Unreached Highs/Lows Oscillator [LuxAlgo]The Unreached Highs/Lows Oscillator highlights the amount of unreached high/low prices as a percentage over time, helping visualize trend strength and momentum from bullish and bearish market participants.
🔶 USAGE
This indicator measures the strength of directional price movements, helping traders visualize the strength of both the bullish and bearish market participants.
When prices are moving up with strength, the price structure will not come back to retest previous lows. Therefore, unreached lows keep adding up.
When prices are moving down with strength, they will not retest previous highs; therefore, unreached highs keep adding up.
As we can see on the chart, high readings of unreached highs (red) and low readings of unreached lows (green) are considered bearish, and a downtrend in price confirms this bias. Conversely, high readings of unreached lows and low readings of unreached highs are considered bullish. On the chart, this is reflected as an uptrend.
Additionally, the oscillator can reveal significant breakouts on the chart, with unreached highs or lows decreasing rapidly indicating that a large number of highs/lows have been reached.
Due to the oscillator being normalized, overbought and oversold levels are included.
In this gold chart, we have different examples of how to use the tool in conjunction with price behavior to understand the market. Let's dissect it step by step:
1. Uptrend: Bullish readings are above 80, and bearish readings are below 20. The market is trending up.
2. Range: Mixed readings around 50 for both bullish and bearish; the market is ranging.
3. Uptrend: The same as before. Bullish above 80 and bearish below 20.
4. Pullback: A bullish dip below 80 to 50 and a bearish reading below 20 indicates a pullback.
5. Range: Mixed readings. In this case, it is bullish above and below 80 and bearish above and below 20. The market is ranging.
6. Uptrend: Bullish above 80 and bearish below 20; the market keeps moving up.
7. Pullback: Bullish dips below 80 and bearish rises to 50 indicate a pullback.
8. Uptrend: As before, bullish is above 80 and bearish is below 20; the market is trending up.
This Bitcoin chart shows how to use extreme readings of 0 and 100 to detect potential reversals. When both readings are at extreme opposites, we set the threshold level at 100 and 0 instead of the default levels of 80 and 20 to better identify these areas.
As we can see, extreme readings at points 1 and 5 identify major reversals that lead to a change in trend. Extreme readings at points 2, 3, 4, and 6 identify minor reversals that do not lead to a change in trend.
From the settings panel, traders can adjust the length parameter. A smaller value measures smaller price movements, while a larger value measures larger price movements. A length value of 20 is used by default.
The chart shows how different values affect bullish and bearish measures.
🔶 SETTINGS
Length: Select the maximum number of highs and lows to be used.
🔹 Style
Bullish: Select a color for unreached lows.
Bearish: Select a color for unreached highs.
Top Threshold: Select the top threshold level and color. Enable the Auto feature to choose the default color.
Bottom Threshold: Select the bottom threshold level and color. Enable the Auto feature to choose the default color.
Reversal
Smart Money Flow Signals [QuantAlgo]🟢 Overview
The Smart Money Flow Signals indicator synthesizes significant volume-price dynamics through multi-component analysis to identify potential accumulation and distribution phases driven by substantial market participants. It combines Money Flow Index momentum, Chaikin Money Flow accumulation patterns, volume-weighted price momentum, and buying/selling pressure metrics into a unified composite oscillator that quantifies periods of concentrated capital movement, helping traders and investors identify conditions where significant volume participants may be actively positioning across multiple market conditions and timeframes.
🟢 How It Works
The indicator's core methodology lies in its weighted composite approach, where multiple volume-price components are calculated sequentially and then integrated to create a comprehensive significant flow activity signal.
First, the Money Flow Index (MFI) is calculated to measure buying and selling pressure by incorporating volume into price momentum analysis:
raw_money_flow = source * volume
positive_flow = source >= source ? raw_money_flow : 0
negative_flow = source < source ? raw_money_flow : 0
positive_money_flow = math.sum(positive_flow, mfi_period)
negative_money_flow = math.sum(negative_flow, mfi_period)
money_flow_index = 100 - 100 / (1 + positive_money_flow / negative_money_flow)
This creates an RSI-style momentum indicator that tracks whether money (price × volume) is flowing into or out of the asset, with values ranging from 0 to 100 where readings above 50 suggest buying pressure dominance.
Then, Chaikin Money Flow (CMF) is computed to evaluate accumulation and distribution by analyzing where prices close within each bar's range, weighted by volume:
money_flow_multiplier = high != low ? (close - low - (high - close)) / (high - low) : 0
money_flow_volume = money_flow_multiplier * volume
volume_sma = ta.sma(volume, trend_period)
chaikin_money_flow = volume_sma != 0 ? ta.sma(money_flow_volume, trend_period) / volume_sma : 0
Positive CMF values indicate accumulation (closes near the high of the range), while negative values indicate distribution (closes near the low of the range), with volume weighting emphasizing periods of significant participation.
Next, Volume Analysis is performed to quantify current volume intensity relative to historical averages:
volume_average = ta.sma(volume, trend_period)
volume_strength = volume_average != 0 ? volume / volume_average : 1
volume_weight = math.log(volume_strength + 1)
The logarithmic transformation creates a volume weight that amplifies signals during high-volume periods while preventing extreme volume spikes from overwhelming the composite calculation.
Following this, Buy/Sell Pressure is quantified by comparing cumulative volume during bullish versus bearish candles:
buying_pressure = math.sum(volume * (close >= open ? 1 : 0), trend_period)
selling_pressure = math.sum(volume * (close < open ? 1 : 0), trend_period)
pressure_ratio = (buying_pressure - selling_pressure) / (buying_pressure + selling_pressure) * 100
This creates a directional pressure ratio that reveals whether significant participants are predominantly buying or selling, expressed as a percentage between -100 (all selling) and +100 (all buying).
Then, Volume-Weighted Momentum is calculated through an exponential smoothing channel that adjusts price deviation based on volume intensity:
exponential_smooth_average = ta.ema(source, momentum_channel_period)
deviation = ta.ema(math.abs(source - exponential_smooth_average), momentum_channel_period)
channel_index = deviation != 0 ? (source - exponential_smooth_average) / (0.015 * deviation) * (1 + volume_weight * 0.5) : 0
This channel index measures how far price has deviated from its exponential average relative to typical deviation, with the volume weight multiplier (1 + volume_weight * 0.5) amplifying the signal when significant volume accompanies the price movement.
Finally, the Composite Wave is constructed by combining all components with specific weighting to create the final oscillator:
momentum_wave = ta.ema(channel_index, trend_period)
money_flow_wave = (money_flow_index - 50) * 1.2
chaikin_flow_wave = chaikin_money_flow * 100
composite_wave = momentum_wave * 0.5 + chaikin_flow_wave * 0.3 + money_flow_wave * 0.2
smoothed_wave = ta.sma(composite_wave, signal_smoothing)
This creates a multi-dimensional volume flow oscillator that combines price-volume momentum, accumulation-distribution patterns, and buying-selling pressure into a single signal, providing traders with probabilistic insights into periods of concentrated market activity and directional bias based on weighted component convergence.
🟢 Signal Interpretation
▶ Positive Values (Above Zero, Green): Composite money flow above equilibrium indicating net accumulation pressure, positive buying volume dominance, and bullish volume-price alignment = Favorable conditions for long positions, significant capital flowing into the asset = Buy/hold opportunities
▶ Negative Values (Below Zero, Red): Composite money flow below equilibrium indicating net distribution pressure, negative selling volume dominance, and bearish volume-price alignment = Unfavorable conditions for long positions, significant capital flowing out of the asset = Sell/short opportunities
▶ Extreme Overbought Zone: Excessive bullish money flow indicating potential accumulation exhaustion, where buying pressure may have reached unsustainable levels with elevated reversal risk = Caution on new longs, potential distribution phase beginning, profit-taking zone for existing positions
▶ Extreme Oversold Zone: Excessive bearish money flow indicating potential distribution exhaustion, where selling pressure may have reached unsustainable levels with elevated reversal risk = Caution on new shorts, potential accumulation phase beginning, buying opportunity zone for contrarian entries
▶ Smoothed Trend Line (White) Alignment: When the smoothed trend line confirms the composite wave direction, it validates the underlying volume-price trend and filters false signals caused by short-term noise
▶ Volume Intensity Correlation: Gradient intensity (color saturation) reflects combined wave strength, volume participation, and directional alignment, where darker/more saturated colors indicate stronger concentrated activity and higher-probability directional moves
🟢 Features
▶ Preconfigured Presets: Three optimized parameter configurations accommodate different trading styles, timeframes, and market analysis approaches.
1. "Default" provides balanced volume flow measurement suitable for swing trading on 4-hour and daily charts, offering moderate responsiveness to money flow shifts with standard RSI-equivalent MFI period and moderate smoothing for most market conditions.
2. "Fast Response" delivers heightened sensitivity optimized for active intraday trading and scalping on 1-minute to 1-hour charts, using compressed calculation periods across all components and minimal smoothing to capture rapid volume flow changes and quick trend shifts as they develop, ideal for early entry/exit opportunities with acceptance of increased signal frequency during consolidation.
3. "Smooth Trend" offers conservative extreme identification ideal for position trading and long-term analysis on daily to weekly charts, employing extended periods across all money flow components with substantial smoothing to filter short-term noise and isolate only strong, sustained accumulation and distribution phases driven by significant volume participants.
▶ Built-in Alerts: Seven alert conditions enable comprehensive automated monitoring of significant money flow transitions and extreme market states.
1. "Bullish Flow" triggers when the composite wave crosses above zero, signaling the shift from distribution to accumulation and concentrated buying activity beginning.
2. "Bearish Flow" activates when the composite wave crosses below zero, signaling the shift from accumulation to distribution and concentrated selling activity starting.
3. "Any Flow Direction Change" provides a combined notification for either bullish or bearish crossover regardless of direction, useful for general money flow momentum shifts.
4. "Extreme Overbought" alerts when the composite wave reaches or exceeds the overbought threshold (default +60), indicating excessive buying pressure and potential exhaustion.
