Reversal Candlestick Pattern With Trend IndentifierThis script help to identified popular candlestick pattern combined with trend identifier.
Most script only focus on criteria of the pattern. Such as how much the length of the body compared to previous candle etc.
Besides criteria of the candle, this script also considered the trend into the logic.
For example bullish engulfing is a bullish reversal signal, which is only valid in a down trend.
To identified trend, I'm using RSI. Normally, RSI less than 50 is considered a down trend, and RSI greater than 50 is considered up trend. In this script, you can customize the criteria of how much RSI is up trend and down trend.
Default value RSI >= 55 is up trend, RSI <= 45 is down trend.
Your feedback and suggestion is welcome.
Supported pattern:
White Marubozu (wm)
Black Marubozu (bm)
Hammer (h)
Hanging Man (hm)
Inverted Hammer (ih)
Shooting Star (ss)
Bullish Engulfing (e)
Bearish Engulfing (e)
Tweezer Bottom (tb)
Tweezer Top (tt)
Three White Soldiers (tws)
Three Black Crows (tbc)
Morning Star (ms)
Evening Star (es)
Three Inside Up (tiu)
Three Inside Down (tid)
Reference:
babypips.com
Recherche dans les scripts pour "reversal"
Reversal Patterns Collection:ClowdCover and Piersing LineScript contains Dark Clowd Cover and Piersing Line patterns. User can select period for candle size calculation (for distinguish short and long candles), on/off highlighting of pattern candles.
Reversal Patterns Collection:EngulfingScript contains Engulfing patterns (busllish and bearish). User can select period for candle size calculation (for distinguish short and long candles), on/off patterns highlighting.
Reversal Patterns Collection:Hammer and Handing ManI've started to publish Reversal Patterns Collection. First script contains Hammer and Handing Man patterns. User can select period for candle size calculation (period with representative number of different size candles for accurate distinguish average, short and long candles)and on/off highlighting of pattern candles.
Ronin Pro Smart Money Shift ReversalThis indicator combines Market Structure, Order Blocks, Fair Value Gaps, and Liquidity Mapping to identify high-probability reversal zones and institutional price reactions.
It highlights:
Bullish & Bearish Order Blocks
Breaker Blocks (invalidated OBs flipped into continuation zones)
Bullish / Bearish FVGs
Liquidity pools above and below price
Incoming reversal zones
Confirmed reversal signals
Next liquidity target projection
The system tracks real-time interaction between liquidity, OB/FVG zones, and price displacement to help you spot where institutional traders may reverse or continue the move.
All zone colors are fully customizable and color-blind friendly.
Bellcurves (Zeiierman)█ Overview
Bellcurves (Zeiierman) models impulse-driven expansion and contraction in price using a pair of adaptive “Bellcurve” flows (positive/negative), momentum dots, a sensitivity/normalization layer, pre-alerts, decline detection, and a built-in divergence suite. Instead of treating every bar equally, it builds scale-aware impulse fields from a weighted price source, normalizes them into comparable magnitudes, and then highlights impulse clusters, pre-alerts (rising pressure), and impulse declines. These waves behave like impulse envelopes: when expansion persists, columns cluster and momentum dots fire; when pressure fades, decline signals and divergences appear.
Use it to spot the first thrust of a new leg, the final push before exhaustion, or quiet accumulation/distribution within ranges.
⚪ Why This One Is Unique
Bellcurves (Zeiierman) combines several adaptive mechanisms into a single, self-tuning framework that captures both momentum expansion and directional decay. Its dual Bellcurve core extracts directional strength through asymmetric smoothers and non-linear amplification, isolating genuine impulses from random volatility. A Quick-Response mode enhances sensitivity in fast markets, while the normalization layer preserves consistency across instruments and timeframes.
█ Main features
⚪ Bellcurves
The Positive and Negative Bellcurves form the foundation of the indicator, visualizing directional expansion in price. Each curve is derived from weighted price dynamics and transformed into an adaptive field that expands with trend acceleration and contracts during exhaustion. Displayed as column waves (or oscillator-style), they reveal the rhythm of market impulses; steady clustering denotes continuation, while isolated bursts or fading peaks hint at potential reversals.
Price Acceleration
Trend Acceleration
Note: To visualize trend acceleration and sustained high-momentum trends, increase the Bellcurve Trend Length parameter to 200. This setting emphasizes long-term directional strength and filters out short-term noise.
Reversals
⚪ Impulse Dots
Impulse Dots mark the first and last bursts within a momentum cluster. Detected through adaptive clustering logic, these dots appear as green (positive) or red (negative) signals that often coincide with early breakouts or terminal exhaustion zones. Traders can interpret the first dot as potential momentum ignition. Alerts are provided for each stage, enabling fast reaction to shifting impulse conditions.
⚪ Divergences
The built-in Divergence Engine automatically identifies regular bullish and bearish divergences between price and the Bellcurves. By analyzing the declining and rising segments of the curves, it detects subtle mismatches between price movements and underlying impulse strength.
█ How to Use
⚪ Trend Trading
The Bellcurves help visualize the rhythm of market trends through alternating Positive (green) and Negative (red) Bellcurves. These represent periods of directional expansion when momentum builds and contraction when momentum fades.
Tip: To enable the Trend Bellcurves, increase Bellcurve Trend Length to 100–200. To detect regime shifts earlier, consider enabling Quick Response to respond more quickly to emerging trends.
Positive Trend (Green Bellcurve): Indicates bullish control. Sustained green clusters show stable upward participation and consistent buying pressure.
Negative Trend (Red Bellcurve): Indicates bearish control. Sustained red clusters reveal dominant selling pressure and downside continuation.
Trend Transitions
Positive Trend is Strengthening: When the green Bellcurve expands and height increases, momentum is accelerating and bullish conviction is building.
Positive Trend is Weakening: When the green Bellcurve contracts or begins to shrink, upward pressure is fading and potential exhaustion is developing.
Negative Trend is Strengthening: Red columns expand and deepen below the midline, bearish momentum building, and downside pressure increasing.
Negative Trend is Weakening: When the red Bellcurve contracts or softens, it signals that bearish pressure is losing force, a possible early sign of reversal or accumulation.
⚪ Reversal Trading
Reversal trading with the Bellcurves is one of the most effective and visually intuitive strategies, especially when going long after a Negative Bellcurve. These events often occur quickly and sharply, and when combined with key price levels such as the previous day’s close, high, or low, they can provide high-probability entry opportunities.
To focus on only the most meaningful reversals, disable “Activate Sensitive Bellcurves”. This filters out minor impulses and displays only the most significant Bellcurves across the chart, helping you isolate genuine exhaustion or inflection points.
Note: Reversal trading is inherently more challenging due to the increased volatility and emotional intensity (fear and greed) surrounding turning points. Use the Bellcurves as a confirmation tool, not a standalone entry signal. Always consider the broader market context. In strong trending markets, Bellcurve peaks may reflect continued strength rather than reversal.
A Green Positive Bellcurve forming after a fast upward move and rejection from a resistance zone can indicate a potential bearish reversal.
A Red Negative Bellcurve appearing near a support level often acts as confirmation for a potential bullish reversal, suggesting downside exhaustion and renewed buying interest.
⚪ Momentum / Impulse Trading
Momentum (or Impulse) Trading is designed for traders looking to enter in the direction of a strong, ongoing move. The Bellcurves indicator helps identify significant impulses on a higher timeframe, moments where directional pressure expands decisively. Once those impulses are identified, traders can refine entries on a lower timeframe, using an opposite Bellcurve as a trigger signal. This multi-timeframe approach allows for precise entries within larger momentum phases.
Bullish Momentum Trading
Start by analyzing a higher timeframe, for example, the 15-minute chart.
Identify a Positive (Green) Bellcurve and mark the first impulse dot, signaling the beginning of upward momentum.
Drop down to a lower timeframe (such as the 1-minute chart).
Wait for a Negative (Red) Bellcurve to peak; this short-term counter-impulse serves as a pullback entry point.
Enter long as the lower timeframe Bellcurve fades, aligning your trade with the dominant bullish impulse seen on the higher timeframe.
This approach ensures that your long entries occur within an expanding bullish phase, rather than chasing late moves.
Bearish Momentum Trading
Begin on a higher timeframe, such as the 1-hour chart, and locate a Negative (Red) Bellcurve with a visible impulse dot, confirming strong bearish momentum.
Shift to a lower timeframe like the 15-minute chart.
Wait for a Positive (Green) Bellcurve to peak; this short-term upward counter-move acts as a setup for continuation.
Enter short as that green Bellcurve begins to decline, synchronizing with the dominant bearish impulse from the higher timeframe.
This ensures that short trades align with expanding downside momentum, entering at moments of retracement within a broader selling phase.
█ How It Works
⚪ Bellcurve Construction Framework
The indicator generates directional Bellcurves through an adaptive modeling process that measures price displacement and trend curvature over time. Each Bellcurve reflects the evolving balance between expansion and absorption in market flow, forming the characteristic “bell” structures that widen during directional acceleration and compress during consolidation.
Calculation: Employs a multi-layered smoothing and normalization process to enhance directional clarity while preserving overall balance within the signal field.
⚪ Momentum & Cluster Engine
Momentum dots are generated through a multi-stage transformation that identifies the initiation and termination points of impulse clusters. By scanning for statistically relevant minima and maxima within the Bellcurve stream, the system isolates bursts of meaningful directional activity.
Calculation: Applies recursive power mapping and localized clustering to detect temporal impulse boundaries and validate “first” and “last” bursts within each momentum sequence.
⚪ Divergence Module
The divergence framework maps relationships between price structure and Bellcurve dynamics to uncover weakening or strengthening flows beneath visible price action. It detects classical bullish and bearish divergences and projects them directly onto the chart as lines and markers.
Calculation: Uses anchored decline-state tracking, relative high–low comparison, and vector slope analysis to measure phase displacement between price and impulse flow, confirming divergence integrity without lag.
-----------------
Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Script payant
WaveTrend With Divs & RSI(STOCH) Divs by WeloTradesWaveTrend with Divergences & RSI(STOCH) Divergences by WeloTrades
Overview
The "WaveTrend With Divergences & RSI(STOCH) Divergences" is an advanced Pine Script™ indicator designed for TradingView, offering a multi-dimensional analysis of market conditions. This script integrates several technical indicators—WaveTrend, Money Flow Index (MFI), RSI, and Stochastic RSI—into a cohesive tool that identifies both regular and hidden divergences across these indicators. These divergences can indicate potential market reversals and provide critical trading opportunities.
This indicator is not just a simple combination of popular tools; it offers extensive customization options, organized data presentation, and valuable trading signals that are easy to interpret. Whether you're a day trader or a long-term investor, this script enhances your ability to make informed decisions.
Originality and Usefulness
The originality of this script lies in its integration and the synergy it creates among the indicators used. Rather than merely combining multiple indicators, this script allows them to work together, enhancing each other's strengths. For example, by identifying divergences across WaveTrend, RSI, and Stochastic RSI simultaneously, the script provides multiple layers of confirmation, which reduces the likelihood of false signals and increases the reliability of trading signals.
The usefulness of this script is apparent in its ability to offer a consolidated view of market dynamics. It not only simplifies the analytical process by combining different indicators but also provides deeper insights through its divergence detection features. This comprehensive approach is designed to help traders identify potential market reversals, confirm trends, and ultimately make more informed trading decisions.
How the Components Work Together
1. Cross-Validation of Signals
WaveTrend: This indicator is primarily used to identify overbought and oversold conditions, as well as potential buy and sell signals. WaveTrend's ability to smooth price data and reduce noise makes it a reliable tool for identifying trend reversals.
RSI & Stochastic RSI: These momentum oscillators are used to measure the speed and change of price movements. While RSI identifies general overbought and oversold conditions, Stochastic RSI offers a more granular view by tracking the RSI’s level relative to its high-low range over a period of time. When these indicators align with WaveTrend signals, it adds a layer of confirmation that enhances the reliability of the signals.
Money Flow Index (MFI): This volume-weighted indicator assesses the inflow and outflow of money in an asset, giving insights into buying and selling pressure. By analyzing the MFI alongside WaveTrend and RSI indicators, the script can cross-validate signals, ensuring that buy or sell signals are supported by actual market volume.
Example Bullish scenario:
When a bullish divergence is detected on the RSI and confirmed by a corresponding bullish signal on the WaveTrend, along with an increasing Money Flow Index, the probability of a successful trade setup increases. This cross-validation minimizes the risk of acting on false signals, which might occur when relying on a single indicator.
Example Bearish scenario:
When a bearish divergence is detected on the RSI and confirmed by a corresponding bearish signal on the WaveTrend, along with an decreasing Money Flow Index, the probability of a successful trade setup increases. This cross-validation minimizes the risk of acting on false signals, which might occur when relying on a single indicator.
2. Divergence Detection and Market Reversals
Regular Divergences: Occur when the price action and an indicator (like RSI or WaveTrend) move in opposite directions. Regular bullish divergence signals a potential upward reversal when the price makes a lower low while the indicator makes a higher low. Conversely, regular bearish divergence suggests a downward reversal when the price makes a higher high, but the indicator makes a lower high.
Hidden Divergences: These occur when the price action and indicator move in the same direction, but with different momentum. Hidden bullish divergence suggests the continuation of an uptrend, while hidden bearish divergence suggests the continuation of a downtrend. By detecting these divergences across multiple indicators, the script identifies potential trend reversals or continuations with greater accuracy.
Example: The script might detect a regular bullish divergence on the WaveTrend while simultaneously identifying a hidden bullish divergence on the RSI. This combination suggests that while a trend reversal is possible, the overall market sentiment remains bullish, providing a nuanced view of the market.
A Regular Bullish Divergence Example:
A Hidden Bullish Divergence Example:
A Regular Bearish Divergence Example:
A Hidden Bearish Divergence Example:
3. Trend Strength and Sentiment Analysis
WaveTrend: Measures the strength and direction of the trend. By identifying the extremes of market sentiment (overbought and oversold levels), WaveTrend provides early signals for potential reversals.
Money Flow Index (MFI): Assesses the underlying sentiment by analyzing the flow of money. A rising MFI during an uptrend confirms strong buying pressure, while a falling MFI during a downtrend confirms selling pressure. This helps traders assess whether a trend is likely to continue or reverse.
RSI & Stochastic RSI: Offer a momentum-based perspective on the trend’s strength. High RSI or Stochastic RSI values indicate that the asset may be overbought, suggesting a potential reversal. Conversely, low values indicate oversold conditions, signaling a possible upward reversal.
Example:
During a strong uptrend, the WaveTrend & RSI's might signal overbought conditions, suggesting caution. If the MFI also shows decreasing buying pressure and the RSI reaches extreme levels, these indicators together suggest that the trend might be weakening, and a reversal could be imminent.
Example:
During a strong downtrend, the WaveTrend & RSI's might signal oversold conditions, suggesting caution. If the MFI also shows increasing buying pressure and the RSI reaches extreme levels, these indicators together suggest that the trend might be weakening, and a reversal could be imminent.
Conclusion
The "WaveTrend With Divergences & RSI(STOCH) Divergences" script offers a powerful, integrated approach to technical analysis by combining trend, momentum, and sentiment indicators into a single tool. Its unique value lies in the cross-validation of signals, the ability to detect divergences, and the comprehensive view it provides of market conditions. By offering traders multiple layers of analysis and customization options, this script is designed to enhance trading decisions, reduce false signals, and provide clearer insights into market dynamics.
WAVETREND
Display of WaveTrend:
Display of WaveTrend Setting:
WaveTrend Indicator Explanation
The WaveTrend indicator helps identify overbought and oversold conditions, as well as potential buy and sell signals. Its flexibility allows traders to adapt it to various strategies, making it a versatile tool in technical analysis.
WaveTrend Input Settings:
WT MA Source: Default: HLC3
What it is: The data source used for calculating the WaveTrend Moving Average.
What it does: Determines the input data to smooth price action and filter noise.
Example: Using HLC3 (average of High, Low, Close) provides a smoother data representation compared to using just the closing price.
Length (WT MA Length): Default: 3
What it is: The period used to calculate the Moving Average.
What it does: Adjusts the sensitivity of the WaveTrend indicator, where shorter lengths respond more quickly to price changes.
Example: A length of 3 is ideal for short-term analysis, providing quick reactions to price movements.
WT Channel Length & Average: Default: WT Channel Length = 9, Average = 12
What it is: Lengths used to calculate the WaveTrend channel and its average.
What it does: Smooths out the WaveTrend further, reducing false signals by averaging over a set period.
Example: Higher values reduce noise and help in identifying more reliable trends.
Channel: Style, Width, and Color:
What it is: Customization options for the WaveTrend channel's appearance.
What it does: Adjusts how the channel is displayed, including line style, width, and color.
Example: Choosing an area style with a distinct color can make the WaveTrend indicator clearly visible on the chart.
WT Buy & Sell Signals:
What it is: Settings to enable and customize buy and sell signals based on WaveTrend.
What it does: Allows for the display of buy/sell signals and customization of their shapes and colors.
