MK_OSFT-Momentum Confluence Detector

10 hours ago

MOMENTUM CONFLUENCE DETECTOR - Trading Indicator Overview

What This Indicator Does
The Momentum Confluence Detector is a comprehensive Pine Script indicator designed to identify high-probability trading opportunities by detecting momentum bars that align with multiple confluence factors. It combines traditional technical analysis with advanced Smart Money Concepts to filter out noise and highlight the most significant price movements.

CORE FUNCTIONALITY
📊Momentum Bar Detection

• Identifies unusual volume and bar size expansion using customizable multipliers
  
• Detects bullish, bearish, and neutral momentum bars based on OHLC relationships
  
• Uses moving averages to establish baseline volume and bar size thresholds

🔄Multi-Filter Confluence System
The indicator employs up to 5 different filter types to validate momentum signals:

• Level Concept Filter - Choose between:
  - Support/Resistance Levels: Traditional pivot-based S/R zones with touch counting and break tracking
  - Smart Money Concepts: Institutional order flow analysis including Order Blocks, Fair Value Gaps (FVGs), and market structure breaks
  
• Trend Filter: EMA/SMA-based trend direction confirmation with alignment requirements
  
• Breakout Filter: Detects price breakouts beyond recent highs/lows with percentage thresholds
  
• Volatility Filter: ATR expansion confirmation to ensure signals occur during active market conditions
  
• Market Session Filter: Filters signals to specific trading sessions (Tokyo, London, New York)
  

ADVANCED FEATURES
🎯Smart Money Concepts Integration

• Order Blocks: Identifies institutional supply/demand zones from major and minor structure breaks
  
• Fair Value Gaps (FVGs): Detects price imbalances and tracks their evolution through partial fills and inversions
  
• Market Structure: Recognizes Break of Structure (BOS) and Change of Character (CHoCH) patterns
  
• Retracement Patterns: Tracks HLH (Higher-Low-Higher) and LHL (Lower-High-Lower) institutional patterns
  

📈Support/Resistance System

• Multi-timeframe pivot detection (3, 5, 7-bar spans)
  
• Volume-weighted strength calculation for level importance
  
• Dynamic level merging and break tracking
  
• Automatic level type classification (Support/Resistance/Flip zones)
  

⚙️Intelligent Filtering Logic

• ALL Mode: Requires all enabled filters to pass (high precision)
  
• ANY Mode: Requires at least one filter to pass (higher frequency)
  
• Real-time filter status tracking and visualization
  

Visual Features

• Signal Markers: Clear triangular markers for qualified momentum bars
  
• Unfiltered Signals: Optional display of raw momentum bars for comparison
  
• Level Visualization: Dynamic S/R level boxes and lines with strength indicators
  
• Structure Lines: BOS/CHoCH break visualization with major/minor classification
  
• Fair Value Gaps: Color-coded boxes showing bullish/bearish FVGs with partial fill tracking and IFVG conversion
  
• Order Blocks: Institutional supply/demand zones displayed as colored boxes with major/minor classification
  
• Information Table: Real-time display of signal details and filter status
  
• Session Boxes: Visual representation of active trading sessions
  

Practical Applications
✅Swing Trading: Identify high-probability reversal and continuation setups
✅Day Trading: Spot intraday momentum shifts with institutional backing
✅Multi-Timeframe Analysis: Combine major and minor structure analysis
✅Risk Management: Filter out low-quality setups using confluence requirements
✅Educational: Understand market structure and institutional order flow

Customization Options

• Adjustable momentum thresholds for different market conditions
  
• Comprehensive filter settings with individual enable/disable controls
  
• Visual customization for colors, sizes, and display preferences
  
• Alert system with detailed signal information
  
• Performance optimization settings for different chart timeframes
  

Who Should Use This Indicator
This indicator is suitable for traders who:

• Want to combine multiple technical analysis approaches
  
• Seek to understand institutional market behavior
  
• Prefer confluence-based trading setups
  
• Need customizable filtering for different market conditions
  
• Value comprehensive signal validation over high-frequency alerts
  

The Momentum Confluence Detector transforms complex market analysis into clear, actionable signals by requiring multiple forms of confirmation before highlighting trading opportunities.

6 hours ago

Release Notes

Modified Fair Value Gap detection to comply with latest Smart Risk's FVG validation