Opening-Range BreakoutNote: Default trading date range looks mediocre. Set date range to "Entire History" to see full effect of the strategy. 50.91% profitable trades, 1.178 profit factor, steady profits and limited drawdown. Total P&L: $154,141.18, Max Drawdown: $18,624.36. High R^2
█ Overview
The Opening-Range Breakout strategy is a mechanical, session‑based day‑trading system designed to capture the initial burst of directional momentum immediately following the market open. It defines a user‑configurable “opening range” window, measures its high and low boundaries, then places breakout stop orders at those levels once the range closes. Built‑in filters on minimum range width, reward‑to‑risk ratios, and optional reversal logic help refine entries and manage risk dynamically.
█ How It Works
Opening‑Range Formation
Between 9:30–10:15 AM ET (configurable), the script tracks the highest high and lowest low to form the day’s opening range box.
On the first bar after the range window closes, the range high (OR_high) and low (OR_low) are “locked in.”
Range‑Width Filter
To avoid false breakouts in low‑volatility mornings, the range must be at least X% of the current price (default 0.35%).
If the measured opening-range width < minimum threshold, no orders are placed that day.
Entry & Order Placement
Long: a stop‑buy order at the opening‑range high.
Short: a stop‑sell order at the opening‑range low.
Only one side can trigger (or both if reverse logic is enabled after a losing trade).
Risk Management
Once triggered, each trade uses an ATR‑style stop-loss defined as a percentage retracement of the range (default 50% of range width).
Profit target is set at a configurable Reward/Risk Ratio (default 1.1×).
Optional: Reverse on Stop‑Loss – if the initial breakout loses, immediately reverse into the opposite side on the same day.
Session Exit
Any open positions are closed at the end of the regular trading day (default 3:45 PM ET window end, with hard flat at session close).
Visual cues are provided via green (range high) and red (range low) step‑line plots directly on the chart, allowing you to see the range box and breakout triggers in real time.
█ Why It Works
Early Momentum Capture: The first 15 – 60 minutes of trading encapsulate overnight news digestion and institutional order flow, creating a well‑defined volatility “range.”
Mechanical Discipline: Clear, rule‑based entries and exits remove emotional guesswork, ensuring consistency.
Volatility Filtering: By requiring a minimum range width, the system avoids choppy, low‑range days where false breakouts are common.
Dynamic Sizing: Stops and targets scale with the opening range, adapting automatically to each day’s volatility environment.
█ How to Use
Set Your Instruments & Timeframe
-Apply to any futures contract on a 1‑ to 5‑minute chart.
-Ensure chart timezone is set to America/New_York.
Configure Inputs
-Opening‑Range Window: e.g. “0930-1015” for a 45‑minute range.
-Min. OR Width (%): e.g. 0.35 for 0.35% of current price.
-Reward/Risk Ratio: e.g. 1.1 for a modest profit target above your stop.
-Max OR Retracement %: e.g. 50 to set stop at 50% of range width.
-One Trade Per Day: toggle to limit to a single breakout.
-Reverse on Stop Loss: toggle to flip direction after a losing breakout.
Monitor the Chart
-Watch the green and red range boundaries form during the session open.
-Orders will automatically submit on the first bar after the range window closes, conditioned on your filters.
Review & Adjust
-Backtest across multiple months to validate performance on your preferred contract.
-Tweak range duration, minimum width, and R/R multiple to fit your risk tolerance and desired win‑rate vs. expectancy balance.
█ Settings Reference
Input Defaults
Opening‑Range Window - Time window to form OR (HHMM-HHMM) - 0930–1015
Regular Trading Day - Full session for EOD flat (HHMM-HHMM) - 0930–1545
Min. OR Width (%) - Minimum OR size as % of close to trigger orders - 0.35
Reward/Risk Ratio - Profit target multiple of stop‑loss distance - 1.1
Max OR Retracement (%) - % of OR width to use as stop‑loss distance - 50
One Trade Per Day - Limit to a single breakout order per day - false
Reverse on Stop Loss - Reverse direction immediately after a losing trade - true
Disclaimer
This strategy description and any accompanying code are provided for educational purposes only and do not constitute financial advice or a solicitation to trade. Futures trading involves substantial risk, including possible loss of capital. Past performance is not indicative of future results. Traders should assess their own risk tolerance and conduct thorough backtesting and forward-testing before committing real capital.
Cerca negli script per "股价站上60月线"
Advanced ICT Theory - A-ICT📊 Advanced ICT Theory (A-ICT): The Institutional Manipulation Detector
Are you tired of being the liquidity? Stop chasing shadows and start tracking the architects of price movement.
This is not another lagging indicator. This is a complete framework for viewing the market through the lens of institutional traders. Advanced ICT Theory (A-ICT) is an all-in-one, military-grade analysis engine designed to decode the complex language of "Smart Money." It automates the core tenets of Inner Circle Trader (ICT) methodology, moving beyond simple patterns to build a dynamic, real-time narrative of market manipulation, liquidity engineering, and institutional order flow.
AIT provides a living blueprint of the market, identifying high-probability zones, tracking structural shifts, and scoring the quality of setups with a sophisticated, multi-factor algorithm. This is your X-ray into the market's true intentions.
🔬 THE CORE ENGINE: DECODING THE THEORY & FORMULAS
A-ICT is built upon a sophisticated, multi-layered logic system that interprets price action as a story of cause and effect. It does not guess; it confirms. Here is the foundational theory that drives the engine:
1. Market Structure: The Blueprint of Trend
The script first establishes a deep understanding of the market's skeleton through multi-level pivot analysis. It uses ta.pivothigh and ta.pivotlow to identify significant swing points.
Internal Structure (iBOS): Minor swings that show the short-term order flow. A break of internal structure is the first whisper of a potential shift.
External Structure (eBOS): Major swing points that define the primary trend. A confirmed break of external structure is a powerful statement of trend continuation. AIT validates this with optional Volume Confirmation (volume > volumeSMA * 1.2) and Candle Confirmation to ensure the break is driven by institutional force, not just a random spike.
Change of Character (CHoCH): This is the earthquake. A CHoCH occurs when a confirmed eBOS happens against the prevailing trend (e.g., a bearish eBOS in a clear uptrend). A-ICT flags this immediately, as it is the strongest signal that the primary trend is under threat of reversal.
2. Liquidity Engineering: The Fuel of the Market
Institutions don't buy into strength; they buy into weakness. They need liquidity. A-ICT maps these liquidity pools with forensic precision:
Buyside & Sellside Liquidity (BSL/SSL): Using ta.highest and ta.lowest, AIT identifies recent highs and lows where clusters of stop-loss orders (liquidity) are resting. These are institutional targets.
Liquidity Sweeps: This is the "manipulation" part of the detector. AIT has a specific formula to detect a sweep: high > bsl and close < bsl . This signifies that institutions pushed price just high enough to trigger buy-stops before aggressively selling—a classic "stop hunt." This event dramatically increases the quality score of subsequent patterns.
3. The Element Lifecycle: From Potential to Power
This is the revolutionary heart of A-ICT. Zones are not static; they have a lifecycle. AIT tracks this with its dynamic classification engine.
Phase 1: PENDING (Yellow): The script identifies a potential zone of interest based on a specific candle formation (a "displacement"). It is marked as "Pending" because its true nature is unknown. It is a question.
Phase 2: CLASSIFICATION: After the zone is created, AIT watches what happens next. The zone's identity is defined by its actions:
ORDER BLOCK (Blue): The highest-grade element. A zone is classified as an Order Block if it directly causes a Break of Structure (BOS) . This is the footprint of institutions entering the market with enough force to validate the new trend direction.
TRAP ZONE (Orange): A zone is classified as a Trap Zone if it is directly involved in a Liquidity Sweep . This indicates the zone was used to engineer liquidity, setting a "trap" for retail traders before a reversal.
REVERSAL / S&R ZONE (Green): If a zone is not powerful enough to cause a BOS or a major sweep, but still serves as a pivot point, it's classified as a general support/resistance or reversal zone.
4. Market Inefficiencies: Gaps in the Matrix
Fair Value Gaps (FVG): AIT detects FVGs—a 3-bar pattern indicating an imbalance—with a strict formula: low > high (for a bullish FVG) and gapSize > atr14 * 0.5. This ensures only significant, volatile gaps are shown. An FVG co-located with an Order Block is a high-confluence setup.
5. Premium & Discount: The Law of Value
Institutions buy at wholesale (Discount) and sell at retail (Premium). AIT uses a pdLookback to define the current dealing range and divides it into three zones: Premium (sell zone), Discount (buy zone), and Equilibrium. An element's quality score is massively boosted if it aligns with this principle (e.g., a bullish Order Block in a Discount zone).
⚙️ THE CONTROL PANEL: A COMPLETE GUIDE TO THE INPUTS MENU
Every setting is a lever, allowing you to tune the AIT engine to your exact specifications. Master these to unlock the script's full potential.
🎯 A-ICT Detection Engine
Min Displacement Candles: Controls the sensitivity of element detection. How it works: It defines the number of subsequent candles that must be "inside" a large parent candle. Best practice: Use 2-3 for a balanced view on most timeframes. A higher number (4-5) will find only major, more significant zones, ideal for swing trading. A lower number (1) is highly sensitive, suitable for scalping.