When it gives a Buy Signal: Generated when the WaveTrend line crosses below an oversold level and then rises back, indicating a potential upward price movement.
When it gives a Sell Signal: Triggered when the WaveTrend line crosses above an overbought level and then declines, suggesting a possible downward trend.
Example: The script identifies these signals based on mean reversion principles, where prices tend to revert to the mean after reaching extremes. Traders can use these signals to time their entries and exits effectively.
WAVETREND OVERBOUGTH AND OVERSOLD LEVELS
Display of WaveTrend with Overbought & Oversold Levels:
Display of WaveTrend Overbought & Oversold Levels Settings:
WaveTrend Overbought & Oversold Levels Explanation
WT OB & OS Levels: Default: OB Level 1 = 53, OB Level 2 = 60, OS Level 1 = -53, OS Level 2 = -60
What it is: The default overbought and oversold levels used by the WaveTrend indicator to signal potential market reversals.
What it does: When the WaveTrend crosses above the OB levels, it indicates an overbought condition, potentially signaling a reversal or selling opportunity. Conversely, when it crosses below the OS levels, it indicates an oversold condition, potentially signaling a reversal or buying opportunity.
Example: A trader might use these levels to time entry or exit points, such as selling when the WaveTrend crosses into the overbought zone or buying when it crosses into the oversold zone.
Show OB/OS Levels: Default: True
What it is: Toggle options to show or hide the overbought and oversold levels on your chart.
What it does: When enabled, these levels will be visually represented on your chart, helping you to easily identify when the market reaches these critical thresholds.
Example: Displaying these levels can help you quickly see when the WaveTrend is approaching or has crossed into overbought or oversold territory, allowing for more informed trading decisions.
Line Style, Width, and Color for OB/OS Levels:
What it is: Options to customize the appearance of the OB and OS levels on your chart, including line style (solid, dotted, dashed), line width, and color.
What it does: These settings allow you to adjust how prominently these levels are displayed on your chart, which can help you better visualize and respond to overbought or oversold conditions.
Example: Setting a thicker, dashed line in a contrasting color can make these levels stand out more clearly, aiding in quick visual identification.
Example of Use:
Scenario: A trader wants to identify potential selling points when the market is overbought. They set the OB levels at 53 and 60, choosing a solid, red line style to make these levels clear on their chart. As the WaveTrend crosses above 53, they monitor for further price action, and upon crossing 60, they consider initiating a sell order.
WAVETREND DIVERGENCES
Display of WaveTrend Divergence:
Display of WaveTrend Divergence Setting:
WaveTrend Divergence Indicator Explanation
The WaveTrend Divergence feature helps identify potential reversal points in the market by highlighting divergences between the price and the WaveTrend indicator. Divergences can signal a shift in market momentum, indicating a possible trend reversal. This component allows traders to visualize and customize divergence detection on their charts.
WaveTrend Divergence Input Settings:
Potential Reversal Range: Default: 28
What it is: The number of bars to look back when detecting potential tops and bottoms.
What it does: Sets the range for identifying possible reversal points based on historical data.
Example: A setting of 28 looks back across the last 28 bars to find reversal points, offering a balance between responsiveness and reliability.
Reversal Minimum LVL OB & OS: Default: OB = 35, OS = -35
What it is: The minimum overbought and oversold levels required for detecting potential reversals.
What it does: Adjusts the thresholds that trigger a reversal signal based on the WaveTrend indicator.
Example: A higher OB level reduces the sensitivity to overbought conditions, potentially filtering out false reversal signals.
Lookback Bar Left & Right: Default: Left = 10, Right = 1
What it is: The number of bars to the left and right used to confirm a top or bottom.
What it does: Helps determine the position of peaks and troughs in the price action.
Example: A larger left lookback captures more extended price action before the peak, while a smaller right lookback focuses on the immediate past.
Lookback Range Min & Max: Default: Min = 5, Max = 60
What it is: The minimum and maximum range for the lookback period when identifying divergences.
What it does: Fine-tunes the detection of divergences by controlling the range over which the indicator looks back.
Example: A wider range increases the chances of detecting divergences across different market conditions.
R.Div Minimum LVL OB & OS: Default: OB = 53, OS = -53
What it is: The threshold levels for detecting regular divergences.
What it does: Adjusts the sensitivity of the regular divergence detection.
Example: Higher thresholds make the detection more conservative, identifying only stronger divergence signals.
H.Div Minimum LVL OB & OS: Default: OB = 20, OS = -20
What it is: The threshold levels for detecting hidden divergences.
What it does: Similar to regular divergence settings but for hidden divergences, which can indicate potential reversals that are less obvious.
Example: Lower thresholds make the hidden divergence detection more sensitive, capturing subtler market shifts.
Divergence Label Options:
What it is: Options to display and customize labels for regular and hidden divergences.
What it does: Allows users to visually differentiate between regular and hidden divergences using customizable labels and colors.
Example: Using different colors and symbols for regular (R) and hidden (H) divergences makes it easier to interpret signals on the chart.
Text Size and Color:
What it is: Customization options for the size and color of divergence labels.
What it does: Adjusts the readability and visibility of divergence labels on the chart.
Example: Larger text size may be preferred for charts with a lot of data, ensuring divergence labels stand out clearly.
FAST & SLOW MONEY FLOW INDEX
Display of Fast & Slow Money Flow:
Display of Fast & Slow Money Flow Setting:
Fast Money Flow Indicator Explanation
The Fast Money Flow indicator helps traders identify the flow of money into and out of an asset over a shorter time frame. By tracking the volume-weighted average of price movements, it provides insights into buying and selling pressure in the market, which can be crucial for making timely trading decisions.
Fast Money Flow Input Settings:
Fast Money Flow: Length: Default: 9
What it is: The period used for calculating the Fast Money Flow.
What it does: Determines the sensitivity of the Money Flow calculation. A shorter length makes the indicator more responsive to recent price changes, while a longer length provides a smoother signal.
Example: A length of 9 is suitable for traders looking to capture quick shifts in market sentiment over a short period.
Fast MFI Area Multiplier: Default: 5
What it is: A multiplier applied to the Money Flow area calculation.
What it does: Adjusts the size of the Money Flow area on the chart, effectively amplifying or reducing the visual impact of the indicator.
Example: A higher multiplier can make the Money Flow more prominent on the chart, aiding in the quick identification of significant money flow changes.
Y Position (Y Pos): Default: 0
What it is: The vertical position adjustment for the Fast Money Flow plot on the chart.
What it does: Allows you to move the Money Flow plot up or down on the chart to avoid overlap with other indicators.
Example: Adjusting the Y Position can be useful if you have multiple indicators on the chart and need to maintain clarity.
Fast MFI Style, Width, and Color:
What it is: Customization options for how the Fast Money Flow is displayed on the chart.
What it does: Enables you to choose between different plot styles (line or area), set the line width, and select colors for positive and negative money flow.
Example: Using different colors for positive (green) and negative (red) money flow helps to visually distinguish between periods of buying and selling pressure.
Slow Money Flow Indicator Explanation
The Slow Money Flow indicator tracks the flow of money into and out of an asset over a longer time frame. It provides a broader perspective on market sentiment, smoothing out short-term fluctuations and highlighting longer-term trends.
Slow Money Flow Input Settings:
Slow Money Flow: Length: Default: 12
What it is: The period used for calculating the Slow Money Flow.
What it does: A longer period smooths out short-term fluctuations, providing a clearer view of the overall money flow trend.
Example: A length of 12 is often used by traders looking to identify sustained trends rather than short-term volatility.
Slow MFI Area Multiplier: Default: 5
What it is: A multiplier applied to the Slow Money Flow area calculation.
What it does: Adjusts the size of the Money Flow area on the chart, helping to emphasize the indicator’s significance.
Example: Increasing the multiplier can help highlight the Money Flow in markets with less volatile price action.
Y Position (Y Pos): Default: 0
What it is: The vertical position adjustment for the Slow Money Flow plot on the chart.
What it does: Allows for vertical repositioning of the Money Flow plot to maintain chart clarity when used with other indicators.
Example: Adjusting the Y Position ensures that the Slow Money Flow indicator does not overlap with other key indicators on the chart.
Slow MFI Style, Width, and Color:
What it is: Customization options for the visual display of the Slow Money Flow on the chart.
What it does: Allows you to choose the plot style (line or area), set the line width, and select colors to differentiate positive and negative money flow.
Example: Customizing the colors for the Slow Money Flow allows traders to quickly distinguish between buying and selling trends in the market.
RSI
Display of RSI:
Display of RSI Setting:
RSI Indicator Explanation
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It is typically used to identify overbought or oversold conditions in the market, providing traders with potential signals for buying or selling.
RSI Input Settings:
RSI Source: Default: Close
What it is: The data source used for calculating the RSI.
What it does: Determines which price data (e.g., close, open) is used in the RSI calculation, affecting how the indicator reflects market conditions.
Example: Using the closing price is standard practice, as it reflects the final agreed-upon price for a given time period.
MA Type (Moving Average Type): Default: SMA
What it is: The type of moving average applied to the RSI for smoothing purposes.
What it does: Changes the smoothing technique of the RSI, impacting how quickly the indicator responds to price movements.
Example: Using an Exponential Moving Average (EMA) will make the RSI more sensitive to recent price changes compared to a Simple Moving Average (SMA).
RSI Length: Default: 14
What it is: The period over which the RSI is calculated.
What it does: Adjusts the sensitivity of the RSI. A shorter length (e.g., 7) makes the RSI more responsive to recent price changes, while a longer length (e.g., 21) smooths out the indicator, reducing the number of signals.
Example: A 14-period RSI is commonly used for identifying overbought and oversold conditions, providing a balance between sensitivity and reliability.
RSI Plot Style, Width, and Color:
What it is: Options to customize the appearance of the RSI line on the chart.
What it does: Allows you to adjust the visual representation of the RSI, including the line width and color.
Example: Setting a thicker line width and a bright color like yellow can make the RSI more visible on the chart, aiding in quick analysis.
Display of RSI with RSI Moving Average:
RSI Moving Average Explanation
The RSI Moving Average adds a smoothing layer to the RSI, helping to filter out noise and provide clearer signals. It is particularly useful for confirming trend strength and identifying potential reversals.
RSI Moving Average Input Settings:
MA Length: Default: 14
What it is: The period over which the Moving Average is calculated on the RSI.
What it does: Adjusts the smoothing of the RSI, helping to reduce false signals and provide a clearer trend indication.
Example: A 14-period moving average on the RSI can smooth out short-term fluctuations, making it easier to spot genuine overbought or oversold conditions.
MA Plot Style, Width, and Color:
What it is: Customization options for how the RSI Moving Average is displayed on the chart.
What it does: Allows you to adjust the line width and color, helping to differentiate the Moving Average from the main RSI line.
Example: Using a contrasting color for the RSI Moving Average (e.g., magenta) can help it stand out against the main RSI line, making it easier to interpret the indicator.
STOCHASTIC RSI
Display of Stochastic RSI:
Display of Stochastic RSI Setting:
Stochastic RSI Indicator Explanation
The Stochastic RSI (Stoch RSI) is a momentum oscillator that measures the level of the RSI relative to its high-low range over a set period of time. It is used to identify overbought and oversold conditions, providing potential buy and sell signals based on momentum shifts.
Stochastic RSI Input Settings:
Stochastic RSI Length: Default: 14
What it is: The period over which the Stochastic RSI is calculated.
What it does: Adjusts the sensitivity of the Stochastic RSI. A shorter length makes the indicator more responsive to recent price changes, while a longer length smooths out the fluctuations, reducing noise.
Example: A length of 14 is commonly used to identify momentum shifts over a medium-term period, providing a balanced view of potential overbought or oversold conditions.
Display of Stochastic RSI %K Line:
Stochastic RSI %K Line Explanation
The %K line in the Stochastic RSI is the main line that tracks the momentum of the RSI over the chosen period. It is the faster-moving component of the Stochastic RSI, often used to identify entry and exit points.
Stochastic RSI %K Input Settings:
%K Length: Default: 3
What it is: The period used for smoothing the %K line of the Stochastic RSI.
What it does: Smoothing the %K line helps reduce noise and provides a clearer signal for potential market reversals.
Example: A smoothing length of 3 is common, offering a balance between responsiveness and noise reduction, making it easier to spot significant momentum shifts.
%K Plot Style, Width, and Color:
What it is: Customization options for the visual representation of the %K line.
What it does: Allows you to adjust the appearance of the %K line on the chart, including line width and color, to fit your visual preferences.
Example: Setting a blue color and a medium width for the %K line makes it stand out clearly on the chart, helping to identify key points of momentum change.
%K Fill Color (Above):
What it is: The fill color that appears above the %K line on the chart.
What it does: Adds visual clarity by shading the area above the %K line, making it easier to interpret the direction and strength of momentum.
Example: Using a light blue fill color above the %K line can help emphasize bullish momentum, making it visually prominent.
Display of Stochastic RSI %D Line:
Stochastic RSI %D Line Explanation
The %D line in the Stochastic RSI is a moving average of the %K line and acts as a signal line. It is slower-moving compared to the %K line and is often used to confirm signals or identify potential reversals when it crosses the %K line.
Stochastic RSI %D Input Settings:
%D Length: Default: 3
What it is: The period used for smoothing the %D line of the Stochastic RSI.
What it does: Smooths out the %D line, making it less sensitive to short-term fluctuations and more reliable for identifying significant market signals.
Example: A length of 3 is often used to provide a smoothed signal line that can help confirm trends or reversals indicated by the %K line.
%D Plot Style, Width, and Color:
What it is: Customization options for the visual representation of the %D line.
What it does: Allows you to adjust the appearance of the %D line on the chart, including line width and color, to match your preferences.
Example: Setting an orange color and a thicker line width for the %D line can help differentiate it from the %K line, making crossover points easier to spot.
%D Fill Color (Below):
What it is: The fill color that appears below the %D line on the chart.
What it does: Adds visual clarity by shading the area below the %D line, making it easier to interpret bearish momentum.
Example: Using a light orange fill color below the %D line can highlight bearish conditions, making it visually easier to identify.
RSI & STOCHASTIC RSI OVERBOUGHT AND OVERSOLD LEVELS
Display of RSI & Stochastic with Overbought & Oversold Levels:
Display of RSI & Stochastic Overbought & Oversold Settings:
RSI & Stochastic Overbought & Oversold Levels Explanation
The Overbought (OB) and Oversold (OS) levels for RSI and Stochastic RSI indicators are key thresholds that help traders identify potential reversal points in the market. These levels are used to determine when an asset is likely overbought or oversold, which can signal a potential trend reversal.
RSI & Stochastic Overbought & Oversold Input Settings:
RSI & Stochastic Level 1 Overbought (OB) & Oversold (OS): Default: OB Level = 170, OS Level = 130
What it is: The first set of thresholds for determining overbought and oversold conditions for both RSI and Stochastic RSI indicators.
What it does: When the RSI or Stochastic RSI crosses above the overbought level, it suggests that the asset might be overbought, potentially signaling a sell opportunity. Conversely, when these indicators drop below the oversold level, it suggests the asset might be oversold, potentially signaling a buy opportunity.
Example: If the RSI crosses above 170, traders might look for signs of a potential trend reversal to the downside, while a cross below 130 might indicate a reversal to the upside.
RSI & Stochastic Level 2 Overbought (OB) & Oversold (OS): Default: OB Level = 180, OS Level = 120
What it is: The second set of thresholds for determining overbought and oversold conditions for both RSI and Stochastic RSI indicators.
What it does: These levels provide an additional set of reference points, allowing traders to differentiate between varying degrees of overbought and oversold conditions, potentially leading to more refined trading decisions.
Example: When the RSI crosses above 180, it might indicate an extreme overbought condition, which could be a stronger signal for a sell, while a cross below 120 might indicate an extreme oversold condition, which could be a stronger signal for a buy.
RSI & Stochastic Overbought (OB) Band Customization:
OB Level 1: Width, Style, and Color:
What it is: Customization options for the visual appearance of the first overbought band on the chart.
What it does: Allows you to set the line width, style (solid, dotted, dashed), and color for the first overbought band, enhancing its visibility on the chart.
Example: A dashed red line with medium width can clearly indicate the first overbought level, helping traders quickly identify when this threshold is crossed.
OB Level 2: Width, Style, and Color:
What it is: Customization options for the visual appearance of the second overbought band on the chart.
What it does: Allows you to set the line width, style, and color for the second overbought band, providing a clear distinction from the first band.
Example: A dashed red line with a slightly thicker width can represent a more significant overbought level, making it easier to differentiate from the first level.
RSI & Stochastic Oversold (OS) Band Customization:
OS Level 1: Width, Style, and Color:
What it is: Customization options for the visual appearance of the first oversold band on the chart.
What it does: Allows you to set the line width, style (solid, dotted, dashed), and color for the first oversold band, making it visually prominent.
Example: A dashed green line with medium width can highlight the first oversold level, helping traders identify potential buying opportunities.
OS Level 2: Width, Style, and Color:
What it is: Customization options for the visual appearance of the second oversold band on the chart.
