Differential-Isaac-Newton
Description of the Differential-Isaac-Newton Indicator (DF-Newton)
This indicator plots custom Fibonacci levels on the chart using configurable multiples and offers various display options to assist with technical analysis.
What does it do?
Calculates and plots Fibonacci levels based on user-defined multiples (default multiple is 20).
Allows switching between long mode (buy) and short mode (sell) to adjust the levels accordingly.
Displays horizontal lines at Fibonacci levels with customizable colors and styles.
Shows labels with different information such as level price, Fibonacci percentage, and difference between levels.
Includes controls to show/hide different elements and customize the appearance.
How to use it?
Main Settings
Multiple of 2 for Fibonacci: Defines the percentage interval used to calculate Fibonacci levels (e.g., 20 creates levels at 0%, 20%, 40%, etc.).
Line Horizontal Offset: Defines the horizontal distance (in bars) of the Fibonacci line to improve visibility.
Short Mode: Enable to calculate levels based on a downward movement (from low to high).
Classic Mode: Changes the line colors to a classic Fibonacci color scheme (blue, green, yellow, orange, red).
Toggle Solid Line: Switches between solid and dotted lines for Fibonacci levels.
Labels
Choose which information to display on the labels next to the lines:
Show Only Level Prices: Displays only the Fibonacci level price.
Show Only Level Percentages: Displays only the Fibonacci percentage level.
Show Difference Values (Δ): Shows the difference between the current and previous level, along with the percentage (which can be hidden).
Hide Percentage in Difference Mode: Hides the percentage when difference mode is enabled.
Hide All Labels: Hides all labels from the chart.
Visual Customization
Label Size: Size of the label text (XS, S, M, L).
Label Horizontal Offset: Horizontal distance of labels relative to the lines.
Background Offset: Adjusts background color offset for better visibility.
Fibonacci Line Color: Color of the Fibonacci lines (when classic mode is off).
Label Text Color: Color of the label text.
Level Interpretation
Fibonacci levels are calculated between the highest high and lowest low of the last 100 candles.
The indicator plots horizontal lines at Fibonacci levels according to the selected multiple.
Line colors help identify important levels (configurable in classic mode).
Labels show the exact level price and Fibonacci percentage, helping with entry, exit, support, and resistance decisions.
Recommendations
Use Short Mode to analyze Fibonacci levels for sell trades.
Use Classic Mode for a traditional color scheme and easier identification.
Adjust Line Horizontal Offset to avoid overlapping current candles.
Combine price and percentage display for easier analysis.
Explore Difference Mode (Δ) to understand gaps between consecutive Fibonacci levels.
Practical Example
If you set the multiple to 20, the indicator will show levels at 0%, 20%, 40%, 60%, 80%, and 100%. Each level will have a horizontal line and a label showing the corresponding price and percentage, or the difference from the previous level, depending on your settings.
Cerca negli script per "horizontal line"
Moving Average Convergence Divergence with Enhanced Cross Alerts
Overview of Features and Settings
- Customizable Parameters:
- Fast and Slow Periods: Users can set the duration for both the fast (default 12) and slow (default 26) moving averages.
- Source Selection: The indicator uses the closing price (close) by default, though this can be modified to any other data source.
- Signal Smoothing: The smoothing period for the signal line is adjustable (default 9), and you can choose whether to use SMA or EMA for both the oscillator and the signal line calculations.
Calculation Logic
1. Calculation of Moving Averages:
- The fast and slow moving averages are computed based on the chosen moving average type (SMA or EMA) over the specified periods.
- The MACD line is then determined as the difference between these two moving averages.
2. Signal Line and Histogram:
- Signal Line: Created by smoothing the MACD line, with the option to choose between SMA and EMA.
- Histogram: Represents the difference between the MACD line and the signal line, visually indicating the divergence between the two.
Detection of Cross Events
The script identifies two specific cross events with additional filtering conditions:
- Bullish Cross:
- The MACD line **crosses above** the signal line.
- The previous value of the histogram is negative, and both the MACD and the signal line are below zero.
- This condition suggests that a cross occurring in the negative territory might indicate a potential upward trend reversal.
- **Bearish Cross:**
- The MACD line **crosses below** the signal line.
- The previous value of the histogram is positive, and both the MACD and the signal line are above zero.
- This condition indicates that a cross in the positive territory may signal a potential downward trend reversal.
For each event, there are dedicated alert conditions defined that trigger notifications when the criteria are met.
Visualization
- Displayed Elements:
- Histogram: Rendered as a column chart with colors that change based on the rate of change. For instance, a rising positive histogram uses a stronger green, whereas a declining positive histogram uses a lighter shade.
- MACD and Signal Lines: Displayed as separate lines with distinct colors to differentiate them.
- Zero Line: A horizontal line is drawn to help visually pinpoint the zero level.
- Crossing Signals:
- Optional markers in the form of arrows appear on the chart:
- **Bullish Cross: A green, upward-pointing triangle at the bottom.
- **Bearish Cross: A red, downward-pointing triangle at the top.
Summary
This indicator not only incorporates the traditional MACD components but also offers the following additional benefits:
- **Enhanced Accuracy:** Extra conditions (such as checking the previous histogram value and the position of the lines relative to zero) improve the identification of significant cross events.
- **Customization:** Users can personalize the moving average types and periods, making the indicator adaptable to different trading strategies.
- **Visual Assistance:** The combination of histogram columns, lines, and markers helps quickly pinpoint potential trend reversals, thereby aiding trading decisions.
This comprehensive description is intended to clearly demonstrate to users how the indicator works, outlining its calculations, filtering conditions, and its role in identifying cross events within technical analysis.
Stop Loss & TargetHow to Use the SL/TP Indicator
The SL/TP indicator is a versatile tool designed for traders to easily visualize entry, stop-loss (SL), and take-profit (TP) levels on their charts. This guide will walk you through the steps to configure and use the indicator effectively.
Features:
Configure Long Trades and Short Trades independently.
Define Entry Price, Stop Loss, and up to three Take Profit levels for each trade.
Customize line colors for better visualization.
Works for both risk-reward and target-based trading.
Adding the Indicator:
Open the TradingView platform.
Search for the indicator name: SL/TP.
Click the Add to Chart button to apply it.
Configuration:
1. Long Trade Settings
Enable Long Trade: Check this option to activate long trade lines on the chart.
Long Entry Price: Input the price at which you plan to enter the long trade.
Long Stop Loss: Input your stop-loss level for the long trade.
Line Colors: You can customize the colors for the Entry, SL, and TP lines in the Long Trade settings group.
Take Profit Levels (Calculated Automatically):
TP1: 1:1 Risk-Reward ratio (difference between Entry and SL added to Entry).
TP2: 1:2 Risk-Reward ratio.
TP3: 1:3 Risk-Reward ratio.
2. Short Trade Settings
Enable Short Trade: Check this option to activate short trade lines on the chart.
Short Entry Price: Input the price at which you plan to enter the short trade.
Short Stop Loss: Input your stop-loss level for the short trade.
Line Colors: You can customize the colors for the Entry, SL, and TP lines in the Short Trade settings group.
Take Profit Levels (Calculated Automatically):
TP1: 1:1 Risk-Reward ratio (difference between Entry and SL subtracted from Entry).
TP2: 1:2 Risk-Reward ratio.
TP3: 1:3 Risk-Reward ratio.
Visualizing on the Chart:
Once you configure the settings and enable the trade, the indicator will draw horizontal lines on the chart for:
Entry Price
Stop Loss
Take Profit Levels (TP1, TP2, TP3)
Each line will extend to three bars ahead of the current bar index.
Customization:
Adjust colors for better visibility depending on your chart theme.
The width and style of lines can also be modified in the source code if needed.
Example Usage:
Long Trade Example:
Enable Long Trade: Check the box.
Set Entry Price: 100.
Set Stop Loss: 95.
The indicator will draw the following lines:
Entry Line: At 100 (customizable color).
Stop Loss Line: At 95 (customizable color).
TP1 Line: At 105 (1:1 Risk-Reward).
TP2 Line: At 110 (1:2 Risk-Reward).
TP3 Line: At 115 (1:3 Risk-Reward).
Short Trade Example:
Enable Short Trade: Check the box.
Set Entry Price: 200.
Set Stop Loss: 205.
The indicator will draw the following lines:
Entry Line: At 200 (customizable color).
Stop Loss Line: At 205 (customizable color).
TP1 Line: At 195 (1:1 Risk-Reward).
TP2 Line: At 190 (1:2 Risk-Reward).
TP3 Line: At 185 (1:3 Risk-Reward).
Notes:
Ensure that you input valid and realistic price levels for Entry and Stop Loss.
The indicator will only display lines if both the Entry Price and Stop Loss are non-zero.
Use this indicator for planning trades visually but always confirm levels with your trading strategy.
Disclaimer: This indicator is a tool to assist in trading. Use it with proper risk management and your own due diligence.
2x ATR Horizontal Rays2x ATR Horizontal Rays Indicator
This script plots horizontal rays based on the 2x ATR (Average True Range) of the previous candle. It helps traders visualize key support and resistance levels by extending lines from the last candle's price, calculated with a 2x ATR multiplier. The indicator draws two lines:
Upper ATR Line: Positioned above the previous candle’s close by 2x the ATR value.
Lower ATR Line: Positioned below the previous candle’s close by 2x the ATR value.
Key Features:
Customizable ATR Length: Allows users to input their preferred ATR period to suit different market conditions.
Dynamic Horizontal Lines: The lines update with each new candle, giving traders a clear visual of volatility levels.
Extended Right Lines: The horizontal rays extend to the right, serving as potential zones for price reversals or breakouts.
This indicator is useful for traders looking to gauge market volatility and set target levels or stops based on historical price movements.
How to Use:
Add the indicator to your chart and adjust the ATR length in the settings.
Watch how the price interacts with the upper and lower ATR lines as potential zones for support, resistance, or trend continuation.
Happy trading!
Linear Regression Market State IndexStandard Deviation Market Structure Indicator
A Comprehensive Multi-Timeframe Market Analysis Tool
🎯 Overview
The Standard Deviation Market Structure (SDMS) indicator is a sophisticated technical analysis tool that integrates multiple proven methodologies to identify market structure, trend direction, and potential reversal zones. By combining price action, statistical analysis, and momentum indicators across multiple timeframes, SDMS provides traders with a comprehensive view of market dynamics.
✨ Key Features
Multi-Timeframe Integration
Primary analysis on current timeframe
1-hour statistical confirmation for support/resistance levels
Order block extension across 500 future bars
Comprehensive Technical Suite
RSI with Deviation Analysis
Dynamic Order Block Detection
Gaussian Filter Channels
Linear Regression with Statistical Bands
Standard deviation to detect price outliers
Directional Movement Index (DMI/ADX)
Bollinger Band % Analysis
Support/Resistance Line System
Visual Clarity
Color-coded signals and zones
Automatic level management
Clean, intuitive display
📊 Core Components Explained
1. Order Block System
What Are Order Blocks?
Order blocks are price zones where institutional activity has occurred, creating future support or resistance levels. SDMS automatically detects these critical zones.
Detection Logic:
Bullish Order Blocks: Form when price breaks above recent highs following bearish candles
Bearish Order Blocks: Form when price breaks below recent lows following bullish candles
Visual Identification:
Green boxes with "BuOB" labels (support zones)
Red boxes with "BeOB" labels (resistance zones)
Each block shows its boundary price for easy reference
Dynamic Management:
Automatically extends 300 bars into the future
Self-cleaning: removes blocks when price breaches their boundaries
Real-time adjustment to changing market structure
2. Statistical Support/Resistance System
How It Works:
SDMS creates support and resistance lines based on statistical extremes confirmed on the 1-hour timeframe.
Trigger Conditions:
Support Lines (Green): Trigger when 1H Bollinger Band % crosses above 0 and bearish momentum subsides.
Resistance Lines (Red): Trigger when 1H Bollinger Band % crosses below 1 and bullish momentum subsides
The Science Behind BB%:
BB% = (Price - Lower Band) / (Upper Band - Lower Band)
BB% <= 0: Price at statistical oversold extreme; also indicated by white candles.
BB% > 1: Price at statistical overbought extreme; also indicated by white candles.
Line Management:
Maximum of 15 active lines
Oldest lines automatically removed
Lines extend across chart for ongoing reference
3. Trend Analysis Suite
Hull Moving Average (HMA):
55-period smoothed trend indicator
Color-coded: Green = bullish, Red = bearish
Visual band shows trend acceleration/deceleration
Gaussian Channel:
Advanced filtering of market noise
Dynamic channel based on true range volatility
Helps identify mean reversion opportunities
Form a yellow band when price is overbought or oversold zones.
Linear Regression System:
Statistical price modeling
Multiple standard deviation bands (up to 3SD)
Regression-based candlestick visualization
Candles turn white when in overbought zones. Yellow candles indicate extremely overbought zones. Blue candles indicate a bullish trend with high volume.
Bearish candles are bluish-purple when volume is high and red when the volume is within normal ranges or low.
4. Momentum & Oscillator Integration
RSI with Deviation Tracking:
21-period RSI with 30-period smoothing
Tracks deviation from moving average based off linear regression
Identifies momentum divergences
Directional Movement Index:
Multi-period DMI/ADX analysis
Used to detect overbought and oversold zones within the indicator calculations.
Combines with RSI for enhanced signals
Momentum confirmation for all entries/exits
🎯 Trading Signals & Alerts
Buy Signals (Yellow "Buy" Labels)
Multi-Condition Confirmation Required:
RSI Oversold Reversal: RSI crosses above 30
Trend Alignment: HMA showing bullish structure
Momentum Confirmation: DMI alignment
Statistical Support: Price at or near support zones
Risk Management: Multiple confirming indicators
Strong Buy Conditions:
Confluence of order block support + BB% support line
Multiple timeframe alignment
Volume confirmation at key levels
Sell Signals (Red/Yellow "Sell" Labels)
Multi-Condition Confirmation Required:
RSI Overbought Reversal: RSI crosses below 70
Trend Exhaustion: HMA showing bearish structure
Momentum Divergence: DMI bearish alignment
Statistical Resistance: Price at or near resistance zones
Timeframe Confirmation: 1H BB% bearish signals
Strong Sell Conditions:
Confluence of order block resistance + BB% resistance line
Multiple timeframe distribution
Volume surge at resistance
Additional Alerts
RSI Divergence Signals: Triangles showing momentum shifts
Extreme Price Alerts: Circles at statistical extremes
Structure Breaks: Visual cues for order block violations
🎨 Visual System Guide
Color Coding System
Green: Bullish conditions, support zones, rising trends
Red: Bearish conditions, resistance zones, falling trends
Blue: Statistical channels, neutral zones
Yellow: Alert conditions, extreme signals
White: Transition zones, neutral signals
Zone Identification
Buying Pressure Zones: Green/blue tinted areas below price or white candles with white dots within the moving average center line
Selling Pressure Zones: Red tinted areas above price with white dots within the moving average center line
Standard Deviation Zones: Gradient colors showing statistical extremes
⚙️ Customization Options
Adjustable Parameters
RSI Settings: Period, oversold/overbought levels, sensitivity
Order Block Detection: Lookback period, ATR multiplier, extension
Statistical Settings: Gaussian filter poles, regression periods
Support/Resistance: Maximum lines, BB% settings
Visual Preferences: Colors, band displays, alert styles
Input Groups
RSI Trading Strategy
Order Block Configuration
Gaussian Channel Settings
Linear Regression Parameters
DMI/ADX Configuration
Bollinger Band % Settings
📈 Practical Trading Applications
For Swing Traders
Identify Key Levels: Use order blocks + BB% lines for entry/exit planning
Trend Confirmation: HMA + Gaussian channel for trend direction
Risk Management: Standard deviation bands for stop placement
Timing Entries: RSI/DMI alignment for optimal entry timing
For Day Traders
Intraday Levels: Order blocks provide immediate S/R for day trading
Momentum Signals: Real-time RSI/DMI signals for quick moves
Statistical Edges: Gaussian channel for mean reversion plays
Breakout Confirmation: Order block breaks with volume
For Position Traders
Higher Timeframe Structure: 1H BB% lines for major levels
Trend Persistence: HMA for long-term trend identification
Accumulation/Distribution Zones: Order blocks show institutional activity
Multi-Timeframe Alignment: Confirmation across timeframes
🔍 How to Use SDMS Effectively
Step 1: Market Structure Assessment
Identify active order blocks (green/red boxes)
Note BB% support/resistance lines (horizontal lines)
Assess HMA and moving average trend direction (color)
Check Gaussian channel position (preferably outside 2SD)
Step 2: Signal Confirmation
Wait for multiple indicator alignment
look for doji candles.
Confirm with green (bullish) or red (bearish) candles
Confirm with volume if available
Check for confluence of levels
Assess risk/reward based on nearby levels
Step 3: Trade Management
Enter at confirmed support/resistance
Place stops beyond opposite levels
Take profits at next statistical level
Monitor for structure changes
Step 4: Risk Management
Use standard deviation bands for volatility assessment
Never risk more than 1-2% per trade
Adjust position size based on confluence strength
Have predefined exit rules
💡 Advanced Strategies
Strategy 1: Confluence Trading
Setup: Order block + BB% line at same level
Entry: Price tests confluence zone with RSI signal
Stop: Beyond the confluence zone
Target: Next statistical level
Strategy 2: Breakout Trading
Setup: Price approaching order block boundary
Entry: Break with volume + RSI/DMI confirmation
Stop: Re-entry into order block
Target: Next BB% line extension
Strategy 3: Mean Reversion
Setup: Price at Gaussian channel extremes
Entry: RSI reversal signal at channel boundary
Stop: Beyond channel extreme
Target: Channel midline or opposite boundary
⚠️ Important Considerations
Best Market Conditions
Trending Markets: Excellent performance in clear trends
Breakout Scenarios: Strong identification of break levels
Range Markets: Works well with defined ranges
Limitations
Choppy Markets: May give false signals in consolidation
News Events: Fundamental shocks can override technical levels
Timeframe Specific: Optimal on 15-minute to daily charts
Risk Management Rules
Always use stops
Never rely on single signals
Consider market context
Adjust for volatility changes
Keep position sizes consistent
🔧 Technical Specifications
Maximum Lines: 500
Maximum Bars Back: 1000
Maximum Boxes: 500
Calculation Efficiency: Optimized for real-time use
🏆 Why SDMS Stands Out
Unique Advantages
Integrated Approach: Combines multiple methodologies into one tool
Self-Adjusting: Automatically adapts to market changes
Multi-Timeframe: Provides both immediate and higher timeframe context
Visual Clarity: Clean, intuitive display of complex data
Professional Grade: Institutional-level analysis accessible to all traders
Educational Value: Learn how different indicators interact
Understand market structure development
See institutional order flow patterns
Develop disciplined trading habits
📚 Learning Resources
Recommended Study Approach
Start Simple: Focus on order blocks and BB% lines first
Add Complexity: Gradually incorporate other indicators
Paper Trade: Practice without risk
Keep Journal: Document setups and outcomes
Review Regularly: Analyze both wins and losses
Common Pitfalls to Avoid
Overtrading: Wait for high-quality setups
Ignoring Context: Consider overall market conditions
Chasing Signals: Enter at planned levels, not after moves
Risk Mismanagement: Always know your risk before entering
Confirmation Bias: Be objective about signals
🤝 Community & Support
Getting the Most from SDMS
Start with Defaults: Use default settings initially
Adjust Gradually: Make small changes as you understand the tool
Combine with Fundamentals: Use for timing within fundamental context
Stay Disciplined: Follow your trading plan consistently
Continuous Improvement
SDMS is designed for continuous learning. As you use the indicator, you'll develop insights into:
Market microstructure
Institutional trading patterns
Statistical edge identification
Risk management optimization
Risk management is more important than signal accuracy
Patience is required for high-quality setups
Success Factors
Discipline: Following your plan consistently
Patience: Waiting for proper setups
Risk Management: Protecting your capital
Continuous Learning: Improving your skills over time
🌟 Final Thoughts
The Standard Deviation Market Structure indicator represents a sophisticated approach to technical analysis, combining the best elements of price action, statistical analysis, and momentum indicators. While powerful, remember that no indicator guarantees success. SDMS is a tool – your skill, discipline, and risk management determine your trading results.