Mitigation Method: Defines when a zone is considered "used up" or mitigated. How it works: Cross triggers as soon as price touches the zone's boundary. Close requires a candle to fully close beyond it. Best practice: Cross is more responsive for fast-moving markets. Close is more conservative and helps filter out fake-outs caused by wicks, making it safer for confirmations.
Min Element Size (ATR): A crucial noise filter. How it works: It requires a detected zone to be at least this multiple of the Average True Range (ATR). Best practice: Keep this around 0.5. If you see too many tiny, irrelevant zones, increase this value to 0.8 or 1.0. If you feel the script is missing smaller but valid zones, decrease it to 0.3.
Age Threshold & Pending Timeout: These manage visual clutter. How they work: Age Threshold removes old, mitigated elements after a set number of bars. Pending Timeout removes a "Pending" element if it isn't classified within a certain window. Best practice: The default settings are optimized. If your chart feels cluttered, reduce the Age Threshold. If pending zones disappear too quickly, increase the Pending Timeout.
Min Quality Threshold: Your primary visual filter. How it works: It hides all elements (boxes, lines, labels) that do not meet this minimum quality score (0-100). Best practice: Start with the default 30. To see only A- or B-grade setups, increase this to 60 or 70 for an exceptionally clean, high-probability view.
🏗️ Market Structure
Lookbacks (Internal, External, Major): These define the sensitivity of the trend analysis. How they work: They set the number of bars to the left and right for pivot detection. Best practice: Use smaller values for Internal (e.g., 3) to see minor structure and larger values for External (e.g., 10-15) to map the main trend. For a macro, long-term view, increase the Major Swing Lookback.
Require Volume/Candle Confirmation: Toggles for quality control on BOS/CHoCH signals. Best practice: It is highly recommended to keep these enabled. Disabling them will result in more structure signals, but many will be false alarms. They are your filter against market noise.
... (Continue this detailed breakdown for every single input group: Display Configuration, Zones Style, Levels Appearance, Colors, Dashboards, MTF, Liquidity, Premium/Discount, Sessions, and IPDA).
📊 THE INTELLIGENCE DASHBOARDS: YOUR COMMAND CENTER
The dashboards synthesize all the complex analysis into a simple, actionable intelligence briefing.
Main Dashboard (Bottom Right)
ICT Metrics & Breakdown: This is your statistical overview. Total Elements shows how much structure the script is tracking. High Quality instantly tells you if there are any A/B grade setups nearby. Unmitigated vs. Mitigated shows the balance of fresh opportunities versus resolved price action. The breakdown by Order Blocks, Trap Zones, etc., gives you a quick read on the market's recent character.
Structure & Market Context: This is your core bias. Order Flow tells you the current script-determined trend. Last BOS shows you the most recent structural event. CHoCH Active is a critical warning. HTF Bias shows if you are aligned with the higher timeframe—the checkmark (✓) for alignment is one of the most important confluence factors.
Smart Money Flow: A volume-based sentiment gauge. Net Flow shows the raw buying vs. selling pressure, while the Bias provides an interpretation (e.g., "STRONG BULLISH FLOW").
Key Guide (Large Dashboard only): A built-in legend so you never have to guess. It defines every pattern, structure type, and special level visually.
📖 Narrative Dashboard (Bottom Left)
This is the "story" of the market, updated in real-time. It's designed to build your trading thesis.
Recent Elements Table: A live list of the most recent, high-quality setups. It displays the Type , its Narrative Role (e.g., "Bullish OB caused BOS"), its raw Quality percentage, and its final Trade Score grade. This is your at-a-glance opportunity scanner.
Market Narrative Section: This is the soul of A-ICT. It combines all data points into a human-readable story:
📍 Current Phase: Tells you if you are in a high-volatility Killzone or a consolidation phase like the Asian Range.
🎯 Bias & Alignment: Your primary direction, with a clear indicator of HTF alignment or conflict.
🔗 Events: A causal sequence of recent events, like "💧 Sell-side liquidity swept →
📊 Bullish BOS → 🎯 Active Order Block".
🎯 Next Expectation: The script's logical conclusion. It provides a specific, forward-looking hypothesis, such as "📉 Pullback expected to bullish OB at 1.2345 before continuation up."
🎨 READING THE BATTLEFIELD: A VISUAL INTERPRETATION GUIDE
Every color and line is a piece of information. Learn to read them together to see the full picture.
The Core Zones (Boxes):
Blue Box (Order Block): Highest probability zone for trend continuation. Look for entries here.
Orange Box (Trap Zone): A manipulation footprint. Expect a potential reversal after price interacts with this zone.
Green Box (Reversal/S&R): A standard pivot area. A good reference point but requires more confluence.
Purple Box (FVG): A market imbalance. Acts as a magnet for price. An FVG inside an Order Block is an A+ confluence.
The Structural Lines:
Green/Red Line (eBOS): Confirms the trend direction. A break above the green line is bullish; a break below the red line is bearish.
Thick Orange Line (CHoCH): WARNING. The previous trend is now in question. The market character has changed.
Blue/Red Lines (BSL/SSL): Liquidity targets. Expect price to gravitate towards these lines. A dotted line with a checkmark (✓) means the liquidity has been "swept" or "purged."
How to Synthesize: The magic is in the confluence. A perfect setup might look like this: Price sweeps below a red SSL line , enters a green Discount Zone during the NY Killzone , and forms a blue Order Block which then causes a green eBOS . This sequence, visible at a glance, is the story of a high-probability long setup.
🔧 THE ARCHITECT'S VISION: THE DEVELOPMENT JOURNEY
A-ICT was forged from the frustration of using lagging indicators in a market that is forward-looking. Traditional tools are reactive; they tell you what happened. The vision for A-ICT was to create a proactive engine that could anticipate institutional behavior by understanding their objectives: liquidity and efficiency. The development process was centered on creating a "lifecycle" for price patterns—the idea that a zone's true meaning is only revealed by its consequence. This led to the post-breakout classification system and the narrative-building engine. It's designed not just to show you patterns, but to tell you their story.
⚠️ RISK DISCLAIMER & BEST PRACTICES
Advanced ICT Theory (A-ICT) is a professional-grade analytical tool and does not provide financial advice or direct buy/sell signals. Its analysis is based on historical price action and probabilities. All forms of trading involve substantial risk. Past performance is not indicative of future results. Always use this tool as part of a comprehensive trading plan that includes your own analysis and a robust risk management strategy. Do not trade based on this indicator alone.
観の目つよく、見の目よわく
"Kan no me tsuyoku, ken no me yowaku"
— Miyamoto Musashi, The Book of Five Rings
English: "Perceive that which cannot be seen with the eye."
— Dskyz, Trade with insight. Trade with anticipation.
Gold 3min Trading Pro [XAU/USD]# Gold 3min Trading Pro - User Guide
## Overview
This is a professional scalping indicator specifically designed for Gold (XAU/USD) trading on 3-minute timeframes. It combines multiple technical analysis methods to provide high-probability entry signals for short-term trading.