What it does: Allows you to set the line width, style, and color for the second oversold band, providing an additional visual cue for extreme oversold conditions.
Example: A dashed green line with a thicker width can represent a more significant oversold level, offering a stronger visual cue for potential buying opportunities.
RSI DIVERGENCES
Display of RSI Divergence Labels:
Display of RSI Divergence Settings:
RSI Divergence Lookback Explanation
The RSI Divergence settings allow traders to customize the parameters for detecting divergences between the RSI (Relative Strength Index) and price action. Divergences occur when the price moves in the opposite direction to the RSI, potentially signaling a trend reversal. These settings help refine the accuracy of divergence detection by adjusting the lookback period and range. ( NOTE: This setting only imply to the RSI. This doesn't effect the STOCHASTIC RSI. )
RSI Divergence Lookback Input Settings:
Lookback Left: Default: 10
What it is: The number of bars to look back from the current bar to detect a potential divergence.
What it does: Defines the left-side lookback period for identifying pivot points in the RSI, which are used to spot divergences. A longer lookback period may capture more significant trends but could also miss shorter-term divergences.
Example: A setting of 10 bars means the script will consider pivot points up to 10 bars before the current bar to check for divergence patterns.
Lookback Right: Default: 1
What it is: The number of bars to look forward from the current bar to complete the divergence pattern.
What it does: Defines the right-side lookback period for confirming a potential divergence. This setting helps ensure that the identified divergence is valid by allowing the script to check subsequent bars for confirmation.
Example: A setting of 1 bar means the script will look at the next bar to confirm the divergence pattern, ensuring that the signal is reliable.
Lookback Range Min: Default: 5
What it is: The minimum range of bars required to detect a valid divergence.
What it does: Sets a lower bound on the range of bars considered for divergence detection. A lower minimum range might capture more frequent but possibly less significant divergences.
Example: Setting the minimum range to 5 ensures that only divergences spanning at least 5 bars are considered, filtering out very short-term patterns.
Lookback Range Max: Default: 60
What it is: The maximum range of bars within which a divergence can be detected.
What it does: Sets an upper bound on the range of bars considered for divergence detection. A larger maximum range might capture more significant divergences but could also include less relevant long-term patterns.
Example: Setting the maximum range to 60 bars allows the script to detect divergences over a longer timeframe, capturing more extended divergence patterns that could indicate major trend reversals.
RSI Divergence Explanation
RSI divergences occur when the RSI indicator and price action move in opposite directions, signaling potential trend reversals. This section of the settings allows traders to customize the appearance and detection of both regular and hidden bullish and bearish divergences.
RSI Divergence Input Settings:
R. Bullish Div Label: Default: True
What it is: An option to display labels for regular bullish divergences.
What it does: Enables or disables the visibility of labels that mark regular bullish divergences, where the price makes a lower low while the RSI makes a higher low, indicating a potential upward reversal.
Example: A trader might use this to spot buying opportunities in a downtrend when a bullish divergence suggests the trend may be reversing.
Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bullish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Selecting a green label color and a distinct line width makes bullish divergences easily recognizable on your chart.
R. Bearish Div Label: Default: True
What it is: An option to display labels for regular bearish divergences.
What it does: Enables or disables the visibility of labels that mark regular bearish divergences, where the price makes a higher high while the RSI makes a lower high, indicating a potential downward reversal.
Example: A trader might use this to spot selling opportunities in an uptrend when a bearish divergence suggests the trend may be reversing.
Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bearish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Choosing a red label color and a specific line width makes bearish divergences clearly stand out on your chart.
H. Bullish Div Label: Default: False
What it is: An option to display labels for hidden bullish divergences.
What it does: Enables or disables the visibility of labels that mark hidden bullish divergences, where the price makes a higher low while the RSI makes a lower low, indicating potential continuation of an uptrend.
Example: A trader might use this to confirm an existing uptrend when a hidden bullish divergence signals continued buying strength.
Hidden Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bullish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A softer green color with a thinner line width might be chosen to subtly indicate hidden bullish divergences, keeping the chart clean while providing useful information.
H. Bearish Div Label: Default: False
What it is: An option to display labels for hidden bearish divergences.
What it does: Enables or disables the visibility of labels that mark hidden bearish divergences, where the price makes a lower high while the RSI makes a higher high, indicating potential continuation of a downtrend.
Example: A trader might use this to confirm an existing downtrend when a hidden bearish divergence signals continued selling pressure.
Hidden Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bearish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A muted red color with a thinner line width might be selected to indicate hidden bearish divergences without overwhelming the chart.
Divergence Text Size and Color: Default: S (Small)
What it is: Settings to adjust the size and color of text labels for RSI divergences.
What it does: Allows you to customize the size and color of text labels that display the divergence information on the chart.
Example: Choosing a small text size with a bright white color can make divergence labels easily readable without taking up too much space on the chart.
STOCHASTIC DIVERGENCES
Display of Stochastic RSI Divergence Labels:
Display of Stochastic RSI Divergence Settings:
Stochastic RSI Divergence Explanation
Stochastic RSI divergences occur when the Stochastic RSI indicator and price action move in opposite directions, signaling potential trend reversals. These settings allow traders to customize the detection and visual representation of both regular and hidden bullish and bearish divergences in the Stochastic RSI.
Stochastic RSI Divergence Input Settings:
R. Bullish Div Label: Default: True
What it is: An option to display labels for regular bullish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark regular bullish divergences, where the price makes a lower low while the Stochastic RSI makes a higher low, indicating a potential upward reversal.
Example: A trader might use this to spot buying opportunities in a downtrend when a bullish divergence in the Stochastic RSI suggests the trend may be reversing.
Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bullish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Selecting a blue label color and a distinct line width makes bullish divergences in the Stochastic RSI easily recognizable on your chart.
R. Bearish Div Label: Default: True
What it is: An option to display labels for regular bearish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark regular bearish divergences, where the price makes a higher high while the Stochastic RSI makes a lower high, indicating a potential downward reversal.
Example: A trader might use this to spot selling opportunities in an uptrend when a bearish divergence in the Stochastic RSI suggests the trend may be reversing.
Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bearish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Choosing an orange label color and a specific line width makes bearish divergences in the Stochastic RSI clearly stand out on your chart.
H. Bullish Div Label: Default: False
What it is: An option to display labels for hidden bullish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark hidden bullish divergences, where the price makes a higher low while the Stochastic RSI makes a lower low, indicating potential continuation of an uptrend.
Example: A trader might use this to confirm an existing uptrend when a hidden bullish divergence in the Stochastic RSI signals continued buying strength.
Hidden Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bullish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A softer blue color with a thinner line width might be chosen to subtly indicate hidden bullish divergences, keeping the chart clean while providing useful information.
H. Bearish Div Label: Default: False
What it is: An option to display labels for hidden bearish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark hidden bearish divergences, where the price makes a lower high while the Stochastic RSI makes a higher high, indicating potential continuation of a downtrend.
Example: A trader might use this to confirm an existing downtrend when a hidden bearish divergence in the Stochastic RSI signals continued selling pressure.
Hidden Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bearish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A muted orange color with a thinner line width might be selected to indicate hidden bearish divergences without overwhelming the chart.
Divergence Text Size and Color: Default: S (Small)
What it is: Settings to adjust the size and color of text labels for Stochastic RSI divergences.
What it does: Allows you to customize the size and color of text labels that display the divergence information on the chart.
Example: Choosing a small text size with a bright white color can make divergence labels easily readable without taking up too much space on the chart.
Alert System:
Custom Alerts for Divergences and Reversals:
What it is: The script includes customizable alert conditions to notify you of detected divergences or potential reversals based on WaveTrend, RSI, and Stochastic RSI.
What it does: Helps you stay informed of key market movements without constantly monitoring the charts, enabling timely decisions.
Example: Setting an alert for regular bearish divergence on the WaveTrend could notify you of a potential sell opportunity as soon as it is detected.
How to Use Alerts:
Set up custom alerts in TradingView based on these conditions to be notified of potential trading opportunities. Alerts are triggered when the indicator detects conditions that match the selected criteria, such as divergences or potential reversals.
By following the detailed guidelines and examples above, you can effectively use and customize this powerful indicator to suit your trading strategy.
For further understanding and customization, refer to the input settings within the script and adjust them to match your trading style and preferences.
How Components Work Together
Synergy and Cross-Validation: The indicator combines multiple layers of analysis to validate trading signals. For example, a WaveTrend buy signal that coincides with a bullish divergence in RSI and positive fast money flow is likely to be more reliable than any single indicator’s signal. This cross-validation reduces the likelihood of false signals and enhances decision-making.
Comprehensive Market Analysis: Each component plays a role in analyzing different aspects of the market. WaveTrend focuses on trend strength, Money Flow indicators assess market sentiment, while RSI and Stochastic RSI offer detailed views of price momentum and potential reversals.
Ideal For
Traders who require a reliable, multifaceted tool for detecting market trends and reversals.
Investors seeking a deeper understanding of market dynamics across different timeframes and conditions, whether in forex, equities, or cryptocurrency markets.
This script is designed to provide a comprehensive tool for technical analysis, combining multiple indicators and divergence detection into one versatile and customizable script. It is especially useful for traders who want to monitor various indicators simultaneously and look for convergence or divergence signals across different technical tools.
Acknowledgements
Special thanks to these amazing creators for inspiration and their creations:
I want to thank these amazing creators for creating there amazing indicators , that inspired me and also gave me a head start by making this indicator! Without their amazing indicators it wouldn't be possible!
vumanchu: VuManChu Cipher B Divergences.
MisterMoTa: RSI + Divergences + Alerts .
DevLucem: Plain Stochastic Divergence.
Note
This indicator is designed to be a powerful tool in your trading arsenal. However , it is essential to backtest and adjust the settings according to your trading strategy before applying it to live trading . If you have any questions or need further assistance, feel free to reach out.
Project Pegasus RevenantDescription
Project Pegasus Revenant is a reversal and liquidity-trap detection system combining a configurable fractal reversal engine with the SweepTrigger liquidity finder. It highlights potential structural turning points and stop-hunt scenarios directly on the chart.
What’s unique
Fractal Reversal Engine: Adjustable strictness (1 = loose, 5 = strict) to fit different market conditions.
Signal Filtering: Minimum bar spacing to avoid clustering of false or repeated signals.
SweepTrigger Add-on: Detects liquidity sweeps with wick-based rejection logic, auto-doji detection, and range-strength confirmation.
Dual Signal Output: Circle markers for pure fractal reversals, triangles for sweep-based liquidity traps.
Adaptive Filters: Customizable thresholds for body size, candle range, and sweep strength.
How it works (technical)
Fractals: A reversal fractal is confirmed when the high/low at position n is surrounded by lower/higher highs/lows across a configurable frontier.
Signal confirmation: Once price trades back through the fractal level within a limited number of bars, a potential reversal is triggered.
Bar filter: Signals require a minimum distance in bars to prevent noise.
SweepTrigger logic:
Wick comparison (upper vs lower) determines rejection direction.
Doji and low-body candles are auto-filtered.
Range check ensures the current candle exceeds a configurable multiple of the average range.
Visuals:
Green/Red circles = fractal reversals.
Cyan/Purple triangles = liquidity sweep triggers.
How to use
Watch fractal signals to anticipate structural reversal points.
Combine SweepTrigger signals with liquidity highs/lows for identifying stop hunts and fakeouts.
Use as standalone reversal tool or as confirmation within a broader system (e.g., order blocks, volume profile, or market structure).
Key settings
Reversal Mode: 1–5 (controls strictness of fractals).
SweepTrigger: On/off toggle, lookback window, body-size filter, range strength multiplier.
Visuals: Shapes, sizes, and color-coded signals for clear separation between fractal and sweep triggers.
Notes & limitations
Works on all timeframes.
Signals are reactive (based on confirmed bars), not predictive — no lookahead logic.
Too strict settings may reduce signal frequency; too loose may increase noise.
Disclaimer
For educational and informational purposes only. Not financial advice.
SCE ReversalsThis tool uses past market data to attempt to identify where changes in “memory” may occur to spot reversals. The Hurst Exponent was a big inspiration for this code. The main driver is identifying when past ranges expand and contract, leading to a change in direction. With the use of Sum of Squared Errors, users do not need to input anything.
Getting optimized parameters
// Define ranges for N and lkb
N_range = array.from(15, 20, 25, 30, 35, 40, 45, 50, 55, 60)
// Function to calculate SSE
sse_calc(_N) =>
x = math.pow(close - close , 2)
y = math.pow(close - close , 2) + math.pow(close, 2)
z = x / y
scaled_z = z * math.log(_N)
min_r = ta.lowest(scaled_z, _N)
max_r = ta.highest(scaled_z, _N)
norm_r = (scaled_z - min_r) / (max_r - min_r)
SMA = ta.sma(close, _N)
reversal_bullish = norm_r == 1.000 and norm_r < 0.90 and close < SMA and session.ismarket and barstate.isconfirmed
reversal_bearish = norm_r == 1.000 and norm_r < 0.90 and close > SMA and session.ismarket and barstate.isconfirmed
var float error = na
if reversal_bullish or reversal_bearish
error := math.pow(close - SMA, 2)
error
else
error := 999999999999999999999999999999999999999
error
error
var int N_opt = na
var float min_SSE = na
// Loop through ranges and calculate SSE
for N in N_range
sse = sse_calc(N)
if na(min_SSE) or sse < min_SSE
min_SSE := sse
N_opt := N
The N_range list encompasses every lookback value to check with. The sse_calc function accepts an individual element to then perform the calculation for Reversals. If there is a reversal, the error becomes how far away the close is from a moving average with that look back. Lowest error wins. That would be the look back used for the Reversals calculation.
Reversals calculation
// Calculating with optimized parameters
x_opt = math.pow(close - close , 2)
y_opt = math.pow(close - close , 2) + math.pow(close, 2)
z_opt = x_opt / y_opt
scaled_z_opt = z_opt * math.log(N_opt)
min_r_opt = ta.lowest(scaled_z_opt, N_opt)
max_r_opt = ta.highest(scaled_z_opt, N_opt)
norm_r_opt = (scaled_z_opt - min_r_opt) / (max_r_opt - min_r_opt)
SMA_opt = ta.sma(close, N_opt)
reversal_bullish_opt = norm_r_opt == 1.000 and norm_r_opt < 0.90 and close < SMA_opt and close > high and close > open and session.ismarket and barstate.isconfirmed
reversal_bearish_opt = norm_r_opt == 1.000 and norm_r_opt < 0.90 and close > SMA_opt and close < low and close < open and session.ismarket and barstate.isconfirmed
X_opt and y_opt are the compared values to develop the system. Everything done afterwards is scaling and using it to spot the Reversals. X_opt is the current close, minus the close with the optimal N bars back, squared. Then y_opt is also that but plus the current close squared. Z_opt is then x_opt / y_opt. This gives us a pretty small number that will go up when we approach tops or bottoms. To make life a little easier I normalize the value between 0 and 1.
After I find the moving average with the optimal N, I can check if there is a Reversal. Reversals are there when the last value is at 1 and the current value drops below 0.90. This would tell us that “memory” was strong and is now changing. To determine direction and help with accuracy, if the close is above the moving average it is a bearish alert, and vice versa. As well as the close must be below the last low for a bearish Reversal, above the last high for a bullish Reversal. Also the close must be above the open for a bullish Reversal, and below for a bearish one.
Visual examples
This NASDAQ:TSLA chart shows how alerts may come around. The bullish and bearish labels are plotted on the chart along with a reference line to see price interact with.
The indicator has the potential to be inactive, like we see here on $OKLO. There is only one alert, and it marks the bottom nicely.
Stocks with strong trends like NYSE:NOW may be more susceptible to false alerts. Assets that are volatile and bounce around a lot may be better.
It works on intra day charts the same as on Daily or longer charts. We see here on NASDAQ:QQQ it spotted the bottom on this particular trading day.
This tool is meant to aid traders in making decisions, not to be followed blindly. No trading tool is 100% accurate and Sum of Squared Errors does not guarantee the most optimal value. I encourage feedback and constructive criticism.
WaveTrend Momentum (Zeiierman)█ Overview
WaveTrend Momentum (Zeiierman) reveals the underlying rhythm of market movement through positive and negative momentum waves that visualize both sides of trend behavior. This dual-wave structure makes it easy to see how impulses and retracements interact in real time, helping you distinguish between a normal pullback within strength and the early signs of a trend losing momentum.
The indicator layers its waves with higher-timeframe trend alignment and adaptive context filters, mapping when momentum expands, when it fades, and where a pullback is approaching exhaustion or renewed trend strength is likely to emerge.
⚪ Why This One Is Unique
Unlike conventional wave oscillators, this design uses dual, phase-managed wave construction with adaptive scaling across symbols and timeframes. At its core is a three-mode Trend Strength engine (Adaptive, Stability, Structure) that dynamically adjusts to market conditions, supported by higher-timeframe regime sourcing and a dedicated impulse-and-divergence framework.