5. "Extreme Oversold" notifies when the composite wave reaches or falls below the oversold threshold (default -60), indicating excessive selling pressure and potential capitulation.
6. "Overbought Reversal" triggers specifically when the wave crosses back down through the overbought level after being extended, signaling the beginning of distribution from extreme levels.
7. "Oversold Reversal" activates when the wave crosses back up through the oversold level after being extended, signaling the beginning of accumulation from extreme levels.
▶ Color Customization: Six visual themes (Classic, Aqua, Cosmic, Ember, Neon, plus Custom) accommodate different chart backgrounds and visual preferences, ensuring optimal contrast and immediate identification of bullish versus bearish volume flow conditions across various devices and screen sizes. Optional bar coloring provides instant visual context of current significant volume activity intensity and direction without switching between the price pane and indicator pane, enabling traders and investors to immediately assess volume-price positioning dynamics while analyzing price action.
Hooke's Law: Market ElasticityHooke's Law: Market Elasticity is a physics-based mean reversion system that models price action using the principles of Classical Mechanics.
Most technical indicators treat the market as a purely statistical entity. This script takes a different approach, treating the market as a physical object with Mass (Volume) and Stiffness (Volatility) . By adapting Hooke’s Law of Elasticity (𝐹=−𝑘𝑋), it visualizes the "Tensile Stress" between price and its equilibrium, identifying the exact moment when a trend becomes unsustainable and must "snap back."
The Physics of Trading
In physics, Hooke's Law states that the force needed to extend a spring is proportional to the distance it is stretched. We map this to financial markets using four key components:
Equilibrium (𝑋=0): The "Resting State" of the market, calculated using a Volume-Weighted Moving Average (VWMA) . This represents the fair value where buyers and sellers agree.
2. Displacement (𝑋): The distance price travels away from this equilibrium.
3. Spring Constant (𝑘): We use Volatility (Standard Deviation) to measure the market's "stiffness."
• Low Volatility: The spring is loose; price can wander far without snapping.
• High Volatility: The spring is stiff; even small deviations create massive tension.
4. Force (𝐹): The calculation is weighted by Relative Volume . A price spike on low volume has low force (easy to reverse), while a spike on high volume carries high momentum (harder to reverse).
Visual Guide & Signals
The indicator uses a hierarchy of visuals to guide you through the trade lifecycle:
1. The Elastic Ribbon (Heatmap)
Connects Price to the Baseline. As the ribbon turns Solid White , the market has reached its Elastic Limit (Critical Zone). This is your warning that a move is overextended.
2. The "Golden" Labels (LONG / SHORT)
These are your Entry Signals . They appear only when the physics "snap" is confirmed by an internal momentum filter and price action.
3. The Small Circles (Minor Reversions)
These dots represent "Minor Snaps." They occur when the elastic tension releases, but the momentum filter hasn't fully confirmed a major reversal.
• Usage: These are excellent Early Warning signs or Scale-In points for aggressive traders.
Strategy: Entries, Exits & Take Profits
This script is designed as a complete system. Here is how to manage the trade using the visual cues:
• Entry: Wait for a LONG or SHORT label to appear.
• Stop Loss: Use the Solid White Line that appears automatically with the signal. If price touches this line, the physics setup has failed—exit immediately.
• Take Profit 1 (The Equilibrium): The Gray Baseline represents the market's center of gravity. In mean reversion trading, price tends to snap back to this line. This is the statistically highest-probability target.
• Take Profit 2 (The Circles): If you are in a trade and a Circle appears in the opposite direction, it indicates the market is experiencing counter-tension. This is an ideal place to secure partial profits or trail your stop.
Settings & Configuration
• Baseline Length (Default: 34): The lookback period for the Center of Gravity.
• Elasticity Limit (Default: 2.618): The Golden Ratio is used as the standard deviation threshold for the "Critical Zone."
• Volume Weighting (Default: True): Recommended. Adds the "Mass" component to the physics calculation.
• Stop Loss Buffer (Default: 0.5): The distance (in Sigma) for the Stop Loss placement.
Risk Disclaimer
Not Financial Advice: This indicator is designed for educational and analytical purposes only. It visualizes market data based on mathematical formulas (Hooke's Law and Statistical Deviation) and does not guarantee future performance or profits.
Market Risks: Financial trading involves significant risk. The "Critical Zones" and "Signals" generated by this script identify statistical extremes, but markets can remain irrational or overextended for long periods ("Plastic Deformation").
Usage: Do not trade blindly based on these signals. Always use this tool in conjunction with your own analysis, risk management, and stop-losses. The author assumes no responsibility for any trading losses incurred while using this script.
Key Zone$ - Support and Resistance0DTE Bounce Zones (6M) — Support & Resistance with VWAP, Volume, and Risk Management
This indicator is built for intraday and 0DTE options trading, focused on high-quality bounce and rejection setups at historically proven support and resistance zones.
It automatically identifies key zones from six months of historical price action and waits for real-time confirmation before signaling CALL or PUT opportunities. The goal is to reduce noise, avoid weak bounces, and provide clear, rules-based trade structure.
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CORE FEATURES
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Historical Support & Resistance Zones (6 Months)
Zones are built using 15-minute pivot highs and lows.
A zone must be tested at least 3 times to be considered valid.
Nearby zones are merged automatically to reduce clutter.
Zones extend forward in time and update dynamically.
Support zones are shown in green, resistance zones in red.
These are higher-quality structural levels, not same-day levels.
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0DTE-Focused Entry Logic
Signals only trigger when price interacts with a confirmed zone and shows a strong rejection candle.
Signals are limited to high-probability trading windows only.
Market Open: 9:30–10:45 ET
Market Close: 3:00–4:00 ET
This avoids midday chop and focuses on periods with real momentum.
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VWAP Confirmation (Strict)
CALL setups require a VWAP reclaim.
PUT setups require a VWAP loss.
This aligns trades with institutional order flow instead of counter-trend noise.
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MACD Momentum Filter
MACD histogram behavior is used to confirm momentum direction and avoid taking bounces against the prevailing move.
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ATR Candle Strength Filter
The signal candle must be large enough relative to ATR.
This filters out weak or indecisive candles that often fail with 0DTE.
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Advanced Volume Confirmation (Relative Volume)
Relative Volume (RVOL) is used instead of raw volume.
Different RVOL thresholds are applied for CALLS versus PUTS.
Higher RVOL is required for PUTS due to downside urgency.
Lower RVOL is allowed for CALLS due to grind-up behavior.
Separate RVOL thresholds are used for the market open and market close.
This ensures signals only occur when real participation is present.
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Built-In Risk Management (2:1 Reward/Risk)
Every signal automatically calculates an entry, stop loss, and target.
Stop loss is based on the zone edge with an ATR buffer.
Targets default to a 2:1 reward-to-risk ratio.
Entry, stop, and target levels are drawn directly on the chart and included in alerts.
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Smart Alerts (CALLS & PUTS)
Alerts trigger only when all conditions are met.
Alerts include trade direction, entry price, stop price, target price, and RVOL information.
Alerts are designed for 5-minute confirmation trading.
To use alerts, select “Any alert() function call” when creating the alert.
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INTENDED USE
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0DTE options trading.
5-minute chart confirmation.
Index ETFs and liquid equities such as SPY, QQQ, IWM, and SPX.
Traders who want aggressive entries with confirmation.
Traders who value structure, volume, and risk control.
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NOTES
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This is not a prediction tool.
Signals require discipline and confirmation.
Best results come from trading only the highest-quality setups.
Regression Slope Oscillator [BigBeluga]🔵 OVERVIEW
The Regression Slope Oscillator is a trend–momentum tool that applies multiple linear regression slope calculations over different lookback ranges, then averages them into a single oscillator line. This design helps traders visualize when price is extending beyond typical regression behavior, as well as when momentum is shifting up or down.
🔵 CONCEPTS
Regression Slope – Measures the steepness and direction of price trends over a selected length.
f_log_regression(src, length) =>
float sumX = 0.0
float sumY = 0.0
float sumXSqr = 0.0
float sumXY = 0.0
for i = 0 to length - 1
val = math.log(src )
per = i + 1.0
sumX += per
sumY += val
sumXSqr += per * per
sumXY += val * per
slope = (length * sumXY - sumX * sumY) / (length * sumXSqr - sumX * sumX)
slope*-1
Multi–Sample Averaging – Instead of relying on one regression slope, the indicator loops through many lengths (from Min Range to Max Range with Step increments) and averages their slopes.
multiSlope(length)=>
// Get regression slope
slope = f_log_regression(close, length)
slopAvg.push(slope)
for i = minRange to maxRange by step
multiSlope(i)
Color Gradient – The oscillator and candles are colored dynamically from oversold (orange) to overbought (aqua), based on slope extremes observed within the user–defined Color Range.
Trend Oscillation – When the oscillator rises, price trend is strengthening; when it falls, momentum weakens.
🔵 FEATURES
Calculates regression slopes across a user–defined range (e.g., 10–100 with steps of 5).
Averages all sampled slopes into a single oscillator line.
Dynamic coloring of oscillator and chart candles based on slope values.
User–controlled Color Range :
High values (e.g., 50–100) → interpret as overbought vs oversold zones.
Low values (e.g., 2–5) → interpret as slope rising vs falling momentum shifts.
Dashboard table (top–right) displaying number of slope samples and current averaged slope value.
Candle coloring mode (optional) – candles take on the oscillator gradient color for at–a–glance reading of trend bias.
Signal Line (SMA) – A moving average of the slope oscillator used to identify momentum reversals.
Bullish Reversal Signal – Triggered when the oscillator crosses above the signal line while below zero, indicating downside momentum exhaustion and potential trend recovery.
Bearish Reversal Signal – Triggered when the oscillator crosses below the signal line while above zero, indicating upside momentum exhaustion and potential trend rollover.
Dual Placement Signals – Reversal signals are plotted both:
On the oscillator pane (for momentum context)
On the price chart (for execution alignment)
Confirmation Logic – Signals are only printed on confirmed bars to reduce repainting and false triggers.