Use SDMS as part of a comprehensive trading plan, combine it with proper risk management, and continue developing your trading skills. The markets are always teaching – stay humble, stay disciplined, and trade well.
Disclaimer: This indicator is for educational purposes only. Past performance does not guarantee future results. Trading involves risk of loss. Always consult with a qualified financial professional before making investment decisions.
Smart Trader,Episode 1, by Ata Sabanci | Unified Matrix⚠️ **CRITICAL: READ BEFORE USING** ⚠️
This strategy is **100% VOLUME-BASED** and requires **Lower Timeframe (LTF) intrabar data** for accurate calculations. Please understand the following limitations before using:
**📊 DATA ACCURACY LEVELS:**
• **1T (Tick)** — Most accurate, real volume distribution per tick
• **1S (1 Second)** — Reasonably accurate approximation
• **15S (15 Seconds)** — Good approximation, longer historical data available
• **1M (1 Minute)** — Rough approximation, maximum historical data range
**⚠️ BACKTEST & REPLAY LIMITATIONS:**
• TradingView's Strategy Tester uses historical LTF data which may be limited depending on your subscription plan
• Replay mode results may differ from live trading due to data availability
• For longer backtest periods, use higher LTF settings (15S or 1M)
• Not all symbols/exchanges support tick-level data
• Crypto and Forex typically have better LTF data availability than stocks
**💡 A NOTE ON TOOLS:**
Successful trading requires proper tools. Higher TradingView plans provide access to more historical intrabar data, which directly impacts the accuracy of volume-based calculations. More precise volume data leads to more reliable signals. Consider this when evaluating your trading infrastructure.
**WHY "EPISODE 1"?**
This strategy is titled "Episode 1" because it focuses exclusively on **Highest Buyers (HB)** — a single but powerful concept in volume analysis.
**The Philosophy:**
A single high-volume buying event can tell us a story about market psychology:
• Where did the biggest buyers enter?
• How much of their power remains?
• Are sellers consuming their advantage?
• At what rate is the balance shifting?
By focusing on just ONE aspect of volume analysis, traders can deeply understand how a buying surge affects future price action before moving to more complex multi-factor analysis.
**The Reality:**
This script alone is approximately **2000 lines of code** — and it only analyzes buyers. A comprehensive system covering all aspects (sellers, combined analysis, multi-timeframe correlation) would be significantly larger and computationally heavier. Breaking this into focused modules allows for:
• Deeper understanding of each component
• Lighter, more responsive scripts
• Educational progression from simple to complex
**OVERVIEW**
Smart Trader EP1 is a volume-based trading strategy that tracks the balance of power between buyers and sellers through the lens of the **Highest Buyers event**. Unlike traditional indicators that rely on price patterns or mathematical formulas, this strategy analyzes *actual volume flow* to identify who is in control of the market.
The core philosophy is simple: **markets move when one side (buyers or sellers) exhausts their power while the opposing side accumulates strength.** By measuring this power shift in real-time, the strategy identifies high-probability entry and exit points.
**HOW IT WORKS**
**1. Volume Engine**
The strategy splits each candle's volume into buying volume and selling volume using intrabar data. In *Intrabar (Precise)* mode, it uses actual tick-by-tick or second-by-second data to calculate the exact buy/sell distribution. In *Geometry* mode, it approximates based on candle structure (close position within the range).
**2. Event Detection**
Within the lookback window, the strategy identifies key events:
• **HB (Highest Buyers)** — The candle with maximum buying volume (potential resistance when exhausted)
• **HS (Highest Sellers)** — The candle with maximum selling volume (potential support when exhausted)
• **LB (Lowest Buyers)** — The candle with minimum buying volume (buyer absence)
• **LS (Lowest Sellers)** — The candle with minimum selling volume (seller absence)
These events create dynamic support and resistance levels based on actual volume, not arbitrary price levels.
**3. Power Tracking (Attrition Model)**
For the Highest Buyers event (HB), the strategy tracks:
• **Start Power (X)** — The initial buying volume at the HB event
• **Consumed Power (Y)** — How much selling volume has accumulated since the event
• **Remaining Power (Z)** — Start Power minus Consumed Power (X - Y)
• **Opponent Dominance** — When Remaining Power goes negative (Z < 0), sellers have overtaken buyers
Think of it like a battle: buyers establish a position (HB), and sellers gradually consume their power. When buyers' power is exhausted (Remaining Power ≤ 0), sellers have taken control.
**4. Depletion Markers**
Visual markers appear on the chart when power reaches critical thresholds:
• **🔋** — Buyers consumed 100% (Remaining = 0)
• **🚨** — Buyers consumed 200% (Opponent Dominance = 100%)
• **🪫** — Sellers consumed 100%
• **⚠️** — Sellers consumed 200%
**5. Cumulative Delta**
Beyond tracking power at specific events, the strategy calculates the cumulative buy volume minus sell volume since the HB event. This shows the *net flow* of money:
• **Positive Delta** — More buying than selling since HB (bullish pressure)
• **Negative Delta** — More selling than buying since HB (bearish pressure)
**6. Trend Channel**
A 5-point linear regression channel identifies the current trend:
• **UPTREND** — Both upper and lower channel lines slope upward
• **DOWNTREND** — Both lines slope downward
• **RANGING** — Mixed or flat slopes
The strategy also tracks where the HB event occurred within this channel (TOP, UPPER, MIDDLE, LOWER, BOTTOM) to contextualize the signal.
**7. Nearest Event Analysis**
The strategy identifies which event is closest to the current candle and analyzes the price action *after* that event:
• How many bullish vs bearish candles followed?
• Does post-event momentum confirm or contradict the event type?
This prevents false signals when, for example, a bearish event occurs but is immediately followed by strong bullish candles.
**SIGNAL LOGIC**
**🟢 LONG Signal Conditions:**
• Uptrend with positive cumulative delta and buyers accumulating
• At channel bottom/lower with strong buyer power remaining
• After a bearish event (HS) with bullish post-event momentum (reversal signal)
• Ranging market with positive delta and strong power
**🔴 SHORT Signal Conditions:**
• Downtrend with negative cumulative delta and sellers in control
• Opponent Dominance (buyer power exhausted) with bearish momentum
• Buyer Trap: HB at TOP in uptrend but power exhausted and delta negative
• After a bullish event (HB) with bearish post-event momentum (trap signal)
**⏳ NO_TRADE Conditions:**
• Conflicting signals (e.g., bearish event but bullish post-momentum)
• Ranging market without clear direction
• Mixed power readings
• Price position contradicts signal direction
**STRATEGY EXECUTION**
**Entry Rules:**
• Enter LONG when signal is "LONG" and conditions are valid
• Enter SHORT when signal is "SHORT" and conditions are valid
• **Pyramid**: Up to 2 entries allowed in the same direction (configurable)
• Each entry uses 10% of equity by default
• Only one entry per confirmed candle (prevents multiple fills)
**Stop Loss (Event Line Based):**
• **LONG positions**: Stop Loss placed below the HS line (seller support level)
• **SHORT positions**: Stop Loss placed above the HB line (buyer resistance level)
• A small buffer percentage is added to prevent premature stops
**Take Profit (Event Line Based):**
• **LONG positions**: Take Profit near the HB line (buyer resistance target)
• **SHORT positions**: Take Profit near the HS line (seller support target)
• A small buffer percentage ensures realistic fill expectations
**Exit Rules:**
• Exit LONG when signal changes to SHORT
• Exit SHORT when signal changes to LONG
• **NO_TRADE signal = HOLD** (do not exit, wait for clear direction)
• SL/TP orders remain active regardless of signal changes
**SETTINGS GUIDE**
**⚙️ General Settings:**
• *Calculation Method* — Choose between Intrabar (Precise) or Geometry (approximation)
• *Intrabar Resolution* — LTF for volume data (1T, 1S, 15S, 1M)
• *Lookback Length* — Window for scanning events (10-150 bars)
• *Timezone Offset* — Adjust clock display to your local time
**📊 Matrix Display Settings:**
• *Show Unified Matrix* — Toggle the information dashboard
• *Show Event Lines* — Toggle horizontal lines at event prices
• *Panel Size/Position* — Customize dashboard appearance
• *Projection Bars* — Extend event lines into the future
• *Depletion Threshold* — Percentage for depletion markers (default: 100%)
**🏷️ Rank Labels Settings:**
• *Show Rank Labels (HB/HS)* — Display labels on highest volume candles
• *Show Low Labels (LB/LS)* — Display labels on lowest volume candles
• *Ranks Count* — Number of rankings to display (1-5)
**📐 Trend Channel Settings:**
• *Show Trend Channel* — Toggle the 5-point regression channel
• *Line Color/Fill/Width/Style* — Customize channel appearance
**🎯 Trade Signal Settings:**
• *Long: Min Remaining Power %* — Minimum buyer power for LONG signal (default: 50%)
• *Short: Max Remaining Power %* — Maximum power for SHORT signal (default: 30%)
• *Opponent Dominance Threshold* — When to consider power "exhausted" (default: 0%)
• *Max Decay Angle* — Maximum consumption rate for valid entries (default: 60°)
**📈 Strategy Execution Settings:**
• *Enable Strategy* — Turn automatic trading on/off
• *Allow LONG/SHORT* — Enable or disable specific directions
• *Max Pyramid Entries* — Maximum entries in same direction (1-3)
• *SL Buffer %* — Distance below/above event line for stop loss (default: 0.15%)
• *TP Buffer %* — Distance from event line for take profit (default: 0.05%)
**VISUAL ELEMENTS**
**Chart Labels:**
• **#1 HB** — Highest Buyers (rank label on candle high)
• **#1 HS** — Highest Sellers (rank label on candle low)
• **#1 LB** — Lowest Buyers (rank label on candle high)
• **#1 LS** — Lowest Sellers (rank label on candle low)
• **🔋 / 🚨** — Buyer power depletion markers
• **🪫 / ⚠️** — Seller power depletion markers
**Event Lines:**
• **Blue horizontal lines** — HB price levels (buyer entry points)
• **Red horizontal lines** — HS price levels (seller entry points)
• **Cyan lines** — LB price levels
• **Orange lines** — LS price levels
• **Dashed extensions** — Projected levels into future bars
**Trend Channel:**
• **Orange lines** — Upper and lower channel boundaries (5-point regression)
• **Orange fill** — Channel area (90% transparency)
**Matrix Dashboard (6 rows):**
• Row 1: Header with symbol, LTF setting, and local clock
• Row 2: Volume snapshot (Total, Buy, Sell, Delta)
• Row 3: Column headers
• Row 4: Highest Buyers data (Age, Start Power, Consumed, Remaining, Decay, ETA)
• Row 5: Highest Sellers data
• Row 6: Signal Evaluation (Trend, Zone, Nearest Event, Signal, Reason)
**Strategy Markers:**
• **Green triangle up** — LONG entry
• **Red triangle down** — SHORT entry
• **Faded triangles** — Pyramid entries
• **Colored lines** — SL (red) and TP (green) levels when in position
**BEST PRACTICES**
**For Maximum Accuracy:**
1. Use **1T (tick)** or **1S** intrabar resolution when available
2. Trade liquid markets with good volume data (crypto majors, forex majors, high-volume stocks)
3. Use smaller lookback length (20-30) to ensure all bars have valid LTF data
4. Monitor the "Intrabar Valid Bars" counter in the matrix header
5. If you see data warnings, reduce lookback or increase LTF resolution
**For Longer Backtests:**
1. Use **15S or 1M** intrabar resolution for more historical data
2. Increase lookback length if needed
3. Understand that accuracy decreases with higher LTF settings
4. Consider using Geometry mode for very long backtests (approximation but always available)
**Understanding the Signals:**
• Pay attention to the signal *reasoning* shown in the matrix — it explains WHY
• **NO_TRADE** means the system sees conflicting factors — respect this caution
• Event lines act as dynamic S/R — they update as new volume events occur
• Cumulative Delta (Δ) often provides early warning of trend changes
**Risk Management:**
• The default 10% per entry with max 2 pyramids = 20% maximum exposure
• Event-line-based SL/TP provides logical levels based on actual volume events
• Always verify signals with your own analysis before trading
**INTERPRETING THE MATRIX**
**Power Status Examples:**
• *Remaining Power: 75%* — Buyers still have most of their strength
• *Remaining Power: 25%* — Buyers nearly exhausted, watch for reversal
• *Opponent Dominance: -50%* — Sellers have consumed 150% of buyer power (strong bearish)
**Decay Angle:**
• *Low angle (0-30°)* — Slow consumption, power lasting longer
• *High angle (60-90°)* — Rapid consumption, expect quick exhaustion
**ETA to Parity:**
• Shows estimated bars until Remaining Power reaches zero
• *"Overtaken"* with 🚨 means sellers have already dominated
**LIMITATIONS & DISCLAIMER**
**Technical Limitations:**
• Requires sufficient historical LTF data (varies by TradingView plan and symbol)
• Intrabar (Precise) mode may show invalid data warnings on symbols with limited history
• Strategy tester may not have access to the same LTF data as live trading
• Maximum 500 lines and 500 labels (TradingView platform limits)
**Important Notes:**
• This strategy focuses on **Highest Buyers only** — it does not analyze all market factors
• Past performance does not guarantee future results
• Volume data quality varies significantly between symbols and exchanges
• The strategy's signals are analytical tools, not trading recommendations
**Risk Disclaimer:**
This strategy is provided for **educational and informational purposes only**. Trading involves substantial risk of loss and is not suitable for all investors.
• Always use proper risk management
• Never risk more than you can afford to lose
• Backtest results may differ significantly from live trading
• You are solely responsible for your trading decisions
**TECHNICAL SPECIFICATIONS**
• Pine Script Version: 6
• Calculation: calc_on_every_tick=true, use_bar_magnifier=true
• Default Capital: 10,000
• Default Position Size: 10% of equity
• Maximum Lines: 500
• Maximum Labels: 500
• External Library: TradingView/ta/10 (for requestUpAndDownVolume)
*Smart Trader EP1 — Understanding Volume, One Event at a Time*
VMDM - Volume, Momentum & Divergence Master [BullByte]VMDM - Volume, Momentum and Divergence Master
Educational Multi-Layer Market Structure Analysis System
Multi-factor divergence engine that scores RSI momentum, volume pressure, and institutional footprints into one non-repainting confluence rating (0-100).
WHAT THIS INDICATOR IS
VMDM is an educational indicator designed to teach traders how to recognize high-probability reversal and continuation patterns by analyzing four independent market dimensions simultaneously. Instead of relying on a single indicator that may produce frequent false signals, VMDM creates a confluence-based scoring system that weights multiple confirmation factors, helping you understand which setups have stronger technical backing and which are lower quality.
This is NOT a trading system or signal generator. It is a learning tool that visualizes complex market structure concepts in an accessible format for both coders and non-coders.
THE PROBLEM IT SOLVES
Most traders face these common challenges:
Challenge 1 - Indicator Overload: Running RSI, volume analysis, and divergence detection separately creates chart clutter and conflicting signals. You waste time cross-referencing multiple windows trying to determine if all factors align.
Challenge 2 - False Divergences: Standard divergence indicators trigger on every minor pivot, creating noise. Many divergences fail because they lack supporting evidence from volume or market structure.
Challenge 3 - Missed Context: A bullish RSI divergence means nothing if it occurs during weak volume or in the middle of strong distribution. Context determines quality.
Challenge 4 - Repainting Confusion: Many divergence scripts repaint, showing perfect historical signals that never actually triggered in real-time, leading to false confidence.
Challenge 5 - Institutional Pattern Recognition: Absorption zones, stop hunts, and exhaustion patterns are taught in trading education but difficult to identify systematically without manual analysis.
VMDM addresses all five challenges by combining complementary analytical layers into one transparent, non-repainting, confluence-weighted system with visual clarity.
WHY THIS SPECIFIC COMBINATION - MASHUP JUSTIFICATION
This indicator is NOT a random mashup of popular indicators. Each of the four layers serves a specific analytical purpose and together they create a complete market structure assessment framework.
THE FOUR ANALYTICAL LAYERS
LAYER 1 - RSI MOMENTUM DIVERGENCE (Trend Exhaustion Detection)
Purpose: Identifies when price momentum is weakening before price itself reverses.
Why RSI: The Relative Strength Index measures momentum on a bounded 0-100 scale, making divergence detection mathematically consistent across all assets and timeframes. Unlike raw price oscillators, RSI normalizes momentum regardless of volatility regime.
How It Contributes: Divergence between price pivots and RSI pivots reveals early momentum exhaustion. A lower price low with a higher RSI low (bullish regular divergence) signals sellers are losing strength even as price makes new lows. This is the PRIMARY signal generator in VMDM.
Limitation If Used Alone: RSI divergence by itself produces many false signals because momentum can remain weak during continued trends. It needs confirmation from volume and structural evidence.
LAYER 2 - VOLUME PRESSURE ANALYSIS (Buying vs Selling Intensity)
Purpose: Quantifies whether the current bar's volume reflects buying pressure or selling pressure based on where price closed within the bar's range.
Methodology: Instead of just measuring volume size, VMDM calculates WHERE in the bar range the close occurred. A close near the high on high volume indicates strong buying absorption. A close near the low indicates selling pressure. The calculation accounts for wick size (wicks reduce pressure quality) and uses percentile ranking over a lookback period to normalize pressure strength on a 0-100 scale.
Formula Concept:
Buy Pressure = Volume × (Close - Low) / (High - Low) × Wick Quality Factor
Sell Pressure = Volume × (High - Close) / (High - Low) × Wick Quality Factor
Net Pressure = Buy Pressure - Sell Pressure
Pressure Strength = Percentile Rank of Net Pressure over lookback period
Why Percentile Ranking: Absolute volume varies by asset and session. Percentile ranking makes 85th percentile pressure on low-volume crypto comparable to 85th percentile pressure on high-volume forex.
How It Contributes: When a bullish divergence occurs at a pivot low AND pressure strength is above 60 (strong buying), this adds 25 confluence points. It confirms that the divergence is occurring during actual accumulation, not just weak selling.
Limitation If Used Alone: Pressure analysis shows current bar intensity but cannot identify trend exhaustion or reversal timing. High buying pressure can exist during a strong uptrend with no reversal imminent.
LAYER 3 - BEHAVIORAL FOOTPRINT PATTERNS (Volume Anomaly Detection)
CRITICAL DISCLAIMER: The terms "institutional footprint," "absorption," "stop hunt," and "exhaustion" used in this indicator are EDUCATIONAL LABELS for specific price and volume behavioral patterns. These patterns are detected through technical analysis of publicly available price, volume, and bar structure data. This indicator does NOT have access to actual institutional order flow, market maker data, broker stop-loss locations, or any non-public data source. These pattern names are used because they are common terminology in trading education to describe these technical behaviors. The analysis is interpretive and based on observable price action, not privileged information.
Purpose: Detect volume anomalies and price patterns that historically correlate with potential reversal zones or trend continuation failure.