█ Main features
⚪ WaveTrend Momentum Waves
The foundation of the indicator lies in its ability to build positive and negative momentum waves that visualize both sides of market movement. This dual-wave structure makes it easy to identify trend direction, impulses, retracements, and exhaustion in real time, showing how momentum evolves within broader market phases. The waves can be used directly to gauge trend strength and direction, helping traders stay aligned with prevailing momentum or recognize when a shift is forming.
⚪ Extreme Moves
Extreme Zones highlight points where momentum reaches statistically stretched conditions, areas where price action often pauses, rebalances, or reverses. These zones help traders anticipate potential exhaustion before it becomes visible on price, improving timing for entries, exits, and scaling decisions.
⚪ Impulse Moves
Impulse Markers identify bursts of directional momentum, moments when trend energy expands sharply. These points often align with breakouts, accelerations, or continuation signals, helping traders focus on active opportunities rather than noise or consolidation.
⚪ Trend Strength
The Trend Strength Line adapts dynamically to shifting market regimes. It can operate in three modes: Adaptive, Stability, and Structure, each offering a different sensitivity level to trend changes. This feature helps confirm whether the trend is building, stabilizing, or losing strength, and serves as a foundation for bias filtering or trade direction confirmation.
⚪ Higher-Timeframe Trend Alignment
Integrates a higher-timeframe trend reference directly into the analysis, giving each wave context. This alignment clarifies when local pullbacks occur in harmony or conflict with the broader trend, making it easier to distinguish temporary corrections from true reversals.
⚪ Divergence Engine
A fully integrated divergence detection system that automatically spots both regular and hidden divergences between price and momentum. By surfacing early signs of trend weakening or continuation potential, it gives traders a structured way to detect subtle momentum shifts before they manifest in price.
█ How to Use
⚪ Trend Trading
WaveTrend Momentum excels as a trend-following framework by combining wave direction, Trend Strength, and higher-timeframe alignment to reveal when momentum is expanding or contracting within the broader market phase.
Note: To get trend waves, consider increasing the Wave Transition value to above 40.
Bullish WaveTrend Trend: When the positive momentum waves are above the neutral midpoint, the market is trending upward. Minor downward retracements within this structure often resolve back into trend continuation once buying pressure reasserts itself, particularly when the higher-timeframe context confirms a bullish regime.
Bearish WaveTrend Trend: When the negative wave dominates and remains below the midpoint, downside momentum controls the market. Minor upward retracements within this structure often resolve back into trend continuation once selling pressure reasserts itself, particularly when the higher-timeframe context confirms a bearish regime.
Bullish Trend Strength Line: A Trend Strength Line positioned above the midline indicates a bullish trend. A rising line reflects growing momentum and persistent buying pressure. The steeper the slope, the stronger the current regime. As long as the line continues to rise alongside positive waves, the trend remains structurally intact.
Bearish Trend Strength Line: A Trend Strength Line positioned below the midline indicates a bearish trend. A declining line reflects increasing selling pressure and persistent downside momentum. The steeper the slope, the stronger the current bearish regime. As long as the line continues to fall alongside negative waves, the trend remains structurally intact.
⚪ Momentum Trading
Momentum trading focuses on capturing the energy and force behind price movement, identifying whether the market is accelerating, losing steam, or preparing for a reversal. Momentum shifts can reveal temporary exhaustion, trend-strength continuation, or breakout acceleration before price action fully confirms it.
The indicator includes several features designed to detect and visualize momentum:
Waves: The core element of the indicator. The size and slope of the waves reflect the strength of momentum. Expanding waves indicate strong directional pressure, while contracting waves suggest cooling or consolidation.
Extreme Zones: When waves reach or exceed the extreme levels, the market enters statistically stretched conditions, signaling potential exhaustion or reversal zones. However, these events can also occur during strong trends, indicating continued strength in that direction. Market context is essential to determine whether an extreme should be interpreted as a reversal signal or as confirmation of trend momentum.
Impulse Markers: Highlight sudden bursts of momentum, often associated with breakouts or continuation events. Like Extreme Zones, Impulse Markers can appear within both reversals and strong trending phases. Context from price structure and higher timeframes helps identify whether the impulse reflects a trend-strength expansion or the final surge before exhaustion.
You can use any of these features to identify:
Breakouts: When Impulse or Extreme Markers align with expanding waves.
Reversals: When momentum reaches extreme levels followed by a fade in strength, it signals potential exhaustion before a structural shift. However, strong trends can also produce temporary fades that quickly recover, so context is key to distinguishing between true reversals and brief pauses within the trend.
⚪ Pullback Trading
Pullbacks represent short pauses or retracements within a prevailing trend. The combination of the Wave, Impulse Markers, and the Trend Strength Line helps identify when a pullback is maturing and when continuation is likely to resume.
Bullish WaveTrend and Trend Strength Pullback
In an uptrend, a brief dip in the negative wave, paired with a bullish Trend Strength, typically signals a healthy pullback rather than a reversal. When the negative wave begins to turn upward again, it confirms momentum recovery and potential for continuation.
Bearish WaveTrend and Trend Strength Pullback
In a downtrend, a short-lived rise in the positive wave while Trend Strength remains negative usually signals a counter-trend rally within weakness. As the positive wave fades and the negative wave expands again, downside continuation becomes more probable.
⚪ Divergence Trading
Divergence trading focuses on identifying moments when price and momentum move out of sync, signaling a potential shift in market direction or a slowdown in trend strength. These divergences often appear before reversals, consolidations, or major transitions in structure, making them a valuable early warning tool for traders.
The integrated Divergence Engine automatically detects these imbalances between price action and momentum. When price continues to move in one direction but momentum begins to fade, it suggests that the underlying strength driving the move is weakening.
█ How It Works
⚪ Wave Construction
The momentum wave is derived from phase-managed price smoothers, then normalized and bounded to express both positive and negative momentum within a single coherent structure.
Calculation: Composite moving frameworks with phase management, nonlinear rescaling, and amplitude companding to stabilize wave height and maintain consistent sensitivity.
⚪ Extremes
An auxiliary equilibrium tracker measures deviations from a dynamic mean to identify statistically stretched conditions in which momentum may begin to rebalance.
Calculation: Robust deviation mapping of a smoothed equilibrium series with adaptive thresholds for regime-consistent extremes.
⚪ Trend Strength Core
A tri-mode core measures directional persistence and adapts dynamically to changing market regimes, with optional higher-timeframe sourcing for context.
Calculation: Return-aggregated momentum with envelope gating (Adaptive), stability-biased curvature tracking (Stability), and structure-driven range midpoint logic (Structure).
⚪ Range & Regime Filter
A volatility-adjusted filter produces a smoothed state line and internal bias zones, allowing the indicator to contextualize momentum behavior within current volatility conditions.
Calculation: Volatility-normalized range synthesis with slow/fast quantization modes and optional smoothing to mitigate market chop.
⚪ Impulse Detection
Detects short-term bursts of directional energy and marks them as impulse events. These impulses highlight when momentum rapidly expands, often signaling breakouts, accelerations, or the end of low-volatility phases.
Calculation: Nonlinear impulse-response mapping that emphasizes higher-order rate changes while filtering out micro-noise.
⚪ Divergence Engine (Regular & Hidden)
Compares price swings against the wave’s momentum structure to identify early disagreement between price and internal strength.
Calculation: Swing-logic comparators analyze price relative to normalized wave amplitude to detect momentum shifts and potential divergence setups.
-----------------
Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Script payant
PowerDelta Oscillator [FxScripts]PowerDelta Oscillator
The PowerDelta Oscillator measures real-time buying and selling pressure using the proprietary PowerDelta Algorithm. By quantifying order flow, it identifies whether the market conditions favor bullish or bearish activity, helping traders determine directional bias for both trend and countertrend setups.
Calculation Methodology
The PowerDelta computes the delta (difference) between buying and selling pressure by integrating both price movement and volume behavior rather than relying solely on volume or price-based approximations like other oscillators.
The PowerDelta Algorithm evaluates six core price-volume conditions:
Price advancing with increasing volume
Price advancing with decreasing volume
Price consolidating with increasing volume
Price consolidating with decreasing volume
Price declining with increasing volume
Price declining with decreasing volume
From these conditions, the algorithm derives:
Accumulation vs Distribution phases
Buyer/Seller exhaustion points
Effort vs No Result scenarios (volume pressure failing to move price)
Operational Use
The PowerDelta Oscillator has three operational modes:
Trend
Countertrend
Blended (Trend/Countertrend hybrid)
Trend Mode
In Trend Mode, the indicator plots an oscillator that fluctuates between positive and negative values:
Positive readings indicate dominant buying pressure
Negative readings indicate dominant selling pressure
The magnitude of the reading reflects the intensity of the pressure
Crossovers at the zero line provide directional shifts:
Negative → Positive: bullish transition
Positive → Negative: bearish transition
Additionally:
Sustained positive values indicate control by buyers, long bias is favoured
Sustained negative values indicate control by sellers, short bias is favoured
The magnitude of displacement from zero provides additional confirmation of market strength or weakness
Countertrend Mode
In Countertrend Mode, the primary use of the PowerDelta Oscillator is to locate divergences between price and the oscillator (as visualised on the chart above) which helps traders pinpoint potential reversals
The oscillator is much more sensitive in this mode, making highs, lows and hence divergences, easier to spot
Like Trend Mode, the magnitude of displacement from zero provides additional confirmation of market strength or weakness
The various Analytical Scenarios detailed below provide detailed use cases for both Trend and Countertrend Mode
Blended Mode
To provide maximum flexibility, there’s also a third Blended Mode
This mode combines elements of the two primary modes and can be used as part of a hybrid approach making it easier to spot both trends and reversals
Alternative Source
The PowerDelta algorithm utilises volume data therefore it’s best to use the most reliable source of volume data for the instrument being traded
For instance, whilst XAUUSD provides excellent results with most forex brokers, slightly better results may be achieved using GC futures data which comes direct from the exchange (data package required)
To use a third-party source, select 'Alternative' and input the relevant source
This can also be used as a way to monitor correlated pairs by adding two instances of the PowerDelta to the same chart, selecting pair 1 e.g. EURUSD as the first instance and the correlated pair e.g. USDCHF as the second instance
Thorough backtesting advised
Analytical Scenarios
Accumulation: High positive oscillator readings combined with upward price movement suggest active accumulation.
Optimal strategy: Monitor pullbacks for potential long entries or wait for a divergence with price and potential reversal.
Distribution: High negative oscillator readings with downward price movement indicate distribution.
Optimal strategy: Monitor pullbacks for potential short entries or wait for a divergence with price and potential reversal.
Buyer Exhaustion: Price forms higher highs while oscillator value declines. Indicates weakening buying strength and potential bearish reversal.
Seller Exhaustion: Price forms lower lows while oscillator value contracts. Indicates weakening selling strength and potential bullish reversal.
Effort / No Result (Buyers): Positive oscillator expansion without higher highs indicates aggressive buying without price confirmation, suggesting overbought conditions and a potential bearish reversal.
Effort / No Result (Sellers): Negative oscillator expansion without lower lows indicates aggressive selling without price confirmation, suggesting oversold conditions and a potential bullish reversal.
Alerts
To trigger alerts when market bias transitions across the zero line:
Right-click on chart → Add Alert on PowerDelta
Condition: PowerDelta → Select Mode
Type: Crossing
Value: 0
Execution: Once Per Bar Close
Adjust additional parameters as required
Performance and Optimization
Backtesting Results: The PowerDelta Oscillator has undergone extensive backtesting across various instruments, timeframes and market conditions, demonstrating strong performance in identifying strong trends and reversals. User backtesting is strongly encouraged as it allows traders to optimize settings for their preferred instruments and timeframes.
Optimization for Diverse Markets: The PowerDelta Oscillator can be used on crypto, forex, indices, commodities and stocks. The PowerDelta Oscillator's algorithmic foundation ensures consistent performance across a variety of instruments. The Trend, Countertrend and Blended Modes make it easy for the trader to set up based on their individual trading style.
Educational Resources and Support
Users of the PowerDelta Oscillator benefit from comprehensive educational resources and full access to FxScripts Support. This ensures traders can maximize the potential of the PowerDelta Oscillator and other tools in the Sigma Indicator Suite by learning best practices and gaining insights from an experienced team of traders.
MeanRevert Matrix [StabTrading]MeanRevert Matrix is a sophisticated trading tool designed to detect when prices significantly deviate from their historical averages, signalling potential market trends and reversals.
Leveraging complex algorithms that incorporate human emotions and mean reversion theory, this indicator is the first stage in a comprehensive system for identifying market entry points. Its versatility allows it to be applied across all charts and timeframes, providing traders with clear visual cues for trend analysis and decision-making.
This indicator is purposefully straightforward, allowing traders to observe how the different algorithms work in confluence. The MeanRevert Matrix can be customized to fit individual trading styles, particularly in terms of aggressiveness, making it adaptable to various market conditions. Working in tandem with the FloWave Oscillator, it offers an additional layer of confluence, ensuring that trading signals are more reliable.
💡 Features
Reversal Zones - These zones are integral to the MeanRevert Matrix, highlighting areas where trader emotions and money flow suggest potential longer-term reversals. The lighter shaded zones indicate early-stage reversals, while darker shades signal stronger reversal potential. This feature is designed to help traders anticipate market shifts and prepare for them accordingly.
Localized Mean Reversion Signals - These signals are triggered when the price deviates significantly from the mean, unaffected by longer-term price movements. This localized algorithm helps traders focus on short-term market fluctuations without being influenced by broader trends.
Yellow Signals - These signals identify isolated overbought or oversold conditions. While they often indicate reversal points, they can also signal the beginning of accelerated buying or selling, giving traders early warning of potential market shifts.
Trading Style Customization - The MeanRevert Matrix allows traders to tailor their strategy by adjusting the indicator’s aggressiveness. A more aggressive setting will produce more frequent reversal signals, offering flexibility based on the trader’s risk tolerance and market outlook.
Noise Eliminator - This feature helps traders filter out market noise or manipulation by increasing the noise value. By removing unwanted or misleading signals, it ensures that traders are acting on the most reliable data.
📈 Implementing the System
Step 1 - Begin by observing the localized blue trend to identify reversal points below the mean. Green or red signals within this trend indicate that the price remains within the current market parameters, suggesting that a reversal may occur more quickly. Yellow signals, however, indicate that the trend is likely to continue, so it’s advisable to wait for clearer reversal zones to develop. To avoid misleading signals, consider using higher noise values.
Step 2 - Wait for the reversal zone algorithm to indicate a potential market reversal by showing either light or dark red/green colour. A lighter zone suggests that the overall trend is beginning to reverse, while a darker zone indicates a higher likelihood of reversal.
Step 3 - Once a reversal zone is identified, monitor the trend line for signals that the price is moving significantly away from the mean. This indicates a strong localized price movement that is poised for a reversal. At this stage, you can reduce the noise value and increase the aggressiveness of the trading style to capture more reversal signals.
🛠️ Usage/Practice
In the example above, the indicator is set with neutral aggression for buy signals and lower aggression for sell signals, reflecting the current bull market cycle
Red Reversal Zone - A bearish reversal zone emerges, followed by a darker bearish zone, indicating an increased probability of a trend reversal. The red signals show price reversion from the localized mean, but the absence of yellow signals suggests the reversion isn't abnormally aggressive, making this a good area to consider a short position.
Strong Reversal Opportunity - Similar to point 1, but this time a green signal appears within the bullish dark green zone, highlighting a strong reversal potential. Subsequent red signals suggest opportunities to take profits as the trend faces resistance.
Opportunity to Strengthen Long Position - Once again, the indicator shows a bullish reversal zone without yellow signals. This suggests an area of increased resistance at this price point, offering traders another chance to increase their long positions before the market enters the long bull cycle.
Excessive Buying Pressure - The price has deviated significantly from the mean, triggering a yellow signal. This indicates excessive buying pressure, suggesting the trend is likely to continue upward. Although not an immediate bearish area, the red sell signals suggest it could be a time to conservatively take partial profits.
Trend Weakening - As the trend slows down, bearish zones appear, indicating potential reversal points. As the market shows signs of losing upward momentum, this suggests an opportunity to reduce their long exposure or enter a short trade and take advantage of the correction in the bull cycle.
Potential for Additional Long Position - Despite the earlier sell signals, the overall uptrend remains strong. This presents an opportunity either to add to the long position or to take profits from a previous sell position. The strength of the upward trend suggests that the market may continue higher.
Abnormal Upward Momentum - Similar to points 4 and 5, the yellow signals indicate abnormal price action with aggressive upward momentum. As the trend corrects to a normal range, the price hitting a resistance level is confirmed by the appearance of red reversal zones, suggesting a potential pullback.
Sideways Market Signals - In a sideways market, the indicator shows signals that remain within the normal mean reversion range. These signals are not abnormal and suggest potential entry points for trades within a sideways market, indicating periods where the market lacks strong directional momentum.
🔶 Conclusion
With its seamless integration into various charts and timeframes, the MeanRevert Matrix stands as a reliable and adaptable tool, essential for navigating the complexities of modern markets. By following the implementation guidelines and leveraging its features, traders have the potential to effectively anticipate market movements and optimize their entry and exit points.