🔵 HOW TO USE
Watch the oscillator cross above/below zero: signals shifts in regression slope direction.
Use the signal line crossovers near zero to identify early trend reversals.
Use high Color Range settings to identify potential overbought/oversold extremes in trend slope.
Use low Color Range settings for a faster, momentum–driven color change that tracks slope rising/falling.
Candle coloring highlights short–term trend pressure in sync with the oscillator.
Combine reversal signals with structure, support/resistance, or volume for higher–probability entries.
🔵 CONCLUSION
The Regression Slope Oscillator transforms raw regression slope data into a smooth, color–coded oscillator. By averaging across multiple regression lengths, it avoids the noise of single–range analysis while still capturing trend extensions and momentum shifts.
With the addition of signal line crossovers and confirmed reversal markers, the indicator now provides both trend context and actionable momentum signals within a single regression-based framework.
Vector Sniper What this script does
This indicator highlights high‑energy “vector” candles and marks optional Absolute Reversal candles (possible bottoms/tops) based on wick rejection, structure, and volume. It is designed for visual context, not automatic trade entries.
How it works (core logic)
The script combines volatility, volume, and price‑structure filters:
Vector candles: Require strong candle body, high volatility (true range Z‑score), high volume (volume Z‑score), and directional delta imbalance.
Structure filters: Optional break‑of‑structure and trap detection help remove noise.
Pre‑signals: A scoring system tracks early conditions (volume, imbalance, structure proximity, and EMA/VWAP alignment) and requires persistence across recent bars.
HTF confluence (optional): Uses higher‑timeframe EMA alignment with no lookahead bias.
Absolute Reversal candles
These are designed to mark potential local tops/bottoms and require:
Long wick rejection
Small body size
Strong close back into the range
Local structural extreme
Above‑average volume
Optional EMA trend bias (to confirm exhaustion)
How to use it
Use vector candles to spot high‑momentum activity.
Use pre‑signals as early warnings before vectors appear.
Use Absolute Reversal candles for potential turning points at extremes.
Adjust thresholds per timeframe and instrument.
Notes
Designed for standard candlesticks (not Heikin Ashi / Renko / Kagi / P&F).
No performance claims or guarantees.
HTF data uses lookahead_off to avoid repainting.
Piv X# Piv X Pro - Multi-Layer Reversal Detection System
## Overview
Piv X Pro is an advanced technical analysis indicator that combines dynamic pivot detection, Williams %R momentum divergence analysis, and multiple VWAP anchoring methods to identify high-probability mean reversion opportunities. Unlike simple indicator combinations, this script implements a layered filtration system where each component validates and refines signals from the previous layer, resulting in significantly fewer but higher-quality reversal setups.
## Core Methodology
### 1. Dynamic ATR-Based Pivot Detection
The script uses an adaptive pivot detection algorithm that adjusts sensitivity based on market volatility. Instead of fixed lookback periods, pivot strength is calculated dynamically using Average True Range (ATR):
**Calculation:** `pivot_strength = max(min_strength, min(ATR / mintick * multiplier, max_strength))`
This ensures:
- More sensitive pivots in low volatility (smaller ATR)
- More significant pivots in high volatility (larger ATR)
- Automatic adaptation across different market conditions and timeframes
**Significance Filtering:** Pivots must exceed a minimum ATR distance from recent price action (default 0.3 ATR) to filter noise. This prevents minor price fluctuations from being marked as significant pivots.
**Volume Confirmation (Optional):** Pivots can optionally require volume spikes (default 1.5x average volume) to ensure institutional participation.
### 2. Williams %R Momentum Divergence Engine
The script detects classic and hidden divergences between price pivots and Williams %R oscillator readings:
**Bullish Divergence Detection:**
- Price makes a lower low (confirmed pivot low)
- Williams %R makes a higher low (momentum improving)
- Divergence occurs in oversold zone (Williams %R ≤ -80)
- Lookback range: 60 bars maximum
**Bearish Divergence Detection:**
- Price makes a higher high (confirmed pivot high)
- Williams %R makes a lower high (momentum weakening)
- Divergence occurs in overbought zone (Williams %R ≥ -20)
- Lookback range: 60 bars maximum
**Divergence-Anchored VWAPs:** When a divergence is detected, a new VWAP calculation begins from that point, tracking institutional positioning relative to the momentum shift. This provides a dynamic mean reversion target that resets at each confirmed divergence.
### 3. Confluence Scoring System
Each detected pivot receives a numerical score (0-150+ points) based on multiple independent confirmation factors:
**Scoring Components:**
- Base Pivot Detection: 10 points
- Volume Spike Confirmation: 15 points
- Higher Timeframe Trend Alignment (4H EMA): 20 points
- RSI Extreme Levels (oversold/overbought): 25 points
- Mean Reversion Distance (>2.5 ATR from HTF MA): 20 points
- Exhaustion Patterns (price move + volume spike): 10 points
- ATR Price Confirmation: 10 points
- RSI Divergence: 15 points
- Swing Failure Pattern (SFP): 15 points
- Liquidity Sweep: 10 points
- Candle Reversal Confirmation: 10 points
- Key Level Alignment (previous day/week highs/lows): 10 points
- Fair Value Gap (FVG) Fill: 10 points
- Session Weighting (London/NY sessions): 10 points
- Multi-Timeframe Pivot Confluence: 15 points
**Zone Classification:**
- Regular Zones: Score 60-89 (green/purple boxes)
- Golden Zones: Score 90+ (yellow boxes with thicker borders)
Higher scores indicate stronger confluence and higher probability setups, but no prediction is guaranteed.
### 4. Mean Reversion Distance Filter
The script calculates how far price has stretched from the higher timeframe moving average:
**Calculation:** `distance_from_htf_ma = (close - HTF_EMA) / ATR`
**Mean Reversion Condition:**
- For long setups: Price >2.5 ATR below HTF EMA when HTF trend is up
- For short setups: Price >2.5 ATR above HTF EMA when HTF trend is down
This ensures pivots are only highlighted when price is statistically stretched and likely to revert toward the mean.
### 5. Multi-Period VWAP Framework
The script provides multiple VWAP calculations for different analysis purposes:
**Extreme VWAPs:**
- Bottom VWAP: Anchored to the absolute lowest low in the lookback period (default 50 bars)
- Top VWAP: Anchored to the absolute highest high in the lookback period
**Periodic VWAPs:**
- 4D VWAP: Resets every 4 days
- 9D VWAP: Resets every 9 days
- 4H VWAP: Resets every 4 hours
- 8H VWAP: Resets every 8 hours
- Weekly VWAP: Resets at the start of each week
- Monthly VWAP: Resets at the start of each month
- Yearly VWAP: Resets at the start of each year
**Previous Period VWAPs:**
- Previous Weekly, Monthly, and Yearly VWAPs are displayed as reference levels for support/resistance
**Divergence VWAPs:**
- Bullish Divergence VWAP: Resets at each bullish Williams %R divergence
- Bearish Divergence VWAP: Resets at each bearish Williams %R divergence
### 6. IBSS Pro Mean Reversion System
An integrated scalping system that provides entry signals within high-probability pivot zones:
**Components:**
- Dual EMA System: Fast EMA (12) and Slow EMA (26) with color-coded trend visualization
- RSI Oversold/Overbought Detection: Configurable levels (default 30/70)
- Zone-Based Entry: Signals only trigger when price is within active pivot zones (0.3 ATR around confirmed pivots)
- ATR-Based Dynamic Stops: Stop losses trail with position using ATR multiplier
**Signal Generation:**
- Buy signals: RSI crosses above oversold + Fast EMA > Slow EMA + Price in pivot low zone
- Sell signals: RSI crosses below overbought + Fast EMA < Slow EMA + Price in pivot high zone
## Why This Combination is Unique
This is not a simple indicator mashup. The components work together in a specific hierarchy:
1. **Williams %R Divergence** identifies momentum shifts before price confirms the reversal
2. **Dynamic Pivots** mark actual price structure extremes with ATR-based significance filtering
3. **Confluence Scoring** quantifies setup quality using 10+ independent confirmation factors
4. **Mean Reversion Distance** confirms price is statistically stretched (>2.5 ATR from HTF MA)
5. **VWAP Framework** tracks institutional positioning and provides objective mean levels
6. **IBSS Signals** provide precise entries within high-probability zones
Each layer filters the previous one, resulting in significantly fewer but higher-quality signals than any single indicator alone. The divergence-anchored VWAPs are unique - they reset at momentum shifts rather than arbitrary time periods, providing more relevant mean reversion targets.
