Get started

Divergences

Quotient Divergence Ledger [JOAT]Quotient Divergence Ledger Introduction Quotient Divergence Ledger is an open-source divergence engine built on a signed participation wave. It tracks regular and hidden divergences, wave energy, directional streaks, and the quality of each divergence event so the trader can judge whether momentum disagreement is minor or meaningful. Core Concepts 1. Signed participation wave The oscillator blends directional volume participation, body pressure, and smoothed wave behavior into one normalized structure. 2. Confirmed pivot-based divergence logic Bullish and bearish divergences are only evaluated from confirmed oscillator pivots, reducing repaint behavior and maintaining clean historical structure. 3. Divergence quality scoring Each event is scored using oscillator displacement, price displacement, and wave energy. This helps separate weak visual divergence from stronger disagreement. Features Regular and hidden divergence modes Wave energy and stretch diagnostics Directional streak tracking Bottom ribbon and institutional dashboard Confirmed-bar divergence and regime alerts Disclaimer This indicator is provided for educational purposes only. Divergence can persist or fail entirely in strong trend conditions.
Pine Script® indicator
by officialjackofalltrades
Adaptive Volume-Delta Score (VDS) | Order-Flow & DivergenceThe Adaptive Volume-Delta Score (VDS) is a technical analysis tool for the statistical classification of volume-delta activity. It utilizes an Adaptive-Switch Logic that toggles between historical bar reconstruction (request.security_lower_tf) and a real-time Rolling-Window Live-Tracker. 🛠 Core Functionality 1. The VDS Engine (Statistical Mapping) Wick-Weighted Delta: The calculation is based on wick-weighting: (close-open)/range * volume. This weights the delta according to price displacement within the bar. Symmetrical Mapping (-4.5 to 4.5): Raw values are statistically categorized via ta.percentrank and mapped onto a fixed scale. +4.5 (100% Rank): The absolute maximum within the chosen lookback period. +2.25 (75% Rank): Significant activity relative to the period. 0 (Median): The statistical midpoint (50% Rank). -4.5 (0% Rank / Min.): The absolute floor of activity for the period. Visualization Logic: This mapping is primarily used to plot volume activity and delta aggression within the same visual space, providing a consistent reference frame for comparing relative dominance. Context Dependency: Signals are not absolute recommendations. The significance depends heavily on the Lookback Period, Thresholds, and the specific market environment. 2. Adaptive Logic & Data Integrity Signal-Bridge: On lower timeframes (LTF), the indicator simulates the behavior of the Main Timeframe (Main-TF) using a rolling window. This allows for the observation of delta development while the bar is still forming. 🛡️ Integrity Dashboard: Visualizes the statistical consistency between live data and the historical baseline. Deviations (e.g., due to Pine Script's 5000-bar limit) are displayed transparently as warnings. 3. Dynamic Alert System Automation: Alerts utilize the alert() function with the "Any function call" setting. Intelligence: Messages are fully dynamic, reporting the mode (Live vs. History), signal type, safeguard status, and data integrity. 🚀 Quick Calibration Guide Sensitivity: A longer Lookback Period stabilizes the statistics; a shorter period makes the score more reactive to short-term volume spikes. Threshold Setup: Calibrate the Dominance Threshold (default 3.0) to isolate extreme aggression. Use the Volume Threshold to ensure a minimum level of market participation. Visual Match: Activate the Price Chart Overlays and adjust your thresholds until the markers (Diamonds) correspond with your individual market interpretation. Dashboard Check: Monitor the Confidence Score. If red warning values appear, consider adjusting your Lookback or Timeframe to maintain a stable statistical foundation. 🎨 Visual Guide: Understanding the Scale Navy/Blue Columns: Standard activity within the selected statistical window. Gray Columns: Phases below the Low Volume Threshold, indicating low relative market participation. Lime/Fuchsia (Dominance): Occurs when volume and delta simultaneously exceed the defined thresholds (Aggression). Olive/Maroon (Divergence): Period delta is positive/negative while price action is opposite (Decoupling/Absorption). Diamonds: Optional projection of oscillator signals directly onto the candles in the price chart. ⚠️ Important Technical Notifications The "Signal Bridge" (Rolling vs. Fixed Window): HTF-Request Mode (Fixed): Measures delta starting from the candle open (e.g., 12:00 PM). Live-Transfer Mode (Rolling): Analyzes a sliding window (e.g., the last 120 minutes). This provides a Lead-Time Advantage, detecting aggression as it happens regardless of the HTF clock. Both modes converge at the HTF bar close. Data Integrity & Anomalies: Session Gaps: High Main-TFs (like D1) can be affected by irregular session hours (e.g., Forex Sunday). Always monitor the Confidence Score (🛡️). Replay Mode: Displays "No Stat. Control" if historical LTF data is unavailable. We prioritize data honesty over estimated data. 🔔 How to set Alerts (Smart Signals) Preparation: Open the VDS settings. Under "Alert Settings", choose which signals should trigger: Dominance, Divergence, or both. Condition: Select "Adaptive Volume-Delta Score...". Trigger Logic: Change setting to "Any alert() function call". Frequency: Managed by the script (once_per_bar_close) to ensure statistical honesty. Timeframe Choice: Use the Main-TF for final confirmed signals, or a Lower-Timeframe for Live-Tracker early warnings. 📊 Statistical Transparency (Data Window) Raw metrics are displayed exclusively in the TradingView Data Window to keep the chart clean: Runtime-Safe LTF: The analysis interval currently in use. Max Safe Lookback: The mathematical limit for your current setup (5,000-bar ceiling). Active Bar Limit: The actual usable data foundation. Converted Sum of LTF Request Bars: The historical baseline used as an anchor for the Live-Tracker. Relative Live-Data Size: Numerical basis of the Confidence Score (100% = Perfect Integrity). Overall Requested Bars: Total data points analyzed within your Lookback Period.
Pine Script® indicator
by arnipoer
3
Nexus Fusion Engine ML [WillyAlgoTrader]🧠 Nexus Fusion Engine ML is a non-overlay oscillator that fuses three independent momentum measurements into a single adaptive line (0–100), enriched with a K-Nearest Neighbors directional bias engine, volatility-normalized volume flow, automatic divergence detection (regular + hidden), momentum fatigue warnings, higher-timeframe bias, and a weighted confluence meter — delivering a complete momentum analysis system in one pane. The core insight: a single momentum reading is noisy. Two readings averaged together are still fragile. But three fundamentally different momentum perspectives — directional velocity, efficiency-weighted impulse, and stochastic range position — blended in proportion to current market regime, produce a reading that adapts to trend and range conditions without manual switching. Layer a KNN classifier trained on live features, volume confirmation, and multi-timeframe alignment on top, and every signal carries measurable confluence. Works on any market (crypto, forex, stocks, futures, indices) and any timeframe. 🧩 WHY THESE COMPONENTS WORK TOGETHER A standard RSI or stochastic tells you where price sits in its recent range — but it has no concept of trend quality, volume confirmation, or historical pattern similarity. You get overbought readings in strong trends that never reverse. You get crossover signals with zero volume support. You get divergences with no structural confirmation. Nexus Fusion Engine ML solves this by chaining every subsystem into an integrated pipeline: Adaptive Momentum Fusion (3 components) → Signal Line Crossover → Volume Flow Confirmation → Efficiency Ratio Regime Detection → KNN Pattern Matching → Higher-Timeframe Bias → Confluence Meter (weighted vote of all subsystems) The AMF engine produces an adaptive oscillator that automatically shifts its blend toward trend-measuring components (NROC + EWI) when the Efficiency Ratio is high, and toward range-measuring components (SMP) when the market is choppy. The signal line catches crossovers. Volume Flow confirms whether real buying or selling pressure backs the move. The Efficiency Ratio classifies the regime (trending vs ranging). The KNN engine finds historically similar conditions and votes on the most likely next-bar direction. The HTF bias filters noise by confirming alignment with the higher timeframe. Finally, the Confluence Meter aggregates all six sources into a single 0–100 score — so you see at a glance how many independent systems agree. Without adaptive blending, the oscillator would either lag in trends or whipsaw in ranges. Without volume flow, signals lack confirmation. Without KNN, you have no statistical context. Without confluence scoring, you must mentally juggle six independent readings. The integration chain converts raw momentum data into actionable, scored, confirmed intelligence. 🔍 WHAT MAKES IT ORIGINAL 1️⃣ Adaptive Momentum Fusion (AMF) — three-component blended oscillator. The engine computes three independent momentum measurements on every bar: — NROC (Normalized Rate of Change): measures directional price velocity. Formula: ROC = (source − source ) / source × 100, smoothed with the selected method, then min-max normalized over a 3×N window to 0–100. — EWI (Efficiency-Weighted Impulse): measures bar-to-bar impulse scaled by trend quality. Formula: impulse = change(source) / ATR(N) × ER, smoothed and normalized over a 4×N window to 0–100. High ER amplifies the impulse; low ER suppresses it. — SMP (Stochastic Momentum Position): maps price within its recent range. Formula: (source − lowest(N)) / (highest(N) − lowest(N)) × 100, smoothed with EMA(N/2). The blend is adaptive: — trendWeight = min(ER_smoothed × 1.5, 0.75) — rangeWeight = 1.0 − trendWeight — oscRaw = trendWeight × (NROC × 0.55 + EWI × 0.45) + rangeWeight × SMP When the market is trending (high ER), the oscillator favors NROC and EWI (directional components). In ranging conditions (low ER), it leans on SMP (range-mapping component). The final value is clamped to 0–100 after a short smoothing pass (N/3 bars). 2️⃣ Candle Anatomy Volume Flow — continuous directional volume scoring. Instead of binary close > open direction, the volume flow uses a candle anatomy model that scores each bar from −1.0 to +1.0: — candleScore = bodyDirection × bodyRatio × 0.7 + wickBias × 0.3 — bodyRatio = |close − open| / (high − low) — wickBias = (lowerWick − upperWick) / (high − low) A full bullish candle with no upper wick scores +1.0. A doji scores near 0. A pin bar with a long lower wick and small body scores +0.3 to +0.6. The signed volume (candleScore × volume) is normalized by ATR × average volume, producing a Volatility-Normalized Volume Flow (VNVF). A dual-EMA blend (fast = 0.6×N, slow = 1.4×N, weighted 60/40) is then rescaled to 0–100 via dynamic peak normalization. Values above 50 indicate net buying pressure; below 50, net selling pressure. 