings
Stochastic Length → Period of calculation. Higher = smoother, Lower = faster signals.
%K Smoothing → Smooths the Stochastic line itself.
%D Smoothing → Smooths the moving average of %K for slower signals.
Stochastic Band
Band Length → Length of the Moving Average Basis.
Volatility Multiplier → Controls band width via ATR scaling.
Band Type → Choose MA type (EMA, SMA, WMA, HMA, RMA).
Regression Channel
Regression Type → Logarithmic / Linear / Adaptive / Leading.
Regression Length → Number of bars for regression calculation.
Heatmap Settings
Heatmap Length → Number of bars to calculate bull/bear dominance.
-----------------
Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Leavitt Convolution ProbabilityTechnical Analysis of Markets with Leavitt Market Projections and Associated Convolution Probability
The aim of this study is to present an innovative approach to market analysis based on the research "Leavitt Market Projections." This technical tool combines one indicator and a probability function to enhance the accuracy and speed of market forecasts.
Key Features
Advanced Indicators : the script includes the Convolution line and a probability oscillator, designed to anticipate market changes. These indicators provide timely signals and offer a clear view of price dynamics.
Convolution Probability Function : The Convolution Probability (CP) is a key element of the script. A significant increase in this probability often precedes a market decline, while a decrease in probability can signal a bullish move. The Convolution Probability Function:
At each bar, i, the linear regression routine finds the two parameters for the straight line: y=mix+bi.
Standard deviations can be calculated from the sequence of slopes, {mi}, and intercepts, {bi}.
Each standard deviation has a corresponding probability.
Their adjusted product is the Convolution Probability, CP. The construction of the Convolution Probability is straightforward. The adjusted product is the probability of one times 1− the probability of the other.
Customizable Settings : Users can define oversold and overbought levels, as well as set an offset for the linear regression calculation. These options allow for tailoring the script to individual trading strategies and market conditions.
Statistical Analysis : Each analyzed bar generates regression parameters that allow for the calculation of standard deviations and associated probabilities, providing an in-depth view of market dynamics.
The results from applying this technical tool show increased accuracy and speed in market forecasts. The combination of Convolution indicator and the probability function enables the identification of turning points and the anticipation of market changes.
Additional information:
Leavitt, in his study, considers the SPY chart.
When the Convolution Probability (CP) is high, it indicates that the probability P1 (related to the slope) is high, and conversely, when CP is low, P1 is low and P2 is high.
For the calculation of probability, an approximate formula of the Cumulative Distribution Function (CDF) has been used, which is given by: CDF(x)=21(1+erf(σ2x−μ)) where μ is the mean and σ is the standard deviation.
For the calculation of probability, the formula used in this script is: 0.5 * (1 + (math.sign(zSlope) * math.sqrt(1 - math.exp(-0.5 * zSlope * zSlope))))
Conclusions
This study presents the approach to market analysis based on the research "Leavitt Market Projections." The script combines Convolution indicator and a Probability function to provide more precise trading signals. The results demonstrate greater accuracy and speed in market forecasts, making this technical tool a valuable asset for market participants.
Adaptable Relative Momentum Index [ParadoxAlgo]The Adaptable Relative Momentum Index (RMI) by ParadoxAlgo is an advanced momentum-based indicator that builds upon the well-known RSI (Relative Strength Index) concept by introducing a customizable momentum length. This indicator measures price momentum over a specified number of periods and applies a Rolling Moving Average (RMA) to both the positive and negative price changes. The result is a versatile tool that can help traders gauge the strength of a trend, pinpoint overbought/oversold levels, and potentially identify breakout opportunities.
⸻
Smart Configuration Feature
What sets this version of the RMI apart is ParadoxAlgo’s exclusive “Smart Configuration” functionality. Instead of manually adjusting parameters, traders can simply select their Asset Class (e.g., Stocks, Forex, Futures/Indices, Crypto, Commodities) and Trading Style (e.g., Scalping, Day Trading, Swing Trading, Short-Term Investing, Long-Term Investing). Based on these selections, the indicator automatically optimizes its core parameters:
• Length – The period over which the price changes are smoothed.
• Momentum Length – The number of bars used to calculate the price change.
By automating this process, users save time on tedious trial-and-error adjustments, ensuring that the RMI’s settings are tailored to the characteristics of specific markets and personal trading horizons.
⸻
Key Features & Benefits
1. Momentum-Based Insights
• Uses RMA to smooth price movements, helping identify shifts in market momentum more clearly than a basic RSI.
• Enhanced adaptability for a wide range of asset classes and time horizons.
2. Simple Yet Powerful Configuration
• Smart Configuration automatically sets optimal parameter values for each combination of asset class and trading style.
• Eliminates guesswork and manual recalibration when switching between markets or timeframes.
3. Overbought & Oversold Visualization
• Integrated highlight zones mark potential overbought and oversold extremes (default at 80 and 20).
• Optional breakout highlighting draws attention to times when the indicator crosses these key thresholds, helping spot possible entry or exit signals.
4. Intuitive Design & Ease of Use
• Clean plotting and color-coded signal lines make it easy to interpret bullish or bearish shifts in momentum.
• Straightforward dropdown menus keep the interface user-friendly, even for novice traders.
