Sharp Stack V 3.0

The Core Problem: Waiting for Momentum
Most traders struggle with the same issue: by the time a standard momentum indicator (like MACD or RSI) gives a signal, the price has already moved significantly. This "lag" forces you to enter late, skewing your risk-to-reward ratio and often resulting in buying tops or selling bottoms. Traders need a way to identify the structural precondition for a move before the explosive breakout happens.

Our Solution: Sharp Stack
Sharp Stack is a geometric pattern recognition engine that acts as a Heads-Up Display for momentum. Instead of waiting for a lagging average to cross, it scans for precise, proprietary consolidation structures—"Stacks"—that historically precede trend resumptions.

1. Predictive Visualization: It detects valid setups in real-time and projects potential Entry and Target levels before price reaches them.
2. Dynamic State Machine: The script differentiates between a "Pending" setup (faded visuals) and a "Triggered" signal (bright visuals), allowing you to prepare for the trade before execution.

Technical Innovations

1. Geometric Pattern Engine (Proprietary Logic)
Standard indicators use simple math. Sharp Stack uses a custom multi-bar pattern recognition engine based on the principle of "Compressed Volatility":
* COC (Candle Over Candle): Identifies a swing high ("The Pop") followed by a period of controlled selling ("The Stack"). The signal triggers when buyers reclaim the stack's upper boundary.
* CUC (Candle Under Candle): Identifies a swing low ("The Drop") followed by a period of weak buying ("The Stack"). The signal triggers when sellers push through the stack's lower boundary.
* Sequence Validation: The engine enforces strict temporal constraints (3-5 bars) to filter out "lazy" corrective phases. If a consolidation drags on too long, it indicates trend weakness rather than a pause, and the pattern is discarded.

2. Persistent State Logic (var)
Most scripts simply redraw pixels on every tick. Sharp Stack utilizes a custom State Machine architecture to track the full signal lifecycle:
* Scanning: Identifying valid structural pivots in memory.
* Pending: Projecting breakout levels on the chart with faded lines.
* Active: Hardening signal markers to bright colors upon confirmation.
* Tracking: Monitoring subsequent price action against the defined Price Target (PT). If hit, the PT label dynamically updates its color to indicate success.

3. Advanced Filtering & Invalidation
* Momentum Context: Signals are filtered via MACD analysis to ensure alignment with the immediate trend phase (Bullish setups only in Bullish momentum).
* Structural Invalidation (useInval):
* Level 1 (Trigger vs Entry): Rejects signals if the trigger candle violates the structural bounds of the entry candle.
* Level 2 (Entry vs PT): Rejects signals if the risk/reward geometry is inverted. This prevents entering on "fake-out" wicks or poor R:R setups.

⚙️ Features & Settings
* Visuals: Toggle "Show Last Signal Only" to keep your chart clean by auto-deleting old signals. Note: Turn this OFF if you want to see historical signals for backtesting.
* Filters: Enable/Disable "MACD Filter" or "Invalidation Levels" to suit your specific trading style or asset class.
* Alerts: Fully compatible with "Any alert() function call" for automated notifications.

🚫 Justification for Closed Source
This script relies on a proprietary Geometric Pattern Recognition Engine and a complex, custom-built State Machine architecture to handle dynamic invalidation levels that standard Pine Script functions cannot achieve natively. The source code contains unique methods for calculating volatility compression ranges and specific bar-by-bar sequence logic which are central to our innovative trading workflow and intellectual property.