3️⃣ KNN Directional Bias — Manhattan distance + inverse-distance weighted voting. A K-Nearest Neighbors classifier runs on four live features: — M (Momentum): oscVal / 100 — V (Volume Flow): vfVal / 100 — X (Signal Cross State): (oscVal − sigVal + 50) / 100 — E (Efficiency): ER_smoothed, clamped 0–1 On each bar, the previous bar's features are stored with the current bar's outcome (up / down / flat, determined by ATR-threshold price change). To find the current bias, the engine computes Manhattan distance from the current feature vector to every historical sample in the training window (default 120 bars), applies a recency bonus (recent bars get a slight distance reduction), selects the K nearest neighbors (default K = 5), and takes an inverse-distance weighted vote. Result: a KNN bias score 0–100. Above 58 = bullish bias. Below 42 = bearish bias. The KNN panel displays direction, confidence percentage, a visual bar, feature states (M+/M−, V+/V−, E+/E−, X+/X−), and current regime. 4️⃣ Regular + Hidden Divergence with Structural Filter. The divergence detector identifies pivot highs and lows on the oscillator (lookback = N/2 bars each side), then compares consecutive pivots: — Regular Bullish: price makes a lower low, oscillator makes a higher low → potential reversal up. — Regular Bearish: price makes a higher high, oscillator makes a lower high → potential reversal down. — Hidden Bullish: price makes a higher low, oscillator makes a lower low → uptrend continuation. — Hidden Bearish: price makes a lower high, oscillator makes a higher high → downtrend continuation. The optional Structural Filter suppresses weak divergences by requiring: — Minimum oscillator swing between pivots (default 5.0 points) — Minimum price swing as % of recent range (default 0.3%) — Volume flow confirmation (volume flow must agree with divergence direction) — Maximum pivot age (default 100 bars) — prevents stale pivots from triggering false signals Divergence lines are drawn solid (regular) or dashed (hidden) with configurable opacity. Labels: D▲ D▼ for regular, H▲ H▼ for hidden. 5️⃣ Regime Detection — Efficiency Ratio + 4-factor composite score. The regime module scores the current market state from 0 to 4: — +1 if oscillator > signal line — +1 if oscillator > 50 (bullish territory) — +1 if volume flow > 50 (net buying) — +1 if Efficiency Ratio > 0.3 (trending market) Score 4 = strong bullish trend → full bull fill in the OB zone. Score 0 = strong bearish trend → full bear fill in the OS zone. Scores 1–3 = transitional states with reduced opacity. The Efficiency Ratio itself uses the Kaufman formula: ER = |price − price | / sum(|price − price |, N), measuring how much of total price movement is directional. 6️⃣ Confluence Meter — 6-source weighted composite score. Six independent subsystems vote bullish (+1), bearish (−1), or neutral (0): — Oscillator position (>55 bull, <45 bear) — Signal cross direction (osc > sig = bull) — Volume Flow (>55 bull, <45 bear) — Efficiency-confirmed direction (ER > 0.3 + oscillator side) — KNN Bias (bull/bear state) — HTF Bias (bull/bear state) Net votes mapped: confRaw = (bullVotes − bearVotes + 6) / 12 × 100, smoothed with EMA(3). Above 70 = strong bullish confluence. Below 30 = strong bearish confluence. Displayed as a thin step-line on the oscillator pane. 7️⃣ Higher-Timeframe Bias — non-repainting HTF confirmation. Fetches the oscillator and signal values from a user-selected higher timeframe using request.security() with offset + lookahead_on = previous closed HTF bar. This guarantees zero repainting. HTF is considered bullish when HTF oscillator > 50 and HTF oscillator > HTF signal; bearish when the reverse. 8️⃣ Momentum Fatigue Detection — consecutive weakening in extreme zones. When the oscillator is above the OB level and declining for N consecutive bars (default 3), a fatigue label (✦ OB) appears — signaling that buying momentum is weakening even though the oscillator remains overbought. Mirror logic applies in the oversold zone (✦ OS). This early warning often precedes crossover signals by several bars. 9️⃣ Six smoothing algorithms with preset system. The smoothing engine supports EMA, SMA, DEMA (double-exponential), TEMA (triple-exponential), WMA (weighted), and VWMA (volume-weighted). Four presets instantly configure period, smoothing, and zone levels: — Scalping: period 8, OB 75, OS 25 — Default: period 14, OB 80, OS 20 — Swing: period 21, OB 80, OS 20 — Position: period 34, OB 85, OS 15 🔟 Full alert suite with webhook JSON support. 12 alert conditions covering every subsystem: bull/bear cross, OB/OS zone exit, regular/hidden divergence, volume flow inflow/outflow, fatigue OB/OS, KNN bias flip, confluence threshold cross. Each alert includes ticker, timeframe, price, and oscillator value. Toggle webhook mode to send JSON payloads for bot integration. ⚙️ HOW IT WORKS — CALCULATION FLOW Step 1 — Warmup guard: The indicator requires 3× the engine period (minimum 60 bars) before producing any signals, divergences, or KNN output. This prevents false signals from insufficient data. Step 2 — AMF oscillator computation: Three momentum components (NROC, EWI, SMP) are computed independently, each normalized to 0–100. The Efficiency Ratio determines the blend weights. The raw blend is smoothed with the selected algorithm over N/3 bars and clamped to 0–100. Step 3 — Signal line: The oscillator is smoothed again with a separate method and period (default EMA 7) to produce the signal/trigger line. Crossovers between oscillator and signal generate dots and alerts. Step 4 — Volume Flow: Each candle is scored using candle anatomy (body ratio + wick bias). Signed volume is normalized by ATR × average volume. A dual-EMA blend is rescaled to 0–100 via dynamic peak normalization. Step 5 — Regime scoring: Four binary conditions (osc > sig, osc > 50, VF > 50, ER > 0.3) produce a regime score 0–4. This score drives zone fills. Step 6 — Divergence scan: Pivot highs and lows are detected on the oscillator. Consecutive pivots are compared for regular and hidden divergence patterns. The Structural Filter (optional) suppresses weak signals. Step 7 — Fatigue check: Consecutive declining bars in the OB zone (or rising bars in the OS zone) are counted. After N bars (default 3), a fatigue label fires. Step 8 — KNN classification: Four features from the current bar are compared to the training window via Manhattan distance. The K nearest neighbors vote with inverse-distance weighting. Result: KNN bias 0–100. Step 9 — HTF bias fetch: Oscillator and signal are fetched from the higher timeframe using previous-bar lookahead to prevent repainting. Step 10 — Confluence aggregation: Six subsystems cast bull/bear/neutral votes. Net votes are mapped to 0–100 and smoothed. 📖 HOW TO USE 🎯 Quick start: 1. Add the indicator to your chart. It appears as a separate oscillator pane below price. 2. Select a preset matching your trading style: Scalping (fast), Default (balanced), Swing, or Position (slow). 3. If you trade a higher timeframe, set the HTF Bias timeframe (e.g., for a 15min chart, set HTF to 60). 4. Watch for the oscillator line crossing the signal line inside the OB/OS zones — these are the primary signals. 5. Check the dashboard (top-left by default) and KNN panel for confluence confirmation before acting. 👁️ Reading the chart: — 🟢 Green oscillator line = momentum is in bullish territory (above midline) or in the overbought zone. — 🔴 Red oscillator line = momentum is in bearish territory (below midline) or in the oversold zone. — Thin gray signal line = trigger line for crossover signals. — 🟢 Green dot on signal line = bullish crossover (oscillator crossed above signal). — 🔴 Red dot on signal line = bearish crossover (oscillator crossed below signal). — 🟢 Green fill between oscillator and midline = bullish momentum with gradient intensity. — 🔴 Red fill between oscillator and midline = bearish momentum with gradient intensity. — 🟢 Green volume flow fill (above 50) = net buying pressure. — 🔴 Red volume flow fill (below 50) = net selling pressure. — D▲ / D▼ labels with solid lines = regular (reversal) divergence. — H▲ / H▼ labels with dashed lines = hidden (continuation) divergence. — ✦ OB / ✦ OS labels = momentum fatigue warning in extreme zones. — Regime fills in OB/OS zones = colored fills when regime score reaches 3–4 (bull) or 0–1 (bear). — Thin step-line = confluence meter (above 70 = strong bullish, below 30 = strong bearish). 📊 Dashboard fields: — Trend: Bullish (osc > 60) / Bearish (osc < 40) / Neutral. — Signal: Latest signal event — Bull Cross, Bear Cross, Overbought, Oversold, or none. — Strength: Strong (osc ≥ 70 or ≤ 30) / Medium / Weak. — Oscillator: Current numeric oscillator value. — Momentum: Acceleration state — Accel ▲ (gaining speed) / Decel ▼ (losing speed) / Steady. — HTF Bias: Higher-timeframe direction — Bullish / Bearish / Neutral / OFF. — Vol Flow: Inflow (VF > 60) / Outflow (VF < 40) / Neutral / N/A (no volume data). — Regime: Trending (ER > 0.3) / Ranging. — KNN Bias: KNN directional output — Bullish / Bearish / Neutral. — Confluence: Composite reading with label — Strong Bull / Lean Bull / Mixed / Lean Bear / Strong Bear. — ER: Current Efficiency Ratio value. — Score: Regime score (0–4). — Consensus: Raw bull vs bear vote count (e.g., 5B / 1S). 🔧 Tuning guide: — Too many signals / whipsaw: Increase Engine Period (try 21 or 34), or switch to the Swing / Position preset. Enable the Structural Filter for divergences. — Too few signals / too slow: Decrease Engine Period (try 8–10), or use the Scalping preset. Lower the Confirmation Bars for fatigue to 1–2. — Divergences feel noisy: Enable the Structural Filter. Increase Min Osc Swing (try 8–10). Enable Require Volume Confirmation. Lower Max Pivot Age to 50–60. — KNN seems random: Increase K (try 8–10) for more conservative voting. Increase Training Window to 200–300 for more historical data. KNN works best on liquid instruments with sufficient bar history. — Volume flow shows N/A: The instrument has no volume data (some forex pairs, indices). Volume Flow and its contribution to regime/confluence will be inactive. — HTF Bias always neutral: Make sure the HTF timeframe is actually higher than your current chart timeframe. An empty field = same timeframe (no filtering). 💡 Trading ideas: — Crossover in extreme zone: Wait for the oscillator to enter the oversold zone (below 20), then watch for a bullish cross of the signal line. Confirm with volume flow turning green and KNN showing bullish. The reverse applies for overbought bearish crosses. — Divergence + fatigue combo: A regular bullish divergence (D▲) appearing near or shortly after a ✦ OS fatigue label is a strong reversal setup. Both systems independently detect weakening bearish momentum. — Confluence filter: Only take trades when the Confluence Meter is above 70 (for longs) or below 30 (for shorts). This ensures at least 4–5 out of 6 subsystems agree. — Regime-aware strategy: When the dashboard shows "Trending" and the regime score is 3–4, favor trend-following entries (hidden divergences, pullbacks to midline). When "Ranging" with score 1–2, favor mean-reversion entries (regular divergences, OB/OS zone fades). — Multi-timeframe alignment: Set the HTF to 4× your chart timeframe (e.g., 1H chart → 4H HTF). Only take long entries when HTF Bias = Bullish, and shorts when HTF Bias = Bearish. This one filter alone can significantly reduce false signals. ⚙️ KEY SETTINGS REFERENCE ⚙️ Main Settings: — Engine Period (default 14): Core lookback for the AMF engine. 