Sero

📌 sero Indicator – Guide & Explanation

What the Indicator Does

The sero Indicator is a custom oscillator designed to identify market momentum shifts between bullish (pump) and bearish (dump) phases. It works by normalizing price action using a range calculation, then smoothing it with an EMA. The resulting line (sero value) oscillates on a scale around 0 to 100, giving clear visual cues about momentum strength.

Key concepts inside the code:

• c0 → The average price for each bar (High + Low + Close ÷ 3).
  
• a1 & a2 → The 15-bar highest and lowest values of this average price.
  
• a3 → The range (difference between high and low).
  
• sero → A smoothed (EMA-based) normalized oscillator that fluctuates with momentum strength.
  

The indicator then highlights pumps (upward momentum) and dumps (downward momentum) with color-coded line breaks.

How It Looks on Chart

When loaded, you’ll see:

• A yellow oscillator line (sero) moving up and down.
  
• Red segments on the line → mark slow or strong pumps (bullish momentum).
  
• Green segments on the line → mark slow or strong dumps (bearish momentum).
  

These color changes act as momentum confirmation signals.

Signals & Interpretation

sero Line (Yellow)

• The main oscillator line.
  
• Higher readings = strong bullish momentum.
  
• Lower readings = strong bearish momentum.
  

Red Segments (Pump Detection)

• Appear when sero rises above its previous value.
  
• Thicker Red Line = Stronger pump (sero > 20).
  
• Suggests upward price acceleration.
  

Green Segments (Dump Detection)

• Appear when sero falls below its previous value.
  
• Thicker Green Line = Stronger dump (sero < 20).
  
• Suggests downward price acceleration.
  

How to Use the sero Indicator

✅ Trend Confirmation

Use sero alongside your main chart to confirm trend direction.

• Sustained red (pump) signals = bullish phase.
  
• Sustained green (dump) signals = bearish phase.
  

✅ Momentum Shifts

Watch for changes in color (from green → red or red → green). These flips may indicate a potential reversal or acceleration in trend.

✅ Threshold Levels (20 level)

The code emphasizes the 20 threshold:

• Pump signals above 20 → more reliable bullish confirmation.
  
• Dump signals below 20 → stronger bearish conviction.
  

✅ Entry & Exit Support

• Enter long trades when yellow line rises and red pump segments form.
  
• Enter short trades when yellow line falls and green dump segments form.
  
• Consider exits when momentum color weakens or flips direction.
  

Best Practices

Always combine with price action, support/resistance, or volume analysis.

Works best on shorter timeframes (intraday scalping/day trading).

Avoid relying on a single pump/dump signal – wait for consistency across multiple bars.

Summary

The sero Indicator is a momentum oscillator that visually highlights bullish and bearish momentum using dynamic color changes. Traders can use it to spot pumps, dumps, and trend shifts more easily than with traditional oscillators.

I welcome your feedback on this analysis/minds/indicator, as it will inform and enhance my future work.

Regards,
Shunya.Trade
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