## Key Features
### 1. Multi-Timeframe Trend Analysis
- **Major Trend**: Analyzes 15min, 1H, and 4H timeframes using moving averages
- **Short-term Trend**: Focuses on 3-minute price action and moving average alignment
- **Trend Strength**: Rated from 1-3 based on timeframe agreement
### 2. Core Indicators
- **RSI (9-period)**: Momentum oscillator for overbought/oversold conditions
- **Stochastic (9-period)**: %K and %D lines for entry timing
- **MACD**: Additional trend confirmation
- **Volume Analysis**: Detects volume spikes for signal validation
- **ATR-based Volatility Filter**: Ensures adequate market movement
### 3. Signal Types
- **Primary Signals**: Green triangles (LONG) and Red triangles (SHORT)
- **Enhanced Signals**: Stronger signals with multiple confirmations
- **Confirmation Signals**: Small circles for stochastic crossovers
## How to Use
### 1. Setup
- **Timeframe**: Use on 3-minute charts for Gold (XAU/USD)
- **Settings**: Default settings are optimized for Gold scalping
- **Session Filter**: Enable for London/New York sessions (recommended)
### 2. Entry Conditions
#### LONG Entry:
- Major trend is bullish (green background)
- Short-term trend is up or neutral
- RSI shows bullish momentum
- Stochastic indicates oversold recovery
- Volume spike confirmation
- Strong price action (bullish candle)
#### SHORT Entry:
- Major trend is bearish (red background)
- Short-term trend is down or neutral
- RSI shows bearish momentum
- Stochastic indicates overbought reversal
- Volume spike confirmation
- Strong price action (bearish candle)
### 3. Trade Management
- **Quick Target**: 50% of ATR-based calculation
- **Main Target**: Full ATR-based target
- **Stop Loss**: 60% of ATR below/above entry
- **Time Limit**: Exit if no progress within 20 bars (60 minutes)
### 4. Risk Management
- **Position Size**: Risk 1-2% of account per trade
- **Maximum Trades**: 3-5 trades per session
- **Avoid**: Low volatility periods and major news events
## Visual Elements
### Background Colors
- **Light Green**: Bullish major trend
- **Light Red**: Bearish major trend
- **Yellow**: Volume spike detected
- **Intense Colors**: Very strong trend alignment
### Chart Indicators
- **RSI Line (Blue)**: Main momentum indicator
- **Stochastic %K (Orange)**: Fast stochastic line
- **Stochastic %D (Yellow)**: Slow stochastic line
- **Horizontal Lines**: 70 (overbought), 30 (oversold), 50 (midline)
### Information Table (Top Right)
- Total signal count and performance statistics
- Current market conditions and trend strength
- RSI levels and volatility status
- Trading session information
- Last signal timing
## Alert System
### Standard Alerts
- **Scalp Long Signal**: Basic long entry signal
- **Scalp Short Signal**: Basic short entry signal
- **Premium Signals**: High-quality signals with strong confirmation
- **Trend Reversal**: Major trend change notifications
### Alert Setup
1. Right-click on chart → "Add Alert"
2. Select desired alert condition
3. Configure notification method (popup, email, webhook)
4. Set alert frequency to "Once Per Bar Close"
## Best Practices
### 1. Trading Sessions
- **Optimal**: London-NY overlap (3:00-5:00 PM EST)
- **Good**: London session (2:00-11:00 AM EST)
- **Avoid**: Asian session and major news releases
### 2. Market Conditions
- **Best**: Trending markets with normal to high volatility
- **Moderate**: Ranging markets during active sessions
- **Avoid**: Extremely low volatility or choppy conditions
### 3. Confirmation Rules
- Wait for signal triangle to appear
- Check that major trend aligns with signal direction
- Verify volume spike (yellow background)
- Ensure volatility is adequate (check info table)
### 4. Entry Timing
- Enter immediately after signal confirmation
- Use market orders for scalping speed
- Set stop loss and take profit levels immediately
## Settings Customization
### Essential Settings
- **MA Type**: EMA (recommended) or SMA
- **RSI Length**: 9 (default, can adjust 5-14)
- **Volume Threshold**: 1.8 (higher = fewer but stronger signals)
- **Volatility Filter**: Keep enabled for better signal quality
### Display Options
- **Show Scalping Signals**: Main entry signals
- **Show Performance Stats**: Information table
- **Show Trend Filter**: Background trend colors
- **Use Time Filter**: Session-based filtering
## Performance Optimization
### 1. Backtesting Tips
- Test on different market conditions
- Analyze win rate and average profit/loss
- Adjust settings based on historical performance
### 2. Signal Quality
- Higher trend strength (2-3) = better signals
- Volume confirmation improves success rate
- Enhanced signals have higher probability
### 3. Risk Control
- Never risk more than 2% per trade
- Use proper position sizing
- Stop trading after 3 consecutive losses
## Troubleshooting
### Common Issues
1. **No Signals**: Check volatility filter and session timing
2. **Too Many Signals**: Increase volume threshold or enable filters
3. **Poor Performance**: Verify timeframe (must be 3-minute) and symbol (XAU/USD)
### Support
- Ensure TradingView Pro+ subscription for multi-timeframe data
- Verify Gold symbol matches your broker's format
- Update to latest TradingView version
This indicator is designed for experienced traders familiar with scalping techniques and risk management. Always practice on demo accounts before live trading.
Price Exhaustion Envelope [BackQuant]Price Exhaustion Envelope
Visual preview of the bands:
What it is
The Price Exhaustion Envelope (PEE) is a multi‑factor overextension detector wrapped inside a dynamic envelope framework. It measures how “tired” a move is by blending price stretch, volume surges, momentum and acceleration, plus optional RSI divergence. The result is a composite exhaustion score that drives both on‑chart signals and the adaptive width of three optional envelope bands around a smoothed baseline. When the score spikes above or below your chosen threshold, the script can flag exhaustion, paint candles, tint the background and fire alerts.
How it works under the hood
Exhaustion score
Price component: distance of close from its mean in standard deviation units.
Volume component: normalized volume pressure that highlights unusual participation.
Momentum component: rate of change and acceleration of price, scaled by their own volatility.
RSI divergence (optional): bullish and bearish divergences gently push the score lower or higher.
Mode control: choose Price, Volume, Momentum or Composite. Composite averages the main pieces for a balanced view.
Energy scale (0 to 100)
The composite score is pushed through a logistic transform to create an “energy” value. High energy (above 70 to 80) signals a move that may be running hot, while very low energy (below 20 to 30) points to exhaustion on the downside.
Envelope engine
Baseline: EMA of price over the main lookback length.
Width: base width is standard deviation times a multiplier.
Type selector:
• Static keeps the width fixed.
• Dynamic expands width in proportion to the absolute exhaustion score.
• Adaptive links width to the energy reading so bands breathe with market “heat.”
Smoothing: a short EMA on the width reduces jitter and keeps bands pleasant to trade around.
Band architecture
You can toggle up to three symmetric bands on each side of the baseline. They default to 1.0, 1.6 and 2.2 multiples of the smoothed width. Soft transparent fills create a layered thermograph of extension. The outermost band often maps to true blow‑off extremes.
On‑chart elements
Baseline line that flips color in real time depending on where price sits.
Up to three upper and lower bands with progressive opacity.
Triangle markers at fresh exhaustion triggers.
Tiny warning glyphs at extreme upper or lower breaches.
Optional bar coloring to visually tag exhausted candles.
Background halo when energy > 80 or < 20 for instant context.
A compact info table showing State, Score, Energy, Momentum score and where price sits inside the envelope (percent).
How to use it in trading
Mean reversion plays
When price pierces the outer band and an exhaustion marker prints, look for reversal candles or lower‑timeframe confirmation to fade the move back toward the baseline.
For conservative entries, wait for the composite score to roll back under the threshold or for energy to drop from extreme to neutral.
Set stops just beyond the extreme levels (use extreme_upper and extreme_lower as natural invalidation points). Targets can be the baseline or the opposite inner band.
Trend continuation with smart pullbacks
In strong trends, the first tag of Band 1 or Band 2 against the dominant direction often offers low‑risk continuation entries. Use energy readings: if energy is low on a pullback during an uptrend, a bounce is more likely.
Combine with RSI divergence: hidden bullish divergence near a lower band in an uptrend can be a powerful confirmation.
Breakout filtering
A breakout that occurs while the composite score is still moderate (not exhausted) has a higher chance of follow‑through. Skip signals when energy is already above 80 and price is punching the outer band, as the move may be late.
Watch env_position (Envelope %) in the table. Breakouts near 40 to 60 percent of the envelope are “healthy,” while those at 95 percent are stretched.
Scaling out and risk control
Use exhaustion alerts to trim positions into strength or weakness.
Trail stops just outside Band 2 or Band 3 to stay in trends while letting the envelope expand in volatile phases.
Multi‑timeframe confluence
Run the script on a higher timeframe to locate exhaustion context, then drill down to a lower timeframe for entries.
Opposite signals across timeframes (daily exhaustion vs. 5‑minute breakout) warn you to reduce size or tighten management.
Key inputs to experiment with
Lookback Period: larger values smooth the score and envelope, ideal for swing trading. Shorter values make it reactive for scalps.
Exhaustion Threshold: raise above 2.0 in choppy assets to cut noise, drop to 1.5 for smooth FX pairs.
Envelope Type: Dynamic is great for crypto spikes, Adaptive shines in stocks where volume and volatility wave together.
RSI Divergence: turn off if you prefer a pure price/volume model or if divergence floods the score in your asset.
Alert set included
Fresh upper exhaustion
Fresh lower exhaustion
Extreme upper breach
Extreme lower breach
RSI bearish divergence
RSI bullish divergence
Hook these to TradingView notifications so you get pinged the moment a move hits exhaustion.
Best practices
Always pair exhaustion signals with structure. Support and resistance, liquidity pools and session opens matter.
Avoid blindly shorting every upper signal in a roaring bull market. Let the envelope type help you filter.
Use the table to sanity‑check: a very high score but mid‑range env_position means the band may still be wide enough to absorb more movement.
Backtest threshold combinations on your instrument. Different tickers carry different volatility fingerprints.
Final note
Price Exhaustion Envelope is a flexible framework, not a turnkey system. It excels as a context layer that tells you when the crowd is pressing too hard or when a move still has fuel. Combine it with sound execution tactics, risk limits and market awareness. Trade safe and let the envelope breathe with the market.
Supertrend & MACD with 60 EMA Signalsthis is a great way to understand market without getting biased ...excellent for intraday entry
MR.Z Stoch RSI %K Reversal Signals🟢 K Strategy Description
The K Strategy is a momentum-based trading technique using the %K line from the Stochastic Oscillator. It is designed to detect potential reversal points in price trends by identifying extreme conditions of overbought and oversold levels.
✅ Core Logic:
The strategy monitors the %K line (a smoothed form of RSI momentum).
A Buy Signal is triggered when:
The %K line dips to or below a defined lower threshold (commonly 30 or less).
This suggests the asset is oversold and may soon reverse upward.