8–12 = scalping, 14 = balanced, 20–50 = swing/position. — Source (default close): Price input. Close = standard, HLC3 = smoother, OHLC4 = smoothest. — Smoothing (default DEMA): Algorithm for oscillator core. DEMA recommended for fast and smooth response. — Preset (default Default): Quick configuration — Scalping / Default / Swing / Position. — Signal Period (default 7): Smoothing for the trigger line. Keep below Engine Period. — Signal Smoothing (default EMA): Method for the signal line. — Show Cross Dots (default ON): Dots at oscillator–signal crossover points. 📐 Zones & Fills: — Overbought Level (default 80): Upper extreme threshold. — Oversold Level (default 20): Lower extreme threshold. — OB/OS Fill Opacity (default 20): Zone fill transparency. 📊 Volume Flow: — Show Volume Flow (default ON): Toggle the VNVF overlay. — Volume Flow Opacity (default 18): Fill transparency. Keep 10–25 so the oscillator stays visible. 🔬 Regime Detection: — Show Regime State (default ON): Toggle regime zone fills. — Regime OB/OS Opacity (default 35): Fill transparency for regime fills. 🔀 Divergence: — Regular Divergence (default ON): Reversal divergence detection. — Hidden Divergence (default ON): Continuation divergence detection. — Structural Filter (default OFF): Suppresses weak divergences. When ON, uses Min Osc Swing (default 5.0), Min Price Swing % (default 0.3%), and Volume Confirmation. — Max Pivot Age (default 100 bars): Maximum distance between divergence pivots. 💨 Momentum Fatigue: — Show Fatigue Labels (default ON): Toggle fatigue warnings. — Confirmation Bars (default 3): Consecutive weakening bars required. 1 = fast, 5 = strict. 🧠 KNN Bias: — Show KNN Panel (default ON): Toggle the AI panel. — Neighbors (K) (default 5): Voting neighbors. 3 = fast, 10+ = conservative. — Training Window (default 120): Historical bars for learning. 50 = short memory, 300+ = long memory. 🔭 Higher Timeframe: — Show HTF Bias (default ON): Toggle HTF filter. — Higher Timeframe (default empty = current TF): Select a higher TF for meaningful bias. 🎯 Confluence: — Show Confluence Meter (default ON): Toggle the composite score line. — High Confluence (default 70): Threshold for strong bullish confluence. — Low Confluence (default 30): Threshold for strong bearish confluence. 🎨 Visual: — Theme (default Auto): Auto-detects chart background. Force Dark or Light as needed. — Adaptive Line Color (default ON): Oscillator color shifts with momentum direction. — Bull/Bear Colors : Customizable green/red palette. 🔔 ALERTS — 🟢 Bull Cross — oscillator crosses above signal line below the midline. Payload: ticker, TF, price, osc value. — 🔴 Bear Cross — oscillator crosses below signal line above the midline. Payload: ticker, TF, price, osc value. — 🟢 Exit Oversold — oscillator crosses above OS level. — 🔴 Exit Overbought — oscillator crosses below OB level. — 🟢 Regular Bull Divergence — D▲ detected (passes structural filter if enabled). — 🔴 Regular Bear Divergence — D▼ detected. — 🟢 Hidden Bull Divergence — H▲ detected. — 🔴 Hidden Bear Divergence — H▼ detected. — 🟢 Volume Inflow — volume flow crosses above 50. — 🔴 Volume Outflow — volume flow crosses below 50. — ⚠️ OB Fatigue — buying momentum weakening in overbought zone. — ⚠️ OS Fatigue — selling momentum weakening in oversold zone. — 🧠 KNN → Bull — KNN bias flips to bullish. — 🧠 KNN → Bear — KNN bias flips to bearish. — 🎯 Confluence High — confluence meter crosses above high threshold (default 70). — 🎯 Confluence Low — confluence meter crosses below low threshold (default 30). All alerts support plain text and JSON webhook format (toggle in settings). Alerts fire once per bar. ⚠️ IMPORTANT NOTES — 🚫 Divergence timing. Pivots are detected with equal left/right lookback (N/2 bars). This means the divergence line and label appear at the confirmed pivot bar, which is N/2 bars in the past. This is delayed confirmation, not repainting — the signal does not change once it appears. — 🚫 HTF bias does not repaint. The higher-timeframe values use the previous closed HTF bar ( offset + barmerge.lookahead_on). The HTF reading updates only when a new HTF bar closes. — 📐 KNN is not a crystal ball. The KNN classifier finds similar historical conditions and votes on direction. It does not predict the future — it provides statistical context based on the training window. In low-liquidity or unusual market conditions, historical patterns may not repeat. — 📐 Volume Flow requires volume data. On instruments without volume (some forex feeds, certain index CFDs), Volume Flow displays N/A and its contribution to regime scoring and confluence voting is inactive. — ⚖️ Warmup period. The indicator needs 3× Engine Period (minimum 60 bars) of data before producing output. On very low-timeframe charts with limited history, some subsystems may not activate. — 🛠️ This is an analysis tool, not an automated trading bot. It provides momentum analysis, volume confirmation, pattern recognition, and confluence scoring — trade decisions remain yours. — 🌐 Works on all markets and all timeframes. Optimized for liquid instruments with volume data. Version: v1.2.1
Pine Script® indicator
by WillyAlgoTrader
4
Liquidity Tessera [JOAT]Liquidity Tessera Introduction Liquidity Tessera is an advanced open-source volume intelligence pane that fuses Cumulative Volume Delta (CVD), Weis Wave volume clustering, multi-design intensity bars, volume absorption and climax detection, CVD momentum ribbon, liquidity exhaustion tracking, session-partitioned delta accumulation, and a comprehensive 16-row dashboard into a unified volume analysis system. This indicator transforms raw volume data into actionable intelligence about who controls the market — buyers or sellers — and whether that control is strengthening or weakening. Standard volume indicators show you how much trading occurred. Liquidity Tessera shows you the character of that trading: whether volume is flowing in or out (CVD), whether volume waves are expanding or contracting (Weis Wave), whether institutions are absorbing supply or distributing into demand (absorption detection), and whether a move is reaching climactic exhaustion (climax and exhaustion signals). The indicator operates in its own pane below the price chart, providing a complete volume intelligence layer without cluttering price action. Core Concepts 1. Cumulative Volume Delta (CVD) CVD approximates the net buying and selling pressure by assigning each bar's volume as positive (buying) when the close is above the open, and negative (selling) when the close is below the open: float barDelta = close > open ? volume : close < open ? -volume : 0.0 var float cvdRaw = 0.0 cvdRaw := nz(cvdRaw ) + barDelta The cumulative sum of these deltas creates a running total of net order flow. Rising CVD indicates net buying pressure is accumulating; falling CVD indicates net selling pressure. The indicator offers optional normalization using a z-score approach (CVD relative to its rolling mean and standard deviation), which makes CVD comparable across different instruments and timeframes. CVD divergences from price are particularly significant: when price makes a new high but CVD does not confirm (it stays below its recent high), it suggests the rally lacks genuine buying conviction and may be vulnerable to reversal. 2. Weis Wave Volume Clustering The Weis Wave method groups volume into directional waves. Rather than looking at volume bar-by-bar, it accumulates volume during each directional swing. A wave reversal is triggered when price moves against the current wave direction by more than a configurable ATR-based threshold: float waveThreshold = ta.atr(waveAtrLen) * waveAtrMul // When price reverses by more than the threshold, the wave completes // and accumulated volume is plotted as a single wave column This reveals the Wyckoff-style volume pattern: are up-waves attracting more volume than down-waves (accumulation), or are down-waves attracting more volume (distribution)? The indicator tracks wave history and detects divergences between price swings and their corresponding wave volumes. 3. Volume Absorption Detection Institutional absorption occurs when large players absorb selling pressure (or buying pressure) without allowing price to move significantly. The indicator detects this by identifying bars where volume is extremely high relative to average (above the configurable threshold, default 2x) but the price range is unusually small (below 50% of average range): High volume + small range = someone is absorbing the opposite side's orders This often occurs at the end of trends when institutions are building positions against the prevailing direction Absorption bars are highlighted with a distinct amethyst color and labeled "ABS" on the chart. 4. Volume Climax Detection A volume climax occurs when extreme volume (above the configurable threshold, default 3x average) coincides with a reversal candle pattern — specifically, a bar with a large wick-to-body ratio (wick > 2x body). This combination suggests that a massive influx of orders met strong opposition, creating a potential turning point. Climax bars are highlighted in fuchsia and labeled "CLIMAX." 5. Liquidity Exhaustion Tracking The indicator tracks consecutive Weis Waves where volume declines from wave to wave. When two or more consecutive waves in the same direction show declining volume, it signals exhaustion — the trend is running out of fuel. This is a classic Wyckoff concept: a trend sustained by decreasing volume is unsustainable. 6. Delta Intensity Bar Coloring Rather than simple up/down coloring, the indicator offers gradient-based bar coloring where the intensity of the color reflects the strength of the bar's delta relative to average volume: float deltaStr = math.min(math.abs(barDelta) / volMA, 2.0) / 2.0 // Weak delta = faint color, strong delta = vivid color baseCol := color.from_gradient(deltaStr, 0, 1, color.new(TESS_INFLOW, 65), color.new(TESS_INFLOW, 0)) This means a green bar with faint color had weak buying conviction, while a vivid green bar had strong buying conviction — information not available from standard volume bars. 7. CVD Momentum Ribbon A fast and slow EMA of the raw CVD create a momentum ribbon. When the fast CVD EMA is above the slow, delta momentum is bullish (buying pressure is accelerating). Crossovers between the two indicate shifts in delta momentum direction. Features Four Bar Design Modes: Solid (standard filled bars), Hollow (outline only), Intensity (transparency scales with volume relative to average), and Glass (semi-transparent with a stepline cap) — each providing a different visual emphasis Weis Wave Histogram: Background columns showing completed wave volumes, colored by wave direction. Up-wave volumes plot above zero, down-wave volumes below CVD Overlay: The cumulative delta line scaled to fit the volume pane, with gradient coloring from bearish (red) to bullish (teal) based on CVD value Session Volume Accumulation: Separate tracking of pre-market, regular, and post-market session volumes and deltas, with session background coloring Delta Pressure Score: A 0-100 percentage measuring net buying pressure over the last 20 bars. Above 60 = buy pressure dominant, below 40 = sell pressure dominant Wave Volume Comparison: Real-time comparison of the current wave's volume against the previous wave, classified as Expanding, Steady, or Contracting Liquidity State Classification: Categorizes the current bar as Absorption, Climax, Exhaustion, Spike, Dry-Up, or Normal based on the composite of all detection systems Volume Spike Detection: Identifies bars where volume exceeds 2.5x average with a background highlight Session Delta Bias: Tracks whether the current session's cumulative delta is net accumulating or distributing 