We developed this indicator to help traders enhance their understanding of market trends and achieve their trading objectives with greater precision.
Swing Failure Pattern SFP [TradingFinder] SFP ICT Strategy🔵 Introduction
The Swing Failure Pattern (SFP), also referred to as a "Fake Breakout" or "False Breakout," is a vital concept in technical analysis. This pattern is derived from classic technical analysis, price action strategies, ICT concepts, and Smart Money Concepts.
It’s frequently utilized by traders to identify potential trend reversals in financial markets, especially in volatile markets like cryptocurrencies and forex. SFP helps traders recognize failed attempts to breach key support or resistance levels, providing strategic opportunities for trades.
The Swing Failure Pattern (SFP) is a popular strategy among traders used to identify false breakouts and potential trend reversals in the market. This strategy involves spotting moments where the price attempts to break above or below a previous high or low (breakout) but fails to sustain the move, leading to a sharp reversal.
Traders use this strategy to identify liquidity zones where stop orders (stop hunt) are typically placed and targeted by larger market participants or whales.
When the price penetrates these areas but fails to hold the levels, a liquidity sweep occurs, signaling exhaustion in the trend and a potential reversal. This strategy allows traders to enter the market at the right time and capitalize on opportunities created by false breakouts.
🟣 Types of SFP
When analyzing SFPs, two main variations are essential :
Real SFP : This occurs when the price breaks a critical level but fails to close above it, then quickly reverses. Due to its clarity and strong signal, this SFP type is highly reliable for traders.
Considerable SFP : In this scenario, the price closes slightly above a key level but quickly declines. Although significant, it is not as definitive or trustworthy as a Real SFP.
🟣 Understanding SFP
The Swing Failure Pattern, or False Breakout, is identified when the price momentarily breaks a crucial support or resistance level but cannot maintain the movement, leading to a rapid reversal.
The pattern can be categorized as follows :
Bullish SFP : This type occurs when the price dips below a support level but rebounds above it, signaling that sellers failed to push the price lower, indicating a potential upward trend.
Bearish SFP : This pattern forms when the price surpasses a resistance level but fails to hold, suggesting that buyers couldn’t maintain the higher price, leading to a potential decline.
🔵 How to Use
To effectively identify an SFP or Fake Breakout on a price chart, traders should follow these steps :
Identify Key Levels: Locate significant support or resistance levels on the chart.
Observe the Fake Breakout: The price should break the identified level but fail to close beyond it.
Monitor Price Reversal: After the breakout, the price should quickly reverse direction.
Execute the Trade: Traders typically enter the market after confirming the SFP.
🟣 Examples
Bullish Example : Bitcoin breaks below a $30,000 support level, drops to $29,000, but closes above $30,000 by the end of the day, signaling a Real Bullish SFP.
Bearish Example : Ethereum surpasses a $2,000 resistance level, rises to $2,100, but then falls back below $2,000, forming a Bearish SFP.
🟣 Pros and Cons of SFP
Pros :
Effective in identifying strong reversal points.
Offers a favorable risk-to-reward ratio.
Applicable across different timeframes.
Cons :
Requires experience and deep market understanding.
Risk of encountering false breakouts.
Should be combined with other technical tools for optimal effectiveness.
🔵 Settings
🟣 Logical settings
Swing period : You can set the swing detection period.
SFP Type : Choose between "All", "Real" and "Considerable" modes to identify the swing failure pattern.
Max Swing Back Method : It is in two modes "All" and "Custom". If it is in "All" mode, it will check all swings, and if it is in "Custom" mode, it will check the swings to the extent you determine.
Max Swing Back : You can set the number of swings that will go back for checking.
🟣 Display settings
Displaying or not displaying swings and setting the color of labels and lines.
🟣 Alert Settings
Alert SFP : Enables alerts for Swing Failure Pattern.
Message Frequency : Determines the frequency of alerts. Options include 'All' (every function call), 'Once Per Bar' (first call within the bar), and 'Once Per Bar Close' (final script execution of the real-time bar). Default is 'Once per Bar'.
Show Alert Time by Time Zone : Configures the time zone for alert messages. Default is 'UTC'.
🔵 Conclusion
The Swing Failure Pattern (SFP), or False Breakout, is an essential analytical tool that assists traders in identifying key market reversal points for successful trading.
By understanding the nuances between Real SFP and Considerable SFP, and integrating this pattern with other technical analysis tools, traders can make more informed decisions and better manage their trading risks.
Expectation Breakers [QuantVue]In technical analysis, an "Expectation Breaker" refers to a market event where price action defies typical patterns and anticipated movements, signaling potential shifts in market sentiment and direction.
This indicator looks to take advantage of these opportunities by identifying 2 types of Expectation Breakers: Downside Reversal Buybacks and Upside Reversal Sellbacks.
Downside Reversal
A downside reversals occur when a stock reaches a new high for the user defined lookback period (65 bars by default), and then experiences a larger-than-average drop and closes near its lows. This usually indicates that the market has overextended itself. The expectation is that there will be 2-3 bars of significant selling, following the downside reversal.
However, a notable sign of strength is if the stock rebounds and closes above the downside reversal bar's high within 1-3 bars. This is known as a Downside Reversal Buyback. A rapid recovery following a downside reversal is a powerful bullish indicator, breaking the expectation of lower prices. The quicker price recovers from a downside reversal, the more meaningful it is. Such a swift rebound suggests that the market's strength was underestimated, as downside reversals typically signal a short-term decline.
Upside Reversal
An upside reversal occurs when a stock reaches a new low for the user-defined lookback period (65 bars by default), and then experiences a larger-than-average rise and closes near its highs. This usually indicates that the market has overextended itself to the downside. The expectation is that there will be 2-3 bars of significant buying, following the upside reversal.
However, a notable sign of weakness is if the stock falls back and closes below the upside reversal bar's low within 1-3 bars. This is known as a Upside Reversal Sellback. A rapid fallback following an upside reversal is a powerful bearish indicator, breaking the expectation of higher prices. The quicker price falls back from an upside reversal, the more meaningful it is. Such a swift fallback suggests that the market's weakness was underestimated, as upside reversals typically signal a short-term rally.
The Expectation Breakers indicator identifies these opportunities by first identifying new highs and lows within a defined lookback period. It then compares the true range (TR), average true range (ATR), and closing range to confirm the significance of these reversals. The use of TR and ATR ensures that the reversals are substantial enough to indicate a genuine shift in market sentiment, helping to identify when price action breaks expectations.
Give this indicator a BOOST and COMMENT your thoughts below!
We hope you enjoy.
Cheers!
TREV Candles - Range-Based Trend ReversalTREV Candles - Range-Based Trend Reversal Chart Implementation
What is a Trend Reversal (TREV) Chart?
A Trend Reversal chart, also known as a Point & Figure chart variation, is a unique charting method that focuses on price movement thresholds rather than time intervals. Unlike traditional candlestick charts where each candle represents a fixed time period, TREV candles form only when price moves by predefined amounts in ticks.
TREV charts eliminate time-based noise and focus purely on significant price movements, making them ideal for identifying genuine trend changes and continuation patterns.
How TREV Candles Work
This indicator implements true TREV logic with two critical thresholds:
Trend Size: The number of ticks price must move in the current direction to form a trend continuation candle
Reversal Size: The number of ticks price must move against the current direction to form a reversal candle and change the overall trend direction
Key TREV Rules Enforced:
Direction Changes Only Through Reversals: You cannot go from bullish trend directly to bearish trend - a reversal candle must occur first
Threshold-Based Formation: Candles form only when price thresholds are breached, not on time
Logical Wick Placement: Wicks only appear on the "open" side of candles where price temporarily moved against the formation direction
Multiple Candles Per Bar: When price moves significantly, several TREV candles can form within a single time-based bar
Four Distinct Candle Types
Bullish Trend (Green): Continues upward movement when trend threshold is hit
Bearish Trend (Red): Continues downward movement when trend threshold is hit
Bullish Reversal (Blue): Changes from bearish to bullish direction when reversal threshold is breached
Bearish Reversal (Orange): Changes from bullish to bearish direction when reversal threshold is breached
Practical Trading Applications
Trend Identification: Clear visual representation of when trends are continuing vs. reversing
Noise Reduction: Filters out insignificant price movements that don't meet threshold requirements
Support/Resistance: TREV levels often act as significant support and resistance zones
Breakout Confirmation: When price forms multiple trend candles in succession, it confirms strong directional movement
Reversal Signals: Reversal candles provide early warning of potential trend changes
Technical Implementation Features
Intelligent Price Path Processing: Analyzes the assumed price path within each bar (Low→High→Close for bullish bars, High→Low→Close for bearish bars)
Automatic Tick Size Detection: Works with any instrument by automatically detecting the correct tick size
Manual Override Option: Allows manual tick size specification for custom analysis
Impossible Scenario Prevention: Built-in logic prevents impossible wick configurations and direction changes
PineScript Optimization: Efficient state management and drawing limits handling for smooth performance
Comprehensive Styling Options
Each of the four candle types offers complete visual customization:
Body Colors: Independent color settings for each candle type's body
Border Colors: Separate border color customization
Border Styles: Choose from solid, dashed, or dotted borders
Wick Colors: Individual wick color settings for each candle type
Default Color Scheme:
🟢 Bullish Trend: Green body and wicks
🔵 Bullish Reversal: Blue body and wicks
🔴 Bearish Trend: Red body and wicks
🟠 Bearish Reversal: Orange body and wicks
Configuration Guidelines
Trend Size: Larger values create fewer, more significant trend candles. Smaller values increase sensitivity
Reversal Size: Should typically be smaller than trend size. Controls how easily the trend direction can change
Tick Size: Use "auto" for most instruments. Manual override useful for custom point values or backtesting
Ideal Use Cases
Swing Trading: Identify major trend changes and continuation patterns
Scalping: Use smaller thresholds to catch quick reversals and momentum shifts
Position Trading: Use larger thresholds to filter noise and focus on major trend moves
Multi-Timeframe Analysis: Compare TREV patterns across different threshold settings
Support/Resistance Trading: TREV close levels often become significant price zones
Why This Implementation is Superior
True TREV Logic: Enforces proper trend reversal rules that many implementations ignore
No Impossible Scenarios: Prevents wicks on both sides of candles and impossible direction changes
Professional Visualization: Clean, customizable appearance suitable for serious analysis
Performance Optimized: Handles large datasets without lag or drawing limit issues
Educational Value: Helps traders understand the difference between time-based and threshold-based charting
Perfect for traders who want to see beyond time-based noise and focus on what price is actually doing - moving in significant, measurable amounts that matter for trading decisions.
Market Price Order Divergence + Trapped Positions [Pt]█ Introduction
Specifically designed for trading on NYSE, NASDAQ, Dow Jones, and AMEX related instruments like SPY, QQQ, ES, NQ...etc., this innovative tool provides traders with advanced market insights to help them comprehend the market intricacies and make well-informed decisions. Comprising three primary features: Price Order Divergence (POD) Bubbles, Market Order Bubbles, and Trapped Positions/Zones, this tool assists traders in deciphering the nuances of market order flow and trends.
An important point to note is that TradingView doesn't currently provide direct access to market order data, such as buy and sell order flow. Therefore, this tool cleverly leverages TICK index data to estimate the overall market buy and sell strength.
█ Price Order Divergence (POD)
POD serves to detect disparities between the prices of US indices and estimated market orders during regular trading hours (9:30 to 16:00 EST). Bullish divergence indicates that the estimated market order flow is biased towards buy orders, despite bearish price action. In contrast, bearish divergence indicates that the market order flow is biased towards sell orders while the price exhibits bullish action. By default, PODs are visually represented as green bubbles under the candle for bullish divergence and red ones above the candle for bearish divergence. The bubble's size symbolizes the estimated market order strength.
█ Market Order Bubbles (MOB)
During extended or Globex hours, instead of POD, the tool uses Market Order Bubbles (MOB) to estimate market orders using volume data. Sophisticated algorithm is used to distinguish between bullish vs bearish volume. A strong bullish volume represents significant buy orders, whereas a strong bearish volume represents substantial sell orders. By default, MOBs during these hours are shown in blue for bullish and yellow for bearish divergence. Again, the bubble's size symbolizes the estimated market order strength.
█ Trapped Positions/Zones
Trapped positions materialize when PODs or MOBs emerge in trending markets. For example, a bearish divergence during an uptrend suggests significant selling (including shorting), and if the price continues ascending without offering short positions any profit, these positions become 'trapped shorts' and is shown as 'TS' in the zone. The opposite is true for 'trapped longs' or 'TL'.
A price range zone can be delineated from the trapped position candles. If prices revisit these zones, and the prevailing market trend stays bullish, the trapped shorts will probably liquidate near the break-even point to mitigate losses. The same rationale applies to bullish divergence in a downtrend. Therefore, these zone often times represents support / resistance zones.
█ Potential Use Cases
► Trend Confirmation: POD or MOB can confirm the strength of an ongoing trend. For example, during a bullish trend, a plethora of green bubbles or blue MOBs can affirm the trend's solidity.
► Spotting Reversals: Large, isolated POD or MOB bubbles could indicate potential market reversals. For instance, a prominent red bubble or yellow MOB during an uptrend might hint at an impending trend reversal.
► Risk Management: The Trapped Positions/Zones feature could assist in risk management. When prices approach these zones, traders can anticipate potential large market orders impacting price movements.
► Profit Optimization: This tool can aid traders in optimizing profits by identifying when trapped positions are likely to liquidate, thus predicting potential sharp price movements.
Remember, as with any tool, this should be used alongside other market analyses and not as a standalone indicator. Happy trading!
================================================================================================================
█ Settings Overview
◊ Market - available options: NYSE, NASDAQ, Dow Jones, AMEX. This will be displayed
◊ Lookback period- # of bars to lookback for detecting price vs market order divergences
▼ Regular Hour - Price Order Divergence Bubbles
◊ Show Price Order Divergence (POD) Bubbles - toggle on/off for POD bubbles
◊ └ Use Market Order Sentiment only - Shows divergences between price movement and market order sentiment (amount of buying vs selling)
◊ └ Use Market Order Trend Bias - On top of market order sentiment, the indicator also looks at overall market short term trends to determine divergences
◊ └ Use Threshold Min. Threshold - For filtering order size, the lower the threshold, the more sensitive
◊ └ Use Volume Strength - Take volume into consideration as well, only shows divergence when there is strength in volume
▼ Extended Hour - Market Order Bubbles
◊ Show Market Order Bubbles - toggle on/off for MOB. Using volume data to estimate significant market order activities. Bubbles indicate possible large liquidation activities
◊ └ Volume Analysis period - lookback period for volume analysis
◊ └ Volume Strength period - lookback period for volume strength
▼ Trapped Position Zones
◊ Show Potential Traps - toggle on/off for un-activated trapped zones. They are shown as lightly shaded areas of potential traps. These areas will be activated once price hit the activation %
◊ Show Trapped positions (Regular Hours) - toggle on/off for POD trapped zones. By default, trapped shorts are shown in green, trapped tongs are shown in red.
◊ Show Trapped positions (Extended Hours) - toggle on/off for MOB bubbles. By default, trapped shorts are shown in blue, trapped tongs are shown in orange.
◊ └ Activation % - Trapped zones are activated if price goes x% of the potential trapped range in the undesirable direction. Default is 100%
◊ Liquidate display options - options: On first touch, Per touch, Fully liquidated
Trapped zones liquidate display options:
▼ Display
◊ General color settings for bubbles, trapped zones, and label size
◊ Use Emoji for bubbles - fun setting that displays bulls and bears by default. This helps really visualize where the bulls and bears are! 🤣🤣 These emoji can be changed in the style setting.
▼ Trapped Zone Channel
The trapped zone channel represents a continuous channel of the closest activated trapped zone area. This allows for creating alerts for trapped zones, and the plot outputs allows for custom Pinescript integration.
◊ Trapped Zone Channel Buffer % - Adds upper and lower buffer for trapped zone channel
◊ Show Trapped Channel - toggle on/off on trapped zone channels
◊ └ Remove channel changing lines - toggle on/off the transition plot lines when switching to the closest trapped zones
◊ Show Trapped Channel Fill - toogl
▼ Extra
◊ Display settings for chosen market and indicator title
▼ Trend Follower
◊ Show Trend Following Bar Color - toggle trend follower algorithm. This is an experimental trend following algorithm that attempts to detect bullish, neutral and bearish trends.