A Sell Signal is triggered when:
The %K line peaks above an upper threshold (commonly 70 or more).
This suggests the asset is overbought and may reverse downward.
⚙️ Adjustable Parameters:
K Length: The sensitivity of the %K calculation (affects how fast it responds).
Buy Level: Set your oversold trigger (e.g., 20–40).
Sell Level: Set your overbought trigger (e.g., 60–100).
Signal Smoothing (optional): Helps reduce noise and avoid false triggers.
📈 Use Case:
This strategy is effective in ranging markets where prices frequently oscillate. It can also be used with other indicators (like EMA, volume filters, or price action confirmation) to increase accuracy in trending conditions.
Nifty Buy/Sell Signals with RSI & Fisheruy Signal when:
RSI crosses above 40 from below.
Fisher Transform crosses above its signal line (bullish crossover).
Sell Signal when:
RSI crosses below 60 from above.
Fisher Transform crosses below its signal line (bearish crossover).
Enhanced Market Structure StrategyATR-Based Risk Management:
Stop Loss: 2 ATR from entry (configurable)
Take Profit: 3 ATR from entry (configurable)
Dynamic Position Sizing: Based on ATR stop distance and max risk percentage
Advanced Signal Filters:
RSI Filter:
Long trades: RSI < 70 and > 40 (avoiding overbought)
Short trades: RSI > 30 and < 60 (avoiding oversold)
Volume Filter:
Requires volume > 1.2x the 20-period moving average
Ensures institutional participation
MACD Filter (Optional):
Long: MACD line above signal line and rising
Short: MACD line below signal line and falling
EMA Trend Filter:
50-period EMA for trend confirmation
Long trades require price above rising EMA
Short trades require price below falling EMA
Higher Timeframe Filter:
Uses 4H/Daily EMA for multi-timeframe confluence
Enhanced Entry Logic:
Regular Entries: IDM + BOS + ALL filters must pass
Sweep Entries: Failed breakouts with tighter stops (1.6 ATR)
High-Probability Focus: Only trades when multiple confirmations align
Visual Improvements:
Detailed Entry Labels: Show entry, stop, target, and risk percentage
SL/TP Lines: Visual representation of risk/reward
Filter Status: Bar coloring shows when all filters align
Comprehensive Statistics: Real-time performance metrics
Key Strategy Parameters:
pinescript// Recommended Settings for Different Markets:
// Forex (4H-Daily):
// - CHoCH Period: 50-75
// - ATR SL: 2.0, ATR TP: 3.0
// - All filters enabled
// Crypto (1H-4H):
// - CHoCH Period: 30-50
// - ATR SL: 2.5, ATR TP: 4.0
// - Volume filter especially important
// Indices (4H-Daily):
// - CHoCH Period: 50-100
// - ATR SL: 1.8, ATR TP: 2.7
// - EMA and MACD filters crucial
Expected Performance Improvements:
Win Rate: 55-70% (improved filtering)
Profit Factor: 2.0-3.5+ (better risk/reward with ATR)
Reduced Drawdown: Stricter filters reduce false signals
Consistent Risk: ATR-based stops adapt to volatility
This enhanced version provides much more robust signal filtering while maintaining the core market structure edge, resulting in higher-probability trades with consistent risk management.
ORB Scalp setup by UnenbatDescription
ORB Scalp Setup by Unenbat is a precise breakout scalping tool that identifies short-term price ranges at the transition between hourly sessions.
📌 Core Features:
Draws a dynamic box using the price range from the last 3 minutes of the previous hour and the first 3 minutes of the new hour (total 5m59s range).
Automatically plots:
Box representing the selected range.
Opening Price Line at the start of the hour.
TP Lines (Take Profit) above and below the box at customizable distances.
BE Lines (Break-Even) above and below the box at customizable distances.
Box and line lengths are user-defined (default: 60 minutes).
Works across historical data (up to the last 100 days).
Fully customizable visuals (colors, offsets, visibility toggles).
🎯 How to Use:
Ideal for scalp traders using breakout strategies.
Enter trades when price breaks above or below the box range.
Use TP and BE lines as clear reference levels for exits or trailing stop logic.
⚙️ Custom Settings:
Enable/disable each component (box, open line, TP line, BE line).
Set your own offset in pips for TP/BE lines.
Adjust the box duration to match your trading style.
Modify start and end times of the range as needed.
RSI + VWAP Strategy by vipindaskr🔍 This script combines RSI and VWAP for intraday trend-based entries.
✅ *Buy Signal:*
- Price above VWAP
- RSI > 60
- Green background + up triangle shown
❌ *Sell Signal:*
- Price below VWAP
- RSI < 40
- Red background + down triangle shown
📈 Ideal for Nifty 50 intraday traders using 5-minute chart.
Developed by vipindaskr 💻
Magnet Zones: Trap Detection & Flow Map [@darshakssc]This script detects potential bull and bear trap candles—price actions that may appear strong but are likely to reverse—based on:
🔺 Wick structure
📊 Volume spike behavior
💡 RSI confirmation logic
⏳ Signal cooldown filter to reduce false positives
The indicator then plots:
🟥 Red “🚨 Trap” labels above candles showing possible bull traps
🟩 Green “🧲 Trap” labels below candles showing possible bear traps
➖ Horizontal zone lines to mark these trap levels as “magnet zones,” which may act as future support or resistance
🧠 How It Works:
1. Volume Spike Detection
2. The script first checks for unusually high volume (1.5× the average volume over the last 20 candles).
3. Trap Candle Structure
4. A trap is suspected when there is a long wick opposite the direction of the candle body, signaling a failed breakout or price manipulation.
5. RSI Confirmation
6. Bull Traps: RSI must be above 60
7. Bear Traps: RSI must be below 40
✅ This helps validate whether the price was overbought or oversold.
✅ Cooldown Mechanism
✅ After a trap is detected, it waits for 10 bars before allowing another signal—this reduces noise and overfitting.
✅ How to Use It:
1. Apply on any timeframe, especially effective for intraday trading (e.g. 5m, 15m, 1h).
2. Use the trap signals as early warnings to avoid fake breakouts.
3. Combine with your own strategy or trend-following system for confirmation.
4. The trap lines (magnet zones) can be used as dynamic support/resistance levels for future pullbacks or reversals.
⚠️ Important Note:
This script is for educational purposes only and is not financial advice.
Always use traps in combination with your personal discretion, risk management, and other confluence tools.
Reversal Point Dynamics⇋ Reversal Point Dynamics (RPD)
This is not an indicator; it is a complete system for deconstructing the mechanics of a market reversal. Reversal Point Dynamics (RPD) moves far beyond simplistic pattern recognition, venturing into a deep analysis of the underlying forces that cause trends to exhaust, pause, and turn. It is engineered from the ground up to identify high-probability reversal points by quantifying the confluence of market dynamics in real-time.
Where other tools provide a static signal, RPD delivers a dynamic probability. It understands that a true market turning point is not a single event, but a cascade of failing momentum, structural breakdown, and a shift in market order. RPD's core engine meticulously analyzes each of these dynamic components—the market's underlying state, its velocity and acceleration, its degree of chaos (entropy), and its structural framework. These forces are synthesized into a single, unified Probability Score, offering you an unprecedented, transparent view into the conviction behind every potential reversal.
This is not a "black box" system. It is an open-architecture engine designed to empower the discerning trader. Featuring real-time signal projection, an integrated Fibonacci R2R Target Engine, and a comprehensive dashboard that acts as your Dynamics Control Center , RPD gives you a complete, holistic view of the market's state.
The Theoretical Core: Deconstructing Market Dynamics
RPD's analytical power is born from the intelligent synthesis of multiple, distinct theoretical models. Each pillar of the engine analyzes a different facet of market behavior. The convergence of these analyses—the "Singularity" event referenced in the dashboard—is what generates the final, high-conviction probability score.
1. Pillar One: Quantum State Analysis (QSA)
This is the foundational analysis of the market's current state within its recent context. Instead of treating price as a random walk, QSA quantizes it into a finite number of discrete "states."
Formulaic Concept: The engine establishes a price range using the highest high and lowest low over the Adaptive Analysis Period. This range is then divided into a user-defined number of Analysis Levels. The current price is mapped to one of these states (e.g., in a 9-level system, State 0 is the absolute low, and State 8 is the absolute high).
Analytical Edge: This acts as a powerful foundational filter. The engine will only begin searching for reversal signals when the market has reached a statistically stretched, extreme state (e.g., State 0 or 8). The Edge Sensitivity input allows you to control exactly how close to this extreme edge the price must be, ensuring you are trading from points of maximum potential exhaustion.
2. Pillar Two: Price State Roc (PSR) - The Dynamics of Momentum
This pillar analyzes the kinetic forces of the market: its velocity and acceleration. It understands that it’s not just where the price is, but how it got there that matters.
Formulaic Concept: The psr function calculates two derivatives of price.
Velocity: (price - price ). This measures the speed and direction of the current move.
Acceleration: (velocity - velocity ). This measures the rate of change in that speed. A negative acceleration (deceleration) during a strong rally is a critical pre-reversal warning, indicating momentum is fading even as price may be pushing higher.