16-Row Dashboard: Displays bar delta, CVD state, volume ratio, wave direction, session volumes, last wave volume, liquidity state, delta pressure, CVD momentum, wave volume comparison, session delta bias, delta strength, active wave volume, exhaustion counts, and bar style Input Parameters Cumulative Delta: CVD Smoothing: EMA period for CVD smoothing (default: 14) Normalize CVD: Toggle z-score normalization for cross-asset comparability (default: on) CVD Ribbon Fast/Slow: EMA periods for the momentum ribbon (default: 8/21) Wave Volume: Wave ATR Multiplier: Threshold for wave reversal detection (default: 1.5) Wave ATR Length: ATR period for wave threshold (default: 14) Signals: Absorption Vol Threshold: Volume multiple for absorption detection (default: 2.0) Climax Vol Threshold: Volume multiple for climax detection (default: 3.0) Toggles for wave divergence, absorption, climax, and exhaustion signals Visuals: Bar Style: Solid, Hollow, Intensity, or Glass (default: Intensity) Toggles for delta intensity coloring, wave histogram, CVD overlay, CVD ribbon, session background, and dashboard How to Use This Indicator Step 1: Read the Liquidity State Check the dashboard's Liquidity State. "Absorption" at support suggests institutions are buying. "Climax" after an extended move suggests a potential turning point. "Exhaustion" means the trend is losing volume fuel. "Normal" means standard conditions apply. Step 2: Monitor CVD Direction Rising CVD confirms uptrends; falling CVD confirms downtrends. CVD diverging from price is a warning sign. If price is making new highs but CVD is flat or declining, the rally may lack genuine buying support. Step 3: Compare Wave Volumes In a healthy uptrend, up-wave volumes should be larger than down-wave volumes. If down-wave volumes start exceeding up-wave volumes while price is still rising, distribution may be occurring. The Wave Volume Comparison metric in the dashboard tracks this automatically. Step 4: Use Delta Pressure for Bias The Delta Pressure score (0-100) provides a quick read on who controls the last 20 bars. Above 60 = buyers dominate. Below 40 = sellers dominate. Between 40-60 = balanced/contested. Step 5: Watch for Signal Clusters The most significant moments occur when multiple signals cluster: an absorption bar followed by a wave divergence during an exhaustion phase, for example, creates a high-conviction reversal setup. Single signals in isolation are less reliable. Indicator Limitations The CVD approximation (close > open = buying, close < open = selling) is a simplification. True order flow data requires Level 2/DOM data not available in Pine Script. This approximation works reasonably well on liquid instruments but is inherently imprecise Volume data quality varies significantly across instruments and data providers. Forex "volume" is typically tick count, not actual traded volume. Crypto volume may include wash trading. The indicator's effectiveness depends on the quality of the underlying volume data Weis Wave reversal detection depends on the ATR threshold parameter. Too small a threshold produces too many waves (noise); too large produces too few (missing genuine reversals). The optimal setting varies by instrument and timeframe Absorption and climax detection use fixed ratio thresholds. What constitutes "extreme" volume varies across instruments and market conditions. The thresholds may need adjustment Session volume tracking uses TradingView's built-in session detection, which may not align perfectly with all exchanges or instruments The indicator operates in a separate pane and cannot overlay directly on price. Cross-referencing signals with price action requires visual comparison between panes Originality Statement This indicator is original in its comprehensive fusion of multiple volume analysis methodologies into a unified intelligence pane. While individual components (CVD, Weis Wave, volume absorption) exist separately, this indicator is justified because: The integration of CVD, Weis Wave clustering, absorption detection, climax detection, and exhaustion tracking into a single system provides layered volume intelligence not available in any single existing indicator The delta intensity bar coloring system uses gradient transparency based on delta strength, providing conviction information within the volume bars themselves The liquidity state classification system synthesizes all detection subsystems into a single categorical assessment of current market conditions Session-partitioned delta tracking reveals whether accumulation or distribution is occurring within specific market sessions The CVD momentum ribbon provides a trend-following overlay on the delta data, identifying shifts in buying/selling momentum Four distinct bar design modes (Solid, Hollow, Intensity, Glass) offer visual flexibility for different analysis preferences Wave volume comparison with expanding/contracting classification automates Wyckoff-style wave analysis Disclaimer This indicator is provided for educational and informational purposes only. It is not financial advice or a recommendation to buy or sell any financial instrument. Trading involves substantial risk of loss. Volume analysis provides context about market participation but does not predict future price direction. Absorption, climax, and exhaustion signals are probabilistic patterns that can and do fail. CVD approximations are not equivalent to true order flow data. Always use proper risk management and conduct your own analysis. The author is not responsible for any losses incurred from using this indicator. -Made with passion by officialjackofalltrades
Pine Script® indicator
by officialjackofalltrades
Oscillator Confluence Tracker [JOAT]Oscillator Confluence Tracker Introduction The Oscillator Confluence Tracker is an advanced open-source multi-oscillator divergence detection indicator that combines RSI divergence analysis, MACD momentum tracking, Stochastic extreme identification, volume divergence detection, and pattern recognition into a unified smart money divergence system. This indicator helps traders identify when price and momentum are moving in opposite directions - a powerful signal that the current trend is losing strength and a reversal may be imminent. Unlike basic oscillator indicators that simply show overbought/oversold levels, this system detects divergences across multiple oscillators simultaneously and quantifies confluence. Regular divergences signal potential reversals, hidden divergences signal trend continuation, and multi-oscillator confluence provides the highest probability setups. The indicator is designed for traders who understand that divergences reveal institutional positioning changes before they're visible in price action. Why This Indicator Exists This indicator addresses a critical challenge in divergence trading: single oscillator divergences produce many false signals. By combining multiple oscillators and requiring confluence, this indicator reveals: RSI Divergence Detection: Identifies when price makes new highs/lows but RSI doesn't - signals momentum exhaustion MACD Momentum Analysis: Tracks MACD line and histogram for momentum shifts and crossovers Stochastic Extreme Zones: Identifies overbought (>80) and oversold (<20) conditions for context Hidden Divergence Patterns: Detects hidden divergences that signal trend continuation rather than reversal Volume Divergence: Identifies when price makes new highs/lows on decreasing volume - warns of weak moves Multi-Oscillator Confluence: Quantifies how many oscillators show divergence simultaneously Momentum Divergence: Detects when price momentum and oscillator momentum conflict Each component provides a different lens on momentum. RSI shows relative strength, MACD shows trend momentum, Stochastic shows extremes, volume shows participation, and confluence shows conviction. Together, they create a comprehensive view of smart money divergence. Core Components Explained 1. Regular Bearish Divergence (Price HH, RSI LH) Regular bearish divergence occurs when price makes a higher high but RSI makes a lower high - signals uptrend exhaustion: // Detect pivot highs in both price and RSI pricePivotHigh = ta.pivothigh(high, 5, 5) rsiPivotHigh = ta.pivothigh(rsi, 5, 5) // Compare current pivot to previous pivot if pricePivotHigh > lastPriceHigh and rsiPivotHigh < lastRsiHigh: // Bearish divergence detected drawDivergenceLines() createDivergenceLabel("BEAR DIV") The indicator identifies bearish divergence by: Tracking swing highs in both price and RSI using pivot detection Comparing current swing high to previous swing high Confirming price made higher high while RSI made lower high Drawing solid line on price chart and dashed line on RSI Creating "BEAR DIV" label at the divergence point Bearish divergence is most powerful when: RSI is in overbought zone (>70) - "BEAR DIV EXTREME" label Multiple oscillators show divergence simultaneously Volume is decreasing on the higher high Occurs at resistance or Fibonacci level 2. Regular Bullish Divergence (Price LL, RSI HL) Regular bullish divergence occurs when price makes a lower low but RSI makes a higher low - signals downtrend exhaustion: // Detect pivot lows in both price and RSI pricePivotLow = ta.pivotlow(low, 5, 5) rsiPivotLow = ta.pivotlow(rsi, 5, 5) // Compare current pivot to previous pivot if pricePivotLow < lastPriceLow and rsiPivotLow > lastRsiLow: // Bullish divergence detected drawDivergenceLines() createDivergenceLabel("BULL DIV") The indicator identifies bullish divergence by: Tracking swing lows in both price and RSI Comparing current swing low to previous swing low Confirming price made lower low while RSI made higher low Drawing solid line on price chart and dashed line on RSI Creating "BULL DIV" label at the divergence point Bullish divergence is most powerful when: RSI is in oversold zone (<30) - "BULL DIV EXTREME" label Multiple oscillators show divergence simultaneously Volume is decreasing on the lower low Occurs at support or Fibonacci level 3. Hidden Bullish Divergence (Price HL, MACD LL) Hidden bullish divergence occurs when price makes a higher low but MACD makes a lower low - signals uptrend continuation: // Price makes higher low (bullish structure) if pricePivotLow > lastPriceLow and macdPivotLow < lastMacdLow: // Hidden bullish divergence - trend continuation signal drawHiddenDivergence("H-BULL") Hidden divergences are different from regular divergences: Signal trend continuation, not reversal Occur during pullbacks in established trends Show that momentum is building despite price correction Drawn with dotted lines to distinguish from regular divergence Labeled "H-BULL" or "H-BEAR" for clarity Hidden divergences are powerful for: Entering pullbacks in strong trends Adding to winning positions Confirming trend strength Identifying optimal re-entry points 4. Volume Divergence Detection Volume divergence occurs when price makes new highs/lows but volume decreases - warns of weak moves: // Track volume at pivot highs volPivotHigh = ta.pivothigh(volume, 5, 5) // Price makes higher high, volume makes lower high if pricePivotHigh > lastPriceHigh and volPivotHigh < lastVolHigh: label.new(bar_index, high, "VOL DIV", color=COLOR_VOL_DIV) Volume divergence reveals: Decreasing participation in the move Lack of institutional conviction Potential exhaustion or trap Warning that trend may not continue Volume divergence combined with RSI/MACD divergence creates extremely high-probability reversal setups. 