OPEN-SOURCE SCRIPT

Aroon with RSI Confirmation (92.86%)

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This script is an analytical tool designed to identify moments in market behavior when price momentum is shifting. It does this by combining two concepts: **Aroon Levels** (to measure trend maturity) and **RSI Slope Behavior** (to measure short-term momentum pressure).

**Functional Concept (Professional Description)**
The indicator examines when either the *Aroon Up* or *Aroon Down* value reaches approximately **92.86%**, which statistically represents a phase where price has recently made an extreme high or low relative to the selected period. This level suggests the trend is nearing a point of *decision*—either continuation or exhaustion.

At the same time, the script analyzes the **relationship between the RSI and its smoothed average**. The difference between the two reflects whether momentum is accelerating in the current direction or slowing. A small difference indicates **market stability**, while whether RSI is positioned above or below the smoothed line indicates **who has control**—buyers or sellers.

By requiring both conditions to align, the script filters out random noise and highlights moments where **trend structure and momentum sentiment converge**.

* **Buy Signal:** Occurs when the market has recently formed a significant low (Aroon Down ≈ 92.86) and buyers begin to regain control (RSI crosses above its smoothed value with low volatility).
* **Sell Signal:** Occurs when the market has recently reached a significant high (Aroon Up ≈ 92.86) and sellers begin to dominate (RSI slips below its smoothed value with low volatility).

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**Psychological Interpretation**
Markets are driven by cycles of **attention**, **emotion**, and **participation**.
This script targets moments when:

1. **Price has made a meaningful extreme** (a recent new high or low).
This is where crowd sentiment is often strongest—either euphoria near highs or pessimism near lows.

2. **Traders are reassessing direction**, shown by momentum flattening (small RSI difference).
This reveals that participants are hesitating, watching, and waiting.
The market is effectively *thinking*.

3. **Control shifts subtly**, when RSI moves relative to its smoothed trend.
This indicates that early, informed participation is beginning to form—before the broader crowd reacts.

In psychological terms, the script highlights the **transitional turning points** where:

* Fear begins to weaken and confidence returns (buy setup), or
* Confidence begins to crumble and caution emerges (sell setup).

These are the earliest moments when market sentiment **changes hands**, often preceding visible trend reversals. The indicator is not reacting to outcomes—it is observing the underlying shift in **decision-making pressure** among market participants.

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In essence, this tool identifies **behavioral inflection points**—where the market transitions from one emotional state to the next—providing traders with signals grounded in both structural trend positioning and real-time crowd momentum behavior.

Disclaimer

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