Analytical Edge: The engine specifically hunts for exhaustion patterns where momentum is clearly decelerating as price reaches an extreme state. This is the mechanical signature of a weakening trend.
3. Pillar Three: Market Entropy Analysis - The Dynamics of Order & Chaos
This is RPD's chaos filter, a concept borrowed from information theory. Entropy measures the degree of randomness or disorder in the market's price action.
Formulaic Concept: The calculateEntropy function analyzes recent price changes. A market moving directionally and smoothly has low entropy (high order). A market chopping back and forth without direction has high entropy (high chaos). The value is normalized between 0 and 1.
Analytical Edge: The most reliable trades occur in low-entropy, ordered environments. RPD uses the Entropy Threshold to disqualify signals that attempt to form in chaotic, unpredictable conditions, providing a powerful shield against whipsaw markets.
4. Pillar Four: The Synthesis Engine & Probability Calculation
This is where all the dynamic forces converge. The final probability score is a weighted calculation that heavily rewards confluence.
Formulaic Concept: The calculateProbability function intelligently assembles the final score:
A Base Score is established from trend strength and entropy.
An Entropy Score adds points for low entropy (order) and subtracts for high entropy (chaos).
A significant Divergence Bonus is awarded for a classic momentum divergence.
RSI & Volume Bonuses are added if momentum oscillators are in extreme territory or a volume spike confirms institutional interest.
MTF & Adaptive Bonuses add further weight for alignment with higher timeframe structure.
Analytical Edge: A signal backed by multiple dynamic forces (e.g., extreme state + decelerating momentum + low entropy + volume spike) will receive an exponentially higher probability score. This is the very essence of analyzing reversal point dynamics.
The Command Center: Mastering the Inputs
Every input is a precise lever of control, allowing you to fine-tune the RPD engine to your exact trading style, market, and timeframe.
🧠 Core Algorithm
Predictive Mode (Early Detection):
What It Is: Enables the engine to search for potential reversals on the current, unclosed bar.
How It Works: Analyzes intra-bar acceleration and state to identify developing exhaustion. These signals are marked with a ' ? ' and are tentative.
How To Use It: Enable for scalping or very aggressive day trading to get the earliest possible indication. Disable for swing trading or a more conservative approach that waits for full bar confirmation.
Live Signal Mode (Current Bar):
What It Is: A highly aggressive mode that plots tentative signals with a ' ! ' on the live bar based on projected price and momentum. These signals repaint intra-bar.
How It Works: Uses a linear regression projection of the close to anticipate a reversal.
How To Use It: For advanced users who use intra-bar dynamics for execution and understand the nature of repainting signals.
Adaptive Analysis Period:
What It Is: The main lookback period for the QSA, PSR, and Entropy calculations. This is the engine's "memory."
How It Works: A shorter period makes the engine highly sensitive to local price swings. A longer period makes it focus only on major, significant market structure.
How To Use It: Scalping (1-5m): 15-25. Day Trading (15m-1H): 25-40. Swing Trading (4H+): 40-60.
Fractal Strength (Bars):
What It Is: Defines the strength of the pivot detection used for confirming reversal events.
How It Works: A value of '2' requires a candle's high/low to be more extreme than the two bars to its left and right.
How To Use It: '2' is a robust standard. Increase to '3' for an even stricter definition of a structural pivot, which will result in fewer signals.
MTF Multiplier:
What It Is: Integrates pivot data from a higher timeframe for confluence.
How It Works: A multiplier of '4' on a 15-minute chart will pull pivot data from the 1-hour chart (15 * 4 = 60m).
How To Use It: Set to a multiple that corresponds to your preferred higher timeframe for contextual analysis.
🎯 Signal Settings
Min Probability %:
What It Is: Your master quality filter. A signal is only plotted if its score exceeds this threshold.
How It Works: Directly filters the output of the final probability calculation.
How To Use It: High-Quality (80-95): For A+ setups only. Balanced (65-75): For day trading. Aggressive (50-60): For scalping.
Min Signal Distance (Bars):
What It Is: A noise filter that prevents signals from clustering in choppy conditions.
How It Works: Enforces a "cooldown" period of N bars after a signal.
How To Use It: Increase in ranging markets to focus on major swings. Decrease on lower timeframes.
Entropy Threshold:
What It Is: Your "chaos shield." Sets the maximum allowable market randomness for a signal.
How It Works: If calculated entropy is above this value, the signal is invalidated.
How To Use It: Lower values (0.1-0.5): Extremely strict. Higher values (0.7-1.0): More lenient. 0.85 is a good balance.
Adaptive Entropy & Aggressive Mode:
What It Is: Toggles for dynamically adjusting the engine's core parameters.
How It Works: Adaptive Entropy can slightly lower the required probability in strong trends. Aggressive Mode uses more lenient settings across the board.
How To Use It: Keep Adaptive on. Use Aggressive Mode sparingly, primarily for scalping highly volatile assets.
📊 State Analysis
Analysis Levels:
What It Is: The number of discrete "states" for the QSA.
How It Works: More levels create a finer-grained analysis of price location.
How To Use It: 6-7 levels are ideal. Increasing to 9 can provide more precision on very volatile assets.
Edge Sensitivity:
What It Is: Defines how close to the absolute top/bottom of the range price must be.
How It Works: '0' means price must be in the absolute highest/lowest state. '3' allows a signal within the top/bottom 3 states.
How To Use It: '3' provides a good balance. Lower it to '1' or '0' if you only want to trade extreme exhaustion.
The Dashboard: Your Dynamics Control Center
The dashboard provides a transparent, real-time view into the engine's brain. Use it to understand the context behind every signal and to gauge the current market environment at a glance.
🎯 UNIFIED PROB SCORE
TOTAL SCORE: The highest probability score (either Peak or Valley) the engine is currently calculating. This is your main at-a-glance conviction metric. The "Singularity" header refers to the event where market dynamics align—the event RPD is built to detect.
Quality: A human-readable interpretation of the Total Score. "EXCEPTIONAL" (🌟) is a rare, A+ confluence event. "STRONG" (💪) is a high-quality, tradable setup.
📊 ORDER FLOW & COMPONENT ANALYSIS
Volume Spike: Shows if the current volume is significantly higher than average (YES/NO). A 'YES' adds major confirmation.
Peak/Valley Conf: This breaks down the probability score into its directional components, showing you the separate confidence levels for a potential top (Peak) versus a bottom (Valley).
🌌 MARKET STRUCTURE
HTF Trend: Shows the direction of the underlying trend based on a Supertrend calculation.
Entropy: The current market chaos reading. "🔥 LOW" is an ideal, ordered state for trading. "😴 HIGH" is a warning of choppy, unpredictable conditions.
🔮 FIB & R2R ZONE (Large Dashboard)
This section gives you the status of the Fibonacci Target Engine. It shows if an Active Channel (entry zone) or Stop Zone (invalidation zone) is active and displays the precise price levels for the static entry, target, and stop calculated at the time of the signal.
🛡️ FILTERS & PREDICTIVES (Large Dashboard)
This panel provides a status check on all the bonus filters. It shows the current RSI Status, whether a Divergence is present, and if a Live Pending signal is forming.
The Visual Interface: A Symphony of Data
Every visual element is designed for instant, intuitive interpretation of market dynamics.
Signal Markers: These are the primary outputs of the engine.
▼/▲ b: A fully confirmed signal that has passed all filters.
? b: A tentative signal generated in Predictive Mode, indicating developing dynamics.
◈ b: This diamond icon replaces the standard triangle when the signal is confirmed by a strong momentum divergence, highlighting it as a superior setup where dynamics are misaligned with price.
Harmonic Wave: The flowing, colored wave around the price.
What It Represents: The market's "flow dynamic" and volatility.
How to Interpret It: Expanding waves show increasing volatility. The color is tied to the "Quantum Color" in your theme, representing the underlying energy field of the market.
Entropy Particles: The small dots appearing above/below price.
What They Represent: A direct visualization of the "order dynamic."
How to Interpret Them: Their presence signifies a low-entropy, ordered state ideal for trading. Their color indicates the direction of momentum (PSR velocity). Their absence means the market is too chaotic (high entropy).
The Fibonacci Target Engine: The dynamic R2R system appearing post-signal.
Static Fib Levels: Colored horizontal lines representing the market's "structural dynamic."
The Green "Active Channel" Box: Your zone of consideration. An area to manage a potential entry.
Development Philosophy
Reversal Point Dynamics was engineered to answer a fundamental question: can we objectively measure the forces behind a market turn? It is a synthesis of concepts from market microstructure, statistics, and information theory. The objective was never to create a "perfect" system, but to build a robust decision-support tool that provides a measurable, statistical edge by focusing on the principle of confluence.
By demanding that multiple, independent market dynamics align simultaneously, RPD filters out the vast majority of market noise. It is designed for the trader who thinks in terms of probability and risk management, not in terms of certainties. It is a tool to help you discount the obvious and bet on the unexpected alignment of market forces.
"Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected."
— George Soros
Trade with insight. Trade with anticipation.