5. Momentum Divergence Analysis Momentum divergence occurs when price momentum and oscillator momentum move in opposite directions: rsiMomentum = ta.change(rsi, 5) macdMomentum = ta.change(macdLine, 5) priceMomentum = ta.change(close, 5) // Price momentum positive but RSI momentum negative momentumDivergence = (priceMomentum > 0 and rsiMomentum < 0) or (priceMomentum < 0 and rsiMomentum > 0) Momentum divergence shows: Acceleration/deceleration conflicts Early warning of trend changes Momentum exhaustion before price exhaustion Institutional positioning shifts The dashboard displays momentum divergence status (Active/Aligned) with color coding. 6. Multi-Oscillator Confluence Scoring The indicator quantifies confluence by counting how many oscillators show divergence simultaneously: confluenceScore = 0 if rsi_divergence: confluenceScore += 1 if macd_divergence: confluenceScore += 1 if stochastic_extreme: confluenceScore += 1 if volume_divergence: confluenceScore += 1 if momentum_divergence: confluenceScore += 1 // Classify confluence confluenceLevel = confluenceScore >= 4 ? "EXTREME BULL/BEAR" : confluenceScore >= 3 ? "STRONG BULL/BEAR" : confluenceScore >= 2 ? "MODERATE" : "NONE" Confluence scoring reveals: Setup quality (higher score = higher probability) How many independent signals confirm the divergence Whether to take the trade (3+ recommended) Position sizing guidance (higher score = larger size) The dashboard displays confluence score and classification with color intensity. 7. Enhanced Candlestick Coloring The indicator colors candles based on trend strength and momentum: // Determine trend trendStrength = ta.ema(close, 20) isBullTrend = close > trendStrength isBearTrend = close < trendStrength // Momentum strength momentumStrong = abs(rsiMomentum) > 5 or abs(macdMomentum) > abs(macdHist) * 0.5 // Color candles if isBullTrend: candleColor = momentumStrong ? COLOR_BULL_STRONG : COLOR_BULL_WEAK else if isBearTrend: candleColor = momentumStrong ? COLOR_BEAR_STRONG : COLOR_BEAR_WEAK Candlestick coloring shows: Bright green: Strong bullish momentum Light green: Weak bullish momentum Bright red: Strong bearish momentum Light red: Weak bearish momentum This provides instant visual feedback on trend and momentum strength. Visual Elements Divergence Lines: Solid lines on price, dashed lines on oscillator connecting pivot points Divergence Labels: "BULL DIV", "BEAR DIV", "H-BULL", "H-BEAR" at divergence points Extreme Labels: "BULL DIV EXTREME" or "BEAR DIV EXTREME" in overbought/oversold zones Volume Labels: "VOL DIV" markers when volume diverges Divergence Zones: Semi-transparent boxes highlighting divergence areas Enhanced Candles: Color-coded by trend and momentum strength Volume Spike Boxes: Gold boxes around high-volume candles Extreme Zone Backgrounds: Red tint when RSI >70 and Stochastic >80, green tint when RSI <30 and Stochastic <20 Dashboard: Real-time oscillator states and confluence metrics The dashboard displays 9 key metrics: 1. RSI State (value and Overbought/Oversold/Neutral) 2. MACD Flow (Bullish/Bearish and Strong/Weak) 3. Stochastic (value and Extreme/Normal) 4. Momentum Div (Active/Aligned) 5. Volume Profile (ratio and Spike/Elevated/Low) 6. Trend Strength (Bullish/Bearish and Strong/Weak) 7. Confluence (Extreme/Strong/Moderate/None) 8. Signal Quality (Elite Setup/Strong Setup/Moderate/Weak) Input Parameters Oscillator Settings: RSI Period: Length for RSI calculation (default: 14) MACD Fast: Fast EMA for MACD (default: 12) MACD Slow: Slow EMA for MACD (default: 26) MACD Signal: Signal line period (default: 9) Stochastic Period: Length for Stochastic calculation (default: 14) Divergence Detection: Pivot Detection: Lookback for swing detection (default: 5) Regular Divergence: Enable/disable regular divergence detection Hidden Divergence: Enable/disable hidden divergence detection Multi-Oscillator Confluence: Require multiple oscillators Extreme Zones Only: Only detect divergences in overbought/oversold Volume Analysis: Volume Analysis Period: Length for volume average (default: 20) Volume Divergence: Enable/disable volume divergence detection Volume Spike Threshold: Multiplier for spike detection (default: 1.5x) How to Use This Indicator Step 1: Monitor RSI State Check dashboard for RSI level. Divergences in extreme zones (>70 or <30) are most powerful. Wait for extremes for best setups. Step 2: Watch for Divergence Labels When "BULL DIV" or "BEAR DIV" labels appear, divergence is detected. "EXTREME" suffix means it's in overbought/oversold - highest probability. Step 3: Check Confluence Score Dashboard shows confluence level. "EXTREME" or "STRONG" = multiple oscillators confirming. Only trade 3+ confluence setups. Step 4: Confirm with Volume Look for "VOL DIV" labels. Volume divergence + oscillator divergence = very high probability. Volume confirms the divergence. Step 5: Assess Signal Quality [/b> Dashboard shows "ELITE SETUP" when momentum divergence + extreme RSI/Stochastic + high confluence. "STRONG SETUP" for good setups. Only trade Elite and Strong. Step 6: Use Hidden Divergence for Continuation "H-BULL" or "H-BEAR" labels signal trend continuation. Enter pullbacks in strong trends when hidden divergence appears. Step 7: Monitor Trend Strength Best Practices Divergences in extreme zones (RSI >70 or <30) are most reliable Multi-oscillator confluence (3+) significantly increases win rate Volume divergence adds powerful confirmation Hidden divergences are for trend continuation, not reversal Regular divergences are for reversal, not continuation Momentum divergence provides early warning before price divergence Extreme zone backgrounds (red/green tint) show best divergence areas Enhanced candle colors show when momentum is weakening Confluence score guides position sizing (higher = larger) Signal quality in dashboard filters low-probability setups Indicator Limitations Divergences can persist for extended periods before reversing Not all divergences result in reversals - some fail Strong trends can produce multiple divergences before reversing Hidden divergences require established trend context Volume divergence less reliable on low-volume instruments Pivot detection requires sufficient volatility Multiple divergences in short period may signal consolidation The indicator shows momentum conflicts, not guaranteed reversals Extreme zones can remain extreme longer than expected Technical Implementation Built with Pine Script v6 using: RSI divergence detection with pivot comparison MACD momentum analysis with histogram tracking Stochastic extreme zone identification Volume divergence detection with pivot tracking Momentum divergence calculations (rate-of-change) Multi-oscillator confluence scoring system Enhanced candlestick coloring based on trend and momentum Volume spike detection with box visualization Extreme zone background gradients Real-time dashboard with 9 divergence metrics The code is fully open-source and can be modified to suit individual trading styles and preferences. Originality Statement This indicator is original in its comprehensive divergence integration approach. While individual components (RSI, MACD, Stochastic, volume) are established concepts, this indicator is justified because: It synthesizes multiple oscillator divergence detection into unified confluence scoring The multi-oscillator confluence system quantifies setup quality across independent signals Hidden divergence detection distinguishes continuation from reversal patterns Volume divergence integration adds participation confirmation layer Momentum divergence analysis provides early warning system Enhanced candlestick coloring shows trend and momentum strength visually Signal quality classification (Elite/Strong/Moderate/Weak) filters setups Extreme zone backgrounds highlight optimal divergence areas Real-time dashboard presents 9 metrics simultaneously for holistic divergence analysis Each component contributes unique information: RSI shows relative strength, MACD shows momentum, Stochastic shows extremes, volume shows participation, momentum shows acceleration, confluence shows conviction, and quality shows probability. The indicator's value lies in presenting these complementary perspectives simultaneously with unified classification and actionable trade signals. Disclaimer This indicator is provided for educational and informational purposes only. It is not financial advice or a recommendation to buy or sell any financial instrument. Trading involves substantial risk of loss and is not suitable for all investors. Divergence analysis is a tool for identifying potential reversals and continuations, not a crystal ball for predicting future price movement. Divergences do not guarantee reversals. Confluence does not guarantee success. Past divergence patterns do not guarantee future divergence patterns. Market conditions change, and strategies that worked historically may not work in the future. The divergences displayed are analytical constructs based on current market data, not predictions of future price movement. High confluence scores do not guarantee profitable trades. Users must conduct their own analysis and risk assessment before making trading decisions. Always use proper risk management, including stop losses and position sizing appropriate for your account size and risk tolerance. Never risk more than you can afford to lose. Consider consulting with a qualified financial advisor before making investment decisions. The author is not responsible for any losses incurred from using this indicator. Users assume full responsibility for all trading decisions made using this tool. -Made with passion by officialjackofalltrades
Pine Script® indicator
by officialjackofalltrades
Oscillators with DivergencesIf you do enjoy this indicator, check out my Ultimate Indicator! It is another collection of indicators all into one but that is for price chart indicators like Donchian, Keltner, EMAs, VWAP, Super Trend, etc. This is a culmination of hundreds of hours (maybe even a thousand, honestly) of work spent working with dozens of indicators and now taking all of the ones I like the most and combining them into one so you can easily switch between them. On top of that, I have my own custom divergence code that can look back up to five pivots! There's the following indicators all wrapped into this one: MACD RSI CCI Volume-Weighted MACD MFI Stochastic Stochastic RSI I could not get a working method of looking back several pivots from other people's code so I took a 1-pivot lookback method and copied out several times and made necessary changes to work properly. It will also draw an "early divergence" the moment it's happening rather than waiting the normal 5 candles to show. Once the 5 candles have passed, it will pick the furthest back divergence as the one to stay. Let's say you have the divergences set to 3 pivot points. If a divergence happens that goes back 1 pivot point, but later a 3 pivot divergence overlaps it, the 1 pivot will get removed after the 3 pivot early divergence is confirmed after its 5 candles have passed. Just put it on the chart and you'll see, it sounds crazy to explain. I've added a bunch of tooltips to explain each setting. Please read them if you have questions. I've also added notes into my code if you do choose to use it for your own purposes or make changes. I wish you luck haha, it's a bit of a mess. Some things were commented out but elft in there just beacuse I never know when I want to re-enable it or just see what the original code was.