⸻
Practical Applications
• Early Trend Detection: Spot emerging trends when the RMI transitions from oversold to higher levels or vice versa.
• Breakout Confirmation: Confirm potential breakout trades by tracking overbought/oversold breakouts alongside other technical signals.
• Support/Resistance Confluence: Combine RMI signals with horizontal support/resistance levels to reinforce trade decisions.
• Trade Timing: Quickly gauge when momentum could be shifting, helping you time entries and exits more effectively.
⸻
Disclaimer
As with any technical indicator, the Adaptable Relative Momentum Index should be used as part of a broader trading strategy that includes risk management, fundamental analysis, and other forms of technical confirmation. Past performance does not guarantee future results.
⸻
Enjoy using the Adaptable RMI and experience a more streamlined, flexible approach to momentum analysis. Feel free to explore different asset classes and trading styles to discover which configurations resonate best with your unique trading preferences.
Saral TrendSaral Trend
### Overview
The Saral Trend Indicator is a price-action-based tool designed to measure trend strength dynamically. Unlike traditional trend following indicators that rely solely on moving averages or fixed formulas, Saral Trend integrates Directional Movement, price positioning within the bar range, and volatility-adjusted trend weighting to create a clearer visualization of market momentum. By refining the classic trend following approach, this indicator provides more responsive and adaptive trend analysis across various timeframes.
### Key Features
Trend Histogram: Four types of bars indicate trend strength and momentum.
- Bullish Up: Higher than the previous bar; signals a strong uptrend; Color: Dark Blue.
- Bullish Down: Lower than the previous bar; suggests weakening momentum in an uptrend; Color: Light Blue.
- Bearish Up: Higher than the previous bar; signals a strong downtrend; Color: Dark Red.
- Bullish Down: Lower than the previous bar; suggests weakening momentum in a downtrend; Color: Light Red.
Trend Strength Line: A smoothed reference line that provides additional confirmation of momentum strength.
- When histogram bars are above this line, the trend is strong.
- When they fall below, momentum weakens.
Trend Pause Dots: Appear when the trend shows signs of temporary exhaustion, suggesting a possible short-term pause or reversal.
- A bullish pause dot on a bearish bar indicates a temporary halt in an uptrend before continuation or a reversal.
- A bearish pause dot on a bullish bar indicates a temporary halt in a downtrend before continuation or a reversal.
Oscillator Functionality: No fixed upper limit, but extreme bar values (e.g., above 100) suggest overbought or oversold conditions.
### Calculation Methodology
Analyzing Price Movement:
- The indicator calculates the difference between the highest and lowest prices over a period to determine price movement.
- It smooths these values using an Exponential Moving Average (EMA) to filter out short-term noise.
Identifying Trend:
- It compares the current high and low prices with their moving averages to determine whether the market is trending up or down.
- If the high price moves further from its average compared to the low price, it indicates bullish strength. Conversely, if the low price moves further from its average compared to high price, it signals bearish strength.
Evaluating Closing Price Position:
- The indicator analyzes where the closing price is within the high-low range.
- If the closing price is near the high, bullish strength is emphasized. If it is near the low, bearish strength is given more weight.
Measuring Trend Strength:
- The indicator applies volatility based smoothing techniques to measure positive and negative trend strength separately.
- A higher positive trend value suggests strong buying pressure, while a higher negative trend value indicates strong selling pressure.
- A dynamic smoothing approach ensures trend signals remain stable while reacting quickly to market shifts.
Visualizing Trend Strength with a Histogram:
- The indicator plots a positive and negative strength in form of histogram to represent the strength and direction of the trend.
- The color of the histogram bars changes based on whether the trend is strengthening or weakening.
- Blue shades indicate bullish trends, while red shades represent bearish trends.
Trend Reversal Detection: A trend pause or potential reversal is identified when the histogram weakens sharply, with dots appearing on bars as early warnings.
### How to Use It
Trend Direction: The colors of the histogram bars provide a visual clue about the ongoing trend - whether it's bullish or bearish - allowing traders to assess market sentiment at a glance.
Trend Confirmation: When histogram bars are consistently above the Trend Strength Line, it indicates strong momentum, confirming trade direction.
Momentum Shifts: A color shift (e.g., from Dark Blue to Light Blue) suggests weakening strength, which could indicate a pullback or reversal.
Reversal Signals: Trend Pause Dots highlight areas where momentum stalls, helping traders prepare for possible reversals or consolidations.
Timeframe Flexibility:
- Long-term traders can use weekly/monthly charts for macro trends.
- Swing traders can use daily/hourly charts to capture medium-term opportunities.
- Day traders can use 15-minute or lower timeframes for precise intraday entries.
### What Makes Saral Trend Unique?
Unlike conventional trend indicators that rely solely on moving averages, Saral Trend improves upon existing methods by:
Integrating price positioning within the range to make trend strength more responsive.
Applying volatility-adjusted trend weighting, ensuring trends are measured dynamically rather than through fixed lookback periods.
Providing multiple visual cues (histogram, strength line, and pause dots) to help traders make informed decisions.
This indicator is optimized for simplicity and efficiency , making it suitable for traders across different styles, from long-term investors to intraday scalpers.
By combining trend structure, momentum shifts, and volatility adaptation , Saral Trend delivers a comprehensive and actionable trend analysis tool for TradingView users.