— Dskyz, for DAFE Trading Systems
Adaptive Trend Cloud + Smart Reversal Zones [@darshakssc]This indicator combines a volatility-adjusted trend cloud with RSI- and volume-based reversal signals to help traders visually spot potential trend continuation or reversal zones.
It’s designed to look clean, colorful, and informative — great for both beginners and experienced traders looking for chart clarity and actionable insights.
🔍 How It Works
🔵 1. Trend Cloud
1. The cloud is created using a 34-period EMA as the base and adjusted with a 14-period ATR multiplier.
2. When price is above the EMA, the cloud turns green (bullish).
3. When price is below the EMA, it turns red (bearish).
4. A neutral gray tone shows when price is inside the cloud, signaling potential indecision.
🔁 2. Smart Reversal Signal Logic
1. Signals appear only when price enters the cloud zone, indicating a potential change in direction.
2. To confirm the reversal, the following conditions must also be met:
3. RSI is below 40 (for bullish reversals) or above 60 (for bearish reversals)
4. A volume spike occurs (1.8× the 20-bar volume average)
5. A cooldown of 10 bars between signals prevents overplotting
🎯 3. TP & SL Labels
1. When a valid buy or sell signal appears:
🎯 TP (Take Profit) is placed at 2× ATR distance
🛑 SL (Stop Loss) is placed at 1× ATR distance
These levels are shown via chart labels for visual reference
🛎️ 4. Alerts
1. Built-in alerts trigger on:
🟢 Buy reversal signals
🔴 Sell reversal signals
✅ How to Use
1. Apply the indicator to any chart (works best on 5min–4h timeframes)
2. Look for the 🟢 Buy / 🔴 Sell labels when price touches the cloud
3. Use the visual TP/SL markers as reference zones — not financial advice
4. Combine with your own risk management, price action or confluence tools
⚙️ Customization Options
1. EMA & ATR lengths and multipliers
2. RSI and volume thresholds
3. Signal cooldown to reduce noise
4. Toggle TP/SL zones on or off
⚠️ Disclaimer
This script is for educational purposes only and does not constitute financial advice. Always test on demo accounts and combine with your own trading system.
Multi-Timeframe SMTSummery
The Multi-Timeframe SMT indicator is designed to identify and visualize Higher Timeframe (HTF) data on a Lower Timeframe (LTF) chart, allowing traders to see the broader market context without changing their current chart's resolution. It accurately draws pivots and SMT divergences from higher timeframes on the corresponding candles of your current lower timeframe chart.
Its core features include:
Multi-Timeframe Analysis: Configure and monitor pivots on up to four independent timeframes, from intraday to monthly.
Customizable Pivot Detection: Define the strength of pivots by adjusting the number of bars to the left and right.
SMT Divergence: Automatically identifies bullish and bearish SMT divergences by comparing the price action of the main chart symbol with a chosen correlated asset.
Early SMT Detection: A unique feature that monitors a lower "detection timeframe" to provide early warnings of potential SMT setups before they're confirmed on the main timeframe. Note that this early detection is only shown on timeframes equal to or lower than the "Detection timeframe" you have set.
Visual Cues & Alerts: Clear on-chart labels, lines, and fully customizable alerts notify you of confirmed pivots and SMT divergences, ensuring you don't miss key opportunities.
Important Nuance Regarding Pivot Label Display
Due to a self-imposed limit within this script's drawing management logic, the indicator might quickly reach its drawing capacity if you enable pivot crosses for multiple timeframes simultaneously. When this internal drawing limit is exceeded, the script is designed to automatically remove the oldest drawings to make space for new ones.
Therefore, to ensure optimal performance and visibility of the most recent and relevant pivots, it's highly recommended to only enable the "Show Pivot Crosses" option for one timeframe at a time. If you wish to view pivots for a different timeframe, simply disable the pivot crosses for the currently active timeframe and then enable them for your desired one. This approach prevents the rapid cycling and disappearance of pivot labels, providing a clearer and more stable visual experience.
In-Depth Explanation of the Logic
This script is built on two primary concepts: pivot points and Smart Money Technique (SMT) divergence. It systematically collects historical data on multiple timeframes, identifies pivots, and then compares them between two assets to find divergences.
Pivot Point Identification
A pivot is a turning point in the market. A pivot high is a candle that has a higher high than the candles to its immediate left and right. Conversely, a pivot low is a candle with a lower low than its neighbors.
How it Works in the Script:
The script tracks the highest high and lowest low for each period of the selected timeframe (e.g., for each 4-hour candle). When a new high-timeframe candle closes, it stores that high/low value and its bar index in an array. The checkForPivot() function then checks if a recently stored high or low qualifies as a pivot.
Key Inputs:
Left Strength (leftBars1): The number of candles to the left that must have a lower high (for a pivot high) or higher low (for a pivot low).
Right Strength (rightBars1): The number of candles to the right that must meet the same criteria.
For example, with Left Strength and Right Strength both set to 3, a pivot high is only confirmed when its high is greater than the highs of the 3 previous high-timeframe candles and the 3 subsequent high-timeframe candles. Increasing these values will identify more significant, longer-term pivots.
Smart Money Technique (SMT) Divergence
SMT Divergence is a concept popularized by The Inner Circle Trader (ICT). It occurs when two closely correlated assets fail to move in sync. For instance, if Asset A makes a higher high but Asset B fails to do so and instead makes a lower high, this creates a bearish SMT divergence. It suggests that the "smart money" may not be supporting the move in Asset A, signaling a potential reversal.
Bearish SMT: Main asset makes a higher high, while the correlated asset makes a lower high. This is a potential sell signal.
Bullish SMT: Main asset makes a lower low, while the correlated asset makes a higher low. This is a potential buy signal.
How it Works in the Script:
Data Request: For each timeframe, the script uses the request.security() function to fetch the high and low data for both the main chart symbol (syminfo.tickerid) and the chosen Comparison Asset.
Pivot Comparison: When a new pivot is confirmed on the main asset, the script checks if a corresponding pivot also formed on the comparison asset at the same time.
Divergence Check: It then compares the direction of the pivots. For a bearish SMT, it checks if the main asset's new pivot high is higher than its previous pivot high, while the comparison asset's new pivot high is lower than its previous one. The logic is reversed for bullish SMT.
Visualization: If a divergence is found, the script draws a red (bearish) or green (bullish) line connecting the two pivots on your chart and places an "SMT" label.
Early SMT Detection
This is a proactive feature designed to give you a heads-up. Waiting for a 4-hour or daily pivot to form can take a long time. The early detection system looks for SMT divergences on a much smaller, user-defined Detection timeframe (e.g., 15-minute).
How it Works in the Script:
Awaiting Setup: After a primary pivot (Pivot A) is formed on the main timeframe (e.g., a Daily pivot high), the script begins monitoring.
Intraday Monitoring: It then watches the Detection timeframe (e.g., 15-minute) for smaller intraday pivots.
Potential Divergence: It looks for an intraday pivot that forms a divergence against the primary Pivot A.
Watchline & Alert: When this "potential" divergence occurs, the script draws a dashed white line and triggers a "Potential SMT" alert. This isn't a confirmed SMT on the main timeframe yet, but it's a powerful early warning that one may be forming.
Drawing & Object Management
To keep the chart clean and prevent performance issues, the script manages its drawings (lines and labels) efficiently. It stores them in arrays and uses a drawing limit to automatically delete the oldest drawings as new ones are created, ensuring your TradingView remains responsive.
How to Use the Indicator
Configuration
Enable Timeframes: Use the checkboxes (Enable Timeframe 1, Enable Timeframe 2, etc.) to activate the timeframes you want to monitor. It's often best to start with one or two to keep the chart clean.
Select Timeframes: Choose the higher timeframes you want to analyze (e.g., 240 for 4-hour, D for Daily, W for Weekly).
Set Pivot Strength: The default of 3 for Left/Right strength is a good starting point. Increase it to find more significant market structure points or decrease it for more frequent, shorter-term pivots.
Configure SMT:
Check Enable SMT for the timeframes where you want to detect divergence.
Enter a Comparison Asset . This is crucial. Ensure the assets are correlated.
To use the early warning system, check Enable early SMT detection and select an appropriate Detection timeframe (e.g., 15 or 60 minutes for a Daily analysis).
Max Drawdown (Asset-Based Lookback)Max Drawdown (Long-Term Trading)
🟦 Majors BTC, ETH, BNB, LTC 180 – 365
Captures full correction cycles and recovery patterns (6–12 months).
🟩 Altcoins SOL, ADA, DOT, LINK, AVAX 90 – 180
Alts move faster than majors; 3–6 months catches most large swings.
🟥 Meme coins DOGE, SHIB, PEPE, FLOKI 60 – 120
Volatile with quick trend reversals; 2–4 months captures parabolic runs + drawdowns.
📅 Chart Timeframe:
Use Daily (1D) timeframe for all these.
For extra macro insight, try Weekly (1W) with 52 bars (≈ 1 year).
Compare multiple assets using the same period to assess relative risk.
If you're building a long-term portfolio, combine this with:
200-day SMA or EMA for trend context.
Sharpe Ratio or Sortino Ratio if you're looking for risk-adjusted return metrics.