Pine Script® indicator
by theehoganator
HTF Reversal Divergences [LuxAlgo]The HTF Reversal Divergences indicator is a multi-timeframe analysis tool that integrates higher timeframe (HTF) price action patterns, RSI divergences, and advanced candle projections (PO3) to identify potential market reversals. 🔶 USAGE The indicator is designed to provide traders with a comprehensive view of market exhaustion and trend shifts by combining momentum oscillators with structural price patterns. Users can monitor HTF candles (e.g., 1H, 4H) while trading on lower timeframes (e.g., 5m, 15m). When a reversal pattern like an Engulfing candle or a Pin Bar forms on the higher timeframe, the script highlights the specific area on the chart using styled boxes and labels. 🔹 RSI Divergences The script calculates the Relative Strength Index (RSI) and automatically detects regular divergences. These are visualized with connecting lines on both the indicator pane and the main price chart: Bullish Divergence : Occurs when price makes a lower low but the RSI makes a higher low, suggesting waning downward momentum. Bearish Divergence : Occurs when price makes a higher high but the RSI makes a lower high, suggesting waning upward momentum. 🔹 Advanced HTF PO3 (Power of 3) A unique feature of this tool is the projection of Higher Timeframe candles to the right of the current price action. This allows traders to see how the current lower-timeframe bars are contributing to the formation of the larger HTF candle (Open, High, Low, Close). The PO3 projection includes a "Running Delta" which tracks volume-based buying and selling pressure within the current HTF period. Dashed lines connect the projected candle's OHLC levels back to the specific bars where those levels were established on the current timeframe. 🔶 DETAILS The indicator uses request.security() to fetch data from the user-specified higher timeframe. The reversal patterns are defined as follows: Engulfing : A candle that completely overlaps the body of the previous candle in the opposite direction. Pin Bars : Hammers and Shooting Stars, defined by a long wick representing at least 60% of the total candle range. The PO3 (Accumulation, Manipulation, Distribution) logic is reflected in the live candle projection, helping traders visualize where the "open" of the session is relative to current price, and whether the high or low of the HTF bar has likely been set. 🔶 SETTINGS 🔹 HTF Reversal Patterns High Timeframe : Sets the timeframe used for pattern detection and candle projections. Show Engulfing Patterns : Toggles the detection of bullish and bearish engulfing candles. Show Pin Bars : Toggles the detection of Hammers and Shooting Stars. Colors : Customize the visual representation of bullish and bearish structural patterns. 🔹 RSI Divergence Show RSI Divergences : Toggles the calculation and display of momentum divergences. RSI Length : The lookback period for the RSI calculation. Pivot Lookbacks : Determines the sensitivity of the pivot detection used for finding divergence points. 🔹 Advanced: HTF PO3 Show HTF PO3 : Toggles the projected candle interface on the right side of the chart. Candles to Show : The number of historical HTF candles to project alongside the live one. Right Offset : How many bars to the right the projection is rendered. Show PO3 Price Labels/Delta : Toggles specific data points on the projection UI.
Pine Script® indicator
by LuxAlgo
12
Volume Divergence Reversal Signals [AlgoAlpha]🟠 OVERVIEW This script identifies potential trend reversals by analyzing divergences between price action and normalized volume. It transforms raw volume into a 0–100 scale to make activity levels comparable across different market regimes. By detecting instances where price reaches new extremes but volume fails to follow, the script highlights "exhaustion" or "effort without result" scenarios. It also integrates Volume Delta data to provide granular details on net buying or selling pressure at the exact moment a divergence is confirmed, offering a deeper look into the internal mechanics of a reversal. 🟠 CONCEPTS The core logic relies on the relationship between price discovery and participation. First, volume is normalized against a long-term lookback to create a standardized baseline. The script then monitors "pivots" in this normalized volume. A Bullish Divergence occurs when price makes a Lower Low while volume creates a Higher Low, suggesting that selling pressure is drying up despite the price drop. A Bearish Divergence occurs when price makes a Higher High while volume makes a Lower High, indicating a lack of buying conviction at new peaks. While price defines the trend structure , the volume pivots provide the momentum context required to signal a change in direction. 🟠 FEATURES Automatic detection of bullish and bearish volume divergences. Integrated Volume Delta (CVD or per-bar) displayed directly on signal labels. Real-time alerts for confirmed divergence patterns. 🟠 USAGE Setup : Add the script to your chart and ensure the Normalization Length is large enough (default 1000) to capture a representative sample of volume. For higher precision, the Volume Delta Lower Timeframe should be set to a lower interval than your current chart. Read the chart : Look for the "▲" (Bullish) and "▼" (Bearish) labels. When a signal appears, check the label text; it shows the total volume and the net delta (buy vs. sell) for that specific pivot. A bullish divergence with a positive (+) delta suggests aggressive buyers are stepping in at the low. Settings that matter : The Pivot Lookback Right determines the confirmation delay; a higher value makes signals more reliable but "lags" the entry. The Max Bars Between Pivots controls how far apart the two price/volume points can be; decreasing this focuses the script on immediate, sharp reversals rather than broad cycles.
Pine Script® indicator
by AlgoAlpha
7
Flow EngineFlow Engine Most indicators tell you which direction price is moving. Flow Engine tells you whether to trust it . It does this by combining momentum, volume, trend, and a higher timeframe check all into one pane, plus it draws divergence signals directly on your price chart so you never have to look away. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ WHAT'S ON THE SCREEN ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ The Histogram (the bars) This is the main thing. The height of each bar shows how strong the momentum is. The color tells you the direction — cyan for up, red for down. The part that makes this different is the opacity . If a bar is bright and vivid, it means big volume is behind that move. If a bar looks faded or ghosted, the move happened on low volume and probably won't last. You can see this instantly without checking a separate volume pane. Tall vivid cyan bar = strong upward move with real volume behind it Tall faded cyan bar = price went up but nobody really showed up Same logic applies on the red side The OB/OS Line This line tells you when things are getting stretched too far in one direction. When it goes above +70 — the move is getting overdone on the upside. When it drops below -70 — the selloff is getting overdone. In between — cyan means leaning bullish, red means leaning bearish The Trend Line A slow moving line that tells you what the overall structure looks like on your current timeframe. Lime green above zero — uptrend Soft red below zero — downtrend Think of it as the background context. When this line is green, you want to be looking for longs. When it's red, be careful going long or look for shorts instead. The Background Tint (HTF Bias) A very subtle color behind everything that comes from a higher timeframe — by default the Daily chart. Cyan tint — the daily trend is bullish Red tint — the daily trend is bearish No tint — daily is mixed, no clear direction This is the big picture check. If you are trading a 15 minute chart and the background is red, you know you are going against the daily trend. That doesn't mean you can't trade, but you should be more careful. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ DIVERGENCE SIGNALS ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Divergence is when price and momentum stop agreeing with each other. It usually means the current move is running out of steam. Bearish divergence — price made a higher high but the histogram made a lower high. The rally is weakening. Orange triangle appears above the candle on your price chart. Bullish divergence — price made a lower low but the histogram made a higher low. The selloff is weakening. Green triangle appears below the candle on your price chart. You also get a dashed line drawn on the Flow Engine pane connecting the two points so you can see exactly where the divergence happened. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ SETTINGS ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Momentum Length (14) — how many bars the momentum calculation looks back. Lower number reacts quicker but gives more false signals. Higher number is slower but cleaner. Volume MA Length (20) — the average used to judge whether current volume is high or low. Leave this at default unless you have a reason to change it. Overbought Level (70) — where the OB/OS line turns orange. Lower this if you want earlier warnings. Oversold Level (-70) — where the OB/OS line turns green. Change this together with the overbought level. Trend Length (50) — how slow the trend line moves. Higher number = smoother line. Pivot Lookback Left & Right (5) — controls how strict the divergence detection is. Raise both to 8 or 10 if you are getting too many signals. Lower to 3 if you want more. HTF Timeframe (D) — the higher timeframe for the background tint. Set this one step above whatever chart you are on. D = Daily, W = Weekly, 240 = 4 Hour. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ HOW TO USE IT ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Every time you look at the indicator, go through it top to bottom: Check the background tint — what is the daily (or higher TF) saying? Check the trend line — is the current chart agreeing with that? Check the OB/OS line — are we stretched? If yes, don't chase. Check the histogram — is momentum vivid (real) or faded (weak)? The best setup looks like this: Background is cyan + trend line above zero + OB/OS line near oversold + bullish divergence triangle on the chart + histogram bars turning bright cyan When all of that lines up, the move has multiple things confirming it at the same time. That's when you pay attention. A quick tip on the faded bars: Don't get excited about a tall bar if it's faded. Price can move fast on thin volume and snap right back. The vivid bars are the ones that tend to follow through. Which timeframe to set HTF to: Trading 1m or 5m → set HTF to 1H or 4H Trading 15m or 1H → keep HTF on Daily Trading 4H or Daily → set HTF to Weekly ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ GOOD TO KNOW ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Does not repaint — signals are based on confirmed bars only Divergence signals show up a few bars after the actual pivot Looks best on a dark theme
Pine Script® indicator
by AdarshShrma
1
Flow Divergence Column (Dominance vs Pressure) 🔥 Flow Divergence Column (Dominance vs Pressure) This is not another oscillator. This is a flow diagnostic tool built to show you when the market is aligned… and when it’s about to shift. It measures two critical forces inside every candle: 1. Dominance – Who is actually controlling the move? 2. Pressure – Who is pushing right now? When those two agree, trends expand. When they disagree, structure weakens. This indicator isolates that relationship and paints it clearly. ⸻ 🧠 High-Level Quant Explanation Markets move because of participation imbalance. Every candle contains: • Close location within the range (who finished stronger) • Volume participation (how committed they were) This tool converts those into: 1️⃣ Dominance (±100 Scale) A normalized measurement of directional control. • Above zero → buyers control. • Below zero → sellers control. • The farther from zero → the stronger the control. 2️⃣ Pressure (0–100 internal) A strength measurement of current push. • Buy pressure rising = active demand. • Sell pressure rising = active supply. Then it compares the two. That comparison is the edge. ⸻ 🎯 The Logic That Matters 🟢 Green Columns – Flow Aligned Bullish • Dominance > 0 • Buy Pressure ≥ Sell Pressure Buyers control AND they’re pushing. This is expansion mode. ⸻ 🔴 Red Columns – Flow Aligned Bearish • Dominance < 0 • Sell Pressure ≥ Buy Pressure Sellers control AND they’re pressing. Trend continuation mode. ⸻ 🟠 Orange Columns – Divergence (Warning Zone) This is where professionals pay attention. Bearish Divergence • Dominance > 0 (buyers in control) • BUT Sell Pressure > Buy Pressure Translation: Buyers still control structure… But sellers are quietly pushing. This is early warning for: • Pullback • Liquidity sweep • Possible reversal ⸻ Bullish Divergence • Dominance < 0 (sellers in control) • BUT Buy Pressure > Sell Pressure Translation: Sellers control structure… But buyers are stepping in. That’s when bottoms start forming. ⸻ 📊 Why This Works Most traders only look at momentum. This measures: • Structural control (Dominance) • Active aggression (Pressure) When they align → continuation. When they conflict → transition. Markets transition before they reverse. This tool shows that transition. ⸻ 🧠 How To Trade It This is not a standalone entry tool. This is a context engine. Use it for: • Confirming breakouts • Avoiding late entries • Spotting pullbacks early • Timing reversals • Identifying trapped traders If you see: • Orange after a strong trend → prepare. • Green after orange → continuation likely. • Orange at highs/lows → liquidity shift incoming. ⸻ 🏦 Institutional Perspective Markets move in phases: 1. Accumulation 2. Expansion 3. Distribution 4. Reversal Divergence appears between phases. This tool highlights those phase transitions using flow mechanics, not lagging indicators. ⸻ 🗣 Chart Master Mike Break Down Plain and Simple Real Talk Let me make it plain. If the market says it’s bullish… But sellers are quietly pushing… That’s tension. And tension always breaks. Green means strength. Red means control. Orange means pressure building. This tool tells you when the market is smiling… And when it’s gritting its teeth. Trade with the flow. Respect the warning. Exploit the transition. ⸻ This is not noise. This is structure meeting aggression. And that’s where the money lives.