▼ Outputs
◊ Output Bubbles
Outputs for Bubbles for external interface. These can be used as inputs to your own indicator or strategy Pinescript. For more info, take a look at this TradingView blog:
www.tradingview.com
Bubble type can be chosen within the settings:
Both - Default, output will include both Market Price Order Divergence Bubbles (during Regular Hours) and Market Order Bubbles (during Extended Hours)
POD Only (RTH) - Output will include only Market Price Order Divergence Bubbles; otherwise, output = 0 during Extended Hours
MOB Only (ETH) - Output will include only Market Order Bubbles; otherwise, output = 0 during Regular Hours
Market Order Bubbles output values:
3 = Large size Bullish Bubble
2 = Medium size Bullish Bubble
1 = Small size Bullish Bubble
0 = No Bubble
-1 = Small size Bearish Bubble
-2 = Medium size Bearish Bubble
-3 = Large size Bearish Bubble
Composite Reversal IndicatorOverview
The "Composite Reversal Indicator" aggregates five technical signals to produce a composite score that ranges from -5 (strongly bearish) to +5 (strongly bullish). These signals come from:
Relative Strength Index (RSI)
Moving Average Convergence Divergence (MACD)
Accumulation/Distribution (A/D)
Volume relative to its moving average
Price proximity to support and resistance levels
Each signal contributes a value of +1 (bullish), -1 (bearish), or 0 (neutral) to the total score. The raw score is plotted as a histogram, and a smoothed version is plotted as a colored line to highlight trends.
Step-by-Step Explanation
1. Customizable Inputs
The indicator starts with user-defined inputs that allow traders to tweak its settings. These inputs include:
RSI: Length (e.g., 14), oversold level (e.g., 30), and overbought level (e.g., 70).
MACD: Fast length (e.g., 12), slow length (e.g., 26), and signal length (e.g., 9).
Volume: Moving average length (e.g., 20) and multipliers for high (e.g., 1.5) and low (e.g., 0.5) volume thresholds.
Price Levels: Period for support and resistance (e.g., 50) and proximity percentage (e.g., 2%).
Score Smoothing: Length for smoothing the score (e.g., 5).
These inputs make the indicator adaptable to different trading styles, assets, or timeframes.
2. Indicator Calculations
The script calculates five key indicators using the input parameters:
RSI: Measures momentum and identifies overbought or oversold conditions.
Formula: rsi = ta.rsi(close, rsi_length)
Example: With a length of 14, it analyzes the past 14 bars of closing prices.
MACD: Tracks trend and momentum using two exponential moving averages (EMAs).
Formula: = ta.macd(close, macd_fast, macd_slow, macd_signal)
Components: MACD line (fast EMA - slow EMA), signal line (EMA of MACD line).
Accumulation/Distribution (A/D): A volume-based indicator showing buying or selling pressure.
Formula: ad = ta.accdist
Reflects cumulative flow based on price and volume.
Volume Moving Average: A simple moving average (SMA) of trading volume.
Formula: vol_ma = ta.sma(volume, vol_ma_length)
Example: A 20-bar SMA smooths volume data.
Support and Resistance Levels: Key price levels based on historical lows and highs.
Formulas:
support = ta.lowest(low, price_level_period)
resistance = ta.highest(high, price_level_period)
Example: Over 50 bars, it finds the lowest low and highest high.
These calculations provide the raw data for generating signals.
3. Signal Generation
Each indicator produces a signal based on specific conditions:
RSI Signal:
+1: RSI < oversold level (e.g., < 30) → potential bullish reversal.
-1: RSI > overbought level (e.g., > 70) → potential bearish reversal.
0: Otherwise.
Logic: Extreme RSI values suggest price may reverse.
MACD Signal:
+1: MACD line > signal line → bullish momentum.
-1: MACD line < signal line → bearish momentum.
0: Equal.
Logic: Crossovers indicate trend shifts.
A/D Signal:
+1: Current A/D > previous A/D → accumulation (bullish).
-1: Current A/D < previous A/D → distribution (bearish).
0: Unchanged.
Logic: Rising A/D shows buying pressure.
Volume Signal:
+1: Volume > high threshold (e.g., 1.5 × volume MA) → strong activity (bullish).
-1: Volume < low threshold (e.g., 0.5 × volume MA) → weak activity (bearish).
0: Otherwise.
Logic: Volume spikes often confirm reversals.
Price Signal:
+1: Close near support (within proximity %, e.g., 2%) → potential bounce.
-1: Close near resistance (within proximity %) → potential rejection.
0: Otherwise.
Logic: Price near key levels signals reversal zones.
4. Composite Score
The raw composite score is the sum of the five signals:
Formula: score = rsi_signal + macd_signal + ad_signal + vol_signal + price_signal
Range: -5 (all signals bearish) to +5 (all signals bullish).
Purpose: Combines multiple perspectives into one number.
5. Smoothed Score
A smoothed version of the score reduces noise:
Formula: score_ma = ta.sma(score, score_ma_length)
Example: With a length of 5, it averages the score over 5 bars.
Purpose: Highlights the trend rather than short-term fluctuations.
6. Visualization
The indicator plots two elements:
Raw Score: A gray histogram showing the composite score per bar.
Style: plot.style_histogram
Color: Gray.
Smoothed Score: A line that changes color:
Green: Score > 0 (bullish).
Red: Score < 0 (bearish).
Gray: Score = 0 (neutral).
Style: plot.style_line, thicker line (e.g., linewidth=2).
These visuals make it easy to spot potential reversals.
How It Works Together
The indicator combines signals from:
RSI: Momentum extremes.
MACD: Trend shifts.
A/D: Buying/selling pressure.
Volume: Confirmation of moves.
Price Levels: Key reversal zones.
By summing these into a composite score, it filters out noise and provides a unified signal. A high positive score (e.g., +3 to +5) suggests a bullish reversal, while a low negative score (e.g., -3 to -5) suggests a bearish reversal. The smoothed score helps traders focus on the trend.
Practical Use
Bullish Reversal: Smoothed score is green and rising → look for buying opportunities.
Bearish Reversal: Smoothed score is red and falling → consider selling or shorting.
Neutral: Score near 0 → wait for clearer signals.
Traders can adjust inputs to suit their strategy, making it versatile for stocks, forex, or crypto.
Integrated Reversal & Divergence DetectionThe Integrated Reversal & Divergence Detection indicator (IntgRevDiv) combines two powerful technical analysis systems into one comprehensive tool:
Advanced Reversal Detection System: Identifies potential market reversals using volume analysis, RSI divergence, and smart money techniques.
Divergence Indicator System: Detects regular and hidden divergences using multiple technical indicators and fractal patterns.
This integration provides confirmation from multiple analysis methods, resulting in higher quality trading signals.
Divergence Lines
When System B detects divergences, it draws lines connecting the relevant price pivots:
Green Lines: Connect bullish divergence pivot points.
Red Lines: Connect bearish divergence pivot points.
Information Tables
The indicator displays two information tables:
System A Table (Bottom Right):
Current signal status (BUY/SELL/NEUTRAL)
Volume, RSI, and SMT divergence status.
Composite signal information.
Divergence Table (Top Right):
Divergence existence indicators (+/-).
Consecutive divergence count.
Divergence quality rating.
Phase change indicators.
This system analyzes multiple factors to detect potential market reversals:
Volume Delta Analysis:
Calculates the difference between buying and selling volume.
Detects divergence between price action and volume.
When price increases but volume decreases, it may signal weakness.
RSI Divergence Detection:
Regular Divergence: Price makes a higher high but RSI makes a lower high (bearish) or price makes a lower low but RSI makes a higher low (bullish).
Hidden Divergence: Price makes a lower high but RSI makes a higher high (bearish) or price makes a higher low but RSI makes a lower low (bullish).
Smart Money Technique (SMT):
Analyzes correlation between the current instrument and a reference symbol.
Detects divergence in the correlation that may signal institutional activity.
Balance Range & Momentum Detection:
Identifies periods of price balance before breakouts.
Detects rapid price movements that may indicate reversals.
This system also focuses exclusively on detecting divergences using:
Multiple Technical Indicators:
MACD: Momentum and trend-following indicator.
Awesome Oscillator (AO): Momentum indicator.
RSI: Oscillator showing overbought/oversold conditions.
Fractal Pattern Detection:
Identifies swing highs and lows using fractals.
Uses these pivot points to detect divergences.
Phase Change Monitoring:
Detects when the histogram switches from positive to negative or vice versa.
Provides additional confirmation of trend changes.
Consecutive Divergence Tracking:
Counts consecutive bullish/bearish divergences.
Assigns quality ratings based on the count:
1 divergence: "Normal Dive".
2 divergences: "Good Dive".
3+ divergences: "Strong Dive".
Multi-Timeframe Analysis:
Apply the indicator to multiple timeframes.
Look for alignment of signals across timeframes.
Use longer timeframes for trend direction, shorter for entry timing.
Signal Filtering Based on Quality:
For higher probability trades, only take signals when:
Divergence quality shows "Good" or "Strong".
Phase change indicators show "+" in the direction of your trade.
Multiple divergence types (Volume, RSI, SMT) show agreement.
Combining with Support/Resistance:
Use the indicator's signals near key support/resistance levels.
Buy signals near support areas have higher probability.
Sell signals near resistance areas have higher probability.
Market Regime Adaptation:
I n trending markets: Focus on hidden divergences and SMT.
In ranging markets: Focus on regular divergences and RSI.
In high volatility: Increase the Volume Delta Threshold.
In low volatility: Decrease the Fractal Periods.
Signal Combination Logic Selection:
For fewer but higher quality signals: Use "Consensus" mode.
For more trading opportunities: Use "Enhanced" mode.
To emphasize price action reversals: Use "System A Priority".
To emphasize technical divergences: Use "System B Priority".
Market-Specific Adjustments:
Stocks/Indices: Focus on Volume Delta and RSI divergence.
Forex: Emphasize SMT and RSI divergence.
Crypto: Balance all three with slightly higher weight on Volume.
Commodities: Focus on MACD for divergence detection.
This indicator provides multiple layers of market analysis through its integrated approach. By understanding each component's function and how they work together, you can develop a nuanced trading strategy that takes advantage of high-probability reversal and divergence setups across various market conditions.
TrendPredator PROThe TrendPredator PRO
Stacey Burke, a seasoned trader and mentor, developed his trading system over the years, drawing insights from influential figures such as George Douglas Taylor, Tony Crabel, Steve Mauro, and Robert Schabacker. His popular system integrates select concepts from these experts into a consistent framework. While powerful, it remains highly discretionary, requiring significant real-time analysis, which can be challenging for novice traders.
The TrendPredator indicators support this approach by automating the essential analysis required to trade the system effectively and incorporating mechanical bias and a multi-timeframe concept. They provide value to traders by significantly reducing the time needed for session preparation, offering all relevant chart analysis and signals for live trading in real-time.
The PRO version offers an advanced pattern identification logic that highlights developing context as well as setups related to the constellation of the signals provided. It provides real-time interpretation of the multi-timeframe analysis table, following an extensive underlying logic with more than 150 different setup variations specifically developed for the system and indicator. These setups are constantly back- and forward-tested and updated according to the results. This version is tailored to traders primarily trading this system and following the related setups in detail.
The former TrendPredator ES version does not provide that option. It is significantly leaner and is designed for traders who want to use the multi-timeframe logic as additional confluence for their trading style. It is very well suited to support many other trading styles, including SMC and ICT.
The Multi-timeframe Master Pattern
Inspired by Taylor’s 3-day cycle and Steve Mauro’s work with “Beat the Market Maker,” Burke’s system views markets as cyclical, driven by the manipulative patterns of market makers. These patterns often trap traders at the extremes of moves above or below significant levels with peak formations, then reverse to utilize their liquidity, initiating the next phase. Breakouts away from these traps often lead to range expansions, as described by Tony Crabel and Robert Schabacker. After multiple consecutive breakouts, especially after the psychological number three, overextension might develop. A break in structure may then lead to reversals or pullbacks. The TrendPredator Indicator and the related multi-timeframe trading system are designed to track these cycles on the daily timeframe and provide signals and trade setups to navigate them.
Bias Logic and Multi-Timeframe Concept
The indicator covers the basic signals of Stacey Burke's system:
- First Red Day (FRD): Bearish break in structure, signalling weak longs in the market.
- First Green Day (FGD): Bullish break in structure signalling weak shorts in the markt.
- Three Days of Longs (3DL): Overextension signalling potential weak longs in the market.
- Three Days of Shorts (3DS): Overextension signalling potential weak shorts in the market.
- Inside Day (ID): Contraction, signalling potential impulsive reversal or range expansion move.
It enhances the original system by introducing:
Structured Bias Logic:
Tracks bias by following how price trades concerning the last previous candle high or low that was hit. For example if the high was hit, we are bullish above and bearish below.
- Bullish state: Breakout (BO), Fakeout Low (FOL)
- Bearish state: Breakdown (BD), Fakeout High (FOH)
Multi-Timeframe Perspective:
- Tracks all signals across H4, H8, D, W, and M timeframes, to look for alignment and follow trends and momentum in a mechanical way.
Developing Context:
- Identifies specific predefined context states based on the monthly, weekly and daily bias.
Developing Setups:
- Identifies specific predefined setups based on context and H8 bias as well as SB signals.
The indicator monitors the bias and signals of the system across all relevant timeframes and automates the related graphical chart analysis as well as context and setup zone identification. In addition to the master pattern, the system helps to identify the higher timeframe situation and follow the moves driven by other timeframe traders to then identify favourable context and setup situations for the trader.
Example: Full Bullish Cycle on the Daily Timeframe with Multi-Timeframe Signals
- The Trap/Peak Formation
The market breaks down from a previous day’s and maybe week’s low—potentially after multiple breakdowns—but fails to move lower and pulls back up to form a peak formation low and closes as a first green day.
MTF Signals: Bullish daily and weekly fakeout low; three consecutive breakdown days (1W Curr FOL, 1D Curr FOL, BO 3S).
Context: Reversal (REV)
Setup: Fakeout low continuation low of day (FOL Cont LOD)
- Pullback and Consolidation
The next day pulls further up after first green day signal, potentially consolidates inside the previous day’s range.
MTF Signals: Fakeout low and first green day closing as an inside day (1D Curr IS, Prev FOL, First G).
Context: Reversal continuation (REV Cont)
Setup: Previous fakeout low continuation low handing fruit (Prev FOL Cont LHF)
- Range Expansion/Trend
The following day breaks up through the previous day’s high, launching a range expansion away from the trap.
MTF Signals: Bullish daily breakout of an inside day (1D Curr BO, Prev IS).
Context: Uptrend healthy (UT)
Setup: Breakout continuation low hanging fruit (BO Cont LHF)
- Overextension
After multiple consecutive breakouts, the market reaches a state of overextension, signalling a possible reversal or pullback.
MTF Signals: Three days of breakout longs (1D Curr BO, Prev BO, BO 3L).
Context: Uptrend extended (UT)
- Reversal
After a breakout of previous days high that fails, price pulls away from the high showing a rollover of momentum across all timeframes and a potential short setup.
MTF Signals: Three days of breakout longs, daily fakeout high (1D 3L, FOH)
Context: Reversal countertrend (REV)
Setup: Fakeout high continuation high of day (FOH Cont HOD)
Note: This is only one possible illustrative scenario; there are many variations and combinations.
Example Chart: Full Bullish Cycle with Correlated Signals
Multi-Timeframe Signals examples:
Context and Setups examples:
Note: The signals shown along the move are manually added illustrations. The indicator shows these in realtime in the table at top and bottom right. This is only one possible scenario; there are many variations and combinations.
Due to the fractal nature of markets, this cycle can be observed across all timeframes. The strongest setups occur when there is multi-timeframe alignment. For example, a peak formation and potential reversal on the daily timeframe have higher probability and follow-through when they align with bearish signals on higher timeframes (e.g., weekly/monthly BD/FOH) and confirmation on lower timeframes (H4/H8 FOH/BD). With this perspective, the system enables the trader to follow the trend and momentum while identifying rollover points in a highly differentiated and precise way.
Using the Indicator for Trading
The automated analysis provided by the indicator can be used for thesis generation in preparation for a session as well as for live trading, leveraging the real-time updates as well as the context and setup indicated or alerted. It is recommended to customize the settings deeply, such as hiding the lower timeframes for thesis generation or the specific alert time window and settings to the specific trading schedule and playbook of the trader.
1. Context Assessment:
Evaluate alignment of higher timeframes (e.g., Month/Week, Week/Day). More alignment → Stronger setups.
- The context table offers an interpretation of the higher timeframe automatically. See below for further details.
2. Setup Identification:
Follow the bias of daily and H8 timeframes. A setup mostly requires alignment of these.
Setup Types:
- Trend Trade: Trade in alignment with the previous day’s trend.
Example: Price above the previous day’s high → Focus on long setups (dBO, H8 FOL) until overextension or reversal signs appear (H8 BO 3L, First R).
- Reversal Trade: Identify reversal setups when lower timeframes show rollovers after higher timeframe weakness.
Example: Price below the previous day’s high → Look for reversal signals at the current high of day (H8 FOH, BO 3L, First R).
- The setup table shows potential setups for the specific price zone in the table automatically. See below for further details.
3. Entry Confirmation:
Confirm entries based on H8 and H4 alignment, candle closes and lower timeframe fakeouts.
- H8 and H4 should always align for a final confirmation, meaning the breach lines should be both in the back of a potential trade setup.
- M15/ 5 candle close can be seen as acceptance beyond a level or within the setup zone.
- M15/5 FOH/ FOL signals lower timeframe traps potentially indicating further confirmation.