SCPEM - Socionomic Crypto Peak Model (0-85 Scale)SCPEM Indicator Overview
The SCPEM (Socionomic Crypto Peak Evaluation Model) indicator is a TradingView tool designed to approximate cycle peaks in cryptocurrency markets using socionomic theory, which links market behavior to collective social mood. It generates a score from 0-85 (where 85 signals extreme euphoria and high reversal risk) and plots it as a blue line on the chart for visual backtesting and real-time analysis.
#### How It Works
The indicator uses technical proxies to estimate social mood factors, as Pine Script cannot fetch external data like sentiment indices or social media directly. It calculates a weighted composite score on each bar:
- Proxies derive from price, volume, and volatility data.
- The raw sum of factor scores (max ~28) is normalized to 0-85.
- The score updates historically for backtesting, showing mood progression over time.
- Alerts trigger if the score exceeds 60, indicating high peak probability.
Users can adjust inputs (e.g., lengths for RSI or pivots) to fine-tune for different assets or timeframes.
Metrics Used (Technical Proxies)
Crypto-Specific Sentiment
Approximated by RSI (overbought levels indicate greed).
Social Media Euphoria
Based on volume relative to its SMA (spikes suggest herding/FOMO).
Broader Social Mood Proxies
Derived from ATR volatility (high values signal uncertain/mixed mood).
Search and Cultural Interest Proxied by OBV trend (rising accumulation implies growing interest).
Socionomic Wildcard
Uses Bollinger Band width (expansion for positive mood, contraction for negative).
Elliott Wave Position
Counts recent price pivots (more swings indicate later wave stages and exhaustion).
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.
Gold Power Hours Strategy📈 Gold Power Hours Trading Strategy
Trade XAUUSD (Gold) or XAUEUR during the most volatile hours of the New York session, using momentum and trend confirmation, with session-specific risk/reward profiles.
✅ Strategy Rules
🕒 Valid Trading Times ("Power Hours"):
Trades are only taken during high-probability time windows on Tuesdays, Wednesdays, and Thursdays , corresponding to key New York session activity:
Morning Session:
08:00 – 11:00 (NY time)
Afternoon Session:
12:30 – 16:00
19:00 – 22:00
These times align with institutional activity and economic news releases.
📊 Technical Indicators Used:
50-period Simple Moving Average (SMA50):
Identifies the dominant market trend.
14-period Relative Strength Index (RSI):
Measures market momentum with session-adjusted thresholds.
🟩 Buy Signal Criteria:
Price is above the 50-period SMA (bullish trend)
RSI is greater than:
60 during Morning Session
55 during Afternoon Session
Must be during a valid day (Tue–Thu) and Power Hour session
🟥 Sell Signal Criteria:
Price is below the 50-period SMA (bearish trend)
RSI is less than:
40 during Morning Session
45 during Afternoon Session
Must be during a valid day and Power Hour session
🎯 Trade Management Rules:
Morning Session (08:00–11:00)
Stop Loss (SL): 50 pips
Take Profit (TP): 150 pips
Risk–Reward Ratio: 1:3
Afternoon Session (12:30–16:00 & 19:00–22:00)
Stop Loss (SL): 50 pips
Take Profit (TP): up to 100 pips
Risk–Reward Ratio: up to 1:2
⚠️ TP is slightly reduced in the afternoon due to typically lower volatility compared to the morning session.
📺 Visuals & Alerts:
Buy signals: Green triangle plotted below the bar
Sell signals: Red triangle plotted above the bar
SMA50 line: Orange
Valid session background: Light pink
Alerts: Automatic alerts for buy/sell signals
Tsallis Entropy Market RiskTsallis Entropy Market Risk Indicator
What Is It?
The Tsallis Entropy Market Risk Indicator is a market analysis tool that measures the degree of randomness or disorder in price movements. Unlike traditional technical indicators that focus on price patterns or momentum, this indicator takes a statistical physics approach to market analysis.
Scientific Foundation
The indicator is based on Tsallis entropy, a generalization of traditional Shannon entropy developed by physicist Constantino Tsallis. The Tsallis entropy is particularly effective at analyzing complex systems with long-range correlations and memory effects—precisely the characteristics found in crypto and stock markets.
The indicator also borrows from Log-Periodic Power Law (LPPL).
Core Concepts
1. Entropy Deficit
The primary measurement is the "entropy deficit," which represents how far the market is from a state of maximum randomness:
Low Entropy Deficit (0-0.3): The market exhibits random, uncorrelated price movements typical of efficient markets
Medium Entropy Deficit (0.3-0.5): Some patterns emerging, moderate deviation from randomness
High Entropy Deficit (0.5-0.7): Strong correlation patterns, potentially indicating herding behavior
Extreme Entropy Deficit (0.7-1.0): Highly ordered price movements, often seen before significant market events
2. Multi-Scale Analysis
The indicator calculates entropy across different timeframes:
Short-term Entropy (blue line): Captures recent market behavior (20-day window)
Long-term Entropy (green line): Captures structural market behavior (120-day window)
Main Entropy (purple line): Primary measurement (60-day window)
3. Scale Ratio
This measures the relationship between long-term and short-term entropy. A healthy market typically has a scale ratio above 0.85. When this ratio drops below 0.85, it suggests abnormal relationships between timeframes that often precede market dislocations.
How It Works
Data Collection: The indicator samples price returns over specific lookback periods
Probability Distribution Estimation: It creates a histogram of these returns to estimate their probability distribution
Entropy Calculation: Using the Tsallis q-parameter (typically 1.5), it calculates how far this distribution is from maximum entropy
Normalization: Results are normalized against theoretical maximum entropy to create the entropy deficit measure
Risk Assessment: Multiple factors are combined to generate a composite risk score and classification
Market Interpretation
Low Risk Environments (Risk Score < 25)
Market is functioning efficiently with reasonable randomness
Price discovery is likely effective
Normal trading and investment approaches appropriate
Medium Risk Environments (Risk Score 25-50)
Increasing correlation in price movements
Beginning of trend formation or momentum
Time to monitor positions more closely
High Risk Environments (Risk Score 50-75)
Strong herding behavior present
Market potentially becoming one-sided
Consider reducing position sizes or implementing hedges
Extreme Risk Environments (Risk Score > 75)
Highly ordered market behavior
Significant imbalance between buyers and sellers
Heightened probability of sharp reversals or corrections
Practical Application Examples
Market Tops: Often characterized by gradually increasing entropy deficit as momentum builds, followed by extreme readings near the actual top
Market Bottoms: Can show high entropy deficit during capitulation, followed by normalization
Range-Bound Markets: Typically display low and stable entropy deficit measurements
Trending Markets: Often show moderate entropy deficit that remains relatively consistent
Advantages Over Traditional Indicators
Forward-Looking: Identifies changing market structure before price action confirms it
Statistical Foundation: Based on robust mathematical principles rather than empirical patterns
Adaptability: Functions across different market regimes and asset classes
Noise Filtering: Focuses on meaningful structural changes rather than price fluctuations
Limitations
Not a Timing Tool: Signals market risk conditions, not precise entry/exit points
Parameter Sensitivity: Results can vary based on the chosen parameters
Historical Context: Requires some historical perspective to interpret effectively
Complementary Tool: Works best alongside other analysis methods
Enjoy :)
Boomerang Trading Indicator# Boomerang News Trading Indicator
## Overview
The Boomerang Trading Indicator is designed to identify potential reversal opportunities following major economic news releases. This indicator analyzes the initial market reaction to news events and provides visual cues for potential counter-trend trading opportunities based on Fibonacci retracement levels.
## How It Works
### News Event Detection
- Automatically detects major news release times (NFP, CPI, FOMC, etc.)
- Analyzes the first significant price movement following news releases
- Requires minimum candle size threshold to filter out weak reactions
### First Move Analysis
The indicator employs multiple analytical methods to determine the initial market direction:
**Simple Analysis (High Confidence):**
- When the news candle has ≥70% body-to-total ratio, uses straightforward bullish/bearish classification
**Advanced Analysis (Complex Cases):**
- Volume-weighted direction analysis
- Momentum and wick pattern analysis
- Market structure and gap analysis
- Weighted voting system combining all methods
### Entry Signal Generation
Based on the "boomerang" concept where markets often reverse after initial news reactions:
**For Bullish First Moves (Price Up Initially):**
- Generates SHORT entry signals when price retraces to 1.25-1.5 Fibonacci levels
- Visual: Red triangles above price bars
**For Bearish First Moves (Price Down Initially):**
- Generates LONG entry signals when price retraces to -0.25 to -0.5 Fibonacci levels
- Visual: Green triangles below price bars
## Key Features
### Visual Elements
- **Fibonacci Levels**: Displays key retracement levels based on the initial reaction range
- **Entry Zones**: Clear visual marking of optimal entry areas
- **Direction Arrows**: Shows the initial market reaction direction
- **Target Levels**: Displays profit target zones at 50% and 100% retracement levels
### Information Panel
Real-time display showing:
- Current setup status
- First move direction and body percentage
- Recommended trade direction
- Key price levels (reaction high/low)
- Profit targets with historical success rates
### Alert System
- Pre-news warnings (customizable timing)
- News event notifications
- Setup activation alerts
- Entry signal notifications
### Success Tracking
- Visual "BOOM!" animations when targets are hit
- Target 1 (50% level): ~95% historical success rate
- Target 2 (Main target): ~80% historical success rate
## Configuration Options
### Time Settings
- News release hour and minute (customizable for different events)
- Pre-news alert timing
- Setup duration (default 60 bars after news)
### Fibonacci Levels
- Adjustable retracement percentages
- Customizable target levels
- Mid-level importance weighting
### Risk Management
- Minimum reaction candle size filter
- Maximum risk point setting
- Visual risk/reward display
### Display Options
- Toggle Fibonacci level visibility
- Toggle target level display
- Toggle animation effects
- Customizable alert preferences
## Applicable News Events
This indicator is designed for high-impact economic releases:
- Non-Farm Payrolls (NFP) - First Friday, 8:30 AM ET
- Consumer Price Index (CPI) - Monthly, 8:30 AM ET
- Producer Price Index (PPI) - Monthly, 8:30 AM ET
- Gross Domestic Product (GDP) - Quarterly, 8:30 AM ET
- FOMC Interest Rate Decisions - 8 times yearly, 2:00 PM ET
## Trading Strategy Framework
### Core Principle
Markets often overreact to news initially, then reverse toward more rational price levels. This "boomerang effect" creates short-term trading opportunities.