Pine Script® indicator
by mikechillz
Chaos Weighted RSI [LuxAlgo]The Chaos Weighted RSI indicator provides a specialized relative strength index that adaptively adjusts its smoothing based on the level of market disorder (chaos). By utilizing Fractal Dimension Index (FDI) logic, the tool reduces sensitivity during chaotic price action to filter out market noise, offering a clearer perspective on momentum trends. 🔶 USAGE The indicator functions similarly to a traditional RSI but with a dynamic response rate. When the market is in a state of high chaos (random, non-trending movement), the RSI smoothing becomes heavier, preventing premature overbought or oversold readings. Conversely, when the price exhibits more orderly, trending behavior, the indicator becomes more responsive. Users can observe the following key elements: Trend Confirmation: The RSI line changes color based on its position relative to the 50 midline (Green for bullish momentum, Red for bearish momentum). Overbought/Oversold Zones: Traditional levels at 70 and 30 are used. The indicator features gradient fills to highlight when price momentum has reached these extremes. Divergence Detection: The script automatically identifies regular bullish and bearish divergences between price and the Chaos Weighted RSI, marking them with dots and connecting lines. 🔶 DETAILS The core innovation of this script is the integration of the Sevcik method for calculating Fractal Dimension. This calculation determines the "complexity" of the price path within a specific lookback window. 🔹 Weighting Mechanism The script calculates a Chaos value (scaled 0 to 1). This value modulates the RSI's smoothing factor (alpha). High chaos reduces the alpha, resulting in a smoother, slower-reacting RSI that is less likely to be influenced by whipsaws. Low chaos increases the alpha, allowing the RSI to track the price more closely during efficient trends. 🔹 Divergence Logic Divergences are confirmed using a pivot-based approach. Because the Chaos Weighted RSI is smoother than a standard RSI during noisy periods, the divergences detected are often more significant and less prone to minor price fluctuations. 🔶 SETTINGS 🔹 RSI Settings RSI Length: Sets the base period for the RSI calculation. 🔹 Disorder Settings Disorder Lookback: The period used to calculate the price chaos via the Fractal Dimension Index. Weight Sensitivity: Determines how aggressively the chaos calculation affects the RSI smoothing. Higher values result in more significant smoothing during chaotic periods. 🔹 Visuals Overbought/Oversold Fill: Customizes the colors for the gradient fills in extreme zones. Background Transparency: Adjusts the visibility of the central background fill between levels 30 and 70. 🔹 Divergence Settings Divergence Strength: The number of bars required on the left and right of a pivot to confirm a divergence. Higher values filter for more significant, long-term signals. Show Bullish/Bearish Divergence: Toggles the visibility of divergence labels and lines.
Pine Script® indicator
by LuxAlgo
8
Adaptive RSI [BOSWaves]Adaptive RSI - Percentile-Based Momentum Detection with Dynamic Regime Thresholds Overview Adaptive RSI is a self-calibrating momentum oscillator that identifies overbought and oversold conditions through historical percentile analysis, constructing dynamic threshold boundaries that adjust to evolving market volatility and momentum characteristics. Instead of relying on traditional fixed RSI levels (30/70 or 20/80) or static overbought/oversold zones, regime detection, threshold placement, and signal generation are determined through rolling percentile calculation, smoothed momentum measurement, and divergence pattern recognition. This creates adaptive boundaries that reflect actual momentum distribution rather than arbitrary fixed levels - tightening during low-volatility consolidation periods, widening during trending environments, and incorporating divergence analysis to reveal momentum exhaustion or continuation patterns. Momentum is therefore evaluated relative to its own historical context rather than universal fixed thresholds. Conceptual Framework Adaptive RSI is founded on the principle that meaningful momentum extremes emerge relative to recent price behavior rather than at predetermined numerical levels. Traditional RSI implementations identify overbought and oversold conditions using fixed thresholds that remain constant regardless of market regime, often generating premature signals in strong trends or missing reversals in range-bound markets. This framework replaces static threshold logic with percentile-driven adaptive boundaries informed by actual momentum distribution. Three core principles guide the design: Threshold placement should correspond to historical momentum percentiles, not fixed numerical levels. Regime detection must adapt to current market volatility and momentum characteristics. Divergence patterns reveal momentum exhaustion before price reversal becomes visible. This shifts oscillator analysis from universal fixed levels into adaptive, context-aware regime boundaries. Theoretical Foundation The indicator combines smoothed RSI calculation, rolling percentile tracking, adaptive threshold construction, and multi-pattern divergence detection. A Hull Moving Average (HMA) pre-smooths the price source to reduce noise before RSI computation, which then undergoes optional post-smoothing using configurable moving average types. Confirmed oscillator values populate a rolling historical buffer used for percentile calculation, establishing upper and lower thresholds that adapt to recent momentum distribution. Regime state persists until the oscillator crosses the opposing threshold, preventing whipsaw during consolidation. Pivot detection identifies swing highs and lows in both price and oscillator values, enabling regular divergence pattern recognition through comparative analysis. Five internal systems operate in tandem: Smoothed Momentum Engine : Computes HMA-preprocessed RSI with optional post-smoothing using multiple MA methodologies (SMA, EMA, HMA, WMA, DEMA, RMA, LINREG, TEMA). Historical Buffer Management : Maintains a rolling array of confirmed oscillator values for percentile calculation with configurable lookback depth. Percentile Threshold Calculation : Determines upper and lower boundaries by extracting specified percentile values from sorted historical distribution. Persistent Regime Detection : Establishes bullish/bearish/neutral states based on threshold crossings with state persistence between signals. Divergence Pattern Recognition : Identifies regular bullish and bearish divergences through synchronized pivot analysis of price and oscillator values with configurable range filtering. This design allows momentum interpretation to adapt to market conditions rather than reacting mechanically to universal thresholds. How It Works Adaptive RSI evaluates momentum through a sequence of self-calibrating processes: Source Pre-Smoothing: Input price undergoes 4-period HMA smoothing to reduce bar-to-bar noise before oscillator calculation. RSI Calculation: Standard RSI computation applied to smoothed source over configurable length period. Optional Post-Smoothing: Raw RSI value undergoes additional smoothing using selected MA type and length for cleaner regime detection. Historical Buffer Population: Confirmed oscillator values accumulate in a rolling array with size limit determined by adaptive lookback parameter. Percentile Threshold Extraction: Array sorts on each bar to calculate upper percentile (bullish threshold) and lower percentile (bearish threshold) values. Regime State Persistence: Bullish regime activates when oscillator crosses above upper threshold, bearish regime activates when crossing below lower threshold, neutral regime persists until directional threshold breach. Pivot Identification: Swing highs and lows detected in both oscillator and price using configurable left/right parameters. Divergence Pattern Matching: Compares pivot relationships between price and oscillator within min/max bar distance constraints to identify regular bullish (price LL, oscillator HL) and bearish (price HH, oscillator LH) divergences. Together, these elements form a continuously updating momentum framework anchored in statistical context. Interpretation Adaptive RSI should be interpreted as context-aware momentum boundaries: Bullish Regime (Blue): Activated when oscillator crosses above upper percentile threshold, indicating momentum strength relative to recent distribution favors upside continuation. Bearish Regime (Red): Established when oscillator crosses below lower percentile threshold, identifying momentum weakness relative to recent distribution favors downside continuation. Upper Threshold Line (Blue)**: Dynamic resistance level calculated from upper percentile of historical oscillator distribution - adapts higher during trending markets, lower during ranging conditions. Lower Threshold Line (Red): Dynamic support level calculated from lower percentile of historical oscillator distribution - adapts lower during downtrends, higher during consolidation. Regime Fill: Gradient coloring between oscillator and baseline (50) visualizes current momentum intensity - stronger color indicates greater distance from neutral. Extreme Bands (15/85): Upper and lower extreme zones with strength-modulated transparency reveal momentum extremity - darker shading during powerful moves, lighter during moderate momentum. Divergence Lines: Connect price and oscillator pivots when divergence pattern detected, appearing on both price chart and oscillator pane for confluence identification. Reversal Markers (✦): Diamond signals appear at 80+ (bearish extreme) and sub-15 (bullish extreme) levels, marking potential exhaustion zones independent of regime state. Percentile context, divergence confirmation, and regime persistence outweigh isolated oscillator readings. Signal Logic & Visual Cues Adaptive RSI presents four primary interaction signals: Regime Switch - Long : Oscillator crosses above upper percentile threshold after previously being in bearish or neutral regime, suggesting momentum strength shift favoring bullish continuation. Regime Switch - Short : Oscillator crosses below lower percentile threshold after previously being in bullish or neutral regime, indicating momentum weakness shift favoring bearish continuation. Regular Bullish Divergence (𝐁𝐮𝐥𝐥) : Price forms lower low while oscillator forms higher low, revealing positive momentum divergence during downtrends - often precedes reversal or consolidation. Regular Bearish Divergence (𝐁𝐞𝐚𝐫) : Price forms higher high while oscillator forms lower high, revealing negative momentum divergence during uptrends - often precedes reversal or correction. Alert generation covers regime switches, threshold crossings, and divergence detection for systematic monitoring. Strategy Integration Adaptive RSI fits within momentum-informed and mean-reversion trading approaches: Adaptive Regime Following : Use threshold crossings as primary trend inception signals where momentum confirms directional breakouts within statistical context. Divergence-Based Reversals : Enter counter-trend positions when divergence patterns appear at extreme oscillator levels (above 80 or below 20) for high-probability mean-reversion setups. Threshold-Aware Scaling : Recognize that tighter percentile spreads (e.g., 45/50) generate more signals suitable for ranging markets, while wider spreads (e.g., 30/70) filter for stronger trend confirmation. Extreme Zone Confluence : Combine reversal markers (✦) with divergence signals for maximum-conviction exhaustion entries. Multi-Timeframe Regime Alignment : Apply higher-timeframe regime context to filter lower-timeframe entries, taking only setups aligned with dominant momentum direction. Smoothing Optimization : Increase smoothing length in choppy markets to reduce false signals, decrease in trending markets for faster response. Technical Implementation Details Core Engine : HMA-preprocessed RSI with configurable smoothing (SMA, HMA, EMA, WMA, DEMA, RMA, LINREG, TEMA) Adaptive Model : Rolling