## How to Use This Indicator
### For Swing Trading (15m-1H Charts)
1. Wait for a major pivot to form (diamond marker appears below/above bars)
2. Check the confluence score displayed in the zone label
3. Look for Golden Zones (score 90+, yellow boxes with thicker borders)
4. Enter when price enters the pivot zone (0.3 ATR around the pivot)
5. Use the nearest VWAP level as first target
6. Set stop loss beyond the pivot zone (typically 0.5-1 ATR)
### For Scalping (5m-15m Charts)
1. Enable IBSS Pro Signals in settings
2. Wait for price to enter an active pivot zone (colored boxes appear)
3. Take IBSS diamond signals that form within zones
4. Use ATR-based stop losses (dashed lines appear automatically if enabled)
5. Exit at pivot VWAP or opposite zone edge
### Visual Elements Explained
- **White/Purple Crosses**: Williams Divergence VWAPs (momentum-based mean reversion targets)
- **Green/Red Crosses**: Bottom/Top VWAPs (absolute extreme levels)
- **Colored Boxes**: Pivot reversal zones (opacity indicates confluence score)
- **Yellow Boxes**: Golden zones (90+ score, highest probability setups)
- **Small Diamonds**: Regular pivot detections
- **Green/Red Tiny Diamonds**: IBSS scalp entry signals (if enabled)
- **White/Purple MAs**: IBSS trend filter (12/26 EMA with cloud)
- **Dotted Lines**: Structure lines connecting consecutive pivots of same type
- **Blue Dashed Lines**: Market Structure Shift (CHoCH) markers
### Recommended Settings
**Conservative (Lower Timeframes 1m-5m):**
- ATR Pivot Strength: 0.8-1.0
- Volume Threshold: 2.0
- Min Pivot Significance: 0.4-0.5
- Enable ATR Confirmation: Yes
- Real-Time Mode: Off
- Score Threshold: 80+
**Aggressive (Higher Timeframes 15m-1H):**
- ATR Pivot Strength: 0.6-0.8
- Volume Threshold: 1.5
- Min Pivot Significance: 0.3
- Enable ATR Confirmation: No
- Real-Time Mode: On
- Score Threshold: 60+
## Chart Requirements
This indicator should be used **alone on a clean chart** with:
- Standard candlestick or bar chart type (NO Heikin Ashi, Renko, Point & Figure, or Range charts)
- No other indicators overlaid (all functionality is self-contained)
- Symbol and timeframe clearly visible in chart
- Full indicator name "Piv X Pro" visible in chart legend
## Important Disclaimers
- Past performance does not guarantee future results
- All signals are probabilistic indicators, not trading guarantees
- Use proper risk management and position sizing
- Test thoroughly on demo accounts before live trading
- Higher confluence scores indicate better setups but no prediction is certain
- Mean reversion strategies work best in ranging/choppy markets; may underperform in strong trending markets
- The lookahead bias warning: HTF EMA uses `barmerge.lookahead_on` for trend filtering only (not for signal generation), which may cause historical bars to show different trend states than real-time
## Key Differentiators
Unlike basic pivot or VWAP indicators:
- **Dynamic ATR-based pivot detection** vs static lookback periods
- **Quantified confluence scoring** vs subjective interpretation
- **Mean reversion distance filtering** (>2.5 ATR from HTF MA) vs all pivots shown
- **Divergence-anchored VWAPs** vs static period VWAPs
- **Multi-layer confirmation system** (10+ independent factors) vs single signal generation
- **Integrated scalping system** that only triggers in high-probability zones
This script is open-source and available for educational purposes. Users are encouraged to understand the methodology before using it for live trading decisions.
Reversal Trading ChecklistUse to grade your reversal trades before execution.
Middle Half of hour refers to :15ish-:45ish when reversals are higher probability. After :45-:15 reversals have lower chance of occurring. Not a super highly weighted item but it will help.
Institutional Scanner FixHere is a professional Pine Script (Version 5) for TradingView. It is optimized to precisely identify the "Absorption" and "Reversal" signals.
What this script does for you:
Auto-Fibonacci: It automatically calculates the 0.618 Golden Ratio of the last 50 candles.
Volume Delta Check: It calculates the delta (buy volume minus sell volume) per candle.
Signal: It marks a "Buy Absorption" when the price touches the 0.618 level but the delta turns positive (green arrow).
The Volume Multiplier is your scanner's "sensitivity knob." It determines how much more volume compared to the average must flow for a signal to be classified as institutionally relevant. Here is the bank standard for calibration, based on your trading strategy and the asset's liquidity:
The rule-of-thumb values for the multiplier
Strategy Type | Recommended Value | Logic
Conservative (High Conviction) | 2.0 to 2.5 | Only extreme volume spikes are marked. Good for swing trades on a daily basis.
Standard (Day Trading) | 1.5 to 1.8 | The "sweet spot." Marks volume that is approximately 50-80% above average.
Aggressive (Scalping) | 1.2 to 1.3 | Reacts very quickly to small order flow changes but produces more "noise" (false signals).
SA Trump Volatility Pattern Wick + Volume Shock ReversalDisclaimer (read first)
Educational use only — not financial advice. This script does not provide entries/exits, targets, position sizing, or profit guarantees. Trading (especially options/futures) involves substantial risk and can result in loss of principal (and more for leveraged products). Use at your own discretion.
Best use cases on the 2-Hour timeframe
On 2H, this script becomes a high-signal-quality “shock reversal” detector instead of a noisy candle toy. You’re essentially filtering for:
Large wick rejection
Small real body
Statistically unusual volume (Z-score > threshold)
Context alignment (trend filter + prior bar direction + optional RSI)
What 2H is best for
1) Detecting “event shock” reversals
2H bars often capture:
Macro headlines
Fed commentary
earnings reactions (for equities)
sudden volatility expansions
When the script fires on 2H, it often means:
“Aggressive push happened, liquidity got rejected, and participation was unusually high.”
That’s a structural clue, not a trade instruction.
2) Filtering false breakouts / breakdowns
The wick requirement is basically “failed continuation.”
On 2H, this is powerful around:
prior day highs/lows
weekly pivots
obvious consolidation edges
key moving averages (fast SMA / slow SMA gate)
Bull pattern = flush + reclaim behavior.
Bear pattern = pop + rejection behavior.
3) Options traders: timing “premium exposure windows”
On 2H, this is great for options traders who want to avoid buying premium into a fake move.
BullTrump on 2H can be used as a “don’t chase puts / be cautious short” context shift.
BearTrump on 2H can be used as a “don’t chase calls / be cautious long” context shift.
It’s a “regime hint” for the next few sessions, not a one-bar command.
4) Futures traders: rotation vs continuation framework
A 2H “Trump Candle” often marks:
the end of a liquidation leg
a stop-run / squeeze peak
a pivot moment where the market shifts from impulse to balance
Use it to decide whether you’re in:
continuation mode (trend carries)
or rotation mode (mean-reversion / two-way)
How to use it (2H workflow)
Step A — Keep it strict at first
Recommended defaults for 2H:
wickFracThreshold: 0.40–0.55
bodyMaxFrac: 0.35–0.45
volZThresh: 1.0–1.5
useRSIFilter: ON
RSI bull min / bear max: 45 / 55 (good baseline)
Step B — Treat triggers as “context events”
When it prints, ask 3 questions:
Where did it happen? (key level or random spot)
Was it aligned with trend gate? (SMA fast/slow)
Did volume Z-score spike? (true shock vs normal wick)
Higher quality triggers happen when:
the wick pierces a known level (prior swing / range edge)
and the close re-enters the range
and volume Z-score is meaningfully positive
Step C — Confirm with the next 1–2 candles (optional)
On 2H, it’s reasonable to wait for:
a follow-through close
or a hold above/below fast SMA
or a second “acceptance” candle
You can do this manually without changing code.
Other recommended timeframes (best to worst)
✅ 4H (even cleaner, fewer signals)
Use for:
swing context
multi-day pivots
big reversal points
✅ 1H (more signals, still structured)
Use for:
intraday + overnight context
day-trade bias shifts
✅ 30m (for active traders)
Use for:
tighter responsiveness
more setups
But requires more discretion; noise increases.
⚠️ 15m and below (only if you increase strictness)
If you want to run it on 5m/15m:
raise volZThresh (ex: 1.5–2.0)
raise wickFracThreshold (ex: 0.50–0.65)
lower bodyMaxFrac (ex: 0.25–0.35)
Otherwise it will trigger too often.
Best markets for this script
Works best on:
Index futures: /NQ, /ES (big volume makes Z-score meaningful)
Liquid ETFs: SPY, QQQ
High-volume large caps (AAPL, MSFT, NVDA etc.)
Less reliable on:
thin small caps (volume Z-score gets weird)
low-volume premarket candles
illiquid options underlyings
Signal Inside the Script ✅ SA ZoneEngine Bias Filtered is a market-structure bias and confirmation tool designed for futures To request access: 👉 Purchase here: trianchor.gumroad.com
Best GBT for this indicator
chatgpt.com
chatgpt.com
chatgpt.com
EMA Spread Exhaustion DetectorEMA Spread Exhaustion – Reversal Scalper's Tool
Identifies trend exhaustion for high-probability counter-trend entries. Triggers when EMA(4/9/20) stack is fully aligned and spread stretches beyond ±ATR threshold. Ideal confluence for TDI hooks + strong rejection candles on 15s charts. Visual markers, fills, and alerts for quick scalps.
Advanced Momentum TrackerThe Advanced Momentum Tracker (AMT) is a technical indicator designed to identify high-probability trend reversals and momentum shifts in real-time. Unlike traditional indicators that rely solely on mathematical formulas, AMT analyzes price action structure and historical patterns to detect when market momentum is shifting from bullish to bearish (and vice versa).
Core Methodology:
The indicator tracks consecutive price movements and maintains a comprehensive database of historical momentum patterns. It identifies trend changes by analyzing:
Sequential candle relationships (opens and closes)
Break of key trailing stop levels formed by recent price action
Historical success rates of similar momentum patterns
Key Features
1. Dynamic Levels:
Automatically plots real-time dynamic trailing stop levels based on current momentum
Color-coded lines: Green for bullish momentum, Red for bearish momentum
These levels act as trigger points for potential trend changes
2. Entry Signal Markers:
Clear BUY (↑) and SELL (↓) arrows when momentum shifts are detected
Arrows positioned above/below candles for maximum visibility ,Signals only appear on confirmed trend changes
3. Momentum Score Display:
Shows statistical probability based on historical pattern analysis
Displays strength percentage of current momentum continuation
Helps traders assess confidence level of the current trend
4. Exit Zone Indicator:
Plots recommended exit levels for active positions
Dynamic color coding: Red for long exits, Green for short exits
Warning system (orange) when price breaches exit zones
5. Position Management Filter:
Optional risk filter to avoid trades with excessive distance from trigger level
Customizable position threshold percentage
Helps maintain consistent risk-reward ratios
6. Comprehensive Alert System:
Customizable alert messages for both long and short signals
Configurable alert frequency (once per bar or once per bar close)
Real-time notifications for all signal types
Customization Options-
Visual Settings:
Toggle visibility of current price level, momentum score, and exit zones
Customizable colors for all elements (bullish/bearish themes)
Adjustable line thickness for dynamic levels
Entry Markers:
Custom colors for long and short entry signals
Adjustable arrow distance from candles
Core Parameters:
Historical Depth: Amount of past data to analyze (default: 20,000 bars)
Sensitivity Level: Controls how strong a move must be to trigger signals (default: 4)
Higher values = fewer but stronger signals
Lower values = more signals with earlier entries
Position Management:
Enable/disable position filter
Set maximum acceptable risk threshold as percentage
How It Works:-
Momentum Detection Engine: The script continuously monitors price action, tracking each bullish and bearish leg. It maintains arrays of opens, closes, and counts to build a comprehensive picture of market structure.