Pattern Type 1 - Absorption (Labeled as "ACCUMULATION" or "DISTRIBUTION")
Detection Criteria: Volume is more than 2x the moving average AND bar range is less than 50 percent of the average bar range.
Interpretation: High volume compressed into a tight range suggests large participants are absorbing supply (accumulation) or distribution (distribution) without allowing price to move significantly. This often precedes directional moves once absorption completes.
Visual: Colored box zone highlighting the absorption area.
Pattern Type 2 - Stop Hunt (Labeled as "BULL HUNT" or "BEAR HUNT")
Detection Criteria: Price penetrates a recent 10-bar high or low by a small margin (0.2 percent), then closes back inside the range on above-average volume (1.5x+).
Interpretation: Price briefly spikes beyond recent structure (likely triggering stop losses placed just beyond obvious levels) then reverses. This is a classic false breakout pattern often seen before reversals.
Visual: Label at the wick extreme showing hunt direction.
Pattern Type 3 - Exhaustion (Labeled as "SELL EXHAUST" or "BUY EXHAUST")
Detection Criteria: Lower wick is more than 2.5x the body size with volume above 1.8x average and RSI below 35 (sell exhaustion), OR upper wick more than 2.5x body size with volume above 1.8x average and RSI above 65 (buy exhaustion).
Interpretation: Large wicks with high volume and extreme RSI suggest aggressive buying or selling was met with equally aggressive rejection. This exhaustion often marks short-term extremes.
Visual: Label showing exhaustion type.
How These Contribute: When a divergence forms at a pivot AND one of these behavioral patterns is active, the confluence score increases by 20 points. This confirms the divergence is occurring during structural anomaly activity, not just normal price flow.
Limitation If Used Alone: These patterns can occur mid-trend and do not indicate direction without momentum context. Absorption in a strong uptrend may just be continuation accumulation.
LAYER 4 - CONFLUENCE SCORING MATRIX (Quality Weighting System)
Purpose: Translate all detected conditions into a single 0-100 quality score so you can objectively compare setups.
Scoring Breakdown:
Divergence Present: +30 points (primary signal)
Pressure Confirmation: +25 points (volume supports direction)
Behavioral Footprint Active: +20 points (structural anomaly present)
RSI Extreme: +15 points (RSI below 30 or above 70 at pivot)
Volume Spike: +10 points (current volume above 1.5x average)
Maximum Possible Score: 100 points
Why These Weights: The weights reflect reliability hierarchy based on backtesting observation. Divergence is the core signal (30 points), but without volume confirmation (25 points) many fail. Behavioral patterns add meaningful context (20 points). RSI extremes and volume spikes are secondary confirmations (15 and 10 points).
Quality Tiers:
90-100: TEXTBOOK (all factors aligned)
75-89: HIGH QUALITY (strong confluence)
60-74: VALID (meets minimum threshold)
Below 60: DEVELOPING (not displayed unless threshold lowered)
How It Contributes: The confluence score allows you to filter noise. You can set your minimum quality threshold in settings. Higher thresholds (75+) show fewer but higher-quality patterns. Lower thresholds (50-60) show more patterns but include lower-confidence setups. This teaches you to distinguish strong setups from weak ones.
Limitation: Confluence scoring is historical observation-based, not predictive guarantee. A 95-point setup can still fail. The score represents technical alignment, not future certainty.
WHY THIS COMBINATION WORKS TOGETHER
Each layer addresses a limitation in the others:
RSI Divergence identifies WHEN momentum is exhausting (timing)
Volume Pressure confirms WHETHER the exhaustion is accompanied by opposite-side accumulation (confirmation)
Behavioral Footprint shows IF structural anomalies support the reversal hypothesis (context)
Confluence Scoring weights ALL factors into an objective quality metric (filtering)
Using only RSI divergence gives you timing without confirmation. Using only volume pressure gives you intensity without directional context. Using only pattern detection gives you anomalies without trend exhaustion context. Using all four together creates a complete analytical framework where each layer compensates for the others' weaknesses.
This is not a mashup for the sake of combining indicators. It is a structured analytical system where each component has a defined role in a multi-dimensional market assessment process.
HOW TO READ THE INDICATOR - VISUAL ELEMENTS GUIDE
VMDM displays up to five visual layer types. You can enable or disable each layer independently in settings under "Visual Layers."
VISUAL LAYER 1 - MARKET STRUCTURE (Pivot Points and Lines)
What You See:
Small labels at swing highs and lows marked "PH" (Pivot High) and "PL" (Pivot Low) with horizontal dashed lines extending right from each pivot.
What It Means:
These are CONFIRMED pivots, not real-time. A pivot low appears AFTER the required right-side confirmation bars pass (default 3 bars). This creates a delay but prevents repainting. The pivot only appears once it is mathematically confirmed.
The horizontal lines represent support (from pivot lows) and resistance (from pivot highs) levels where price previously found significant rejection.
Color Coding:
Green label and line: Pivot Low (potential support)
Red label and line: Pivot High (potential resistance)
How To Use:
These pivots are the foundation for divergence detection. Divergence is only calculated between confirmed pivots, ensuring all signals are non-repainting. The lines help you see historical structure levels.
VISUAL LAYER 2 - PRESSURE ZONES (Background Color)
What You See:
Subtle background color shading on bars - light green or light red tint.
What It Means:
This visualizes volume pressure strength in real-time.
Color Coding:
Light Green Background: Pressure Strength above 70 (strong buying pressure - price closing near highs on volume)
Light Red Background: Pressure Strength below 30 (strong selling pressure - price closing near lows on volume)
No Color: Neutral pressure (pressure between 30-70)
How To Use:
When a bullish divergence pattern appears during green pressure zones, it suggests the divergence is forming during accumulation. When a bearish divergence appears during red zones, distribution is occurring. Pressure zones help you filter divergences - those forming in supportive pressure environments have higher probability.
VISUAL LAYER 3 - DIVERGENCE LINES (Dotted Connectors)
What You See:
Dotted lines connecting two pivot points (either two pivot lows or two pivot highs).
What It Means:
A divergence has been detected between those two pivots. The line connects the price pivots where RSI showed opposite behavior.
Color Coding:
Bright Green Line: Bullish divergence (regular or hidden)
Bright Red Line: Bearish divergence (regular or hidden)
How To Use:
The divergence line appears ONLY after the second pivot is confirmed (delayed by right-side confirmation bars). This is intentional to prevent repainting. When you see the line appear, it means:
For Bullish Regular Divergence:
Price made a lower low (second pivot lower than first)
RSI made a higher low (RSI at second pivot higher than first)
Interpretation: Downtrend losing momentum
For Bullish Hidden Divergence:
Price made a higher low (second pivot higher than first)
RSI made a lower low (RSI at second pivot lower than first)
Interpretation: Uptrend continuation likely (pullback within uptrend)
For Bearish Regular Divergence:
Price made a higher high (second pivot higher than first)
RSI made a lower high (RSI at second pivot lower than first)
Interpretation: Uptrend losing momentum
For Bearish Hidden Divergence:
Price made a lower high (second pivot lower than first)
RSI made a higher high (RSI at second pivot higher than first)
Interpretation: Downtrend continuation likely (bounce within downtrend)
If "Show Consolidated Analysis Label" is disabled, a small label will appear on the divergence line showing the divergence type abbreviation.
VISUAL LAYER 4 - BEHAVIORAL FOOTPRINT MARKERS
What You See:
Boxes, labels, and markers at specific bars showing pattern detection.
ABSORPTION ZONES (Boxes):
Colored rectangular boxes spanning one or more bars.
Purple Box: Accumulation absorption zone (high volume, tight range, bullish close)
Red Box: Distribution absorption zone (high volume, tight range, bearish close)
If absorption continues for multiple consecutive bars, the box extends and a counter appears in the label showing how many bars the absorption lasted.
What It Means: Large volume is being absorbed without significant price movement. This often precedes directional breakouts once the absorption phase completes.
STOP HUNT MARKERS (Labels):
Small labels below or above wicks labeled "BULL HUNT" or "BEAR HUNT" (may show bar count if consecutive).
What It Means:
BULL HUNT : Price spiked below recent lows then reversed back up on volume - likely triggered sell stops before reversing
BEAR HUNT : Price spiked above recent highs then reversed back down on volume - likely triggered buy stops before reversing
EXHAUSTION MARKERS (Labels):
Labels showing "SELL EXHAUST" or "BUY EXHAUST."
What It Means:
SELL EXHAUST : Large lower wick with high volume and low RSI - aggressive selling met with strong rejection
BUY EXHAUST : Large upper wick with high volume and high RSI - aggressive buying met with strong rejection
How To Use:
These markers help you identify WHERE structural anomalies occurred. When a divergence signal appears AT THE SAME TIME as one of these patterns, the confluence score increases. You are looking for alignment - divergence + behavioral pattern + pressure confirmation = high-quality setup.
VISUAL LAYER 5 - CONSOLIDATED ANALYSIS LABEL (Main Pattern Signal)
What You See:
A large label appearing at pivot points (or in real-time mode, at current bar) containing full pattern analysis.
Label Appearance:
Depending on your "Use Compact Label Format" setting:
COMPACT MODE (Single Line):
Example: "BULLISH REGULAR | Q:HIGH QUALITY C:82"
Breakdown:
BULLISH REGULAR: Divergence type detected
Q:HIGH QUALITY: Pattern quality tier
C:82: Confluence score (82 out of 100)
FULL MODE (Multi-Line Detailed):
Example:
PATTERN DETECTED
-------------------
BULLISH REGULAR
Quality: HIGH QUALITY
Price: Lower Low
Momentum: Higher Low
Signal: Weakening Downtrend
CONFLUENCE: 82/100
-------------------
Divergence: 30
Pressure: 25
Institutional: 20
RSI Extreme: 0
Volume: 10
Breakdown:
Top section: Pattern type and quality
Middle section: Divergence explanation (what price did vs what RSI did)
Bottom section: Confluence score with itemized breakdown showing which factors contributed
Label Position:
In Confirmed modes: Label appears AT the pivot point (delayed by confirmation bars)
In Real-time mode: Label appears at current bar as conditions develop
Label Color:
Gold: Textbook quality (90+ confluence)
Green: High quality (75-89 confluence)
Blue: Valid quality (60-74 confluence)
How To Use:
This is your primary decision-making label. When it appears:
Check the divergence type (regular divergences are reversal signals, hidden divergences are continuation signals)
Review the quality tier (textbook and high quality have better historical win rates)
Examine the confluence breakdown to see which factors are present and which are missing
Look at the chart context (trend, support/resistance, timeframe)
Use this information to assess whether the setup aligns with your strategy
The label does NOT tell you to buy or sell. It tells you a technical pattern has formed and provides the quality assessment. Your trading decision must incorporate risk management, market context, and your strategy rules.
UNDERSTANDING THE THREE DETECTION MODES
VMDM offers three signal detection modes in settings to accommodate different trading styles and learning objectives.
MODE 1: "Confluence Only (Real-Time)"
How It Works: Displays signals AS THEY DEVELOP on the current bar without waiting for pivot confirmation. The system calculates confluence score from pressure, volume, RSI extremes, and behavioral patterns. Divergence signals are NOT required in this mode.
Delay: ZERO - signals appear immediately.
Use Case: Real-time scanning for high-confluence zones without divergence requirement. Useful for intraday traders who want immediate alerts when multiple factors align.
Tradeoff: More frequent signals but includes setups without confirmed divergence. Higher false signal rate. Signals can change as the bar develops (not repainting in historical bars, but current bar updates).
Visual Behavior: Labels appear at the current bar. No divergence lines unless divergence happens to be present.
MODE 2: "Divergence + Confluence (Confirmed)" - DEFAULT RECOMMENDED
How It Works: Full system engagement. Signals appear ONLY when:
A pivot is confirmed (requires right-side confirmation bars to pass)
Divergence is detected between current pivot and previous pivot
Total confluence score meets or exceeds your minimum threshold
Delay: Equal to your "Pivot Right Bars" setting (default 3 bars). This means signals appear 3 bars AFTER the actual pivot formed.
Use Case: Highest-quality, non-repainting signals for swing traders and learners who want to study confirmed pattern completion.
Tradeoff: Delayed signals. You will not receive the signal until confirmation occurs. In fast-moving markets, price may have already moved significantly by the time the signal appears.
Visual Behavior: Labels appear at the historical pivot location (in the past). Divergence lines connect the two pivots. This is the most educational mode because it shows completed, confirmed patterns.
Non-Repainting Guarantee: Yes. Once a signal appears, it never disappears or changes.
MODE 3: "Divergence + Confluence (Relaxed)"
How It Works: Same as Confirmed mode but with adaptive thresholds. If confluence is very high (10 points above threshold), the signal may appear even if some factors are weak. If divergence is present but confluence is slightly below threshold (within 10 points), it may still appear.
Delay: Same as Confirmed mode (right-side confirmation bars).
Use Case: Slightly more signals than Confirmed mode for traders willing to accept near-threshold setups.
Tradeoff: More signals but lower average quality than Confirmed mode.
Visual Behavior: Same as Confirmed mode.
DASHBOARD GUIDE - READING THE METRICS
The dashboard appears in the corner of your chart (position selectable in settings) and provides real-time market state analysis.
You can choose between four dashboard detail levels in settings: Off, Compact, Optimized (default), Full.
DASHBOARD ROW EXPLANATIONS
ROW 1 - Header Information
Left: Current symbol and timeframe
Center: "VMDM "
Right: Version number
ROW 2 - Mode and Delay
Shows which detection mode you are using and the signal delay.
Example: "CONFIRMED | Delay: 3 bars"
This reminds you that signals in confirmed mode appear 3 bars after the pivot forms.
ROW 3 - Market Regime
Format: "TREND UP HV" or "RANGING NV"
First Part - Trend State:
TREND UP: 20 EMA above 50 EMA with strong separation
TREND DOWN: 20 EMA below 50 EMA with strong separation
RANGING: EMAs close together, low trend strength
TRANSITION: Between trending and ranging states
Second Part - Volatility State:
HV: High Volatility (current ATR more than 1.3x the 50-bar average ATR)
NV: Normal Volatility (current ATR between 0.7x and 1.3x average)
LV: Low Volatility (current ATR less than 0.7x average)
Third Column: Volatility ratio (example: "1.45x" means current ATR is 1.45 times normal)
How To Use: Regime context helps you interpret signals. Reversal divergences are more reliable in ranging or transitional regimes. Continuation divergences (hidden) are more reliable in trending regimes. High volatility means wider stops may be needed.
ROW 4 - Pressure
Shows current volume pressure state.
Format: "BUYING | ██████████░░░░░░░░░"
States:
BUYING : Pressure strength above 60 (closes near highs)
SELLING : Pressure strength below 40 (closes near lows)
NEUTRAL : Pressure strength between 40-60
Bar Visualization: Each block represents 10 percentile points. A full bar (10 filled blocks) = 100th percentile pressure.
Color: Green for buying, red for selling, gray for neutral.
How To Use: When pressure aligns with divergence direction (bullish divergence during buying pressure), confluence is stronger.
ROW 5 - Volume and RSI
Format: "1.8x | RSI 68 | OB"
First Value: Current volume ratio (1.8x = volume is 1.8 times the moving average)
Second Value: Current RSI reading
Third Value: RSI state
OB: Overbought (RSI above 70)
OS: Oversold (RSI below 30)
Blank: Neutral RSI
How To Use: Volume spikes (above 1.5x) during divergence formation add confluence. RSI extremes at pivots add confluence.
ROW 6 - Behavioral Footprint
Format: "BULL HUNT | 2 bars"
Shows the most recent behavioral pattern detected and how long ago.
States:
ACCUMULATION / DISTRIBUTION: Absorption detected
BULL HUNT / BEAR HUNT: Stop hunt detected
SELL EXHAUST / BUY EXHAUST: Exhaustion detected
SCANNING: No recent pattern
NOW: Pattern is active on current bar
How To Use: When footprint activity is recent (within 50 bars) or active now, it adds context to divergence signals forming in that area.
ROW 7 - Current Pattern
Shows the divergence type currently detected (if any).
Examples: "BULLISH REGULAR", "BEARISH HIDDEN", "Scanning..."
Quality: Shows pattern quality (TEXTBOOK, HIGH QUALITY, VALID)
How To Use: This tells you what type of signal is active. Regular divergences are reversal setups. Hidden divergences are continuation setups.
ROW 8 - Session Summary
Format: "14 events | A3 H8 E3"
First Value: Total institutional events this session
Breakdown:
A: Absorption events
H: Stop hunt events
E: Exhaustion events
How To Use: High event counts suggest an active, volatile session with frequent structural anomalies. Low counts suggest quiet, orderly price action.
ROW 9 - Confluence Score (Optimized/Full mode only)
Format: "78/100 | ████████░░"
Shows current real-time confluence score even if no pattern is confirmed yet.
How To Use: Watch this in real-time to see how close you are to pattern formation. When it exceeds your threshold and divergence forms, a signal will appear (after confirmation delay).
ROW 10 - Patterns Studied (Optimized/Full mode only)
Format: "47 patterns | 12 bars ago"
First Value: Total confirmed patterns detected since chart loaded
Second Value: How many bars since the last confirmed pattern appeared
How To Use: Helps you understand pattern frequency on your selected symbol and timeframe. If many bars have passed since last pattern, market may be trending without reversal opportunities.
ROW 11 - Bull/Bear Ratio (Optimized/Full mode only)
Format: "28:19 | BULL"
Shows count of bullish vs bearish patterns detected.
Balance:
BULL: More bullish patterns detected (suggests market has had more bullish reversals/continuations)
BEAR: More bearish patterns detected
BAL: Equal counts
How To Use: Extreme imbalances can indicate directional bias in the studied period. A heavily bullish ratio in a downtrend might suggest frequent failed rallies (bearish continuation). Context matters.
ROW 12 - Volume Ratio Detail (Optimized/Full mode only)
Shows current volume vs average volume in absolute terms.
Example: "1.4x | 45230 / 32300"
How To Use: Confirms whether current activity is above or below normal.
ROW 13 - Last Institutional Event (Full mode only)
Shows the most recent institutional pattern type and how many bars ago it occurred.
Example: "DISTRIBUTION | 23 bars"
How To Use: Tracks recency of last anomaly for context.
SETTINGS GUIDE - EVERY PARAMETER EXPLAINED
PERFORMANCE SECTION
Enable All Visuals (Master Toggle)
Default: ON
What It Does: Master kill switch for ALL visual elements (labels, lines, boxes, background colors, dashboard). When OFF, only plot outputs remain (invisible unless you open data window).
When To Change: Turn OFF on mobile devices, 1-second charts, or slow computers to improve performance. You can still receive alerts even with visuals disabled.
Impact: Dramatic performance improvement when OFF, but you lose all visual feedback.
Maximum Object History
Default: 50 | Range: 10-100
What It Does: Limits how many of each object type (labels, lines, boxes) are kept in memory. Older objects beyond this limit are deleted.
When To Change: Lower to 20-30 on fast timeframes (1-minute charts) to prevent slowdown. Increase to 100 on daily charts if you want more historical pattern visibility.
Impact: Lower values = better performance but less historical visibility. Higher values = more history visible but potential slowdown on fast timeframes.
Alert Cooldown (Bars)
Default: 5 | Range: 1-50
What It Does: Minimum number of bars that must pass before another alert of the same type can fire. Prevents alert spam when multiple patterns form in quick succession.
When To Change: Increase to 20+ on 1-minute charts to reduce noise. Decrease to 1-2 on daily charts if you want every pattern alerted.