Example Chart Reversal Trade:
Context: REV (yellow), Reversal counter trend, Month in FOL with bearish First R, Week in BO but bearishly overextended with BO 3L, Day in Fakeout high reversing bearishly.
Setup: FOH Cont HOD (red), Day in Fakeout high after BO 3L overextension, confirmed by H8 FOH high of day, First R as further confluence. Two star quality and countertrend.
Entry: H4 BD, M15 close below followed by M15 FOH.
Detailed Features and Options
1. Context and Setup table
The Context and Setup Table is the core feature of the TrendPredator PRO indicator. It delivers real-time interpretation of the multi-timeframe analysis based on an extensive underlying logic table with over 150 variations, specifically developed for this system and indicator. This logic is continuously updated and optimized to ensure accuracy and performance.
1.1. Developing Context
States for developing higher timeframe context are determined based on signals from the monthly, weekly, and daily timeframes.
- Green and Red indicate alignment and potentially interesting developing setups.
- Yellow signals a mixed or conflicting bias, suggesting caution when taking trades.
The specific states are:
- UT (yellow): Uptrend extended
- UT (green): Uptrend healthy
- REV (yellow): Reversal day counter trend
- REV (green): Reversal day mixed trend
- REV Cont (green): Reversal continuation mixed trend
- REV Cont (yellow): Reversal continuation counter trend
- REV into UT (green): Reversal day into uptrend
- REV Cont into UT (green): Reversal continuation into uptrend
- UT Pullback (yellow): Counter uptrend breakdown day
- Conflicting (yellow): Conflicting signals
- Consolidating (yellow): Consolidating sideways
- Inside (yellow): Trading inside after an inside week
- DT Pullback (yellow): Counter downtrend breakout day
- REV Cont into DT (red): Reversal continuation into downtrend
- REV into DT (red): Reversal day into downtrend
- REV Cont (yellow): Reversal continuation counter trend
- REV Cont (red): Reversal continuation mixed trend
- REV (red): Reversal day mixed trend
- REV (yellow): Reversal day countertrend
- DT (red): Downtrend healthy
- DT (yellow): Downtrend extended
Example: Uptrend
The Uptrend Context (UT, green) indicates a healthy uptrend with all timeframes aligning bullishly. In this case, the monthly is in a Fakeout Low (FOL) and currently inside the range, while the weekly and daily are both in Breakout (BO) states. This context is favorable for developing long setups in the direction of the trend.
Example: Uptrend pullback
The Uptrend Pullback Context (UT Pullback, yellow) indicates a Breakdown (BD) on the daily timeframe against a higher timeframe uptrend. In this case, the monthly is in a Fakeout Low (FOL) and currently inside its range, the weekly is in Breakout (BO) and also currently inside, while the daily is in Breakdown (BD). This context reflects a conflicting situation—potentially signaling either an early reversal back into the uptrend or, if the breakdown extends, the beginning of a possible trend change.
Example: Reversal into Uptrend
The Reversal into Uptrend Context (REV into UT, green) indicates a lower timeframe reversal aligning with a higher timeframe uptrend. In this case, the monthly is in Breakout (BO), the weekly is in Breakout (BO) and currently inside its range, while the daily is showing a bullish Fakeout Low (FOL) reversal. This context is potentially very favorable for long setups, as it signals a strong continuation of the uptrend supported across multiple timeframes.
Example: Reversal
The Bearish Reversal Context indicates a lower timeframe rollover within an ongoing higher timeframe uptrend. In this case, the monthly remains in Breakout (BO), the weekly has shifted into a Fakeout High (FOH) after three weeks of breakout longs, and the daily is already in Breakdown (BD). This context suggests a potentially favorable developing short setup, as early signs of weakness appear across timeframes.
1.2. Developing Setup
The states for specific setups are based on the context and the signals from the daily timeframe and H8, indicating that price is in the zone of alignment. The setup description refers to the state of the daily timeframe, while the suffix relates to the H8 timeframe. For example, "prev FOH Cont LHF" means that the previous day is in FOH (Fakeout High) relative to yesterday's breakout level, currently trading inside, and we are in an H8 breakdown, indicating a potential LHF (Lower High Formation) short trade if the entry confirms. The suffix HOD means that H8 is in FOH or BO (Breakout).
The specific states are:
- REV HOD (red): Reversal high of day
- REV Cont LHF (red): Reversal continuation low hanging fruit
- BO Cont LHF (green): Breakout continuation low hanging fruit
- BO Cont LOD (green): Breakout continuation low of day
- FOH Cont HOD (red): Fakeout high continuation high of day
- FOH Cont LHF ((red): Fakeout high continuation low hanging fruit
- prev BD Cont HOD (red): Previous breakdown continuation high of day
- prev BD Cont LHF (red): Previous breakdown continuation low hanging fruit
- prev FOH Cont HOD (red): Previous fakeout high continuation high of day
- prev FOH Cont LHF (red): Previous fakeout high continuation low hanging fruit
- prev FOL Cont LOD (green): Previous fakeout low continuation low of day
- prev FOL Cont LHF (green): Previous fakeout low continuation low hanging fruit
- prev BO Cont LOD (green): Previous breakout continuation low of day
- prev BO Cont LHF (green): Previous breakout continuation low hanging fruit
- FOL Cont LHF (green): Fakeout low continuation low hanging fruit
- FOL Cont LOD (green): Fakeout low continuation low of day
- BD Cont LHF (red): BD continuation low hanging fruit
- BD Cont LOD (red): Breakdown continuation low of day
- REV Cont LHF (green): Reversal continuation low hanging fruit
- REV LOD (green): Reversal low of day
- Inside: Trading inside after an inside day
Type: Indicates the situation of the indicated setup concerning:
- Trend: Following higher timeframe trend
- Mixed: Mixed higher timeframe signals
- Counter: Against higher timeframe bias
Quality: Indicates the quality of the indicated setup according to the specified logic table
No star: Very low quality
* One star: Low quality
** Two star: Medium quality
*** Three star: High quality
Example: Breakout Continuation Trend Setup
This setup highlights a healthy uptrend where the month is in a breakout, the week is in a fakeout low, and the day is in a breakout after a first green day. As the H8 breaks out to the upside, a long setup zone is triggered, presenting a breakout continuation low-hanging fruit trade. This is a trend trade in an overextended situation on the H8, with an H8 3L, resulting in an overall quality rating of one star.
Example: Fakeout Low Continuation Trend Setup
This setup shows a reversal into uptrend, with the month in a breakout, the week in a breakout, and the day in a fakeout low after breaking down the previous day and now reversing back up. As H8 breaks out to the upside, a long setup zone is triggered, presenting a previous fakeout low continuation, low-hanging fruit trade. This is a medium-quality trend trade.
Example: Reversal Setup - Mixed Trend
This setup shows a reversal setup in line with the weekly trend, with the month in a fakeout low, the week in a fakeout high, and the day in a fakeout high after breaking out earlier in the day and now reversing back down. As H8 loses the previous breakout level after 3 breakouts (with H8 3L), a short setup zone is triggered, presenting a fakeout high continuation at the high of the day. This is a high-quality trade in a mixed trend situation.
Setup Alerts:
Alerts can be activated for setups freshly triggered on the chart within your trading window.
Detailed filter logic for setup alerts:
- Setup quality: 1-3 star
- Setup type: Counter, Mixed and Trend
- Setup category: e.g. Reversal Bearish, Breakout, Previous Fakeout High
- 1D BO and First signals: 3DS, 3DL, FRD, FGD, ID
Options:
- Alerts on/ off
- Alert time window (from/ to)
- Alert filter customization
Note: To activate alerts from a script in TradingView, some settings need to be adjusted. Open the "Create Alert" dialog and select the option "Any alert() function call" in the "Condition" section. Choose "TrendPredator PRO" to ensure that alerts trigger properly from the code. Alerts can be activated for entire watchlists or individual pairs. Once activated, the alerts run in the background and notify the user whenever a setup is freshly triggered according to the filter settings.
2. Multi-Timeframe Table
Provides a real-time view of system signals, including:
Current Timeframe (Curr): Bias states.
- Breakout (green BO): Bullish after breaking above the previous high.
- Fakeout High (red FOH): Bearish after breaking above the previous high but pulling back down.
- Breakdown (red BD): Bearish after breaking below the previous low.
- Fakeout Low (green FOL): Bullish after breaking below the previous low but pulling back up.
- Inside (IS): Price trading neutral inside the previous range, taking the previous bias (color indicates the previous bias).
Previous Timeframe (Prev): Tracks last candle bias state and transitions dynamically.
- Bias for last candle: BO, FOH, BD, FOL in respective colors.
- Inside bar (yellow IS): Indicated as standalone signal.
Note: Also previous timeframes get constantly updated in real time to track the bias state in relation to the level that was hit. This means a BO can still lose the level and become a FOH, and vice versa, and a BD can still become a FOL, and vice versa. This is critical to see for example if traders that are trapped in that timeframe with a FOH or FOL are released. An inside bar stays fixed, though, since no level was hit in that timeframe.
Breakouts (BO): Breakout count 3 longs and 3 shorts.
- 3 Longs (red 3L): Bearish after three breakouts without hitting a previous low.
- 3 Shorts (green 3S): Bullish after three breakdowns without hitting a previous high.
First Countertrend Close (First): Tracks First Red or Green Day.
- First Green (G): After two consecutive red closes.
- First Red (R): After two consecutive green closes.
Options: Customizable font size and label colors.
3. Historic Highs and Lows
Displays historic highs and lows per timeframe for added context, enabling users to track sequences over time.
Timeframes: H4, H8, D, W, M
Options: Customize for timeframes shown, number of historic candles per timeframe, colors, formats, and labels.
4. Previous High and Low Extensions
Displays extended previous levels (high, low, and close) for each timeframe to assess how price trades relative to these levels.
H4: P4H, P4L, P4C
H8: P8H, P8L, P8C
Daily: PDH, PDL, PDC
Weekly: PWH, PWL, PWC
Monthly: PMH, PML, PMC
Options: Fully customizable for timeframes shown, colors, formats, and labels.
5. Breach Lines
Tracks live market reactions (e.g., breakouts or fakeouts) per timeframe for the last previous high or low that was hit, highlighting these levels originating at the breached candle to indicate bias (color-coded).
Red: Bearish below
Green: Bullish above
H4: 4FOL, 4FOH, 4BO, 4BD
H8: 8FOL, 8FOH, 8BO, 8BD
D: dFOL, dFOH, dBO, dBD
W: wFOL, wFOH, wBO, wBD
M: mFOL, mFOH, mBO, mBD
Options: Fully customizable for timeframes shown, colors, formats, and labels.
Overall Options:
Toggle single feature groups on/off.
Customize H8 open/close time as an offset to UTC to be provider independent.
Colour settings con be adjusted for dark or bright backgrounds.
Higher Timeframe Use Case Examples
Example Use Case: Weekly Template Analysis
The Weekly Template is a core concept in Stacey Burke’s trading style. The analysis is conducted on the daily timeframe, focusing on the higher timeframe bias and identifying overextended conditions within the week—such as multiple breakouts and peak formations signaling potential reversals.
In this example, the candles are colored by the TrendPredator FO indicator, which highlights the state of individual candles. This allows for precise evaluation of both the trend state and the developing weekly template. It is a valuable tool for thesis generation before a trading session and for backtesting purposes.
Example Use Case: High Timeframe 5-Star Setup Analysis (Stacey Burke "ain't coming back" ACB Template)
This analysis identifies high-probability trade opportunities when daily breakout or breakdown closes occur near key monthly levels mid-week, signaling overextensions and potentially large parabolic moves. The key signal to look for is a breakout or breakdown close on a Wednesday. This is useful for thesis generation before a session and also for backtesting.
In this example, the TrendPredator FO indicator colors the candles to highlight individual candle states, particularly those that close in breakout or breakdown. Additionally, an indicator is shown on the chart shading every Wednesday, making it easier to visually identify the signals.
5 Star Alerts:
Alerts can be activated for this potential 5-Star setup constellation. The alert is triggered when there is a breakout or breakdown close on a Wednesday.
Further recommendations:
- Higher timeframe context: TPO or volume profile indicators can be used to gain an even better overview.
- Late session trading: Entries later in the session, such as during the 3rd hour of the NY session, offer better analysis and follow-through on setups.
- Entry confirmation: Momentum indicators like VWAP, Supertrend, or EMA are helpful for increasing precision. Additionally, tracking lower timeframe fakeouts can provide powerful confluence. To track those the TrendPredator Fakeout Highlighter (FO), that has been specifically developed for this can be of great help:
Limitations:
Data availability using TradingView has its limitations. The indicator leverages only the real-time data available for the specific timeframe being used. This means it cannot access data from timeframes lower than the one displayed on the chart. For example, if you are on a daily chart, it cannot use H8 data. Additionally, on very low timeframes, the historical availability of data might be limited, making higher timeframe signals unreliable.
To address this, the indicator automatically hides the affected columns in these specific situations, preventing false signals.
Disclaimer
This indicator is for educational purposes only and does not guarantee profits.
None of the information provided shall be considered financial advice.
The indicator does not provide final buy or sell signals but highlights zones for potential setups.
Users are fully responsible for their trading decisions and outcomes.
Parametric Oscillator (Zeiierman)█ Overview
The Parametric Oscillator (Zeiierman) transforms price movement into a structure-aware momentum field, a flowing wave of oscillator-candles wrapped around a smooth Quick Price Action line. Instead of reading raw closes, it constructs a multi-lane view from open, high, low, and close data to capture how price pressure expands, contracts, and shifts through time. These relationships are then projected into a bounded oscillator domain, creating a dynamic visualization of momentum and market balance.
The oscillator-candles flip green or red to signal shifts in buying or selling strength, while the Quick Line tracks underlying momentum on a 0–100 scale. Together, they reveal where pressure is forming, how quickly it’s changing, and whether that change is sustainable, helping traders spot momentum swings, stretched zones, and directional bias across any timeframe.
⚪ What Makes It Unique
The oscillator’s uniqueness lies in how it constructs and interprets price structure. It builds four independent lanes of open, high, low, and close to measure wave relationships and capture micro-drift, wick aggression, and full price behavior rather than relying solely on closing data.
Beneath the surface, the oscillator runs on a balanced motion function that translates market volatility into a clear rhythm of momentum and structure. Each change in color and gradient reflects the balance between acceleration and stability, revealing the underlying pulse of market behavior.
█ Main features
⚪ Parametric Oscillator
The Parametric Oscillator turns market movement into a visual map of buying and selling pressure. Its oscillator-candles reveal how momentum builds, compresses, and releases, showing the balance between strength and exhaustion in real time. As candles shift color and gradient, traders can instantly read acceleration, fading energy, or volatility spikes, allowing for quick interpretation of trend health and potential reversals.
The display captures both immediate bursts of momentum and the underlying trend’s persistence, giving a continuous view of how pressure evolves across market phases. It can be used to spot areas of buildup before breakouts, early signs of compression before expansion, and the transition points where control shifts from buyers to sellers.
⚪ Quick Price Action
The Quick Price Action line provides a smooth, real-time read of market momentum that often shifts before price itself reacts. Acting as a leading momentum gauge, it highlights subtle changes in strength and direction, helping traders anticipate moves rather than chase them.
When the line begins to turn, it frequently does so well ahead of price, signaling acceleration, exhaustion, or an early phase of reversal. A rise toward higher levels reflects building bullish pressure, while a downturn from elevated zones shows fading strength or emerging sell bias.
It adapts smoothly across symbols and timeframes, the Quick Price Action line gives traders a consistent, early warning system and a clear visual cue of when momentum is starting to shift and where the next meaningful move may form.
█ How to Use
⚪ Trend Following
The Momentum Candle Line helps define the underlying directional bias by measuring the strength and persistence of momentum. When momentum holds above or below the midline (50), it reflects whether buyers or sellers maintain control of the trend. Watching how the candles form relative to that level helps identify continuation or potential shifts in direction.
Maintain a bullish bias when the Momentum Candles stay above 50 and candles form higher lows.
Maintain a bearish bias when they stay below 50 and candles form lower highs.
⚪ Detect Leading Momentum
The Quick Price Line helps identify leading momentum moves that often precede price action. These can signal the start of a new move in that direction or the early stages of a reversal.
When the Quick Line peaks above 80, it indicates strong positive momentum.
When it peaks below 30, it signals strong negative momentum.
By observing how the momentum candles behave around these levels, traders can determine whether the move is likely a continuation or a reversal.
⚪ Fading Price Moves
Momentum drives price to new highs and lows, but when that momentum fades, reversals often follow. The Quick Price Line or the Parametric Oscillator candles can reveal weakening momentum before price reacts, giving traders an early signal. When the Quick Line peaks and then begins to fade, it indicates that momentum is losing strength. This can precede a pause, a range, or a full reversal in price. Likewise, if the Parametric Oscillator starts to fade while price continues to move, it suggests that momentum is weakening and a reversal or pullback may be approaching.
█ How It Works
⚪ Dual-Lane Displacement
Price is decomposed into trend and fast components across the open, high, low, and close. These relationships form four signed streams that describe body drive and wick aggression.