Pattern Recognition: When price breaks key levels (minimum/maximum of recent candles based on sensitivity), the indicator recognizes a potential momentum shift.
Statistical Validation: The script compares the current pattern against its historical database to calculate the probability of momentum continuation.
Signal Generation: When a valid trend change is detected (and passes the position filter if enabled), entry signals are displayed with corresponding exit zones.
Best Use Cases:
Swing trading on any timeframe (works on 1m to 1D charts)
Trend reversal identification
Momentum trading strategies
Works on all markets: Forex, Stocks, Crypto, Indices, Commodities etc
Recommended Settings:
Scalping/Day Trading: Sensitivity 2-3, Historical Depth 10,000-20,000
Swing Trading: Sensitivity 3-4, Historical Depth 20,000-30,000
Position Trading: Sensitivity 4-5, Historical Depth 30,000+
Important Notes:
Signals appear only on confirmed bars (not on real-time candles unless confirmed)
The momentum score becomes more accurate as more historical data is processed
Position filter should be adjusted based on the volatility of the instrument being traded
Best used in conjunction with proper risk management and position sizing
What Makes This Indicator Unique:
Unlike indicators that simply apply mathematical formulas to price data, AMT learns from historical price behavior. It doesn't just tell you what happened—it tells you what's likely to happen next based on thousands of similar situations in the past. The statistical momentum score provides an edge that pure technical indicators cannot offer.
Disclaimer: This indicator is a tool for technical analysis and should not be used as the sole basis for trading decisions. Always use proper risk management and combine with your own analysis. Happy Trading !!
AlphaStrike: Zen ModeDescription:
1. The Philosophy: Reducing Cognitive Load Modern charts are often cluttered with dozens of noisy lines (Bollinger Bands, Moving Averages, Oscillators) that lead to "Analysis Paralysis." This script is designed with a "Zen" philosophy: P rocess the complexity in the background, but display only the decision.
This is not a simple indicator overlay. It is a Risk-Based Trading Engine that runs multiple validation checks (Momentum, Volatility, and Price Action) simultaneously but hides the underlying calculations to keep the chart clean. It focuses the trader's attention on the two things that matter most: Trend Direction and Position Sizing.
2. The "Invisible" Technical Engine The script operates on a Dual-State Logic system that adapts to market conditions. It uses standard indicators as filters, not just visuals.
A. Trend State (The Backbone) The script calculates a volatility-adjusted Trend Baseline (SuperTrend).
Green State: The market is in a markup phase. The script looks for continuation.
Red State: The market is in a markdown phase. The script looks for defense.
B. The "Confluence" Reversal Logic Instead of cluttering the screen with Bollinger Bands and RSI windows, the script performs these checks internally:
Condition 1 (Volatility): Is price extending beyond the 2.0 Standard Deviation (Bollinger Lower/Upper)?
Condition 2 (Momentum): Is RSI overextended (<35 or >65)?
Condition 3 (Price Action): Is there a specific Pin Bar candle pattern (Long wick rejection)?
Result: Only when all three conditions align does the script print a "Reversal Circle." This filters out weak signals that usually occur in strong trends.
3. The Risk Management Calculator (Key Feature) Most traders fail not because of bad entries, but because of inconsistent sizing. This script features a built-in Dynamic Position Sizing Dashboard located in the bottom right.
Adaptive Stop Loss:
In a Trend: The Stop Loss is automatically set to the Trend Line (SuperTrend).
In a Reversal: The script internally scans for the nearest Swing Low/High (using hidden Pivot calculations) and sets the Stop Loss there.
Position Sizing Math: The dashboard reads your Account Size and Risk % inputs. It instantly calculates the "Max Size" (contract/share amount) allowed for the current trade.
Formula: Position Size = (Account Value * Risk %) / Distance to Stop.
Benefit: This ensures you risk the exact same dollar amount on every trade, whether the stop loss is 1% away or 10% away.
4. How to Read the Signals
Triangles (Breakouts): These represent a shift in the dominant trend direction.
Green Triangle: Bullish Trend Start.
Red Triangle: Bearish Trend Start.
Circles (Mean Reversion): These are high-probability counter-trend plays.
Blue Circle: Buy Reversal (Oversold + Pinbar + Bollinger Support).
Orange Circle: Sell Reversal (Overbought + Pinbar + Bollinger Resistance).
5. Settings
Trend Settings: Adjust the ATR Period and Factor to change the sensitivity of the trend line.
Reversal Settings: Tweak the RSI and Bollinger thresholds to filter out more/less signals.
Risk Management: Input your total Account Size and desired Risk Per Trade (e.g., 1%) to calibrate the Dashboard.
Disclaimer This tool provides algorithmic analysis and risk calculations. It does not guarantee profits or provide financial advice. Always verify position sizes before executing.
4 Bar Sequential Counter (9 to 13) [DotGain]4-Bar Sequential Counter (Seq4)
This indicator identifies potential trend exhaustion phases using a strict sequential count
based on the relationship between the current closing price and the closing price four bars earlier.
How it works
• A bullish sequence is counted as long as the current close remains below the close from 4 bars ago.
• A bearish sequence is counted as long as the current close remains above the close from 4 bars ago.
• The count resets immediately if the respective condition is no longer met.
• The sequence counts up to a maximum of 13 , after which it resets and a new sequence may begin.
Visualization
• Only counts from 9 to 13 are displayed on the chart.
• Bullish sequences are plotted below price bars.
• Bearish sequences are plotted above price bars.
• The minimalist design keeps the chart clean and focused on potentially relevant exhaustion zones.
Interpretation
• A count of 9 may indicate an early sign of market overextension.
• A count of 13 represents a more advanced sequence and a higher probability
of consolidation or corrective price action.
• This indicator is not a standalone trading system and should be used in combination
with trend analysis, volume, and support/resistance levels.
Alerts
• Bullish sequence at 9
• Bullish sequence at 13
• Bearish sequence at 9
• Bearish sequence at 13
Disclaimer
This "4-Bar Sequential Counter (9–13)" (Seq4) indicator is provided for informational and educational purposes only. It does not, and should not be construed as, financial, investment, or trading advice.
This indicator is an independent implementation of a sequential counting method and is not affiliated with, or endorsed by any trademarked trading concepts or methodologies.
The signals generated by this tool (Green and Red) are the result of a specific set of algorithmic conditions. They are not a direct recommendation to buy or sell any asset.
All trading and investing in financial markets involves a substantial risk of loss. You can lose all of your invested capital.
Past performance does not guarantee future results.
This indicator highlights sequential price exhaustion patterns and may generate false, lagging, or incomplete signals. Markets can remain unpredictable longer than you can remain solvent.
The creator DotGain assumes no liability for any financial losses or damages you may incur, directly or indirectly, as a result of using this indicator or the information it provides.
You are solely responsible for your own trading and investment decisions. Always conduct your own research (DYOR), validate signals with other methods, and consider your personal risk tolerance before entering any trade.
Liquidity Strain Detector [MarkitTick]💡 This indicator provides a specialized method for detecting market anomalies where price movement becomes disconnected from typical volume profiles, signaling potential exhaustion events. By combining statistical analysis of liquidity (price impact) with a directional trend filter, the tool aims to highlight moments of extreme market stress, such as panic selling or euphoric buying, that often precede mean reversions or trend pauses.
● Originality and Utility
Standard volume indicators often look at raw volume levels, which can be misleading during different times of the day or across different assets. This script calculates the efficiency of moving price (Illiquidity) and normalizes it statistically. This allows the trader to see when the market is becoming thin or stressed relative to recent history. It is particularly useful for contrarian traders looking for capitulation points within established trends, offering a unique perspective beyond standard RSI or MACD divergence.
● Methodology
The core mechanism drives a custom Liquidity Engine that performs the following steps:
Price Impact Calculation: It computes the ratio of the True Range to Volume. High values indicate that price is moving significant distances on relatively low volume or that volatility is extreme relative to participation.
Normalization: The raw impact data is smoothed using a logarithmic scale to handle the wide variance in volume data.
Statistical Scoring (Z-Score): The script calculates the Z-Score of this normalized data over a user-defined lookback period. This determines how many standard deviations the current liquidity stress is away from the mean.
Trend Filtering: A standard Exponential Moving Average (EMA) determines the dominant market direction to contextualize the stress signal.
● How to Use
The indicator plots labels on the chart when specific High Stress conditions are met during a trend:
SE (Seller Exhaustion - Green Label): Appears when the market is in a downtrend (price below EMA), the current candle is bearish, and the liquidity stress Z-Score breaches the upper threshold. This suggests panic selling or a liquidity gap down, often marking a temporary bottom or reversal point.
BE (Buyer Exhaustion - Red Label): Appears when the market is in an uptrend (price above EMA), the current candle is bullish, and the liquidity stress Z-Score breaches the upper threshold. This suggests a melt-up or buying climax into thin liquidity, often preceding a pullback.
● Inputs
Trend Filter Length: The period for the EMA used to determine the baseline trend direction.
Statistical Lookback: The number of bars used to calculate the mean and standard deviation for the Z-Score.
Stress Threshold (Sigma): The Z-Score value required to trigger a high-stress signal. Higher values result in fewer, more extreme signals.
● Disclaimer
All provided scripts and indicators are strictly for educational exploration and must not be interpreted as financial advice or a recommendation to execute trades. I expressly disclaim all liability for any financial losses or damages that may result, directly or indirectly, from the reliance on or application of these tools. Market participation carries inherent risk where past performance never guarantees future returns, leaving all investment decisions and due diligence solely at your own discretion.