Impact: Higher cooldown = fewer alerts. Lower cooldown = more alerts.
USER EXPERIENCE SECTION
Show Enhanced Tooltips
Default: ON
What It Does: Enables detailed hover-over tooltips on labels and visual elements.
When To Change: Turn OFF if you encounter Pine Script compilation errors related to tooltip arguments (rare, platform-specific issue).
Impact: Minimal. Just adds helpful hover text.
MARKET STRUCTURE DETECTION SECTION
Pivot Left Bars
Default: 3 | Range: 2-10
What It Does: Number of bars to the LEFT of the center bar that must be higher (for pivot low) or lower (for pivot high) than the center bar for a pivot to be valid.
Example: With value 3, a pivot low requires the center bar's low to be lower than the 3 bars to its left.
When To Change:
Increase to 5-7 on noisy timeframes (1-minute charts) to filter insignificant pivots
Decrease to 2 on slow timeframes (daily charts) to catch more pivots
Impact: Higher values = fewer, more significant pivots = fewer signals. Lower values = more frequent pivots = more signals but more noise.
Pivot Right Bars
Default: 3 | Range: 2-10
What It Does: Number of bars to the RIGHT of the center bar that must pass for confirmation. This creates the non-repainting delay.
Example: With value 3, a pivot is confirmed 3 bars AFTER it forms.
When To Change:
Increase to 5-7 for slower, more confirmed signals (better for swing trading)
Decrease to 2 for faster signals (better for intraday, but still non-repainting)
Impact: Higher values = longer delay but more reliable confirmation. Lower values = faster signals but less confirmation. This setting directly controls your signal delay in Confirmed and Relaxed modes.
Minimum Confluence Score
Default: 60 | Range: 40-95
What It Does: The threshold score required for a pattern to be displayed. Patterns with confluence scores below this threshold are not shown.
When To Change:
Increase to 75+ if you only want high-quality textbook setups (fewer signals)
Decrease to 50-55 if you want to see more developing patterns (more signals, lower average quality)
Impact: This is your primary signal filter. Higher threshold = fewer, higher-quality signals. Lower threshold = more signals but includes weaker setups. Recommended starting point is 60-65.
TECHNICAL PERIODS SECTION
RSI Period
Default: 14 | Range: 5-50
What It Does: Lookback period for RSI calculation.
When To Change:
Decrease to 9-10 for faster, more sensitive RSI that detects shorter-term momentum changes
Increase to 21-28 for slower, smoother RSI that filters noise
Impact: Lower values make RSI more volatile (more frequent extremes and divergences). Higher values make RSI smoother (fewer but more significant divergences). 14 is industry standard.
Volume Moving Average Period
Default: 20 | Range: 10-200
What It Does: Lookback period for calculating average volume. Current volume is compared to this average to determine volume ratio.
When To Change:
Decrease to 10-14 for shorter-term volume comparison (more sensitive to recent volume changes)
Increase to 50-100 for longer-term volume comparison (smoother, less sensitive)
Impact: Lower values make volume ratio more volatile. Higher values make it more stable. 20 is standard.
ATR Period
Default: 14 | Range: 5-100
What It Does: Lookback period for Average True Range calculation used for volatility measurement and label positioning.
When To Change: Rarely needs adjustment. Use 7-10 for faster volatility response, 21-28 for slower.
Impact: Affects volatility ratio calculation and visual label spacing. Minimal impact on signals.
Pressure Percentile Lookback
Default: 50 | Range: 10-300
What It Does: Lookback period for calculating volume pressure percentile ranking. Your current pressure is ranked against the pressure of the last X bars.
When To Change:
Decrease to 20-30 for shorter-term pressure context (more responsive to recent changes)
Increase to 100-200 for longer-term pressure context (smoother rankings)
Impact: Lower values make pressure strength more sensitive to recent bars. Higher values provide more stable, long-term pressure assessment. Capped at 300 for performance reasons.
SIGNAL DETECTION SECTION
Signal Detection Mode
Default: "Divergence + Confluence (Confirmed)"
Options:
Confluence Only (Real-time)
Divergence + Confluence (Confirmed)
Divergence + Confluence (Relaxed)
What It Does: Selects which detection logic mode to use (see "Understanding The Three Detection Modes" section above).
When To Change: Use Confirmed for learning and non-repainting signals. Use Real-time for live scanning without divergence requirement. Use Relaxed for slightly more signals than Confirmed.
Impact: Fundamentally changes when and how signals appear.
VISUAL LAYERS SECTION
All toggles default to ON. Each controls visibility of one visual layer:
Show Market Structure: Pivot markers and support/resistance lines
Show Pressure Zones: Background color shading
Show Divergence Lines: Dotted lines connecting pivots
Show Institutional Footprint Markers: Absorption boxes, hunt labels, exhaustion labels
Show Consolidated Analysis Label: Main pattern detection label
Use Compact Label Format
Default: OFF
What It Does: Switches consolidated label between single-line compact format and multi-line detailed format.
When To Change: Turn ON if you find full labels too large or distracting.
Impact: Visual clarity vs. information density tradeoff.
DASHBOARD SECTION
Dashboard Mode
Default: "Optimized"
Options: Off, Compact, Optimized, Full
What It Does: Controls how much information the dashboard displays.
Off: No dashboard
Compact: 8 rows (essential metrics only)
Optimized: 12 rows (recommended balance)
Full: 13 rows (every available metric)
Dashboard Position
Default: "Top Right"
Options: Top Right, Top Left, Bottom Right, Bottom Left
What It Does: Screen corner where dashboard appears.
HOW TO USE VMDM - PRACTICAL WORKFLOW
STEP 1 - INITIAL SETUP
Add VMDM to your chart
Select your detection mode (Confirmed recommended for learning)
Set your minimum confluence score (start with 60-65)
Adjust pivot parameters if needed (default 3/3 is good for most timeframes)
Enable the visual layers you want to see
STEP 2 - CHART ANALYSIS
Let the indicator load and analyze historical data
Review the patterns that appear historically
Examine the confluence scores - notice which patterns had higher scores
Observe which patterns occurred during supportive pressure zones
Notice the divergence line connections - understand what price vs RSI did
STEP 3 - PATTERN RECOGNITION LEARNING
When a consolidated analysis label appears:
Read the divergence type (regular or hidden, bullish or bearish)
Check the quality tier (textbook, high quality, or valid)
Review the confluence breakdown - which factors contributed
Look at the chart context - where is price relative to structure, trend, etc.
Observe the behavioral footprint markers nearby - do they support the pattern
STEP 4 - REAL-TIME MONITORING
Watch the dashboard for real-time regime and pressure state
Monitor the current confluence score in the dashboard
When it approaches your threshold, be alert for potential pattern formation
When a new pattern appears (after confirmation delay), evaluate it using the workflow above
Use your trading strategy rules to decide if the setup aligns with your criteria
STEP 5 - POST-PATTERN OBSERVATION
After a pattern appears:
Mark the level on your chart
Observe what price does after the pattern completes
Did price respect the reversal/continuation signal
What was the confluence score of patterns that worked vs. those that failed
Learn which quality tiers and confluence levels produce better results on your specific symbol and timeframe
RECOMMENDED TIMEFRAMES AND ASSET CLASSES
VMDM is timeframe-agnostic and works on any asset with volume data. However, optimal performance varies:
BEST TIMEFRAMES
15-Minute to 1-Hour: Ideal balance of signal frequency and reliability. Pivot confirmation delay is acceptable. Sufficient volume data for pressure analysis.
4-Hour to Daily: Excellent for swing trading. Very high-quality signals. Lower frequency but higher significance. Recommended for learning because patterns are clearer.
1-Minute to 5-Minute: Works but requires adjustment. Increase pivot bars to 5-7 for filtering. Decrease max object history to 30 for performance. Expect more noise.
Weekly/Monthly: Works but very infrequent signals. Increase confluence threshold to 70+ to ensure only major patterns appear.
BEST ASSET CLASSES
Forex Majors: Excellent volume data and clear trends. Pressure analysis works well.
Crypto (Major Pairs): Good volume data. High volatility makes divergences more pronounced. Works very well.
Stock Indices (SPY, QQQ, etc.): Excellent. Clean price action and reliable volume.
Individual Stocks: Works well on high-volume stocks. Low-volume stocks may produce unreliable pressure readings.
Commodities (Gold, Oil, etc.): Works well. Clear trends and reactions.
WHAT THIS INDICATOR CANNOT DO - LIMITATIONS
LIMITATION 1 - It Does Not Predict The Future
VMDM identifies when technical conditions align historically associated with potential reversals or continuations. It does not predict what will happen next. A textbook 95-confluence pattern can still fail if fundamental events, news, or larger timeframe structure override the setup.
LIMITATION 2 - Confirmation Delay Means You Miss Early Entry
In Confirmed and Relaxed modes, the non-repainting design means you receive signals AFTER the pivot is confirmed. Price may have already moved significantly by the time you receive the signal. This is the tradeoff for non-repainting reliability. You can use Real-time mode for faster signals but sacrifice divergence confirmation.
LIMITATION 3 - It Does Not Tell You Position Sizing or Risk Management
VMDM provides technical pattern analysis. It does not calculate stop loss levels, take profit targets, or position sizing. You must apply your own risk management rules. Never risk more than you can afford to lose based on a technical signal.
LIMITATION 4 - Volume Pressure Analysis Requires Reliable Volume Data
On assets with thin volume or unreliable volume reporting, pressure analysis may be inaccurate. Stick to major liquid assets with consistent volume data.
LIMITATION 5 - It Cannot Detect Fundamental Events
VMDM is purely technical. It cannot predict earnings reports, central bank decisions, geopolitical events, or other fundamental catalysts that can override technical patterns.
LIMITATION 6 - Divergence Requires Two Pivots
The indicator cannot detect divergence until at least two pivots of the same type have formed. In strong trends without pullbacks, you may go long periods without signals.
LIMITATION 7 - Institutional Pattern Names Are Interpretive
The behavioral footprint patterns are named using common trading education terminology, but they are detected through technical analysis, not actual institutional data access. The patterns are interpretations based on price and volume behavior.
CONCEPT FOUNDATION - WHY THIS APPROACH WORKS
MARKET PRINCIPLE 1 - Momentum Divergence Precedes Price Reversal
Price is the final output of market forces, but momentum (the rate of change in those forces) shifts first. When price makes a new low but the momentum behind that move is weaker (higher RSI low), it signals that sellers are losing strength even though they temporarily pushed price lower. This precedes reversal. This is a fundamental principle in technical analysis taught by Charles Dow, widely observed in market behavior.
MARKET PRINCIPLE 2 - Volume Reveals Conviction
Price can move on low volume (low conviction) or high volume (high conviction). When price makes a new low on declining volume while RSI shows improving momentum, it suggests the new low is not confirmed by participant conviction. Adding volume pressure analysis to momentum divergence adds a confirmation layer that filters false divergences.
MARKET PRINCIPLE 3 - Anomalies Mark Structural Extremes
When volume spikes significantly but range contracts (absorption), or when price spikes beyond structure then reverses (stop hunt), or when aggressive moves are met with large-wick rejection (exhaustion), these anomalies often mark short-term extremes. Combining these structural observations with momentum analysis creates context.
MARKET PRINCIPLE 4 - Confluence Improves Probability
No single technical factor is reliable in isolation. RSI divergence alone fails frequently. Volume analysis alone cannot time entries. Combining multiple independent factors into a weighted system increases the probability that observed patterns have structural significance rather than random noise.
THE EDUCATIONAL VALUE
By visualizing all four layers simultaneously and breaking down the confluence scoring transparently, VMDM teaches you to think in terms of multi-dimensional analysis rather than single-indicator reliance. Over time, you will learn to recognize these patterns manually and understand which combinations produce better results on your traded assets.
INSTITUTIONAL TERMINOLOGY - IMPORTANT CLARIFICATION
This indicator uses the following terms that are common in trading education:
Institutional Footprint
Absorption (Accumulation / Distribution)
Stop Hunt
Exhaustion
CRITICAL DISCLAIMER:
These terms are EDUCATIONAL LABELS for specific price action and volume behavior patterns detected through technical analysis of publicly available chart data (open, high, low, close, volume). This indicator does NOT have access to:
Actual institutional order flow or order book data
Market maker positions or intentions
Broker stop-loss databases
Non-public trading data
Proprietary institutional information
The patterns labeled as "institutional footprint" are interpretations based on observable price and volume behavior that educational trading literature often associates with potential large-participant activity. The detection is algorithmic pattern recognition, not privileged data access.
When this indicator identifies "absorption," it means it detected high volume within a small range - a condition that MAY indicate large orders being filled but is not confirmation of actual institutional participation.
When it identifies a "stop hunt," it means price briefly penetrated a structural level then reversed - a pattern that MAY have triggered stop losses but is not confirmation that stops were specifically targeted.
When it identifies "exhaustion," it means high volume with large rejection wicks - a pattern that MAY indicate aggressive participation meeting strong opposition but is not confirmation of institutional involvement.
These are technical analysis interpretations, not factual statements about market participant identity or intent.
DISCLAIMER AND RISK WARNING
EDUCATIONAL PURPOSE ONLY
This indicator is designed as an educational tool to help traders learn to recognize technical patterns, understand multi-factor analysis, and practice systematic market observation. It is NOT a trading system, signal service, or financial advice.
NO PERFORMANCE GUARANTEE
Past pattern behavior does not guarantee future results. A pattern that historically preceded price movement in one direction may fail in the future due to changing market conditions, fundamental events, or random variance. Confluence scores reflect historical technical alignment, not future certainty.
TRADING INVOLVES SUBSTANTIAL RISK
Trading financial instruments involves substantial risk of loss. You can lose more than your initial investment. Never trade with money you cannot afford to lose. Always use proper risk management including stop losses, position sizing, and portfolio diversification.
NO PREDICTIVE CLAIMS
This indicator does NOT predict future price movement. It identifies when technical conditions align in patterns that historically have been associated with potential reversals or continuations. Market behavior is probabilistic, not deterministic.
BACKTESTING LIMITATIONS
If you backtest trading strategies using this indicator, ensure you account for:
Realistic commission costs
Realistic slippage (difference between signal price and actual fill price)
Sufficient sample size (minimum 100 trades for statistical relevance)
Reasonable position sizing (risking no more than 1-2 percent of account per trade)
The confirmation delay inherent in the indicator (you cannot enter at the exact pivot in Confirmed mode)
Backtests that do not account for these factors will produce unrealistic results.
AUTHOR LIABILITY
The author (BullByte) is not responsible for any trading losses incurred using this indicator. By using this indicator, you acknowledge that all trading decisions are your sole responsibility and that you understand the risks involved.
NOT FINANCIAL ADVICE
Nothing in this indicator, its code, its description, or its visual outputs constitutes financial, investment, or trading advice. Consult a licensed financial advisor before making investment decisions.
FREQUENTLY ASKED QUESTIONS
Q: Why do signals appear in the past, not at the current bar
A: In Confirmed and Relaxed modes, signals appear at confirmed pivots, which requires waiting for right-side confirmation bars (default 3). This creates a delay but prevents repainting. Use Real-time mode if you want current-bar signals without pivot confirmation.
Q: Can I use this for automated trading
A: You can create alert-based automation, but understand that Confirmed mode signals appear AFTER the pivot with delay, so your entry will not be at the pivot price. Real-time mode signals can change as the current bar develops. Automation requires careful consideration of these factors.
Q: How do I know which confluence score to use
A: Start with 60. Observe which patterns work on your symbol/timeframe. If too many false signals, increase to 70-75. If too few signals, decrease to 55. Quality vs. quantity tradeoff.
Q: Do regular divergences mean I should enter a reversal trade immediately
A: No. Regular divergences indicate momentum exhaustion, which is a WARNING sign that trend may reverse, not a confirmation that it will. Use confluence score, market context, support/resistance, and your strategy rules to make entry decisions. Many divergences fail.
Q: What's the difference between regular and hidden divergence
A: Regular divergence = price and momentum move in opposite directions at extremes = potential reversal signal. Hidden divergence = price and momentum move in opposite directions during pullbacks = potential continuation signal. Hidden divergence suggests the pullback is just a correction within the larger trend.
Q: Why does the pressure zone color sometimes conflict with the divergence direction
A: Pressure is real-time current bar analysis. Divergence is confirmed pivot analysis from the past. They measure different things at different times. A bullish divergence confirmed 3 bars ago might appear during current selling pressure. This is normal.
Q: Can I use this on stocks without volume data
A: No. Volume is required for pressure analysis and behavioral pattern detection. Use only on assets with reliable volume reporting.
Q: How often should I expect signals
A: Depends on timeframe and settings. Daily charts might produce 5-10 signals per month. 1-hour charts might produce 20-30. 15-minute charts might produce 50-100. Adjust confluence threshold to control frequency.
Q: Can I modify the code
A: Yes, this is open source. You can modify for personal use. If you publish a modified version, please credit the original and ensure your publication meets TradingView guidelines.
Q: What if I disagree with a pattern's confluence score
A: The scoring weights are based on general observations and may not suit your specific strategy or asset. You can modify the code to adjust weights if you have data-driven reasons to do so.
Final Notes
VMDM - Volume, Momentum and Divergence Master is an educational multi-layer market analysis system designed to teach systematic pattern recognition through transparent, confluence-weighted signal detection. By combining RSI momentum divergence, volume pressure quantification, behavioral footprint pattern recognition, and quality scoring into a unified framework, it provides a comprehensive learning environment for understanding market structure.
Use this tool to develop your analytical skills, understand how multiple technical factors interact, and learn to distinguish high-quality setups from noise. Remember that technical analysis is probabilistic, not predictive. No indicator replaces proper education, risk management, and trading discipline.
Trade responsibly. Learn continuously. Risk only what you can afford to lose.
-BullByte
VoVix DEVMA🌌 VoVix DEVMA: A Deep Dive into Second-Order Volatility Dynamics
Welcome to VoVix+, a sophisticated trading framework that transcends traditional price analysis. This is not merely another indicator; it is a complete system designed to dissect and interpret the very fabric of market volatility. VoVix+ operates on the principle that the most powerful signals are not found in price alone, but in the behavior of volatility itself. It analyzes the rate of change, the momentum, and the structure of market volatility to identify periods of expansion and contraction, providing a unique edge in anticipating major market moves.
This document will serve as your comprehensive guide, breaking down every mathematical component, every user input, and every visual element to empower you with a profound understanding of how to harness its capabilities.
🔬 THEORETICAL FOUNDATION: THE MATHEMATICS OF MARKET DYNAMICS
VoVix+ is built upon a multi-layered mathematical engine designed to measure what we call "second-order volatility." While standard indicators analyze price, and first-order volatility indicators (like ATR) analyze the range of price, VoVix+ analyzes the dynamics of the volatility itself. This provides insight into the market's underlying state of stability or chaos.
1. The VoVix Score: Measuring Volatility Thrust
The core of the system begins with the VoVix Score. This is a normalized measure of volatility acceleration or deceleration.
Mathematical Formula:
VoVix Score = (ATR(fast) - ATR(slow)) / (StDev(ATR(fast)) + ε)
Where:
ATR(fast) is the Average True Range over a short period, representing current, immediate volatility.
ATR(slow) is the Average True Range over a longer period, representing the baseline or established volatility.
StDev(ATR(fast)) is the Standard Deviation of the fast ATR, which measures the "noisiness" or consistency of recent volatility.
ε (epsilon) is a very small number to prevent division by zero.
Market Implementation:
Positive Score (Expansion): When the fast ATR is significantly higher than the slow ATR, it indicates a rapid increase in volatility. The market is "stretching" or expanding.