### Entry Strategy
1. Wait for significant initial reaction (>10 points minimum)
2. Identify the initial direction using multi-factor analysis
3. Trade opposite to the initial reaction when price reaches sweet spot zones
4. Use Fibonacci retracement levels as entry triggers
### Risk Management
- Always use appropriate position sizing
- Set stop losses beyond recent swing levels
- Consider market volatility and news importance
- Monitor for setup invalidation signals
## Important Notes
### Educational Purpose
This indicator is for educational and analytical purposes. Users should:
- Thoroughly test strategies in demo environments
- Understand the risks involved in news trading
- Consider market conditions and volatility
- Use proper risk management techniques
### Market Considerations
- High volatility during news events increases both opportunity and risk
- Spreads may widen significantly during news releases
- Different brokers may have varying execution conditions
- Economic calendar timing may vary between sources
### Limitations
- Past performance does not guarantee future results
- Market conditions can change, affecting strategy effectiveness
- News events may have unexpected outcomes affecting normal patterns
- Technical analysis should be combined with fundamental analysis
## Version Information
- Compatible with TradingView Pine Script v5
- Designed for 1-minute timeframe optimal performance
- Works on major forex pairs, indices, and commodities
- Regular updates based on market condition changes
---
**Disclaimer:** This indicator is provided for educational purposes only. Trading involves substantial risk and is not suitable for all investors. Past performance is not indicative of future results. Users should conduct their own research and consider their financial situation before making trading decisions.
Normalized Open InterestNormalized Open Interest (nOI) — Indicator Overview
What it does
Normalized Open Interest (nOI) transforms raw futures open-interest data into a 0-to-100 oscillator, so you can see at a glance whether participation is unusually high or low—similar in spirit to an RSI but applied to open interest. The script positions today’s OI inside a rolling high–low range and paints it with contextual colours.
Core logic
Data source – Loads the built-in “_OI” symbol that TradingView provides for the current market.
Rolling range – Looks back a user-defined number of bars (default 500) to find the highest and lowest OI in that window.
Normalization – Calculates
nOI = (OI – lowest) / (highest – lowest) × 100
so 0 equals the minimum of the window and 100 equals the maximum.
Visual cues – Plots the oscillator plus fixed horizontal levels at 70 % and 30 % (or your own numbers). The line turns teal above the upper level, red below the lower, and neutral grey in between.
User inputs
Window Length (bars) – How many candles the indicator scans for the high–low range; larger numbers smooth the curve, smaller numbers make it more reactive.
Upper Threshold (%) – Default 70. Anything above this marks potentially crowded or overheated interest.
Lower Threshold (%) – Default 30. Anything below this marks low or capitulating interest.
Practical uses
Spot extremes – Values above the upper line can warn that the long side is crowded; values below the lower line suggest disinterest or short-side crowding.
Confirm breakouts – A price breakout backed by a sharp rise in nOI signals genuine engagement.
Look for divergences – If price makes a new high but nOI does not, participation might be fading.
Combine with volume or RSI – Layer nOI with other studies to filter false signals.
Tips
On intraday charts for non-crypto symbols the script automatically fetches daily OI data to avoid gaps.
Adjust the thresholds to 80/20 or 60/40 to fit your market and risk preferences.
Alerts, shading, or additional signal logic can be added easily because the oscillator is already normalised.
Momentum Trajectory Suite📈 Momentum Trajectory Suite
🟢 Overview
Momentum Trajectory Suite is a multi-faceted indicator designed to help traders evaluate trend direction, volatility conditions, and behavioral sentiment in a single consolidated view.
By combining a customizable Trajectory EMA, adaptive Bollinger Bands, and a Greed vs. Fear heatmap, this tool empowers traders to identify directional bias, measure momentum strength, and spot potential reversals or continuation setups.
🧠 Concept
This indicator merges three classic techniques:
Trend Analysis: Trajectory EMA highlights the prevailing directional momentum by smoothing price action over a customizable period.
Volatility Envelopes: Bollinger Bands adapt to dynamic price swings, showing overbought/oversold extremes and periods of contraction or expansion.
Behavioral Sentiment: A Greed vs. Fear heatmap combines RSI and MACD Histogram readings to visualize when markets are dominated by buying enthusiasm or selling pressure.
The combination is designed to help traders interpret market context more effectively than using any single component alone.
🛠️ How to Use the Indicator
Trajectory EMA:
Use the blue EMA line to assess overall trend direction.
Price closing above the EMA may indicate bullish momentum; closing below may indicate bearish bias.
Buy/Sell Signals:
Green circles appear when price crosses above the EMA (potential long entry).
Red circles appear when price crosses below the EMA (potential exit or short entry).
Bollinger Bands:
Monitor upper/lower bands for overbought and oversold price extremes.
Narrowing bands may signal upcoming volatility expansion.
Greed vs. Fear Heatmap:
Green histogram bars indicate bullish sentiment when RSI exceeds 60 and MACD Histogram is positive.
Red histogram bars indicate bearish sentiment when RSI is below 40 and MACD Histogram is negative.
Gray bars indicate neutral or mixed conditions.
Background Color Zones:
The chart background shifts to green when EMA slope is positive and red when negative, providing quick directional cues.
All inputs are adjustable in settings, including EMA length, Bollinger Band parameters, and oscillator configurations.
📊 Interpretation
Bullish Conditions:
Price above the Trajectory EMA, background green, and Greed heatmap active.
May signal trend continuation and increased buying pressure.
Bearish Conditions:
Price below the Trajectory EMA, background red, and Fear heatmap active.
May signal momentum breakdown or potential continuation to the downside.
Volatility Clues:
Wide Bollinger Bands = trending, volatile market.
Narrow Bollinger Bands = low volatility and possible breakout setup.
Signal Confirmation:
Consider combining signals (e.g., EMA crossover + Greed/Fear heatmap + Bollinger Band touch) for higher-confidence entries.
📝 Notes
The script does not repaint or use future data.
Suitable for multiple timeframes (intraday to daily).
May be combined with other confirmation tools or price action analysis.
⚠️ Disclaimer
This script is for educational and informational purposes only and does not constitute financial advice. Trading carries risk and past performance is not indicative of future results. Always perform your own due diligence before making trading decisions.
Squeeze & Breakout Confirmation StrategyThis strategy focuses on identifying periods of low volatility (Bollinger Band Squeeze) and then confirming the direction of the subsequent breakout with momentum, volume, and candle strength.
Concepts Applied: Bollinger Bands (Squeeze), RSI (Momentum), Market Volume (Conviction), Candle Size (Strength)
Buy Signal:
Bollinger Band Squeeze: Look for a period where the Bollinger Bands contract significantly, indicating low volatility and consolidation. The bands should be very close to the price action.
RSI Breakout: After the squeeze, wait for the price to break decisively above the upper Bollinger Band. Simultaneously, the RSI should break above 60 (or even 70), indicating strong bullish momentum.
Volume Surge: The breakout candle should be accompanied by a significant increase in trading volume, ideally above its recent average, confirming strong buying interest.
Strong Bullish Candle: The breakout candle itself should be a large, bullish candle (e.g., a strong green candle with a small upper wick or a bullish engulfing pattern), demonstrating buyer conviction.
Sell Signal (Short):
Bollinger Band Squeeze: Look for a period where the Bollinger Bands contract significantly.
RSI Breakdown: After the squeeze, wait for the price to break decisively below the lower Bollinger Band. Simultaneously, the RSI should break below 40 (or even 30), indicating strong bearish momentum.
Volume Surge: The breakdown candle should be accompanied by a significant increase in trading volume, ideally above its recent average, confirming strong selling interest.
Strong Bearish Candle: The breakdown candle itself should be a large, bearish candle (e.g., a strong red candle with a small lower wick or a bearish engulfing pattern), demonstrating seller conviction.