Opening Range candle percent of ATRIt takes the opening range of the first candle - 5, 10, 15 or whatever minute - and finds what percent of the ATR that is. So if the opening candle high is 15 and low is 14, its range is 1. If the ATR (daily or whatever you want) is 2, then the opening candle's range is 50% of the ATR.
The percentage is displayed on right in a blue box.
The indicator is used in reversal strategies, since opening candles that eat up a large amount of the daily ATR have a higher probability of reversing.
Indicator made with ChatGPT.
ATR-Normalized VWMA DeviationThis indicator measures how far price deviates from the Volume-Weighted Moving Average ( VWMA ), normalized by market volatility ( ATR ). It identifies significant price reversal points by combining price structure and volatility-adjusted deviation behavior.
The core idea is to use VWMA as a dynamic trend anchor, then measure how far price travels away from it relative to recent volatility . This helps highlight when price has stretched too far and may be due for a reversal or pullback.
How it works:
VWMA deviation is calculated as the difference between price and the VWMA.
That deviation is divided by ATR (Average True Range) to normalize for current volatility.
The script tracks the highest and lowest normalized deviations over the chosen lookback period.
It also tracks price structure (highest/lowest highs/lows) over the same period.
A reversal signal is generated when a historical extreme in deviation aligns with a price structure extreme, and a confirmed reversal candle forms.
You get visual signals and color highlights where these conditions occur.
Settings explained:
Lookback period defines how many bars the script uses to find recent extremes.
ATR length controls how volatility is measured.
VWMA length controls how the volume-weighted moving average is calculated.
Signal filters help refine entries based on price vs deviation behavior.
Display options let you customize how signals and levels appear on the chart.
This indicator is especially useful for spotting potential turning points where price has moved far from VWMA relative to volatility, suggesting possible exhaustion or overextension.
Tips for use:
Combine with broader trend context (higher timeframe support/resistance).
Use with risk management rules (position sizing, stops) — signals are guides, not guaranteed entries.
Adjust lookback and ATR settings based on your trading timeframe and asset volatility.
Hurst-Optimized Adaptive Channel [Kodexius]Hurst-Optimized Adaptive Channel (HOAC) is a regime-aware channel indicator that continuously adapts its centerline and volatility bands based on the market’s current behavior. Instead of using a single fixed channel model, HOAC evaluates whether price action is behaving more like a trend-following environment or a mean-reverting environment, then automatically selects the most suitable channel structure.
At the core of the engine is a robust Hurst Exponent estimation using R/S (Rescaled Range) analysis. The Hurst value is smoothed and compared against user-defined thresholds to classify the market regime. In trending regimes, the script emphasizes stability by favoring a slower, smoother channel when it proves more accurate over time. In mean-reversion regimes, it deliberately prioritizes a faster model to react sooner to reversion opportunities, similar in spirit to how traders use Bollinger-style behavior.
The result is a clean, professional adaptive channel with inner and outer bands, dynamic gradient fills, and an optional mean-reversion signal layer. A minimalist dashboard summarizes the detected regime, the current Hurst reading, and which internal model is currently preferred.
🔹 Features
🔸 Robust Regime Detection via Hurst Exponent (R/S Analysis)
HOAC uses a robust Hurst Exponent estimate derived from log returns and Rescaled Range analysis. The Hurst value acts as a behavioral filter:
- H > Trend Start threshold suggests trend persistence and directional continuation.
- H < Mean Reversion threshold suggests anti-persistence and a higher likelihood of reverting toward a central value.
Values between thresholds are treated as Neutral, allowing the channel to remain adaptive without forcing a hard bias.
This regime framework is designed to make the channel selection context-aware rather than purely reactive to recent volatility.
🔸 Dual Channel Engine (Fast vs Slow Models)
Instead of relying on one fixed channel, HOAC computes two independent channel candidates:
Fast model: shorter WMA basis and standard deviation window, intended to respond quickly and fit more reactive environments.
Slow model: longer WMA basis and standard deviation window, intended to reduce noise and better represent sustained directional flow.
Each model produces:
- A midline (basis)
- Outer bands (wider deviation)
- Inner bands (tighter deviation)
This structure gives you a clear core zone and an outer envelope that better represents volatility expansion.
🔸 Rolling Optimization Memory (Model Selection by Error)
HOAC includes an internal optimization layer that continuously measures how well each model fits current price action. On every bar, each model’s absolute deviation from the basis is recorded into a rolling memory window. The script then compares total accumulated error between fast and slow models and prefers the one with lower recent error.
This approach does not attempt curve fitting on multiple parameters. It focuses on a simple, interpretable metric: “Which model has tracked price more accurately over the last X bars?”
Additionally:
If the regime is Mean Reversion, the script explicitly prioritizes the fast model, ensuring responsiveness when reversals matter most.
🔸 Optional Output Smoothing (User-Selectable)
The final selected channel can be smoothed using your choice of:
- SMA
- EMA
- HMA
- RMA
This affects the plotted midline and all band outputs, allowing you to tune visual stability and responsiveness without changing the underlying decision engine.
🔸 Premium Visualization Layer (Inner Core + Outer Fade)
HOAC uses a layered band design:
- Inner bands define the core equilibrium zone around the midline.
- Outer bands define an extended volatility envelope for extremes.
Gradient fills and line styling help separate the core from the extremes while staying visually clean. The midline includes a subtle glow effect for clarity.
🔸 Adaptive Bar Tinting Strength (Regime Intensity)
Bar coloring dynamically adjusts transparency based on how far the Hurst value is from 0.5. When market behavior is more decisively trending or mean-reverting, the tint becomes more pronounced. When behavior is closer to random, the tint becomes more subtle.
🔸 Mean-Reversion Signal Layer
Mean-reversion signals are enabled when the environment is not classified as Trending:
- Buy when price crosses back above the lower outer band
- Sell when price crosses back below the upper outer band
This is intentionally a “return to channel” logic rather than a breakout logic, aligning signals with mean-reversion behavior and avoiding signals in strongly trending regimes by default.
🔸 Minimalist Dashboard (HUD)
A compact table displays:
- Current regime classification
- Smoothed Hurst value
- Which model is currently preferred (Fast or Slow)
- Trend flow direction (based on midline slope)
🔹 Calculations
1) Robust Hurst Exponent (R/S Analysis)
The script estimates Hurst using a Rescaled Range approach on log returns. It builds a returns array, computes mean, cumulative deviation range (R), standard deviation (S), then converts RS into a Hurst exponent.
calc_robust_hurst(int length) =>
float r = math.log(close / close )
float returns = array.new_float(length)
for i = 0 to length - 1
array.set(returns, i, r )
float mean = array.avg(returns)
float cumDev = 0.0
float maxCD = -1.0e10
float minCD = 1.0e10
float sumSqDiff = 0.0
for i = 0 to length - 1
float val = array.get(returns, i)
sumSqDiff += math.pow(val - mean, 2)
cumDev += (val - mean)
if cumDev > maxCD
maxCD := cumDev
if cumDev < minCD
minCD := cumDev
float R = maxCD - minCD
float S = math.sqrt(sumSqDiff / length)
float RS = (S == 0) ? 0.0 : (R / S)
float hurst = (RS > 0) ? (math.log10(RS) / math.log10(length)) : 0.5
hurst
This design avoids simplistic proxies and attempts to reflect persistence (trend tendency) vs anti-persistence (mean reversion tendency) from the underlying return structure.
2) Hurst Smoothing
Raw Hurst values can be noisy, so the script applies EMA smoothing before regime decisions.
float rawHurst = calc_robust_hurst(i_hurstLen)
float hVal = ta.ema(rawHurst, i_smoothHurst)
This stabilized hVal is the value used across regime classification, dynamic visuals, and the HUD display.
3) Regime Classification
The smoothed Hurst reading is compared to user thresholds to label the environment.
string regime = "NEUTRAL"
if hVal > i_trendZone
regime := "TRENDING"
else if hVal < i_chopZone
regime := "MEAN REV"
Higher Hurst implies more persistence, so the indicator treats it as a trend environment.
Lower Hurst implies more mean-reverting behavior, so the indicator enables MR logic and emphasizes faster adaptation.
4) Dual Channel Models (Fast and Slow)
HOAC computes two candidate channel structures in parallel. Each model is a WMA basis with volatility envelopes derived from standard deviation. Inner and outer bands are created using different multipliers.
Fast model (more reactive):
float fastBasis = ta.wma(close, 20)
float fastDev = ta.stdev(close, 20)
ChannelObj fastM = ChannelObj.new(fastBasis, fastBasis + fastDev * 2.0, fastBasis - fastDev * 2.0, fastBasis + fastDev * 1.0, fastBasis - fastDev * 1.0, math.abs(close - fastBasis))
Slow model (more stable):
float slowBasis = ta.wma(close, 50)
float slowDev = ta.stdev(close, 50)
ChannelObj slowM = ChannelObj.new(slowBasis, slowBasis + slowDev * 2.5, slowBasis - slowDev * 2.5, slowBasis + slowDev * 1.25, slowBasis - slowDev * 1.25, math.abs(close - slowBasis))
Both models store their structure in a ChannelObj type, including the instantaneous tracking error (abs(close - basis)).
5) Rolling Error Memory and Model Preference
To decide which model fits current conditions better, the script stores recent errors into rolling arrays and compares cumulative error totals.
var float errFast = array.new_float()
var float errSlow = array.new_float()
update_error(float errArr, float error, int maxLen) =>
errArr.unshift(error)
if errArr.size() > maxLen
errArr.pop()
Each bar updates both error histories and computes which model has lower recent accumulated error.
update_error(errFast, fastM.error, i_optLookback)
update_error(errSlow, slowM.error, i_optLookback)
bool preferFast = errFast.sum() < errSlow.sum()
This is an interpretable optimization approach: it does not attempt to brute-force parameters, it simply prefers the model that has tracked price more closely over the last i_optLookback bars.