Negative Score (Contraction): When the fast ATR falls below the slow ATR, it indicates a decrease in volatility. The market is "coiling" or contracting.
Normalization: By dividing by the standard deviation, we normalize the score. This turns it into a standardized measure, allowing us to compare volatility thrust across different market conditions and timeframes. A score of 2.0 in a quiet market means the same, relatively, as a score of 2.0 in a volatile market.
2. Deviation Analysis (DEV): Gauging Volatility's Own Volatility
The script then takes the analysis a step further. It calculates the standard deviation of the VoVix Score itself.
Mathematical Formula:
DEV = StDev(VoVix Score, lookback_period)
Market Implementation:
This DEV value represents the magnitude of chaos or stability in the market's volatility dynamics. A high DEV value means the volatility thrust is erratic and unpredictable. A low DEV value suggests the change in volatility is smooth and directional.
3. The DEVMA Crossover: Identifying Regime Shifts
This is the primary signal generator. We take two moving averages of the DEV value.
Mathematical Formula:
fastDEVMA = SMA(DEV, fast_period)
slowDEVMA = SMA(DEV, slow_period)
The Core Signal:
The strategy triggers on the crossover and crossunder of these two DEVMA lines. This is a profound concept: we are not looking at a moving average of price or even of volatility, but a moving average of the standard deviation of the normalized rate of change of volatility.
Bullish Crossover (fastDEVMA > slowDEVMA): This signals that the short-term measure of volatility's chaos is increasing relative to the long-term measure. This often precedes a significant market expansion and is interpreted as a bullish volatility regime.
Bearish Crossunder (fastDEVMA < slowDEVMA): This signals that the short-term measure of volatility's chaos is decreasing. The market is settling down or contracting, often leading to trending moves or range consolidation.
⚙️ INPUTS MENU: CONFIGURING YOUR ANALYSIS ENGINE
Every input has been meticulously designed to give you full control over the strategy's behavior. Understanding these settings is key to adapting VoVix+ to your specific instrument, timeframe, and trading style.
🌀 VoVix DEVMA Configuration
🧬 Deviation Lookback: This sets the lookback period for calculating the DEV value. It defines the window for measuring the stability of the VoVix Score. A shorter value makes the system highly reactive to recent changes in volatility's character, ideal for scalping. A longer value provides a smoother, more stable reading, better for identifying major, long-term regime shifts.
⚡ Fast VoVix Length: This is the lookback period for the fastDEVMA. It represents the short-term trend of volatility's chaos. A smaller number will result in a faster, more sensitive signal line that reacts quickly to market shifts.
🐌 Slow VoVix Length: This is the lookback period for the slowDEVMA. It represents the long-term, baseline trend of volatility's chaos. A larger number creates a more stable, slower-moving anchor against which the fast line is compared.
How to Optimize: The relationship between the Fast and Slow lengths is crucial. A wider gap (e.g., 20 and 60) will result in fewer, but potentially more significant, signals. A narrower gap (e.g., 25 and 40) will generate more frequent signals, suitable for more active trading styles.
🧠 Adaptive Intelligence
🧠 Enable Adaptive Features: When enabled, this activates the strategy's performance tracking module. The script will analyze the outcome of its last 50 trades to calculate a dynamic win rate.
⏰ Adaptive Time-Based Exit: If Enable Adaptive Features is on, this allows the strategy to adjust its Maximum Bars in Trade setting based on performance. It learns from the average duration of winning trades. If winning trades tend to be short, it may shorten the time exit to lock in profits. If winners tend to run, it will extend the time exit, allowing trades more room to develop. This helps prevent the strategy from cutting winning trades short or holding losing trades for too long.
⚡ Intelligent Execution
📊 Trade Quantity: A straightforward input that defines the number of contracts or shares for each trade. This is a fixed value for consistent position sizing.
🛡️ Smart Stop Loss: Enables the dynamic stop-loss mechanism.
🎯 Stop Loss ATR Multiplier: Determines the distance of the stop loss from the entry price, calculated as a multiple of the current 14-period ATR. A higher multiplier gives the trade more room to breathe but increases risk per trade. A lower multiplier creates a tighter stop, reducing risk but increasing the chance of being stopped out by normal market noise.
💰 Take Profit ATR Multiplier: Sets the take profit target, also as a multiple of the ATR. A common practice is to set this higher than the Stop Loss multiplier (e.g., a 2:1 or 3:1 reward-to-risk ratio).
🏃 Use Trailing Stop: This is a powerful feature for trend-following. When enabled, instead of a fixed stop loss, the stop will trail behind the price as the trade moves into profit, helping to lock in gains while letting winners run.
🎯 Trail Points & 📏 Trail Offset ATR Multipliers: These control the trailing stop's behavior. Trail Points defines how much profit is needed before the trail activates. Trail Offset defines how far the stop will trail behind the current price. Both are based on ATR, making them fully adaptive to market volatility.
⏰ Maximum Bars in Trade: This is a time-based stop. It forces an exit if a trade has been open for a specified number of bars, preventing positions from being held indefinitely in stagnant markets.
⏰ Session Management
These inputs allow you to confine the strategy's trading activity to specific market hours, which is crucial for day trading instruments that have defined high-volume sessions (e.g., stock market open).
🎨 Visual Effects & Dashboard
These toggles give you complete control over the on-chart visuals and the dashboard. You can disable any element to declutter your chart or focus only on the information that matters most to you.
📊 THE DASHBOARD: YOUR AT-A-GLANCE COMMAND CENTER
The dashboard centralizes all critical information into one compact, easy-to-read panel. It provides a real-time summary of the market state and strategy performance.
🎯 VOVIX ANALYSIS
Fast & Slow: Displays the current numerical values of the fastDEVMA and slowDEVMA. The color indicates their direction: green for rising, red for falling. This lets you see the underlying momentum of each line.
Regime: This is your most important environmental cue. It tells you the market's current state based on the DEVMA relationship. 🚀 EXPANSION (Green) signifies a bullish volatility regime where explosive moves are more likely. ⚛️ CONTRACTION (Purple) signifies a bearish volatility regime, where the market may be consolidating or entering a smoother trend.
Quality: Measures the strength of the last signal based on the magnitude of the DEVMA difference. An ELITE or STRONG signal indicates a high-conviction setup where the crossover had significant force.
PERFORMANCE
Win Rate & Trades: Displays the historical win rate of the strategy from the backtest, along with the total number of closed trades. This provides immediate feedback on the strategy's historical effectiveness on the current chart.
EXECUTION
Trade Qty: Shows your configured position size per trade.
Session: Indicates whether trading is currently OPEN (allowed) or CLOSED based on your session management settings.
POSITION
Position & PnL: Displays your current position (LONG, SHORT, or FLAT) and the real-time Profit or Loss of the open trade.
🧠 ADAPTIVE STATUS
Stop/Profit Mult: In this simplified version, these are placeholders. The primary adaptive feature currently modifies the time-based exit, which is reflected in how long trades are held on the chart.
🎨 THE VISUAL UNIVERSE: DECIPHERING MARKET GEOMETRY
The visuals are not mere decorations; they are geometric representations of the underlying mathematical concepts, designed to give you an intuitive feel for the market's state.
The Core Lines:
FastDEVMA (Green/Maroon Line): The primary signal line. Green when rising, indicating an increase in short-term volatility chaos. Maroon when falling.
SlowDEVMA (Aqua/Orange Line): The baseline. Aqua when rising, indicating a long-term increase in volatility chaos. Orange when falling.
🌊 Morphism Flow (Flowing Lines with Circles):
What it represents: This visualizes the momentum and strength of the fastDEVMA. The width and intensity of the "beam" are proportional to the signal strength.
Interpretation: A thick, steep, and vibrant flow indicates powerful, committed momentum in the current volatility regime. The floating '●' particles represent kinetic energy; more particles suggest stronger underlying force.
📐 Homotopy Paths (Layered Transparent Boxes):
What it represents: These layered boxes are centered between the two DEVMA lines. Their height is determined by the DEV value.
Interpretation: This visualizes the overall "volatility of volatility." Wider boxes indicate a chaotic, unpredictable market. Narrower boxes suggest a more stable, predictable environment.
🧠 Consciousness Field (The Grid):
What it represents: This grid provides a historical lookback at the DEV range.
Interpretation: It maps the recent "consciousness" or character of the market's volatility. A consistently wide grid suggests a prolonged period of chaos, while a narrowing grid can signal a transition to a more stable state.
📏 Functorial Levels (Projected Horizontal Lines):
What it represents: These lines extend from the current fastDEVMA and slowDEVMA values into the future.
Interpretation: Think of these as dynamic support and resistance levels for the volatility structure itself. A crossover becomes more significant if it breaks cleanly through a prior established level.
🌊 Flow Boxes (Spaced Out Boxes):
What it represents: These are compact visual footprints of the current regime, colored green for Expansion and red for Contraction.
Interpretation: They provide a quick, at-a-glance confirmation of the dominant volatility flow, reinforcing the background color.
Background Color:
This provides an immediate, unmistakable indication of the current volatility regime. Light Green for Expansion and Light Aqua/Blue for Contraction, allowing you to assess the market environment in a split second.
📊 BACKTESTING PERFORMANCE REVIEW & ANALYSIS
The following is a factual, transparent review of a backtest conducted using the strategy's default settings on a specific instrument and timeframe. This information is presented for educational purposes to demonstrate how the strategy's mechanics performed over a historical period. It is crucial to understand that these results are historical, apply only to the specific conditions of this test, and are not a guarantee or promise of future performance. Market conditions are dynamic and constantly change.
Test Parameters & Conditions
To ensure the backtest reflects a degree of real-world conditions, the following parameters were used. The goal is to provide a transparent baseline, not an over-optimized or unrealistic scenario.
Instrument: CME E-mini Nasdaq 100 Futures (NQ1!)
Timeframe: 5-Minute Chart
Backtesting Range: March 24, 2024, to July 09, 2024
Initial Capital: $100,000
Commission: $0.62 per contract (A realistic cost for futures trading).
Slippage: 3 ticks per trade (A conservative setting to account for potential price discrepancies between order placement and execution).
Trade Size: 1 contract per trade.
Performance Overview (Historical Data)
The test period generated 465 total trades , providing a statistically significant sample size for analysis, which is well above the recommended minimum of 100 trades for a strategy evaluation.
Profit Factor: The historical Profit Factor was 2.663 . This metric represents the gross profit divided by the gross loss. In this test, it indicates that for every dollar lost, $2.663 was gained.
Percent Profitable: Across all 465 trades, the strategy had a historical win rate of 84.09% . While a high figure, this is a historical artifact of this specific data set and settings, and should not be the sole basis for future expectations.
Risk & Trade Characteristics
Beyond the headline numbers, the following metrics provide deeper insight into the strategy's historical behavior.
Sortino Ratio (Downside Risk): The Sortino Ratio was 6.828 . Unlike the Sharpe Ratio, this metric only measures the volatility of negative returns. A higher value, such as this one, suggests that during this test period, the strategy was highly efficient at managing downside volatility and large losing trades relative to the profits it generated.
Average Trade Duration: A critical characteristic to understand is the strategy's holding period. With an average of only 2 bars per trade , this configuration operates as a very short-term, or scalping-style, system. Winning trades averaged 2 bars, while losing trades averaged 4 bars. This indicates the strategy's logic is designed to capture quick, high-probability moves and exit rapidly, either at a profit target or a stop loss.
Conclusion and Final Disclaimer
This backtest demonstrates one specific application of the VoVix+ framework. It highlights the strategy's behavior as a short-term system that, in this historical test on NQ1!, exhibited a high win rate and effective management of downside risk. Users are strongly encouraged to conduct their own backtests on different instruments, timeframes, and date ranges to understand how the strategy adapts to varying market structures. Past performance is not indicative of future results, and all trading involves significant risk.
🔧 THE DEVELOPMENT PHILOSOPHY: FROM VOLATILITY TO CLARITY
The journey to create VoVix+ began with a simple question: "What drives major market moves?" The answer is often not a change in price direction, but a fundamental shift in market volatility. Standard indicators are reactive to price. We wanted to create a system that was predictive of market state. VoVix+ was designed to go one level deeper—to analyze the behavior, character, and momentum of volatility itself.
The challenge was twofold. First, to create a robust mathematical model to quantify these abstract concepts. This led to the multi-layered analysis of ATR differentials and standard deviations. Second, to make this complex data intuitive and actionable. This drove the creation of the "Visual Universe," where abstract mathematical values are translated into geometric shapes, flows, and fields. The adaptive system was intentionally kept simple and transparent, focusing on a single, impactful parameter (time-based exits) to provide performance feedback without becoming an inscrutable "black box." The result is a tool that is both profoundly deep in its analysis and remarkably clear in its presentation.
⚠️ RISK DISCLAIMER AND BEST PRACTICES
VoVix+ is an advanced analytical tool, not a guarantee of future profits. All financial markets carry inherent risk. The backtesting results shown by the strategy are historical and do not guarantee future performance. This strategy incorporates realistic commission and slippage settings by default, but market conditions can vary. Always practice sound risk management, use position sizes appropriate for your account equity, and never risk more than you can afford to lose. It is recommended to use this strategy as part of a comprehensive trading plan. This was developed specifically for Futures
"The prevailing wisdom is that markets are always right. I take the opposite view. I assume that markets are always wrong. Even if my assumption is occasionally wrong, I use it as a working hypothesis."
— George Soros
— Dskyz, Trade with insight. Trade with anticipation.
Combined Support & Resistance IndicatorsPivot Points Calculation:
The script calculates the Pivot Point as the average of the high price (high), low price (low), and closing price (close) of the current bar.
The Pivot Point is plotted on the chart as a red line.
Support and Resistance Levels:
The Support Level is calculated as the lowest price over the last lookback bars.
The Resistance Level is calculated as the highest price over the last lookback bars.
These levels are displayed on the chart using horizontal lines: green for support and red for resistance.
Momentum Indicators:
RSI (Relative Strength Index): A momentum oscillator calculated based on the closing price over the last 14 bars. It is plotted as a yellow line.
MACD (Moving Average Convergence Divergence): An indicator consisting of the MACD line (blue) and the signal line (orange). It is calculated based on the closing price.
Moving Averages:
SMA 20: A simple moving average over the last 20 bars. It is plotted as a green line.
SMA 50: A simple moving average over the last 50 bars. It is plotted as a red line.
Dynamic Levels Drawing:
Instead of using hline (which does not support dynamic values), the script uses line.new to draw dynamic support and resistance levels. These lines are updated on each bar.
EBL - Enigma BOS LogicThe EBL - Enigma BOS Logic indicator is designed to detect key trend reversal points with precision by leveraging a unique concept based on two-candle price action analysis. Inspired by the balance of pairs in creation, this indicator identifies trend changes by focusing on significant bullish and bearish candle pairs, storing key levels, and waiting for confirmation to provide actionable trade signals. It goes beyond conventional trend-following indicators by offering real-time alerts and clear visual cues for traders.
How It Works
Bullish Setup:
The indicator identifies a bullish candle followed by a bearish candle. It then stores the high of the bullish candle as a potential reversal level.
A bullish confirmation occurs when a future bullish candle closes above the stored high. When this happens:
A green arrow is plotted below the confirming candle.
A horizontal green line is drawn at the stored high level, extending forward by a user-defined number of bars.
An alert is triggered to notify the trader of a confirmed bullish trend.
Bearish Setup:
The indicator identifies a bearish candle followed by a bullish candle. It stores the low of the bearish candle as a potential reversal level.
A bearish confirmation occurs when a future bearish candle closes below the stored low. When this happens:
A red arrow is plotted above the confirming candle.
A horizontal red line is drawn at the stored low level, extending forward by a user-defined number of bars.
An alert is triggered to notify the trader of a confirmed bearish trend.
Touch or Cross Alerts:
In addition to initial trend confirmation, the indicator tracks price movements relative to the drawn horizontal lines.
If the price returns to touch or cross a previously drawn horizontal line, an alert is triggered, indicating a potential re-entry or retracement opportunity.
Customization Options
To make the indicator versatile and adaptable for different trading styles, several customization options are provided:
Line Colors: Traders can customize the colors of the bullish and bearish lines.
Show/Hide Arrows and Lines: Users can choose whether to display the arrows and horizontal lines on the chart.
Line Length: The length of the horizontal lines (number of bars they extend into the future) is user-defined, offering flexibility based on trading timeframes and preferences.
Use Cases
Trend Reversal Detection: EBL is ideal for identifying key trend reversals, allowing traders to enter trades with a high probability of success.
Breakout Confirmation: The indicator provides visual and alert-based confirmation of breakouts beyond critical support or resistance levels.
Re-entry Opportunities: With alerts for price touching or crossing horizontal lines, traders can spot potential re-entry points during retracements.
Conceptual Foundation
The methodology behind this indicator is rooted in the principle that markets often move in pairs of bullish and bearish forces. By tracking the interaction between consecutive bullish and bearish candles and waiting for clear confirmations, this indicator ensures that only high-probability trend changes are signaled. This reduces noise and enhances trading accuracy, making it suitable for scalping, day trading, and swing trading across various timeframes.
How to Use
Apply the indicator to any chart and timeframe of your choice.
Set your preferred customization options, including line colors, arrow display, and line length.
Watch for arrows and listen for alerts to identify confirmed trend changes.
Pay attention to touch or cross alerts on horizontal lines, as these can signal potential re-entry or secondary trade opportunities.
Combine with other analysis: While EBL is powerful on its own, combining it with support/resistance analysis, moving averages, or volume indicators can further enhance its effectiveness.
This indicator is a powerful tool for traders seeking precision in identifying trend changes and actionable trade signals. Its unique logic, real-time alerts, and clear visual cues make it a valuable addition to any trader’s toolkit.
Globex time (New York Time)This indicator is designed to highlight and analyze price movements within the Globex session. Primarily geared toward the Globex Trap trading strategy, this tool visually identifies the session's high and low prices, allowing traders to better assess price action during extended hours. Here’s a comprehensive breakdown of its features and functionality:
Purpose
The "Globex Time (New York Time)" indicator tracks price levels during the Globex trading session, providing a clear view of overnight market activity. This session, typically running from 6 p.m. ET (18:00) until the following morning at 8:30 a.m. ET, is a critical period where significant market positioning can occur before the regular session opens. In the Globex Trap strategy, the session high and low are essential levels, as price movements around these areas often indicate potential support, resistance, or reversal zones, which traders use to set up entries or exits when the regular trading session begins.
Key Features
Customizable Session Start and End Times
The indicator allows users to specify the exact start and end times of the Globex session in New York time. The default settings are:
Start: 6 p.m. ET (18:00)
End: 8:30 a.m. ET
These settings can be adjusted to align with specific market hours or personal preferences.
Session High and Low Identification
Throughout the defined session, the indicator dynamically calculates and tracks:
Session High: The highest price reached within the session.
Session Low: The lowest price reached within the session.
These levels are essential for the Globex Trap strategy, as price action around them can indicate likely breakout or reversal points when regular trading resumes.
Vertical Lines for Session Start and End
The indicator draws vertical lines at both the session start and end times:
Session Start Line: A solid line marking the exact beginning of the Globex session.
Session End Line: A similar vertical line marking the session’s conclusion.
Both lines are customizable in terms of color and thickness, making it easy to distinguish the session boundaries visually on the chart.
Horizontal Lines for Session High and Low
At the end of the session, the indicator plots horizontal lines representing the Globex session's high and low levels. Users can customize these lines:
Color: Define specific colors for the session high (default: red) and session low (default: green) to easily differentiate them.
Line Style: Options to set the line style (solid, dashed, or dotted) provide flexibility for visual preferences and chart organization.