Calculation: Builds relative spreads between the trend and fast components, creating a multi-dimensional price-flow state.
⚪ Parametric Mapping
Each data stream is passed through a parametric transform (defaulting to a momentum-sensitive map) and assembled into synthetic OHLC in oscillator space.
Calculation: Applies a state transform over the data, aggregates into oscillator OHLC, and exponentially smooths for stability.
⚪ Quick Price Action
A companion line extracts recent trend displacement, normalizes it in a rolling window around the local mid, and passes it through a smoothing process controlled by Price Trend (softness). This yields a stable 0–100 scale that reacts quickly yet remains consistent across assets and timeframes.
Calculation: Windowed normalization around a dynamic midpoint with adjustable softness to balance responsiveness and stability.
-----------------
Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Dragon Harmonic Pattern [TradingFinder] Dragon Detector🔵 Introduction
The Dragon Harmonic Pattern is one of the technical analysis tools that assists traders in identifying Potential Reversal Zones (PRZ). Resembling an "M" or "W" shape, this pattern is recognized in financial markets as a method for predicting bullish and bearish trends. By leveraging precise Fibonacci ratios and measuring price movements, traders can use this pattern to forecast market trends with high accuracy.
The Dragon Harmonic Pattern is built on the XABCD structure, where each point plays a significant role in shaping and forecasting price movements. Point X marks the beginning of the trend, representing the initial price movement. Point A indicates the first retracement, usually falling within the 0.380 to 0.620 range of the XA wave.
Next, point B signals the second retracement, which lies within 0.200 to 0.400 of the AB wave. Point C, acting as the hump of the pattern, is generally located within 0.800 to 1.100 of the XA wave. Finally, point D represents the endpoint of the pattern and the Potential Reversal Zone (PRZ), where the primary price reversal occurs.
In bullish scenarios, the Dragon Pattern indicates a reversal from a downtrend to an uptrend, where prices move upward from point D. Conversely, in bearish scenarios, prices decline after reaching point D. Accurate identification of this pattern through Fibonacci ratio analysis and PRZ examination can significantly increase the success rate of trades, enabling traders to adjust their strategies based on key market levels such as 0.618 or 1.100.
Due to its high accuracy in identifying Potential Reversal Zones (PRZ) and its alignment with Fibonacci ratios, the Dragon Harmonic Pattern is considered one of the most popular tools in technical analysis. Traders can use this pattern to pinpoint entry and exit points with greater confidence while minimizing trading risks.
Bullish :
Bearish :
🔵 How to Use
The Dragon Harmonic Pattern indicator helps traders identify bullish and bearish patterns in the market, allowing them to capitalize on available trading opportunities. By analyzing Fibonacci ratios and the XABCD structure, the indicator highlights Potential Reversal Zones (PRZ).
🟣 Bullish Dragon Pattern
In the Bullish Dragon Pattern, the price transitions from a downtrend to an uptrend after reaching point D. At this stage, points X, A, B, C, and D must be carefully identified.
Fibonacci ratios for these points are as follows: Point A should fall within 0.380 to 0.620 of the XA wave, point B within 0.200 to 0.400 of the AB wave, and point C within 0.800 to 1.100 of the XA wave.
When the price reaches point D, traders should look for bullish signals such as reversal candlesticks or increased trading volume to enter a buy position. The take-profit level can be set near the previous price high or based on the 1.272 Fibonacci ratio of the XA wave, while the stop-loss should be placed slightly below point D.
🟣 Bearish Dragon Pattern
In the Bearish Dragon Pattern, the price shifts from an uptrend to a downtrend after reaching point D. In this pattern, points X, A, B, C, and D must also be identified. Fibonacci ratios for these points are as follows: Point A should fall within 0.380 to 0.620 of the XA wave, point B within 0.200 to 0.400 of the AB wave, and point C within 0.800 to 1.100 of the XA wave.
Upon reaching point D, bearish signals such as reversal candlesticks or decreasing trading volume indicate the opportunity to enter a sell position. The take-profit level can be set near the previous price low or based on the 1.272 Fibonacci ratio of the XA wave, while the stop-loss should be placed slightly above point D.
By combining the Dragon Harmonic Pattern indicator with precise Fibonacci ratio analysis, traders can identify key opportunities while minimizing risks and improving their decision-making in both bullish and bearish market conditions.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Forma t: If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
🔵 Conclusion
The Dragon Harmonic Pattern is an advanced and practical technical analysis tool that aids traders in accurately predicting bullish and bearish trends by identifying Potential Reversal Zones (PRZ) and utilizing Fibonacci ratios. Built on the XABCD structure, this pattern stands out for its flexibility and precision in identifying price movements, making it a valuable resource among technical analysts. One of its key advantages is its compatibility with other technical tools such as trendlines, support and resistance levels, and Fibonacci retracements.
By using the Dragon Harmonic Pattern indicator, traders can accurately determine entry and exit points for their trades. The indicator analyzes key Fibonacci ratios—0.380 to 0.620, 0.200 to 0.400, and 0.800 to 1.100—to identify critical levels such as price highs and lows, offering precise trading strategies. In bullish scenarios, traders can profit from rising prices, while in bearish scenarios, they can capitalize on price declines.
In conclusion, the Dragon Harmonic Pattern is a highly reliable tool for identifying trading opportunities with exceptional accuracy. However, for optimal results, it is recommended to combine this pattern with other analytical tools and thoroughly assess market conditions. By utilizing this indicator, traders can reduce their trading risks while achieving higher profitability and confidence in their trading strategies.
Absorption AnalysisThe Absorption Analysis indicator identifies potential market turning points by analyzing volume, price patterns, and market structure across multiple dimensions. It combines traditional technical signals with volume analysis and success rate tracking to provide high-probability reversal opportunities.
Signal Types & Classification
1. Pattern-Based Signals (W-Bottom & M-Top)
**W-Bottom Pattern**
- Pattern Structure:
* Price makes a low below the lower Bollinger Band
* First bounce occurs with price moving higher
* Secondary test forms a higher low
* Final confirmation with bullish close above lower band
- Volume Requirements:
* Must exceed 1.5x the 20-period volume moving average
- Visual Indicators:
* Blue dotted line appears at pattern low
* Line remains until broken by price
* Label shows volume and percentage from baseline
- Success Tracking:
* Pattern stored in historical database
* Success measured by upward price movement
* Historical success rate displayed with signal
**M-Top Pattern**
- Pattern Structure:
* Price makes a high above the upper Bollinger Band
* First pullback occurs with price moving lower
* Secondary push forms a lower high
* Final confirmation with bearish close below upper band
- Volume Requirements:
* Must exceed 1.5x the 20-period volume moving average
- Visual Indicators:
* Orange dotted line appears at pattern high
* Line remains until broken by price
* Label shows volume and percentage from baseline
- Success Tracking:
* Pattern stored in historical database
* Success measured by downward price movement
* Historical success rate displayed with signal
2. Technical Reversals
**Bullish Reversal**
- Entry Conditions:
* Previous candle closes below lower Bollinger Band
* Previous candle must be bearish
* Current candle closes above lower band
* Current candle must be bullish
- Volume Validation:
* Volume must exceed 1.5x 20-period MA
- Visual Markers:
* Green label at reversal point
* Includes volume context
- Trading Implementation:
* Suggests strong buying pressure overcoming selling
* Often marks end of downward price exhaustion
**Bearish Reversal**
- Entry Conditions:
* Previous candle closes above upper Bollinger Band
* Previous candle must be bullish
* Current candle closes below upper band
* Current candle must be bearish
- Volume Validation:
* Volume must exceed 1.5x 20-period MA
- Visual Markers:
* Red label at reversal point
* Includes volume context
- Trading Implementation:
* Suggests strong selling pressure overcoming buying
* Often marks end of upward price exhaustion
3. Volume-Based Reversals
**High Volume Bear to Bull**
- Signal Formation:
* High volume bearish candle (2.5σ above mean)
* Immediately followed by high volume bullish candle
- Market Psychology:
* Shows strong selling being absorbed by buying
* Often indicates institutional accumulation
- Visual Identification:
* Purple "HV Bull" label
* Includes volume statistics
- Trading Context:
* Strong signal for trend reversal
* Most effective at support levels
**High Volume Bull to Bear**
- Signal Formation:
* High volume bullish candle (2.5σ above mean)
* Immediately followed by high volume bearish candle
- Market Psychology:
* Shows strong buying being absorbed by selling
* Often indicates institutional distribution
- Visual Identification:
* Purple "HV Bear" label
* Includes volume statistics
- Trading Context:
* Strong signal for trend reversal
* Most effective at resistance levels
4. Absorption Signals
**Buy Absorption**
- Technical Requirements:
* High volume conditions (2.5σ above mean)
* Spread momentum must be negative
* Fast spread MA below slow spread MA
* Bullish closing candle
- Market Interpretation:
* Indicates buying pressure absorbing selling
* Often precedes upward movement
- Visual Markers:
* Red label with volume context
* Placed at significant price levels
**Sell Absorption**
- Technical Requirements:
* High volume conditions (2.5σ above mean)
* Spread momentum must be negative
* Fast spread MA below slow spread MA
* Bearish closing candle
- Market Interpretation:
* Indicates selling pressure absorbing buying
* Often precedes downward movement
- Visual Markers:
* Green label with volume context
* Placed at significant price levels
Volume Analysis Components
Volume Calculation
- Rolling baseline volume calculated based on timeframe:
* Monthly: 6-period sum
* Weekly: 12-period sum
* Daily: 20-period sum
* Intraday: Proportional to timeframe
- Net volume = Bullish volume - Bearish volume
- Volume percentage calculated against baseline
- High volume threshold = 2.5 standard deviations
- Pattern volume threshold = 1.5x 20MA
Exchange Aggregation
- Primary symbol (chart) always included
- Optional secondary symbol data
- Combines volume data for stronger signals
- Useful for crypto markets with split liquidity
Success Rate Implementation
Rate Calculation
- Based on user-defined lookback period
- Separately tracked for each pattern type
- Bullish patterns: Percentage of times price moved higher
- Bearish patterns: Percentage of times price moved lower
- Used to filter alerts with minimum threshold
Pattern Storage
- Arrays maintain historical pattern data
- Limited to lookback period size
- Oldest patterns removed as new ones form
- Constantly updated success rates
## Trading Implementation
### Signal Priority
1. Pattern Signals (W/M)
- Highest reliability due to complex criteria
- Must meet all volume and price conditions
- Line break provides clear invalidation
2. High Volume Reversals
- Strong indication of institutional activity
- Clear volume confirmation
- Immediate reversal potential
3. Technical Reversals
- Traditional technical analysis backbone
- Enhanced with volume confirmation
- Good for trend trading
4. Absorption Signals
- Early warning system
- Best used with other confirmations
- Good for position building
Best Practices
- Look for multiple signal types aligning
- Consider higher timeframe context
- Use success rates to filter setups
- Monitor volume context closely
- Wait for candle closes
- Use line breaks for clear invalidation
- Consider market structure
- Pay attention to success rates
- Use appropriate position sizing
Risk Management
- Use pattern breaks for stop losses
- Consider historical success rates
- Larger positions for multiple signal confluence
- Respect timeframe hierarchy
- Monitor volume for confirmation
- Use proper position sizing
- Consider market volatility
This indicator provides a comprehensive framework for identifying potential market turning points while maintaining rigorous risk management through multiple confirmation factors and clear invalidation levels.
Contrarian RSIContrarian RSI Indicator
Pairs nicely with Contrarian 100 MA (optional hide/unhide buy/sell signals)
Description
The Contrarian RSI is a momentum-based technical indicator designed to identify potential reversal points in price action by combining a unique RSI calculation with a predictive range model inspired by the "Contrarian 5 Levels" logic. Unlike traditional RSI, which measures price momentum based solely on price changes, this indicator integrates a smoothed, weighted momentum calculation and predictive price ranges to generate contrarian signals. It is particularly suited for traders looking to capture reversals in trending or range-bound markets.
This indicator is versatile and can be used across various timeframes, though it performs best on higher timeframes (e.g., 1H, 4H, or Daily) due to reduced noise and more reliable signals. Lower timeframes may require additional testing and careful parameter tuning to optimize performance.
How It Works
The Contrarian RSI combines two primary components:
Predictive Ranges (5 Levels Logic): This calculates a smoothed price average that adapts to market volatility using an ATR-based mechanism. It helps identify significant price levels that act as potential support or resistance zones.
Contrarian RSI Calculation: A modified RSI calculation that uses weighted momentum from the predictive ranges to measure buying and selling pressure. The result is smoothed and paired with a user-defined moving average to generate clear signals.
The indicator generates buy (long) and sell (exit) signals based on crossovers and crossunders of user-defined overbought and oversold levels, making it ideal for contrarian trading strategies.
Calculation Overview
Predictive Ranges (5 Levels Logic):
Uses a custom function (pred_ranges) to calculate a dynamic price average (avg) based on the ATR (Average True Range) multiplied by a user-defined factor (mult).
The average adjusts only when the price moves beyond the ATR threshold, ensuring responsiveness to significant price changes while filtering out noise.
This calculation is performed on a user-specified timeframe (tf5Levels) for multi-timeframe analysis.
Contrarian RSI:
Compares consecutive predictive range values to calculate gains (g) and losses (l) over a user-defined period (crsiLength).
Applies a Gaussian weighting function (weight = math.exp(-math.pow(i / crsiLength, 2))) to prioritize recent price movements.
Computes a "wave ratio" (net_momentum / total_energy) to normalize momentum, which is then scaled to a 0–100 range (qrsi = 50 + 50 * wave_ratio).
Smooths the result with a 2-period EMA (qrsi_smoothed) for stability.
Moving Average:
Applies a user-selected moving average (SMA, EMA, WMA, SMMA, or VWMA) with a customizable length (maLength) to the smoothed RSI (qrsi_smoothed) to generate the final indicator value (qrsi_ma).
Signal Generation:
Long Entry: Triggered when qrsi_ma crosses above the oversold level (oversoldLevel, default: 1).
Long Exit: Triggered when qrsi_ma crosses below the overbought level (overboughtLevel, default: 99).
Entry and Exit Rules
Long Entry: Enter a long position when the Contrarian RSI (qrsi_ma) crosses above the oversold level (default: 1). This suggests the asset is potentially oversold and due for a reversal.
Long Exit: Exit the long position when the Contrarian RSI (qrsi_ma) crosses below the overbought level (default: 99), indicating a potential overbought condition and a reversal to the downside.
Customization: Adjust overboughtLevel and oversoldLevel to fine-tune sensitivity. Lower timeframes may benefit from tighter levels (e.g., 20 for oversold, 80 for overbought), while higher timeframes can use extreme levels (e.g., 1 and 99) for stronger reversals.
Timeframe Considerations
Higher Timeframes (Recommended): The indicator is optimized for higher timeframes (e.g., 1H, 4H, Daily) due to its reliance on predictive ranges and smoothed momentum, which perform best with less market noise. These timeframes typically yield more reliable reversal signals.
Lower Timeframes: The indicator can be used on lower timeframes (e.g., 5M, 15M), but signals may be noisier and require additional confirmation (e.g., from price action or other indicators). Extensive backtesting and parameter optimization (e.g., adjusting crsiLength, maLength, or mult) are recommended for lower timeframes.
Inputs
Contrarian RSI Length (crsiLength): Length for RSI momentum calculation (default: 5).
RSI MA Length (maLength): Length of the moving average applied to the RSI (default: 1, effectively no MA).
MA Type (maType): Choose from SMA, EMA, WMA, SMMA, or VWMA (default: SMA).
Overbought Level (overboughtLevel): Upper threshold for exit signals (default: 99).
Oversold Level (oversoldLevel): Lower threshold for entry signals (default: 1).
Plot Signals on Main Chart (plotOnChart): Toggle to display signals on the price chart or the indicator panel (default: false).
Plotted on Lower:
Plotted on Chart:
5 Levels Length (length5Levels): Length for predictive range calculation (default: 200).
Factor (mult): ATR multiplier for predictive ranges (default: 6.0).
5 Levels Timeframe (tf5Levels): Timeframe for predictive range calculation (default: chart timeframe).
Visuals
Contrarian RSI MA: Plotted as a yellow line, representing the smoothed Contrarian RSI with the applied moving average.
Overbought/Oversold Lines: Red line for overbought (default: 99) and green line for oversold (default: 1).
Signals: Blue circles for long entries, white circles for long exits. Signals can be plotted on the main chart (plotOnChart = true) or the indicator panel (plotOnChart = false).
Usage Notes
Use the indicator in conjunction with other tools (e.g., support/resistance, trendlines, or volume) to confirm signals.
Test extensively on your chosen timeframe and asset to optimize parameters like crsiLength, maLength, and mult.
Be cautious with lower timeframes, as false signals may occur due to market noise.
The indicator is designed for contrarian strategies, so it works best in markets with clear reversal patterns.
Disclaimer
This indicator is provided for educational and informational purposes only. Always conduct thorough backtesting and risk management before using any indicator in live trading. The author is not responsible for any financial losses incurred.