6) Winner Selection Logic (Regime-Aware Hybrid)
The final model selection uses both regime and rolling error performance.
ChannelObj winner = regime == "MEAN REV" ? fastM : (preferFast ? fastM : slowM)
rawMid := winner.mid
rawUp := winner.upper
rawDn := winner.lower
rawUpInner := winner.upper_inner
rawDnInner := winner.lower_inner
In Mean Reversion, the script forces the fast model to ensure responsiveness.
Otherwise, it selects the lowest-error model between fast and slow.
7) Optional Output Smoothing
After the winner is selected, the script optionally smooths the final channel outputs using the chosen moving average type.
smooth(float src, string type, int len) =>
switch type
"SMA" => ta.sma(src, len)
"EMA" => ta.ema(src, len)
"HMA" => ta.hma(src, len)
"RMA" => ta.rma(src, len)
=> src
float finalMid = i_enableSmooth ? smooth(rawMid, i_smoothType, i_smoothLen) : rawMid
float finalUp = i_enableSmooth ? smooth(rawUp, i_smoothType, i_smoothLen) : rawUp
float finalDn = i_enableSmooth ? smooth(rawDn, i_smoothType, i_smoothLen) : rawDn
float finalUpInner = i_enableSmooth ? smooth(rawUpInner, i_smoothType, i_smoothLen) : rawUpInner
float finalDnInner = i_enableSmooth ? smooth(rawDnInner, i_smoothType, i_smoothLen) : rawDnInner
This preserves decision integrity since smoothing happens after model selection, not before.
8) Dynamic Visual Intensity From Hurst
Transparency is derived from the distance of hVal to 0.5, so stronger behavioral regimes appear with clearer tints.
int dynTrans = int(math.max(20, math.min(80, 100 - (math.abs(hVal - 0.5) * 200))))
AI Reversal Signals Custom [wjdtks255]📊 Indicator Overview: AI Reversal Signals Custom
This indicator is a comprehensive trend-following and reversal detection tool. It combines the long-term trend bias of a 200 EMA with highly sensitive RSI-based reversal signals and momentum visualization. It is designed to capture market bottoms and tops by identifying exhaustion points in price action.
Key Features
200 EMA (Trend Filter): A gold line representing the long-term institutional trend. It helps traders distinguish between "buying the dip" and "catching a falling knife."
Reversal Buy/Sell Labels: Real-time signals that appear when the market recovers from extreme overbought or oversold conditions.
Dynamic Background Clouds: Visual indicators of trend strength changes, highlighting potential entry zones.
Momentum Histogram: Internal calculations mimic the "Bottom Bars" seen in professional suites to track the velocity of price movement.
📈 Trading Strategy (How to Trade)
1. High-Probability Long Setup (Buy)
Trend Confirmation: Price should ideally be trading above the 200 EMA for the highest success rate.
Signal: Wait for the "BUY" label to appear below the candle.
Momentum: Confirm with the Light Green background or histogram shift indicating recovery.
Entry: Enter on the close of the signal candle.
2. High-Probability Short Setup (Sell)
Trend Confirmation: Price should ideally be trading below the 200 EMA.
Signal: Wait for the "SELL" label to appear above the candle.
Momentum: Confirm with the Red background or histogram fading from green to red.
Entry: Enter on the close of the signal candle.
3. Risk Management
Stop Loss: Place your Stop Loss slightly below the recent swing low for Buy orders, or above the recent swing high for Sell orders.
Take Profit: Exit when the price reaches a major support/resistance level or when an opposing signal appears.
💡 Professional Tip
For the best results, use this indicator on the 15-minute or 1-hour timeframes. The most powerful "Ultimate Reversal" signals occur when there is a Bullish Divergence (Price making lower lows while the RSI makes higher lows) followed by a confirmed "BUY" label.
Custom Reversal Oscillator [wjdtks255]📊 Indicator Overview: Custom Reversal Oscillator
This indicator is a momentum-based oscillator designed to identify potential trend reversals by analyzing price velocity and relative strength. It visualizes market exhaustion and recovery through a dynamic histogram and signal dots, similar to premium institutional tools.
Key Components
Dynamic Histogram (Bottom Bars): Changes color based on momentum strength. Bright Green/Red indicates accelerating momentum, while Darker shades suggest fading strength.
Signal Line: A white line tracing the core momentum, helping to visualize the "wave" of the market.
Buy/Sell Dots: Small circles at the bottom (Mint) or top (Red) that signal high-probability reversal points when the market is overextended.
📈 Trading Strategy (How to Trade)
1. Long Entry (Buy Signal)
Condition 1: The price should ideally be near or above the 200 EMA (for trend following) or showing a Bullish Divergence.
Condition 2: The Histogram bars transition from Dark Red to Bright Green.
Condition 3: A Mint Buy Dot appears at the bottom of the oscillator (near the -25 level).
Entry: Enter on the close of the candle where the Buy Dot is confirmed.
2. Short Entry (Sell Signal)
Condition 1: The price is struggling at resistance or showing a Bearish Divergence.
Condition 2: The Histogram bars transition from Dark Green to Bright Red.
Condition 3: A Red Sell Dot appears at the top of the oscillator (near the +25 level).
Entry: Enter on the close of the candle where the Sell Dot is confirmed.
3. Exit & Take Profit
Take Profit: Close the position when the Signal Line reaches the opposite extreme or when the histogram color starts to fade (loses its brightness).
Stop Loss: Place your stop loss slightly below the recent swing low (for Longs) or above the recent swing high (for Shorts).
💡 Pro Tips for Accuracy
Watch for Divergences: The most powerful signals occur when the price makes a lower low, but the Custom Reversal Oscillator makes a higher low. This indicates "Hidden Strength" and a massive reversal is often imminent.
Quasimodo (QML) Pattern [Kodexius]Quasimodo (QML) Pattern is a market structure indicator that automatically detects Bullish and Bearish Quasimodo formations using confirmed swing pivots, then visualizes the full structure directly on the chart. The script focuses on the classic liquidity-grab narrative of the QML: a sweep beyond a prior swing (the Head) followed by a decisive market structure break (MSB), leaving behind a clearly defined reaction zone between the Left Shoulder and the Head.
Detection is built on pivot highs and lows, so patterns are evaluated only after swing points are validated. Once a valid 4 pivot sequence is identified, the indicator draws the pattern legs, highlights the internal triangle area to emphasize the grab, marks the MSB leg, and projects a QML zone that can be used as a potential area of interest for retests.
This tool is designed for traders who work with structure, liquidity concepts, and reversal/continuation triggers, and who want a clean, repeatable QML visualization without manually marking swings.
🔹 Features
🔸 Confirmed Pivot Based Structure Mapping
The script uses classic built-in pivot logic to detect swing highs and swing lows.
🔸 Automatic Bullish and Bearish QML Detection
The indicator evaluates the most recent 4 pivots and checks for a valid alternating sequence (High-Low-High-Low or Low-High-Low-High). When the sequence matches QML requirements, the script classifies the setup as bullish or bearish:
Bullish logic (structure reversal up):
- Left Shoulder is a pivot Low
- Head is a lower Low than the Left Shoulder (liquidity sweep)
- MSB pivot exceeds the Reaction pivot
Bearish logic (structure reversal down):
- Left Shoulder is a pivot High
- Head is a higher High than the Left Shoulder (liquidity sweep)
- MSB pivot breaks below the Reaction pivot
🔸 Full Pattern Visualization (Legs + Highlighted Core)
When a pattern triggers, the script draws:
Three main legs: Left Shoulder to Reaction, Reaction to Head, Head to MSB
A shaded triangular highlight over the internal structure to make the liquidity-grab shape easy to spot at a glance
🔸 QML Zone Projection
A QML Zone box is drawn using the price range defined between the Left Shoulder and the Head, then extended to the right to remain visible as price develops. This zone is intended to act as a practical reference area for potential retests and reaction planning after MSB confirmation.
🔸 MSB Emphasis
A dotted MSB line is drawn between the Reaction point and the MSB point to visually emphasize the confirmation leg that completes the pattern logic.
🔸 Clean Point Tagging and Directional Labeling
Key points are labeled directly on the chart:
- “LS” at the Left Shoulder
- “Head” at the sweep pivot
- “MSB” at the break pivot
A directional label (“Bullish QML” or “Bearish QML”) is also printed to quickly identify the detected bias.
🔸 Configurable Visual Style
All main visual components are user configurable:
- Bullish and bearish colors
- Line width
- Label size
🔸 Efficient Update Logic
Pattern checks are only performed when a new pivot is confirmed, avoiding unnecessary repeated calculations on every bar. The most recent pattern’s projected elements (zone and label positioning) are updated as new bars print to keep the latest setup readable.
🔹 Calculations
This section summarizes the core logic used for detection and plotting.
1. Pivot Detection (Swing Highs and Lows)
The script relies on confirmed pivots using the user inputs:
Left Bars: how many bars must exist to the left of the pivot
Right Bars: how many bars must exist to the right to confirm it
float ph = ta.pivothigh(leftLen, rightLen)
float pl = ta.pivotlow(leftLen, rightLen)
When a pivot is confirmed, its true bar index is the pivot bar, not the current bar, so the script stores:
bar_index
2. Pivot Storage and History Window
Each pivot is stored as a structured object containing:
- price
- index
- isHigh (true for pivot high, false for pivot low)
A rolling history is maintained (up to 50 pivots) to keep processing stable and memory usage controlled.
3. Sequence Validation (Alternation Check)
The pattern evaluation always uses the latest 4 pivots:
p0: Left Shoulder candidate
p1: Reaction candidate
p2: Head candidate
p3: MSB candidate
Before checking bullish/bearish rules, the script enforces alternating pivot types:
bool correctSequence =
(p0.isHigh != p1.isHigh) and
(p1.isHigh != p2.isHigh) and
(p2.isHigh != p3.isHigh)
This prevents invalid structures like consecutive highs or consecutive lows from being interpreted as QML.