Automatic Reset for Daily Tracking
To adapt to the next trading day, the indicator resets the session high and low data once the current session ends. This reset prepares it to start tracking new levels at the beginning of the next session without manual intervention.
Practical Application in the Globex Trap Strategy
In the Globex Trap strategy, traders are primarily interested in price behavior around the high and low levels established during the overnight session. Common applications of this indicator for this strategy include:
Breakout Trades: Watching for price to break above the Globex high or below the Globex low, indicating potential momentum in the breakout direction.
Reversal Trades: Monitoring for failed breakouts or traps where price tests and rejects the Globex high or low, suggesting a reversal as liquidity is trapped in these zones.
Support and Resistance Zones: Using the session high and low as key support and resistance levels during the regular trading session, with potential entry or exit points when price approaches these areas.
Additional Configuration Options
Vertical Line Color and Width: Define the color and thickness of the vertical session start and end lines to match your chart’s theme.
Upper and Lower Line Colors and Styles: Customize the appearance of the session high and low horizontal lines by setting color and line style (solid, dashed, or dotted), making it easy to distinguish these critical levels from other chart markings.
Summary
This indicator is a valuable tool for traders implementing the Globex Trap strategy. It visually segments the Globex session and marks essential price levels, helping traders analyze market behavior overnight. Through its customizable options and clear visual representation, it simplifies tracking overnight price activity and identifying strategic levels for potential trade setups during the regular session.
RSI Multiple TimeFrame, Version 1.0RSI Multiple TimeFrame, Version 1.0
Overview
The RSI Multiple TimeFrame script is designed to enhance trading decisions by providing a comprehensive view of the Relative Strength Index (RSI) across multiple timeframes. This tool helps traders identify overbought and oversold conditions more accurately by analyzing RSI values on different intervals simultaneously. This is particularly useful for traders who employ multi-timeframe analysis to confirm signals and make more informed trading decisions.
Unique Feature of the new script (described in detail below)
Multi-Timeframe RSI Analysis
Customizable Timeframes
Visual Signal Indicators (dots)
Overbought and Oversold Layers with gradual Background Fill
Enhanced Trend Confirmation
Originality and Usefulness
This script combines the RSI indicator across three distinct timeframes into a single view, providing traders with a multi-dimensional perspective of market momentum. It also provides associated signals to better time dips and peaks. Unlike standard RSI indicators that focus on a single timeframe, this script allows users to observe RSI trends across short, medium, and long-term intervals, thereby improving the accuracy of entry and exit signals. This is particularly valuable for traders looking to align their short-term strategies with longer-term market trends.
Signal Description
The script also includes a unique signal feature that plots green and red dots on the chart to highlight potential buy and sell opportunities:
Green Dots : These appear when all three RSI values are under specific thresholds (RSI of the shortest timeframe < 30, the medium timeframe < 40, and the longest timeframe < 50) and the RSI of the shortest timeframe is showing an upward trend (current value is greater than the previous value, and the value two periods ago is greater than the previous value). This indicates a potential buying opportunity as the market may be shifting from an oversold condition.
Red Dots : These appear when all three RSI values are above specific thresholds (RSI of the shortest timeframe > 70, the medium timeframe > 60, and the longest timeframe > 50) and the RSI of the shortest timeframe is showing a downward trend (current value is less than the previous value, and the value two periods ago is less than the previous value). This indicates a potential selling opportunity as the market may be shifting from an overbought condition.
These signals help traders identify high-probability turning points in the market by ensuring that momentum is aligned across multiple timeframes.
Detailed Description
Input Variables
RSI Period (`len`) : The number of periods to calculate the RSI. Default is 14.
RSI Source (`src`) : The price source for RSI calculation, defaulting to the average of the high and low prices (`hl2`).
Timeframes (`tf1`, `tf2`, `tf3`) : The different timeframes for which the RSI is calculated, defaulting to 5 minutes, 1 hour, and 8 hours respectively.
Functionality
RSI Calculations : The script calculates the RSI for each of the three specified timeframes using the `request.security` function. This allows the RSI to be plotted for multiple intervals, providing a layered view of market momentum.
```pine
rsi_tf1 = request.security(syminfo.tickerid, tf1, ta.rsi(src, len))
rsi_tf2 = request.security(syminfo.tickerid, tf2, ta.rsi(src, len))
rsi_tf3 = request.security(syminfo.tickerid, tf3, ta.rsi(src, len))
```
Plotting : The RSI values for the three timeframes are plotted with different colors and line widths for clear visual distinction. This makes it easy to compare RSI values across different intervals.
```pine
p1 = plot(rsi_tf1, title="RSI 5m", color=color.rgb(200, 200, 255), linewidth=2)
p2 = plot(rsi_tf2, title="RSI 1h", color=color.rgb(125, 125, 255), linewidth=2)
p3 = plot(rsi_tf3, title="RSI 8h", color=color.rgb(0, 0, 255), linewidth=2)
```
Overbought and Oversold Levels : Horizontal lines are plotted at standard RSI levels (20, 30, 40, 50, 60, 70, 80) to visually identify overbought and oversold conditions. The areas between these levels are filled with varying shades of blue for better visualization.
```pine
h80 = hline(80, title="RSI threshold 80", color=color.gray, linestyle=hline.style_dotted, linewidth=1)
h70 = hline(70, title="RSI threshold 70", color=color.gray, linestyle=hline.style_dotted, linewidth=1)
...
fill(h70, h80, color=color.rgb(33, 150, 243, 95), title="Background")
```
Signal Plotting : The script adds green and red dots to indicate potential buy and sell signals, respectively. A green dot is plotted when all RSI values are under specific thresholds and the RSI of the shortest timeframe is rising. Conversely, a red dot is plotted when all RSI values are above specific thresholds and the RSI of the shortest timeframe is falling.
```pine
plotshape(series=(rsi_tf1 < 30 and rsi_tf2 < 40 and rsi_tf3 < 50 and (rsi_tf1 > rsi_tf1 ) and (rsi_tf1 > rsi_tf1 )) ? 1 : na, location=location.bottom, color=color.green, style=shape.circle, size=size.tiny)
plotshape(series=(rsi_tf1 > 70 and rsi_tf2 > 60 and rsi_tf3 > 50 and (rsi_tf1 < rsi_tf1 ) and (rsi_tf1 < rsi_tf1 )) ? 1 : na, location=location.top, color=color.red, style=shape.circle, size=size.tiny)
```
How to Use
Configuring Inputs : Adjust the RSI period and source as needed. Modify the timeframes to suit your trading strategy.
Interpreting the Indicator : Use the plotted RSI values to gauge momentum across different timeframes. Look for overbought conditions (RSI above 70, 60 and 50) and oversold conditions (RSI below 30, 40 and 50) across multiple intervals to confirm trade signals.
Signal Confirmation : Pay attention to the green and red dots that provide signals to better time dips and peaks. dots are printed when the lower timeframe (5mn by default) shows sign of reversal.
These signals are more reliable when confirmed across all three timeframes.
This script provides a nuanced view of RSI, helping traders make more informed decisions by considering multiple timeframes simultaneously. By combining short, medium, and long-term RSI values, traders can better align their strategies with overarching market trends, thus improving the precision of their trading actions.
COT | MERCORThis Pine Script is designed for use on the TradingView platform to visualize various Commitment of Traders (COT) data for trading analysis. The COT reports provide a breakdown of each Tuesday’s open interest in the futures markets, which is valuable for understanding market sentiment. This script specifically focuses on displaying the positions of commercial and noncommercial traders (large speculators), both in long and short positions, as well as their net positions. Here’s a breakdown of the script’s components and how to use it:
Script Components
Indicator Declaration: The script begins by declaring a custom indicator using indicator() function, naming it "COT | MERCOR", and setting a short title and precision.
Library Import: It imports a library TradingView/LibraryCOT/2 as cot, which is likely a mock representation for the purpose of this description, assuming a library that provides COT data functions.
User Inputs:
shortNegative: A boolean input that allows users to choose whether short positions are displayed as negative numbers.
invertColors: A boolean input for users to decide if they want to invert the default colors of the plot lines.
lineWidth: An integer input that lets users adjust the width of the plotted lines.
COT Data Requests: The script requests COT data for both commercial and noncommercial traders' long and short positions using cot.COTTickerid() function. This includes constructing identifiers for these data points based on the user's input and predefined criteria (like "Commercial Positions" or "Noncommercial Positions", and direction "Long" or "Short").
Data Plotting: The script plots the retrieved data points on the chart, using different colors and line styles to distinguish between commercial and noncommercial positions, as well as between long, short, and net positions. It includes options to adjust the appearance based on user inputs (like inverting colors or changing line width).
Zero Line: A horizontal line (hline) is plotted at zero to provide a baseline for comparison.
How to Use
Adding the Script to Your Chart:
On TradingView, open the Pine Editor.
Paste this script into the Pine Editor.
Save and add the script to your chart.
Customizing the Display:
You can toggle whether short positions are displayed as negative numbers through the "Show Shorts as Negative Numbers?" checkbox.
Use the "Invert Colors?" checkbox to swap the colors used for plotting the positions.
Adjust the "Line Width" option to change the thickness of the plotted lines according to your preference.
Analyzing the Data:
The plotted lines represent the long, short, and net positions of commercial and noncommercial traders.
Commercial positions are typically considered the positions of entities involved in the production, processing, or merchandising of a commodity, whereas noncommercial positions represent large speculators, such as hedge funds.
The net positions (long minus short) provide insight into the overall bullish or bearish sentiment among these trader categories.
By examining these positions, traders can gain insights into potential market moves based on the behaviors of key market participants.
This script is a powerful tool for traders who want to incorporate COT report data into their market analysis on TradingView. By visualizing the trading positions of significant market players, it aids in making informed trading decisions.
Engulfing Box & LinesThe "Engulfing Box & Lines" indicator aims to spot and highlight Engulfing candlestick patterns within a trend. These patterns can provide valuable indications of a possible trend reversal, and the indicator underlines them through the use of colored rectangles and horizontal lines. To fully understand the functioning and use of this indicator, let's explore its key elements and associated strategies.
Identification of Engulfing Patterns:
The indicator focuses on detecting two types of Engulfing candles:
Bullish Engulfing: Occurs when a bullish candle (open lower than close) completely encloses the body of the previous bearish candle. This could indicate a possible upside reversal.
Bearish Engulfing: Occurs when a bearish candle (opening higher than closing) entirely engulfs the body of the previous bullish candle. This could signal a potential bearish reversal.
Using the EMA 200:
The indicator uses the 200-period Exponential Moving Average (EMA) as a reference to determine the position of the candles with respect to the long-term trend. When the price is above the 200 EMA, the bullish Engulfing candles are highlighted with a green box, while below the 200 EMA, red boxes are shown for the bearish Engulfing candles.
Size of Boxes and Lines:
The colored boxes represent the size of the body of the candle that caused the Engulfing. Additionally, a horizontal line is drawn close to the body of the candle, serving as the fulcrum of the indicator.
Trading Strategies:
This indicator can be used for different trading strategies:
Trend Continuation: During a positive trend, the onset of an engulfing pattern suggests a possible continuation of the trend. The horizontal lines represent potential support areas, where the price could bounce. Traders might consider buying during such bounces.
Retracements and Entries: Lines can act as support or resistance zones, depending on the trend. When the price approaches a line, a retracement could occur. Traders might move to a lower timeframe to spot entry signals, using the line as a reference.
Closing Positions: Lines could also be used to define exit levels. For example, a trader might decide to exit a position when the price approaches a resistance line.
Confirmations with Other Indicators: The indicator could be used in conjunction with other technical tools, such as oscillators or candlestick analysis, to confirm signals and improve the accuracy of trading decisions.
The Flash-Strategy (Momentum-RSI, EMA-crossover, ATR)The Flash-Strategy (Momentum-RSI, EMA-crossover, ATR)
Are you tired of manually analyzing charts and trying to find profitable trading opportunities? Look no further! Our algorithmic trading strategy, "Flash," is here to simplify your trading process and maximize your profits.
Flash is an advanced trading algorithm that combines three powerful indicators to generate highly selective and accurate trading signals. The Momentum-RSI, Super-Trend Analysis and EMA-Strategy indicators are used to identify the strength and direction of the underlying trend.
The Momentum-RSI signals the strength of the trend and only generates trading signals in confirmed upward or downward trends. The Super-Trend Analysis confirms the trend direction and generates signals when the price breaks through the super-trend line. The EMA-Strategy is used as a qualifier for the generation of trading signals, where buy signals are generated when the EMA crosses relevant trend lines.
Flash is highly selective, as it only generates trading signals when all three indicators align. This ensures that only the highest probability trades are taken, resulting in maximum profits.
Our trading strategy also comes with two profit management options. Option 1 uses the so-called supertrend-indicator which uses the dynamic ATR as a key input, while option 2 applies pre-defined, fixed SL and TP levels.
The settings for each indicator can be customized, allowing you to adjust the length, limit value, factor, and source value to suit your preferences. You can also set the time period in which you want to run the backtest and how many dollar trades you want to open in each position for fully automated trading.
Choose your preferred trade direction and stop-loss/take-profit settings, and let Flash do the rest. Say goodbye to manual chart analysis and hello to consistent profits with Flash. Try it now!
General Comments
This Flash Strategy has been developed in cooperation between Baby_whale_to_moon and JS-TechTrading. Cudos to Baby_whale_to_moon for doing a great job in transforming sophisticated trading ideas into pine scripts.
Detailed Description
The “Flash” script considers the following indicators for the generation of trading signals:
1. Momentum-RSI
2. ‘Super-Trend’-Analysis
3. EMA-Strategy
1. Momentum-RSI
• This indicator signals the strength of the underlying upward- or downward-trend.
• The signal range of this indicator is from 0 to 100. Values > 60 indicate a confirmed upward- or downward-trend.
• The strategy will only generate trading signals in case the stock (or any other financial security) is in a confirmed upward- (long entry signals) or downward-trend (short entry signals).
• This indicator provides information with regards to the strength of the underlying trend and it does not give any insight with regard to the direction of the trend. Therefore, this strategy also considers other indicators which provide technical confirmation with regards to the direction of the underlying trend.
Graph 1 shows this concept:
• The Momentum-RSI indicator gives lower readings during consolidation phases and no trading signals are generated during these periods.
Example (graph 2):
2. Super-Trend Analysis
• The red line in the graph below represents the so-called super-trend-line. Trading signals are only generated in case the price action breaks through this super-trend-line indicating a new confirmed upward-trend (or downward-trend, respectively).
• If that happens, the super trend-line changes its color from red to green, giving confirmation that the trend changed from bearish to bullish and long-entries can be considered.
• The vice-versa approach can be considered for short entries.
Graph 3 explains this concept:
3. Exponential Moving Average / EMA-Strategy
The functionality of this EMA-element of the strategy has been programmed as follows:
• The exponential moving average and two other trend lines are being used as qualifiers for the generation of trading-signals.
• Buy-signals for long-entries are only considered in case the EMA (yellow line in the graph below) crosses the red line.
• Sell-signals for short-entries are only considered in case the EMA (yellow line in the graph below) crosses the green line.
An example is shown in graph 4 below:
We use this indicator to determine the new trend direction that may occur by using the data of the price's past movement.
4. Bringing it all together
This section describes in detail, how this strategy combines the Momentum-RSI, the super-trend analysis and the EMA-strategy.
The strategy only generates trading-signals in case all of the following conditions and qualifiers are being met:
1. Momentum-RSI is higher than the set value of this strategy. The standard and recommended value is 60 (graph 5):
2. The super-trend analysis needs to indicate a confirmed upward-trend (for long-entry signals) or a confirmed downward-trend (for short-entry signals), respectively.
3. The EMA-strategy needs to indicate that the stock or financial security is in a confirmed upward-trend (long-entries) or downward-trend (short-entries), respectively.
The strategy will only generate trading signals if all three qualifiers are being met. This makes this strategy highly selective and is the key secret for its success.
Example for Long-Entry (graph 6):
When these conditions are met, our Long position is opened.
Example for Short-Entry (graph 7):
Trade Management Options (graph 8)
Option 1
In this dynamic version, the so-called supertrend-indicator is being used for the trade exit management. This supertrend-indicator is a sophisticated and optimized methodology which uses the dynamic ATR as one of its key input parameters.
The following settings of the supertrend-indicator can be changed and optimized (graph 9):
The dynamic SL/TP-lines of the supertrend-indicator are shown in the charts. The ATR-length and the supertrend-factor result in a multiplier value which can be used to fine-tune and optimize this strategy based on the financial security, timeframe and overall market environment.
Option 2 (graph 10):
Option 2 applies pre-defined, fixed SL and TP levels which will appear as straight horizontal lines in the chart.
Settings options (graph 11):
The following settings can be changed for the three elements of this strategy:
1. (Length Mom-Rsi): Length of our Mom-RSI indicator.
2. Mom-RSI Limit Val: the higher this number, the more momentum of the underlying trend is required before the strategy will start creating trading signals.
3. The length and factor values of the super trend indicator can be adjusted:ATR Length SuperTrend and Factor Super Trend
4. You can set the source value used by the ema trend indicator to determine the ema line: Source Ema Ind
5. You can set the EMA length and the percentage value to follow the price: Length Ema Ind and Percent Ema Ind
6. The backtesting period can be adjusted: Start and End time of BackTest
7. Dollar cost per position: this is relevant for 100% fully automated trading.
8. Trade direction can be adjusted: LONG, SHORT or BOTH
9. As we explained above, we can determine our stop-loss and take-profit levels dynamically or statically. (Version 1 or Version 2 )
Display options on the charts graph 12):
1. Show horizontal lines for the Stop-Loss and Take-profit levels on the charts.
2. Display relevant Trend Lines, including color setting options for the supertrend functionality. In the example below, green lines indicate a confirmed uptrend, red lines indicate a confirmed downtrend.
Other comments
• This indicator has been optimized to be applied for 1 hour-charts. However, the underlying principles of this strategy are supply and demand in the financial markets and the strategy can be applied to all timeframes. Daytraders can use the 1min- or 5min charts, swing-traders can use the daily charts.
• This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
• The combination of the qualifiers results in a highly selective strategy which only considers the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
• Consequently, traders need to apply this strategy for a full watchlist rather than just one financial security.
Liquidity Sweeps [Kodexius]Liquidity Sweeps is a price action indicator built to visualize and react to common “stop run” behavior around recent swing highs and swing lows. It continuously detects pivot-based liquidity levels (recent resistance and support), extends them forward in time, and then classifies the interaction when price probes beyond a level but fails to hold through it.
The script focuses on two outcomes:
Buy-Side Liquidity Sweep (BSL): price takes liquidity above a recent swing high (high breaks above the level) but closes back at or below the level.
Sell-Side Liquidity Sweep (SSL): price takes liquidity below a recent swing low (low breaks below the level) but closes back at or above the level.
To support real trading workflows, it keeps charts readable by limiting active levels, offers clean styling options, and optionally filters sweep signals using relative volume (RVOL) so you can require participation before a sweep is considered valid.
🔹 Features
🔸 Pivot-Based Liquidity Level Detection (Swing Highs and Swing Lows)
The indicator uses a user-defined Pivot Length to identify confirmed swing points:
Pivot Highs become resistance liquidity levels (buy-side liquidity above highs).
Pivot Lows become support liquidity levels (sell-side liquidity below lows).
Each detected level is drawn as a horizontal line and automatically extended to the current bar until it is swept or broken.
🔸 Automatic Level Management (De-Cluttering)
To prevent chart overload, the script stores levels in internal arrays and enforces Maximum Active Levels:
When new levels are added and the limit is exceeded, the oldest level is removed.