4. Bullish QML Conditions
A bullish QML is evaluated when the Left Shoulder is a Low:
Head must be lower than Left Shoulder (sweep)
MSB must be higher than Reaction (break)
if not p0.isHigh
if p2.price < p0.price and p3.price > p1.price
// Bullish QML confirmed
Interpretation:
p2 < p0 represents the liquidity grab below the prior swing low
p3 > p1 represents the market structure break above the reaction high
5. Bearish QML Conditions
A bearish QML is evaluated when the Left Shoulder is a High:
Head must be higher than Left Shoulder (sweep)
MSB must be lower than Reaction (break)
if p0.isHigh
if p2.price > p0.price and p3.price < p1.price
// Bearish QML confirmed
Interpretation:
p2 > p0 represents the liquidity grab above the prior swing high
p3 < p1 represents the market structure break below the reaction low
6. Drawing Logic (Structure, Highlight, Zone, Labels)
When confirmed, the script draws:
Three connecting legs (LS to Reaction, Reaction to Head, Head to MSB)
A shaded triangle using a transparent “ghost” line to enable filling
A dotted MSB emphasis line between Reaction and MSB
A QML Zone box spanning the LS to Head price range and projecting to the right
Point labels: LS, Head, MSB
A direction label: “Bullish QML” or “Bearish QML”
7. Latest Pattern Extension
To keep the newest setup readable, the script updates the most recently detected pattern by extending its projected elements as new bars print:
QML zone right edge is pushed forward
The main label x position is pushed forward
This keeps the last identified QML zone visible as price evolves, without having to redraw historical patterns on every bar.
Amihud Illiquidity Ratio [MarkitTick]💡This indicator implements the Amihud Illiquidity Ratio, a financial metric designed to measure the price impact of trading volume. It assesses the relationship between absolute price returns and the volume required to generate that return, providing traders with insight into the "stress" levels of the market liquidity.
Concept and Originality
Standard volume indicators often look at volume in isolation. This script differentiates itself by contextualizing volume against price movement. It answers the question: "How much did the price move per unit of volume?" Furthermore, unlike static indicators, this implementation utilizes dynamic percentile zones (Linear Interpolation) to adapt to the changing volatility profile of the specific asset you are viewing.
Methodology
The calculation proceeds in three distinct steps:
1. Daily Return: The script calculates the absolute percentage change of the closing price relative to the previous close.
2. Raw Ratio: The absolute return is divided by the volume. I have introduced a standard scaling factor (1,000,000) to the calculation. This resolves the issue of the values being astronomically small (displayed as roughly 0) without altering the fundamental logic of the Amihud ratio (Absolute Return / Volume).
- High Ratio: Indicates that price is moving significantly on low volume (Illiquid/Thin Order Book).
- Low Ratio: Indicates that price requires massive volume to move (Liquid/Deep Order Book).
3. Dynamic Regimes: The script calculates the 75th and 25th percentiles of the ratio over a lookback period. This creates adaptive bands that define "High Stress" and "Liquid" zones relative to recent history.
How to Use
Traders can use this tool to identify market fragility:
- High Stress Zone (Red Background): When the indicator crosses above the 75th percentile, the market is in a High Illiquidity Regime. Price is slipping easily. This is often observed during panic selling or volatile tops where the order book is thin.
- Liquid Zone (Green Background): When the indicator drops below the 25th percentile, the market is in a Liquid Regime. The market is absorbing volume well, which is often characteristic of stable trends or accumulation phases.
- Dashboard: A visual table on the chart displays the current Amihud Ratio and the active Market Regime (High Stress, Normal, or Liquid).
Inputs
- Calculation Period: The lookback length for the average illiquidity (Default: 20).
- Smoothing Period: The length of the additional moving average to smooth out noise (Default: 5).
- Show Quant Dashboard: Toggles the visibility of the on-screen information table.
● How to read this chart
• Spike in Illiquidity (Red Zones)
Price is moving on "thin air." Expect high volatility or potential reversals.
• Low Illiquidity (Green/Stable Zones)
The market is deep and liquid. Trends here are more sustainable and reliable.
• Divergence
Watch for price making new highs while liquidity is drying up—a classic sign of an exhausted trend.
Example:
● Chart Overview
The chart displays the Amihud Illiquidity indicator applied to a Gold (XAUUSD) 4-hour timeframe.
Top Pane: Price action with manual text annotations highlighting market reversals relative to liquidity zones.
Bottom Pane: The specific technical indicator defined in the logic. It features a Blue Line (Raw Illiquidity), a Red Line (Signal/Smoothed), and dynamic background coloring (Red and Green vertical strips).
● Deep Visual Analysis
• High Stress Regime (Red Zones)
Visual Event: In the bottom pane, the background periodically shifts to a translucent red.
Technical Logic: This event is triggered when the amihudAvg (the smoothed illiquidity ratio) exceeds the 75th percentile ( hZone ) of the lookback period.
Forensic Interpretation: The logic calculates the absolute price change relative to volume. A spike into the red zone indicates that price is moving significantly on relatively lower volume (high price impact). Visually, the chart shows these red zones aligning with local price peaks (volatility expansion), leading to the bearish reversal marked by the red box in the top pane.
• Liquid Regime (Green Zones)
Visual Event: The background shifts to a translucent green in the bottom pane.
Technical Logic: This triggers when the amihudAvg falls below the 25th percentile ( lZone ).
Forensic Interpretation: This state represents a period where large volumes are absorbed with minimal price impact (efficiency). On the chart, this green zone corresponds to the consolidation trough (green box, top pane), validating the annotated accumulation phase before the bullish breakout.
• Indicator Lines
Blue Line: This is the illiquidityRaw value. It represents the raw daily return divided by volume.
Red Line: This is the smoothedVal , a Simple Moving Average (SMA) of the raw data, used to filter out noise and define the trend of liquidity stress.
● Anomalies & Critical Data
• The Reversal Pivot
The transition from the "High Stress" (Red) background to the "Liquid" (Green) background serves as a visual proxy for market regime change. The chart shows that as the Red zones dissipate (volatility contraction), the market enters a Green zone (efficient liquidity), which acted as the precursor to the sustained upward trend on the right side of the chart.
● About Yakov Amihud
Yakov Amihud is a leading researcher in market liquidity and asset pricing.
• Brief Background
Professor of Finance, affiliated with New York University (NYU).
Specializes in market microstructure, liquidity, and quantitative finance.
His work has had a major impact on both academic research and practical investment models.
● The Amihud (2002) Paper
In 2002, he published his influential paper: “Illiquidity and Stock Returns: Cross-Section and Time-Series Effects” .
• Key Contributions
Introduced the Amihud Illiquidity Measure, a simple yet powerful proxy for market liquidity.
Demonstrated that less liquid stocks tend to earn higher expected returns as compensation for liquidity risk.
The measure became one of the most widely used liquidity metrics in finance research.
● Why It Matters in Practice
Used in quantitative trading models.
Applied in portfolio construction and risk management.
Helpful as a liquidity filter to avoid assets with excessive price impact.
In short: Yakov Amihud established a practical and robust link between liquidity and returns, making his 2002 work a cornerstone in modern financial economics.
Disclaimer: All provided scripts and indicators are strictly for educational exploration and must not be interpreted as financial advice or a recommendation to execute trades. I expressly disclaim all liability for any financial losses or damages that may result, directly or indirectly, from the reliance on or application of these tools. Market participation carries inherent risk where past performance never guarantees future returns, leaving all investment decisions and due diligence solely at your own discretion.
Session ATR Progression Tracker📊 Session ATR Progression Tracker - SIYL Regression Trading Tool
Track how much of your instrument's 7-day Average True Range (ATR) has been covered during the current trading session. This indicator is specifically designed for regression traders who follow the "Stay In Your Lane" (SIYL) methodology, helping you identify when the probability of mean reversion significantly increases. If you are interested in more on that check out Rod Casselli and tradersdevgroup.com.
🎯 Key Features:
• Real-time ATR Coverage Percentage - See at a glance what percentage of the 7-day ATR has been covered in the current session
• SIYL-Optimized Thresholds - See at a glance when the instrument has achieved 80% and 100% ATR coverage, the proven thresholds where mean reversion probability increases (customizable)
• Flexible Session Modes:
- Daily: Resets at calendar day change
- Session: Uses exchange-defined trading sessions
- Custom Session: Set your exact session start/end times (perfect for futures traders and international markets)
• Visual Alerts - Color-coded display (gray → orange → red) and optional background highlighting
• Repositionable Display - Choose from 9 screen positions to avoid chart clutter
• Session Markers - Green triangles mark the start of each new session
• Detailed Stats - View current range, ATR value, session high/low, and session status
💡 Why Use This Indicator?
This tool is built around a proven concept: regression trading becomes significantly more effective once a session has achieved at least 80% of its 7-day ATR. At this threshold, the probability of price reverting to mean increases substantially, creating higher-probability trade setups for SIYL practitioners.
Benefits for regression traders:
- Identify optimal entry points when mean reversion probability is highest (≥80% ATR coverage)
- Avoid premature regression entries before adequate range has been established
- Recognize when daily moves have "earned their range" and are ripe for reversal
- Time fade-the-move and counter-trend strategies with statistical backing
- Improve win rates by trading only after proven probability thresholds are met
⚙️ Setup Instructions:
1. Add the indicator to your chart
2. Select your preferred "Reset Mode" (recommend "Custom Session" for futures/international markets)
3. If using Custom Session, enter your session times in 24-hour format (e.g., 0930-1600 for US stocks, 1700-1600 for CME futures)
4. Adjust alert thresholds if desired (default: 80% and 100% - proven SIYL thresholds)
5. Position the display where it's most visible on your chart
📈 Works Across All Markets:
Stocks • Futures • Forex • Indices • Crypto • Commodities
Perfect for regression traders, mean reversion specialists, and SIYL practitioners who want to trade with probability on their side by entering only after the session has "earned its range."
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Tip: For futures contracts with overnight sessions that span calendar days (like MES, MNQ, MYM), use "Custom Session" mode with your exchange's official session times for accurate tracking.