This keeps only the most relevant, recent liquidity zones visible.
🔸 Clear Sweep Classification (BSL and SSL)
The sweep logic is intentionally strict and practical:
- BSL Sweep triggers when the bar’s high is above resistance but the close is back below or at resistance.
- SSL Sweep triggers when the bar’s low is below support but the close is back above or at support.
This models the “probe and reject” behavior typical of liquidity grabs.
🔸 Optional Volume Confirmation Using RVOL
When Enable Volume Filter is turned on, sweeps are only valid if the current bar’s volume is strong relative to the last 20 bars:
The script computes a 20-period volume average.
You can require volume to exceed the average by a chosen Volume Multiplier (example: 1.5 means 150% of the average).
If the filter is disabled, sweeps are evaluated purely on price conditions.
🔸 Sweep Labels and Level Highlighting
On a valid sweep:
A label is printed on the sweep bar:
- ▼ BSL for buy-side liquidity sweeps (yellow)
- ▲ SSL for sell-side liquidity sweeps (blue)
The swept level is highlighted by drawing an additional colored line over the swept range.
The script also prints the bar’s RVOL percentage near the midpoint of the swept line segment:
- BSL volume text is placed above the line midpoint
- SSL volume text is placed below the line midpoint
This makes it easy to see whether a sweep was low-effort or supported by strong participation.
🔸 Styling Controls
You can fully tailor the visual output:
Resistance and support line colors
Line style selection: Solid, Dotted, Dashed
Toggle sweep labels on or off
🔸 Alerts
The indicator exposes alert conditions for both sweep types and also fires explicit alert messages once per bar close when a sweep is confirmed:
- Buy Liquidity Sweep (BSL)
- Sell Liquidity Sweep (SSL)
🔹 Calculations
1) Pivot High / Pivot Low Detection
float ph = ta.pivothigh(high, pivotPeriodInput, pivotPeriodInput)
float pl = ta.pivotlow(low, pivotPeriodInput, pivotPeriodInput)
Interpretation:
A pivot is only confirmed after pivotPeriodInput bars have passed.
Once confirmed, the level is anchored at the pivot bar and then extended forward.
2) Creating and Storing Liquidity Levels
New Resistance (Pivot High):
if not na(ph)
line newL = line.new(bar_index , ph, bar_index, ph,
color = resistanceColorInput, width = 1, style = getLineStyle(lineStyleInput))
resistanceLevels.push(LiquidityLevel.new(ph, bar_index , newL))
if resistanceLevels.size() > maxLinesInput
(resistanceLevels.shift()).delete()
New Support (Pivot Low):
if not na(pl)
line newL = line.new(bar_index , pl, bar_index, pl,
color = supportColorInput, width = 1, style = getLineStyle(lineStyleInput))
supportLevels.push(LiquidityLevel.new(pl, bar_index , newL))
if supportLevels.size() > maxLinesInput
(supportLevels.shift()).delete()
This enforces the “Maximum Active Levels” limit by deleting the oldest stored level when the cap is exceeded.
3) Relative Volume (RVOL) and Volume Filter
float volAvg = ta.sma(volume, 20)
float volRelative = (volume / volAvg) * 100
bool isVolStrong = not useVolFilterInput or (volume > volAvg * volMultiplierInput)
volRelative expresses the sweep bar’s volume as a percentage of the last 20-bar average.
If the filter is enabled, a sweep is valid only when isVolStrong is true.
4) Sweep Conditions (Core Logic)
Buy-Side Liquidity Sweep (Resistance Sweep)
A resistance level is considered swept when price trades above it but closes back at or below it.
bool priceSwept = high > lvl.price and close <= lvl.price
bool broken = close > lvl.price
priceSwept captures the “probe and reject” behavior.
broken invalidates the level if price closes above it.
The confirmation and cleanup flow:
if priceSwept and isVolStrong
buySweepOccurred := true
if showLabelsInput
label.new(bar_index, high, "▼ BSL",
style = label.style_label_down, color = #00000000,
textcolor = C_SWEEP_BUY, size = size.small)
line.new(lvl.startBar, lvl.price, bar_index, lvl.price, color = C_SWEEP_BUY, width = 1)
int midX = math.round((lvl.startBar + bar_index) / 2)
label.new(midX, lvl.price, str.tostring(volRelative, "#") + "% VOL",
color = #00000000, textcolor = color.new(C_SWEEP_BUY, 20),
style = label.style_label_down, size = size.tiny)
resistanceLevels.remove(i).delete()
else if broken
resistanceLevels.remove(i).delete()
Sell-Side Liquidity Sweep (Support Sweep)
A support level is considered swept when price trades below it but closes back at or above it.
bool priceSwept = low < lvl.price and close >= lvl.price
bool broken = close < lvl.price
The confirmation and cleanup flow:
if priceSwept and isVolStrong
sellSweepOccurred := true
if showLabelsInput
label.new(bar_index, low, "▲ SSL",
style = label.style_label_up, color = #00000000,
textcolor = C_SWEEP_SELL, size = size.small)
line.new(lvl.startBar, lvl.price, bar_index, lvl.price, color = C_SWEEP_SELL, width = 1)
int midX = math.round((lvl.startBar + bar_index) / 2)
label.new(midX, lvl.price, str.tostring(volRelative, "#") + "% VOL",
color = #00000000, textcolor = color.new(C_SWEEP_SELL, 20),
style = label.style_label_up, size = size.tiny)
supportLevels.remove(i).delete()
else if broken
supportLevels.remove(i).delete()
5) Level Extension to Current Bar
method update(LiquidityLevel this) =>
line.set_x2(this.lineObj, bar_index)
This keeps each active liquidity level extended to the current candle until it is swept or decisively broken.
6) Alerts
alertcondition(buySweepOccurred, "Buy Liquidity Sweep", "BSL Swept!")
alertcondition(sellSweepOccurred, "Sell Liquidity Sweep", "SSL Swept!")
if buySweepOccurred
alert("Kodexius BSL Sweep: " + str.tostring(close), alert.freq_once_per_bar_close)
if sellSweepOccurred
alert("Kodexius SSL Sweep: " + str.tostring(close), alert.freq_once_per_bar_close)
Open Interest Z-Score [BackQuant]Open Interest Z-Score
A standardized pressure gauge for futures positioning that turns multi venue open interest into a Z score, so you can see how extreme current positioning is relative to its own history and where leverage is stretched, decompressing, or quietly re loading.
What this is
This indicator builds a single synthetic open interest series by aggregating futures OI across major derivatives venues, then standardises that aggregated OI into a rolling Z score. Instead of looking at raw OI or a simple change, you get a normalized signal that says "how many standard deviations away from normal is positioning right now", with optional smoothing, reference bands, and divergence detection against price.
You can render the Z score in several plotting modes:
Line for a clean, classic oscillator.
Colored line that encodes both sign and momentum of OI Z.
Oscillator histogram that makes impulses and compressions obvious.
The script also includes:
Aggregated open interest across Binance, Bybit, OKX, Bitget, Kraken, HTX, and Deribit, using multiple contract suffixes where applicable.
Choice of OI units, either coin based or converted to USD notional.
Standard deviation reference lines and adaptive extreme bands.
A flexible smoothing layer with multiple moving average types.
Automatic detection of regular and hidden divergences between price and OI Z.
Alerts for zero line and ±2 sigma crosses.
Aggregated open interest source
At the core is the same multi venue OI aggregation engine as in the OI RSI tool, adapted from NoveltyTrade's work and extended for this use case. The indicator:
Anchors on the current chart symbol and its base currency.
Loops over a set of exchanges, gated by user toggles:
Binance.
Bybit.
OKX.
Bitget.
Kraken.
HTX.
Deribit.
For each exchange, loops over several contract suffixes such as USDT.P, USD.P, USDC.P, USD.PM to cover the common perp and margin styles.
Requests OI candles for each exchange plus suffix pair into a small custom OI type that carries open, high, low and close of open interest.
Converts each OI stream into a common unit via the sw method:
In COIN mode, OI is normalized relative to the coin.
In USD mode, OI is scaled by price to approximate notional.
Exchange specific scaling factors are applied where needed to match contract multipliers.
Accumulates all valid OI candles into a single combined OI "candle" by summing open, high, low and close across venues.
The result is oiClose , a synthetic close for aggregated OI that represents cross venue positioning. If there is no valid OI data for the symbol after this process, the script throws a clear runtime error so you know the market is unsupported rather than quietly plotting nonsense.
How the Z score is computed
Once the aggregated OI close is available, the indicator computes a rolling Z score over a configurable lookback:
Define subject as the aggregated OI close.
Compute a rolling mean of this subject with EMA over Z Score Lookback Period .
Compute a rolling standard deviation over the same length.
Subtract the mean from the current OI and divide by the standard deviation.
This gives a raw Z score:
oi_z_raw = (subject − mean) ÷ stdDev .
Instead of plotting this raw value directly, the script passes it through a smoothing layer:
You pick a Smoothing Type and Smoothing Period .
Choices include SMA, HMA, EMA, WMA, DEMA, RMA, linear regression, ALMA, TEMA, and T3.
The helper ma function applies the chosen smoother to the raw Z score.
The result is oi_z , a smoothed Z score of aggregated open interest. A separate EMA with EMA Period is then applied on oi_z to create a signal line ma that can be used for crossovers and trend reads.
Plotting modes
The Plotting Type input controls how this Z score is rendered:
1) Line
In line mode:
The smoothed OI Z score is plotted as a single line using Base Line Color .
The EMA overlay is optionally plotted if Show EMA is enabled.
This is the cleanest view when you want to treat OI Z like a standard oscillator, watching for zero line crosses, swings, and divergences.
2) Colored Line
Colored line mode adds conditional color logic to the Z score:
If the Z score is above zero and rising, it is bright green, representing positive and strengthening positioning pressure.
If the Z score is above zero and falling, it shifts to a cooler cyan, representing positive but weakening pressure.
If the Z score is below zero and falling, it is bright red, representing negative and strengthening pressure (growing net de risking or shorting).
If the Z score is below zero and rising, it is dark red, representing negative but recovering pressure.
This mapping makes it easy to see not only whether OI is above or below its historical mean, but also whether that deviation is intensifying or fading.
3) Oscillator
Oscillator mode turns the Z score into a histogram:
The smoothed Z score is plotted as vertical columns around zero.
Column colors use the same conditional palette as colored line mode, based on sign and change direction.
The histogram base is zero, so bars extend up into positive Z and down into negative Z.
Oscillator mode is useful when you care about impulses in positioning, for example sharp jumps into positive Z that coincide with fast builds in leverage, or deep spikes into negative Z that show aggressive flushes.
4) None
If you only want reference lines, extreme bands, divergences, or alerts without the base oscillator, you can set plotting to None and keep the rest of the tooling active.
The EMA overlay respects plotting mode and only appears when a visible Z score line or histogram is present.
Reference lines and standard deviation levels
The Select Reference Lines input offers two styles:
Standard Deviation Levels
Plots small markers at zero.
Draws thin horizontal lines at +1, +2, −1 and −2 Z.
Acts like a classic Z score ladder, zero as mean, ±1 as normal band, ±2 as outer band.
This mode is ideal if you want a textbook statistical framing, using ±1 and ±2 sigma as standard levels for "normal" versus "extended" positioning.
Extreme Bands
Extreme bands build on the same ±1 and ±2 lines, then add:
Upper outer band between +3 and +4 Z.
Lower outer band between −3 and −4 Z.
Dynamic fill colors inside these bands:
If the Z score is positive, the upper band fill turns red with an alpha that scales with the magnitude of |Z|, capped at a chosen max strength. Stronger deviations towards +4 produce more opaque red fills.
If the Z score is negative, the lower band fill turns green with the same adaptive alpha logic, highlighting deep negative deviations.
Opposite side bands remain a faint neutral white when not in use, so they still provide structural context without shouting.
This creates a visual "danger zone" for position crowding. When the Z score enters these outer bands, open interest is many standard deviations away from its mean and you are dealing with rare but highly loaded positioning states.
Z score as a positioning pressure gauge
Because this is a Z score of aggregated open interest, it measures how unusual current positioning is relative to its own recent history, not just whether OI is rising or falling:
Z near zero means total OI is roughly in line with normal conditions for your lookback window.
Positive Z means OI is above its recent mean. The further above zero, the more "crowded" or extended positioning is.
Negative Z means OI is below its recent mean. Deep negatives often mark post flush environments where leverage has been cleared and the market is under positioned.
The smoothing options help control how much noise you want in the signal:
Short Z score lookback and short smoothing will react quickly, suited for short term traders watching intraday positioning shocks.
Longer Z score lookback with smoother MA types (EMA, RMA, T3) give a slower, more structural view of where the crowd sits over days to weeks.
Divergences between price and OI Z
The indicator includes automatic divergence detection on the Z score versus price, using pivot highs and lows:
You configure Pivot Lookback Left and Pivot Lookback Right to control swing sensitivity.
Pivots are detected on the OI Z series.
For each eligible pivot, the script compares OI Z and price at the last two pivots.
It looks for four patterns:
Regular Bullish – price makes a lower low, OI Z makes a higher low. This can indicate selling exhaustion in positioning even as price washes out. These are marked with a line and a label "ℝ" below the oscillator, in the bullish color.
Hidden Bullish – price makes a higher low, OI Z makes a lower low. This suggests continuation potential where price holds up while positioning resets. Marked with "ℍ" in the bullish color.
Regular Bearish – price makes a higher high, OI Z makes a lower high. This is a classic warning sign of trend exhaustion, where price pushes higher while OI Z fails to confirm. Marked with "ℝ" in the bearish color.
Hidden Bearish – price makes a lower high, OI Z makes a higher high. This is often seen in pullbacks within downtrends, where price retraces but positioning stretches again in the direction of the prevailing move. Marked with "ℍ" in the bearish color.
Each divergence type can be toggled globally via Show Detected Divergences . Internally, the script restricts how far back it will connect pivots, so you do not get stray signals linking very old structures to current bars.
Trading applications
Crowding and squeeze risk
Z scores are a natural way to talk about crowding:
High positive Z in aggregated OI means the market is running high leverage compared to its own norm. If price is also extended, the risk of a squeeze or sharp unwind rises.
Deep negative Z means leverage has been cleaned out. While it can be painful to sit through, this environment often sets up cleaner new trends, since there is less one sided positioning to unwind.
The extreme bands at ±3 to ±4 highlight the rare states where crowding is most intense. You can treat these events as regime markers rather than day to day noise.
Trend confirmation and fade selection
Combine Z score with price and trend:
Bull trends with positive and rising Z are supported by fresh leverage, usually more persistent.
Bull trends with flat or falling Z while price keeps grinding up can be more fragile. Divergences and extreme bands can help identify which edges you do not want to fade and which you might.
In downtrends, deep negative Z that stays pinned can mean persistent de risking. Once the Z score starts to mean revert back toward zero, it can mark the early stages of stabilization.
Event and liquidation context
Around major events, you often see:
Rapid spikes in Z as traders rush to position.
Reversal and overshoot as liquidations and forced de risking clear the book.
A move from positive extremes through zero into negative extremes as the market transitions from crowded to under exposed.
The Z score makes that path obvious, especially in oscillator mode, where you see a block of high positive bars before the crash, then a slab of deep negative bars after the flush.
Settings overview
Z Score group
Plotting Type – None, Line, Colored Line, Oscillator.
Z Score Lookback Period – window used for mean and standard deviation on aggregated OI.
Smoothing Type – SMA, HMA, EMA, WMA, DEMA, RMA, linear regression, ALMA, TEMA or T3.
Smoothing Period – length for the selected moving average on the raw Z score.
Moving Average group
Show EMA – toggle EMA overlay on Z score.
EMA Period – EMA length for the signal line.
EMA Color – color of the EMA line.
Thresholds and Reference Lines group
Select Reference Lines – None, Standard Deviation Levels, Extreme Bands.
Standard deviation lines at 0, ±1, ±2 appear in both modes.
Extreme bands add filled zones at ±3 to ±4 with adaptive opacity tied to |Z|.
Extra Plotting and UI
Base Line Color – default color for the simple line mode.
Line Width – thickness of the oscillator line.
Positive Color – positive or bullish condition color.
Negative Color – negative or bearish condition color.
Divergences group
Show Detected Divergences – master toggle for divergence plotting.
Pivot Lookback Left and Pivot Lookback Right – how many bars left and right to define a pivot, controlling divergence sensitivity.
Open Interest Source group
OI Units – COIN or USD.
Exchange toggles for Binance, Bybit, OKX, Bitget, Kraken, HTX, Deribit.
Internally, all enabled exchanges and contract suffixes are aggregated into one synthetic OI series.
Alerts included
The indicator defines alert conditions for several key events:
OI Z Score Positive – Z crosses above zero, aggregated OI moves from below mean to above mean.
OI Z Score Negative – Z crosses below zero, aggregated OI moves from above mean to below mean.
OI Z Score Enters +2σ – Z enters the +2 band and above, marking extended positive positioning.
OI Z Score Enters −2σ – Z enters the −2 band and below, marking extended negative positioning.
Tie these into your strategy to be notified when leverage moves from normal to extended states.
Notes
This indicator does not rely on price based oscillators. It is a statistical lens on cross venue open interest, which makes it a complementary tool rather than a replacement for your existing price or volume signals. Use it to:
Quantify how unusual current futures positioning is compared to recent history.
Identify crowded leverage phases that can fuel squeezes.
Spot structural divergences between price and positioning.
Frame risk and opportunity around events and regime shifts.
It is not a complete trading system. Combine it with your own entries, exits and risk rules to get the most out of what the Z score is telling you about positioning pressure under the hood of the market.
Time Line Indicator - by LMTime Line Indicator – by LM
Description:
The Time Line Indicator is a simple, clean, and customizable tool designed to visualize specific time periods within each hour directly in a dedicated indicator pane. It allows traders to mark important intraday minute ranges across multiple past hours, providing a clear visual reference for time-based analysis. This indicator is perfect for identifying recurring hourly windows, session patterns, or custom time-based events in your charts.
Unlike traditional overlays, this indicator does not interfere with price candles and draws its lines in a separate pane at the bottom of your chart for clarity.
Key Features:
Custom Hourly Lines:
Draw horizontal lines for a specific minute range within each hour, e.g., from the 45th minute to the 15th minute of the next hour.
Multi-Hour Support:
Choose how many past hours to display. The indicator will replicate the line for each selected hourly period, following the same minute logic.
Automatic Start/End Logic:
If your chosen start minute is in the previous hour, the line correctly begins at that time.
The end minute can cross into the next hour when applicable.
If the selected end minute does not yet exist in the current chart data, the line will extend to the latest available bar.
Dedicated Indicator Pane:
Lines appear in a fixed, non-intrusive y-axis within the indicator pane (overlay=false), keeping your price chart clean.
Customizable Appearance:
Line Color: Choose any color to match your chart theme.
Line Thickness: Adjust the width of the lines for better visibility.
Inputs:
Input Name Type Default Description
Line Color Color Orange The color of the horizontal lines.
Line Thickness Integer 2 The thickness of each line (1–5).
Start Minute Integer 5 The minute within the hour where the line begins (0–59).
End Minute Integer 25 The minute within the hour where the line ends (0–59).
Hours Back Integer 3 Number of past hours to display lines for.
Use Cases:
Intraday Analysis: Quickly visualize recurring minute ranges across multiple hours.
Session Tracking: Mark critical time windows for trading sessions or market events.
Pattern Recognition: Easily identify time-based patterns or setups without cluttering the price chart.
How It Works:
The indicator calculates the nearest bars corresponding to your start and end minutes.
It draws horizontal lines at a fixed y-axis value within the indicator pane.
Lines are drawn for each selected past hour, replicating the chosen minute span.
All logic respects the actual chart data; lines never extend into the future beyond the most recent bar.
Notes:
Overlay is set to false, so lines appear in a dedicated pane below the price chart.
The indicator is fully compatible with any timeframe. Lines adjust automatically to match the chart’s bar spacing.
You can change the number of hours displayed at any time without affecting existing lines.
If you want, I can also draft a shorter “TradingView Store / Public Library description” version under 500 characters for the “Short Description” field — concise and punchy for users scrolling through indicators.
Gap ZonesThis TradingView indicator automatically detects daily price gaps and plots them clearly on any timeframe (intraday or daily).
It helps visualize where unfilled gaps are sitting, track whether they’ve been filled, and control how far the zone extends.
Key Features
1. Daily Gap Detection
• Works even when you’re on intraday charts (uses daily OHLC data).
• Marks both gap up (potential support zones) and gap down (potential resistance zones).
2. Shaded Gap Zones
• Each gap is highlighted as a band (greenish for up, reddish for down).
• Option to turn shading off if you just want horizontal lines.
3. Hide When Filled
• Once price closes or touches the far side of the gap, it disappears (configurable: Touch vs Close).
4. Lookback Window
• Gaps only show if they occurred within the past X trading days (default: 30).
• Prevents your chart from being cluttered with ancient gaps.
5. Multiple Gaps Tracked
• Can track up to 5 recent gaps simultaneously.
• Oldest gaps “roll off” as new ones form.
6. Finite Right-Edge Guides
• Optional horizontal guide lines extend to the right, but only for a fixed number of bars (default: 50).
• Cleaner than infinite extensions.
7. Gap-Day Marker
• Optional vertical line drawn on the bar where the gap first occurred.
⸻
⚙️ Inputs & Settings
When you apply the indicator, you’ll see these options:
• Lookback (trading days): How far back to scan for gaps (default 30).
• Max gaps to show (1..5): How many simultaneous gap zones to display.
• Min gap size (% of prior close): Filter out tiny gaps (default 0.25%).
• Hide gaps once filled: Removes a gap from the chart once filled.
• Fill rule uses CLOSE (off = Touch):
• Touch = filled when price trades through the level intraday.
• Close = filled only when a candle close crosses it.
• Show shading: Toggle zone fills on/off.
• Show vertical marker on gap day: Toggle gap-day marker line.
• Show finite right-edge lines: Toggle horizontal lines extending right.
• Right line length (bars): How far those lines extend (default 50 bars).
⸻
🟢 How to Use It
1. Apply on Any Chart
• Works best on daily or intraday (5m, 15m, 1h).
• Gaps are always calculated from daily data, so intraday charts will show higher-timeframe gaps correctly.
2. Interpret Colors
• Green shading = Gap Up (often acts as support).
• Red shading = Gap Down (often acts as resistance).
3. Watch for Fills
• When price re-enters the gap zone, the indicator checks if it’s “filled” (based on your Touch/Close setting).
• If “Hide When Filled” is on, the zone vanishes.
4. Trade Context
• Many traders use gaps as targets (expecting a fill) or levels of support/resistance.
• Combined with your bull put/bear call spread strategies, it helps confirm strong levels.
SMT Oscillator: Smarter Money Divergence Detector [PhenLabs]📊Phenlabs - SMT Oscillator: Smarter Money Divergence Detector
Version: PineScript™v6
📌Description
The SMT Oscillator is a sophisticated tool designed to identify smart money divergence between two correlated assets. By analyzing the momentum and volume-weighted price action of a primary and secondary symbol, traders can spot subtle shifts in market dynamics that often precede significant price movements. This indicator is built to provide a clearer, more filtered view of inter-market relationships, solving the common problem of false signals and market noise. Its primary purpose is to equip traders with a quantifiable edge in detecting potential reversals or continuations that are not obvious on a standard price chart.
🚀Points of Innovation
Dual-Symbol Divergence Core: Directly compares momentum (RSI or MACD) between two user-selected symbols to pinpoint true SMT divergence.
Volume-Weighted Analysis: Integrates volume delta into the divergence calculation, giving more weight to moves backed by significant market participation.
Entropy Filter for Noise Reduction: Employs an entropy calculation to filter out low-quality signals during choppy or consolidating market conditions.
Predictive Forecast Line: Utilizes a linear regression model to project the oscillator’s future trajectory, offering a forward-looking glimpse of potential momentum shifts.
Customizable Signal Sensitivity: Allows fine-tuning of overbought and oversold levels to adapt to different market volatilities and trading styles.
Integrated Signal Alerts: Provides built-in alerts for bullish/bearish zero crosses and overbought/oversold conditions.
🔧Core Components
Momentum Engine: The user can select either RSI or MACD as the underlying engine for the divergence calculation, allowing for flexibility in analysis.
Normalization Function: Price data from both symbols is normalized using percentage change to ensure a true “apples-to-apples” comparison, regardless of their nominal price differences.
Divergence Calculator: The core algorithm that subtracts the secondary symbol’s momentum from the primary’s and normalizes the result using the combined standard deviation.
Smoothing Mechanism: An Exponential Moving Average (EMA) is applied to the raw oscillator output to reduce choppiness and provide a clearer signal line.
🔥Key Features
Multi-Asset Comparison: Go beyond single-asset analysis by comparing correlated pairs like ES/NQ or BTC/ETH to uncover hidden trading opportunities.
Heatmap Visualization: An optional heatmap mode provides an intuitive visual representation of divergence strength, making it easier to gauge market sentiment at a glance.
Configurable Lookback and Timeframe: Adjust the lookback period and analysis timeframe to suit your specific strategy, from short-term scalping to long-term trend analysis.
Signal Markers: Visual markers are plotted directly on the chart for bullish and bearish zero-line crossovers, providing clear entry and exit signals.
🎨Visualization
SMT Oscillator Line: The primary visual element, colored blue for bullish (positive) divergence and orange for bearish (negative) divergence.
Zero Line: A solid horizontal line at the zero level, indicating the equilibrium point between the two assets. Crossovers of this line signal a shift in relative strength.
Overbought/Oversold Zones: Dotted lines at the +80 and -80 levels (customizable) that highlight extreme divergence readings, often indicating potential exhaustion points.
Forecast Line: A predictive line that plots the anticipated path of the oscillator, giving traders an advanced warning of potential changes in momentum.
📖Usage Guidelines
Setting Categories
Primary Symbol
Default: (Chart Symbol)
Description: The main asset you are analyzing. Leave blank to use the symbol currently on your chart.
Secondary Symbol
Default: CME_MINI:ES1! (used with NASDAQ futures due to inherent heavy correlation
Description: The asset to compare against the primary symbol.
Lookback Period
Default: 14
Range: 8-100
Description: Controls the calculation window for momentum (RSI/MACD). Higher values result in a smoother, less sensitive oscillator.
Divergence Type
Default: RSI
Options: RSI, MACD
Description: Choose the momentum indicator to use for the divergence calculation.
Enable Volume Weighting
Default: true
Description: When enabled, gives more weight to divergence signals that are accompanied by significant volume.
✅Best Use Cases
Identifying high-probability reversal points by spotting divergence in overbought or oversold territory.
Confirming the strength of a trend by observing sustained positive or negative divergence.
Pairs trading by taking a long position on the outperforming asset and a short position on the underperforming one during a divergence.
Risk management by recognizing when a current trend is losing its underlying momentum.
⚠️Limitations
Requires Correlated Assets: The indicator’s effectiveness is highly dependent on the selection of two assets with a known correlation (e.g., ES and NQ).
Not a Standalone System: Divergence signals should be used in conjunction with other forms of analysis (price action, market structure) and not as a complete trading system.
Lagging by Nature: As it is based on moving averages and past price data, the oscillator is inherently lagging and may not capture all rapid price changes.
💡What Makes This Unique
Combined Momentum & Volume: Unlike standard oscillators, it fuses momentum with volume delta for a more robust “Smart Money” perspective.
Noise-Filtering Mechanism: The proprietary entropy filter is a unique feature designed to weed out insignificant market chatter and focus on high-conviction signals.
🔬How It Works
Data Normalization:
The script first normalizes the price data of the two selected symbols into percentage changes. This ensures that the comparison is fair, regardless of the difference in their price scales.
Momentum Calculation:
It then calculates the chosen momentum value (either RSI or MACD histogram) for each of the normalized price series.
Divergence Computation:
The core of the indicator lies in subtracting the momentum of the secondary symbol from the primary one. This raw divergence is then optionally weighted by volume and filtered for market noise (entropy) to produce the final oscillator value.
💡Note:
For best results, use this indicator on adequate timeframes to filter out market noise. Always confirm signals with price action analysis before entering a trade.
COT INDEX
// Users & Producers: Commercial Positions
// Large Specs (Hedge Fonds): Non-commercial Positions
// Retail: Non-reportable Positions
//@version=5
int weeks = input.int(26, "Number of weeks", minval=1)
int upperExtreme = input.int(80, "Upper Threshold in %", minval=50)
int lowerExtreme = input.int(20, "Lower Threshold in %", minval=1)
bool hideCurrentWeek = input(true, "Hide the current week until market close")
bool markExtremes = input(false, "Mark long and short extremes")
bool showSmallSpecs = input(true, "Show small speculators index")
bool showProducers = input(true, "Show producers index")
bool showLargeSpecs = input(true, "Show large speculators index")
indicator("COT INDEX", shorttitle="COT INDEX", format=format.percent, precision=0)
import TradingView/LibraryCOT/2 as cot
// Function to fix some symbols.
var string Root_Symbol = syminfo.root
var string CFTC_Code_fixed = cot.convertRootToCOTCode("Auto")
if Root_Symbol == "HG"
CFTC_Code_fixed := "085692"
else if Root_Symbol == "LBR"
CFTC_Code_fixed := "058644"
// Function to request COT data for Futures only.
dataRequest(metricName, isLong) =>
tickerId = cot.COTTickerid('Legacy', CFTC_Code_fixed, false, metricName, isLong ? "Long" : "Short", "All")
value = request.security(tickerId, "1D", close, ignore_invalid_symbol = true)
if barstate.islastconfirmedhistory and na(value)
runtime.error("Could not find relevant COT data based on the current symbol.")
value
// Function to calculate net long positions.
netLongCommercialPositions() =>
commercialLong = dataRequest("Commercial Positions", true)
commercialShort = dataRequest("Commercial Positions", false)
commercialLong - commercialShort
netLongLargePositions() =>
largeSpecsLong = dataRequest("Noncommercial Positions", true)
largeSpecsShort = dataRequest("Noncommercial Positions", false)
largeSpecsLong - largeSpecsShort
netLongSmallPositions() =>
smallSpecsLong = dataRequest("Nonreportable Positions", true)
smallSpecsShort = dataRequest("Nonreportable Positions", false)
smallSpecsLong - smallSpecsShort
calcIndex(netPos) =>
minNetPos = ta.lowest(netPos, weeks)
maxNetPos = ta.highest(netPos, weeks)
if maxNetPos != minNetPos
100 * (netPos - minNetPos) / (maxNetPos - minNetPos)
else
na
// Calculate the Commercials Position Index.
commercialsIndex = calcIndex(netLongCommercialPositions())
largeSpecsIndex = calcIndex(netLongLargePositions())
smallSpecsIndex = calcIndex(netLongSmallPositions())
// Conditional logic based on user input
plotValueCommercials = hideCurrentWeek ? (timenow >= time_close ? commercialsIndex : na) : (showProducers ? commercialsIndex : na)
plotValueLarge = hideCurrentWeek ? (timenow >= time_close ? largeSpecsIndex : na) : (showLargeSpecs ? largeSpecsIndex : na)
plotValueSmall = hideCurrentWeek ? (timenow >= time_close ? smallSpecsIndex : na) : (showSmallSpecs ? smallSpecsIndex : na)
// Plot the index and horizontal lines
plot(plotValueCommercials, "Commercials", color=color.blue, style=plot.style_line, linewidth=2)
plot(plotValueLarge, "Large Speculators", color=color.red, style=plot.style_line, linewidth=1)
plot(plotValueSmall, "Small Speculators", color=color.green, style=plot.style_line, linewidth=1)
hline(upperExtreme, "Upper Threshold", color=color.green, linestyle=hline.style_solid, linewidth=1)
hline(lowerExtreme, "Lower Threshold", color=color.red, linestyle=hline.style_solid, linewidth=1)
/// Marking extremes with background color
bgcolor(markExtremes and (commercialsIndex >= upperExtreme or largeSpecsIndex >= upperExtreme or smallSpecsIndex >= upperExtreme) ? color.new(color.gray, 90) : na, title="Upper Threshold")
bgcolor(markExtremes and (commercialsIndex <= lowerExtreme or largeSpecsIndex <= lowerExtreme or smallSpecsIndex <= lowerExtreme) ? color.new(color.gray, 90) : na, title="Lower Threshold")
NQ Position Size CalculatorNQ Position Size Line Calculator is designed specifically for Nasdaq 100 futures (NQ) and micro futures (MNQ) traders who want to maintain disciplined risk management. This visual tool eliminates the guesswork from position sizing by displaying distance lines and contract calculations directly on your chart.
The indicator creates horizontal lines at 10-tick intervals from your stop loss level, showing you exactly how many contracts to trade at each distance to maintain your predetermined risk amount. Whether you're trading regular NQ contracts or micro MNQ contracts, this calculator ensures you never risk more than intended while providing instant visual feedback for optimal position sizing decisions.
How to Use the Indicator
Step 1: Configure Your Settings
Stop Loss Price: Enter your exact stop loss level (e.g., 20000.00)
Risk Amount ($): Set your maximum dollar risk per trade (e.g., $500)
Contract Type: Choose between:
NQ (Regular): $5 per tick - for larger accounts
MNQ (Micro): $0.50 per tick - for smaller accounts or conservative sizing
Display Options:
Max Lines: Number of distance lines to show (default: 30)
Show Labels: Toggle tick distance and contract count labels
Line Color: Customize the color of distance lines
Label Size: Choose tiny, small, or normal label sizes
Step 2: Read the Visual Display
Once configured, the indicator displays:
Stop Loss Line:
Thick yellow line marking your exact stop loss level
Yellow label showing the stop loss price
Distance Lines:
Dashed red lines at 10-tick intervals above and below your stop loss
Lines appear on both sides for long and short position planning
Labels (if enabled):
Green labels (right side): For long positions above your stop loss
Red labels (left side): For short positions below your stop loss
Format: "20T 5x" means 20 ticks distance, 5 contracts maximum
Step 3: Use the Information Tables
The indicator provides two helpful tables:
Position Size Table (top-right):
Shows common tick distances (10, 20, 40, 80, 160 ticks)
Displays risk per contract at each distance
Contract count for your specified risk amount
Total risk with rounded contract numbers
Settings Table (bottom-right):
Confirms your current risk amount
Shows selected contract type
Displays current settings for quick reference
Step 4: Apply to Your Trading
For Long Positions:
Look at the green labels on the right side of your chart
Find your desired entry level
Read the label to see: distance in ticks and maximum contracts
Example: "30T 8x" = 30 ticks from stop, buy 8 contracts maximum
For Short Positions:
Look at the red labels on the left side of your chart
Find your desired entry level
Read the label for tick distance and contract count
Example: "40T 6x" = 40 ticks from stop, sell 6 contracts maximum
Step 5: Trading Execution
Before Entering a Trade:
Identify your stop loss level and input it into the indicator
Choose your entry point by looking at the distance lines
Note the contract count from the corresponding label
Verify the risk amount matches your trading plan
Execute your trade with the calculated position size
Risk Management Features:
Contract rounding: All position sizes are rounded down (never up) to ensure you don't exceed your risk limit
Zero position filtering: Lines only show where position size is at least 1 contract
Dual-sided display: Plan both long and short opportunities simultaneously
Multi-Timeline 1.0Multi-TimeLines 1.0 - Comprehensive Description
WHAT IT DOES:
This indicator creates dynamic horizontal support/resistance lines based on opening prices captured at user-defined New York times. Unlike static horizontal lines, these levels automatically appear and disappear based on sophisticated session logic, providing traders with time-sensitive reference levels that adapt to market sessions.
HOW IT WORKS - TECHNICAL IMPLEMENTATION:
1.
Timezone Conversion Engine:
The script uses Pine Script's "America/New_York" timezone functions to ensure all time calculations are based on NY time, regardless of the user's chart timezone. This eliminates confusion and provides consistent behavior across global markets.
2.
Dual-Category Time Classification System:
The indicator employs a unique two-category classification system:
Category A (16:00-23:59 NY): Evening times that extend overnight until next day 15:59 NY
Category B (00:00-15:59 NY): Day times that extend until same day 15:59 NY
This classification handles the complex logic of overnight sessions and prevents lines from incorrectly resetting at midnight for evening times.
3. Price Capture Mechanism:
Uses precise time-hit detection with backup systems for edge cases (especially midnight 00:00). When a specified time occurs, the script captures the bar's opening price and stores it in persistent variables using Pine Script's var declarations.
4. Session-Aware Display Logic:
Lines only appear during their designated "display windows" - periods when the captured price level is relevant. The script uses conditional plotting with plot.style_linebr to create clean breaks when lines are inactive.
5. Smart Reset System:
Different reset behaviors based on time classification:
Category A times persist across midnight (for overnight analysis)
Category B times reset on day changes (except 00:00 which captures AT day change)
Automatic cleanup when display windows close
ORIGINALITY & UNIQUE FEATURES:
1. Overnight Session Handling:
Unlike basic horizontal line tools, this script properly handles overnight spans for evening times, making it invaluable for analyzing gaps and overnight price action.
2. Automatic Session Management:
No manual line drawing required - the script automatically manages when lines appear/disappear based on NY market sessions (15:59 close, 18:00 after-hours start).
3. Time-Window Display Logic:
Lines only show during relevant periods, reducing chart clutter and focusing attention on currently active levels.
TRADING CONCEPTS & APPLICATIONS:
1. Session-Based Analysis:
Capture opening prices at key session times:
00:00 NY: Sydney/Asian session start
03:00 NY: London pre-market
08:00 NY: London session open
09:30 NY: NYSE opening bell
18:00 NY: After-hours start
2. Gap Analysis:
Evening times (20:00-23:59) that extend overnight are particularly useful for:
Identifying potential gap-fill levels
Tracking overnight high/low breaks
Setting reference points for next-day trading
3. Support/Resistance Framework:
Opening prices at significant times often act as:
Intraday support/resistance levels
Reference points for breakout/breakdown analysis
Pivot levels for mean reversion strategies
HOW TO USE:
1. Time Input:
Enter times in "HH:MM" format using 24-hour NY time:
"09:30" for NYSE open
"15:30" for late-day reference
"20:00" for evening level (extends overnight)
2. Line Behavior:
Blue/Green/Cyan/Red lines: Your custom times
Yellow line: After-hours day open (18:00 NY start)
Lines appear with breaks during inactive periods
3. Strategic Setup:
Use 2-3 key session times for your trading style
Combine morning times (immediate reference) with evening times (overnight analysis)
Toggle after-hours line based on your market focus
CALCULATION METHOD:
The script uses direct opening price capture (no smoothing or averaging) at precise time hits, ensuring the most accurate representation of actual market levels at specified times. This raw price approach maintains the integrity of actual market opening prices rather than manipulated or calculated values.
This method is particularly effective because opening prices at significant times often represent institutional order flow and can act as magnetic levels throughout subsequent sessions.