percentile calculation over confirmed oscillator values with size-limited historical buffer Threshold Construction : Linear interpolation percentile extraction from sorted distribution array Regime Detection : State-persistent threshold crossing logic with confirmed bar validation Divergence Engine : Pivot-based pattern matching with range filtering and duplicate prevention Visualization : Gradient-filled regime zones, adaptive threshold lines, strength-modulated extreme bands, dual-pane divergence lines Performance Profile : Optimized for real-time execution with efficient array management and minimal computational overhead Optimal Application Parameters Timeframe Guidance: 1 - 5 min : Micro-structure momentum detection for scalping and intraday reversals 15 - 60 min : Intraday regime identification with divergence-validated turning points 4H - Daily : Swing and position-level momentum analysis with macro divergence context Suggested Baseline Configuration: RSI Length : 18 Source : Close Smooth Oscillator : Enabled Smoothing Length : 20 Smoothing Type : SMA Adaptive Lookback : 1000 Upper Percentile : 50 Lower Percentile : 45 Divergence Pivot Left : 15 Divergence Pivot Right : 15 Min Pivot Distance : 5 Max Pivot Distance : 60 These suggested parameters should be used as a baseline; their effectiveness depends on the asset's volatility profile, momentum characteristics, and preferred signal frequency, so fine-tuning is expected for optimal performance. Parameter Calibration Notes Use the following adjustments to refine behavior without altering the core logic: Too many whipsaw signals : Widen percentile spread (e.g., 40/60 instead of 45/50) to demand stronger momentum confirmation, or increase "Smoothing Length" to filter noise. Missing legitimate regime changes : Tighten percentile spread (e.g., 48/52 instead of 45/50) for earlier detection, or decrease "Smoothing Length" for faster response. Oscillator too choppy : Increase "Smoothing Length" for cleaner readings, or switch "Smoothing Type" to RMA/TEMA for heavier smoothing. Thresholds not adapting properly : Reduce "Adaptive Lookback" to emphasize recent behavior (500-800 bars), or increase it for more stable thresholds (1500-2000 bars). Too many divergence signals : Increase "Pivot Left/Right" values to demand stronger swing confirmation, or widen "Min Pivot Distance" to space out detections. Missing significant divergences : Decrease "Pivot Left/Right" for faster pivot detection, or increase "Max Pivot Distance" to compare more distant swings. Prefer different momentum sensitivity : Adjust "RSI Length" - lower values (10-14) for aggressive response, higher values (21-28) for smoother trend confirmation. Divergences appearing too late : Reduce "Pivot Right" parameter to detect divergences closer to current price action. Adjustments should be incremental and evaluated across multiple session types rather than isolated market conditions. Performance Characteristics High Effectiveness: Markets with mean-reverting characteristics and consistent momentum cycles Instruments where momentum extremes reliably precede reversals or consolidations Ranging environments where percentile-based thresholds adapt to volatility contraction Divergence-driven strategies targeting momentum exhaustion before price confirmation Reduced Effectiveness: Extremely strong trending markets where oscillator remains persistently extreme Low-liquidity environments with erratic momentum readings News-driven or gapped markets where momentum disconnects from price temporarily Markets with regime shifts faster than adaptive lookback can recalibrate Integration Guidelines Confluence : Combine with BOSWaves structure, volume analysis, or traditional support/resistance Threshold Respect : Trust signals that occur after clean threshold crossings with sustained momentum Divergence Context : Prioritize divergences appearing at extreme oscillator levels (80+/15-) over those in neutral zones Regime Awareness : Consider whether current market regime matches historical momentum patterns used for calibration Multi-Pattern Confirmation : Seek divergence patterns coinciding with reversal markers or threshold rejections for maximum conviction Disclaimer Adaptive RSI is a professional-grade momentum and divergence analysis tool. It uses percentile-based threshold calculation that adapts to recent market behavior but cannot predict future regime shifts or guarantee reversal timing. Results depend on market conditions, parameter selection, lookback period appropriateness, and disciplined execution. BOSWaves recommends deploying this indicator within a broader analytical framework that incorporates price structure, volume context, and comprehensive risk management.
Pine Script® indicator
by BOSWaves
2
5 Layer Script P4 Potential Reversals Package This script is a context based potential reversal framework designed to highlight areas where directional risk may shift, not to predict exact tops or bottoms. The script focuses on identifying exhaustion, failed continuation, and structural hesitation after price has completed an expansion or interacted with key higher-timeframe levels. It is intended to alert traders to possible inflection zones, where confirmation should be actively monitored. How it works -Detects conditions associated with loss of momentum or displacement failure -Highlights potential reversal zones only after price interaction occurs -Requires context and confirmation — no blind reversal signals -No repainting once a zone or marker is confirmed How to use it -Use as an early warning tool, not an entry system -Best applied after: Liquidity runs, Range extremes and Higher timeframe midpoint or boundary interaction Look for confirmation such as: -Market structure shifts -Reaction at FVGs -Signal Package confirmation Entries should be executed on lower timeframes with risk defined but can be utilized on bigger timeframes as a swing if confirmed Best practices -Counter-trend setups require strong higher-timeframe confluence -Not every highlighted zone will result in a reversal -Works best during active sessions when liquidity is present -Avoid using during low-volume or compressed ranges This package is intentionally non-predictive and confirmation-dependent, designed to keep traders aligned with risk awareness rather than anticipation. However some signals can be treated as entries if "YOUVE IDENTIFIED THE RISK"- Mark Douglas
Pine Script® indicator
by Pr3z_
BE-Synergistic RSI Fusion Strategy█ Overview of the Script: The Synergistic RSI Fusion Strategy is a sophisticated technical analysis tool designed to detect market turning points (reversals) and high-momentum breakouts. Unlike standard indicators that simply tell you to "Buy" or "Sell" based on a crossed line or overbought/oversold levels, this script builds a structural trade setup using zones. It waits for price action to confirm the signal before acting. █ Why "Synergistic RSI Fusion"?: The core engine of the indicator makes it all: Fusion : Standard RSI only looks at the closing price relative to the previous closing price. This script calculates a comprehensive RSI that incorporates the candle's Highs and Lows. Why is this more powerful? Imagine a "Hammer" candle where price drops significantly during the session but recovers to close near the open. A standard RSI sees almost no change because the Close is near the Open. However, Fusion RSI captures the full volatility of that dip and recovery, recognizing the massive "effort" and hidden battle between buyers and sellers that standard RSI completely misses. Synergy : It combines this advanced momentum reading with ATR (Average True Range) to define volatility-based entry and exit zones. It blends momentum (RSI) with market structure (Price Action Zones). █ How it Stands Unique: The Core engine: Capturing the true efforts of the movement in price. Multi-Peak Divergence: Instead of simple A-to-B divergence, this script uses a state machine to track local peaks by filtering out weak signals and waits for a significant disagreement between price and momentum. The Zone System: It doesn't plot signals blindly. When divergence is found, it draws two "waiting rooms" (Green and Red zones). The trade is only taken if the candle closes inside one of these zones. █ Divergence Trades: The Two-Way Setup: A unique feature of this script is that when a Divergence signal appears, it generates two potential entry zones: a Bullish zone and a Bearish zone. The Rational Behind the Two-Way Approach: New traders often assume a Divergence means "Reversal." However, experienced traders know that Divergence simply means "Tension is building." Scenario A (The Reversal): The RSI is screaming that momentum is dying, but price is pushing higher. If price respects the divergence, it will drop into the reversal zone. This is the standard divergence trade. Scenario B (The Failure/Trap): sometimes, momentum is so strong that it blows through the divergence. If price ignores the RSI warning and breaks into the continuation zone, it signals that the trend is incredibly powerful. Why Trade Both Ways? By placing zones on both sides, the script essentially says: " I know a big move is coming because of the tension (Divergence), but I will let the market prove direction first. " This prevents you from " catching a falling knife " by trying to pick the exact top or bottom. The Counter-Trading Logic (The Trap): The script includes advanced logic for failed trades. If you enter a trade and the Stop Loss is hit immediately (a "fake-out"), the script adjusts the opposing zone by considering the liquidity of that particular candle. Why? If the market traps Long traders and hits their stops, that selling pressure often fuels a massive move downwards. This logic allows the script to flip bias instantly and join the real move. █ Continuation Trends: Why Price Runs After TP: You may notice that often, after the Take Profit (TP) is hit, the price continues to run in that direction for a long time. The "Breakout" Effect: The Take Profit levels in this script are calculated using ATR (Average True Range). This is a conservative target based on recent average volatility. Structural Breaks: The entry zones are usually positioned at key structural pivots. When price has enough energy to enter the zone and hit 100% of the ATR target, it effectively confirms a Break of Structure. Momentum Release: The Divergence phase acts like a coiled spring. When that spring finally snaps (the trade entry), the release of energy is often far greater than just one ATR unit. Psychology: When the TP is hit, it confirms the analysis was correct. This draws in other traders and algorithms who missed the initial entry, adding fuel to the fire and extending the trend. █ Major Support & Resistance Zone: The untested zones are typically the safe haven to place your SLs, which definitely act as Support & Resistance once the price approaches these zones.
Pine Script® indicator
by TradeWiseWithEase
Ultimate MACD [captainua]Ultimate MACD - Comprehensive MACD Trading System Overview This indicator combines traditional MACD calculations with advanced features including divergence detection, volume analysis, histogram analysis tools, regression forecasting, strong top/bottom detection, and multi-timeframe confirmation to provide a comprehensive MACD-based trading system. The script calculates MACD using configurable moving average types (EMA, SMA, RMA, WMA) and applies various smoothing methods to reduce noise while maintaining responsiveness. The combination of these features creates a multi-layered confirmation system that reduces false signals by requiring alignment across multiple indicators and timeframes. Core Calculations MACD Calculation: The script calculates MACD using the standard formula: MACD Line = Fast MA - Slow MA, Signal Line = Moving Average of MACD Line, Histogram = MACD Line - Signal Line. The default parameters are Fast=12, Slow=26, Signal=9, matching the traditional MACD settings. The script supports four moving average types: - EMA (Exponential Moving Average): Standard and most responsive, default choice - SMA (Simple Moving Average): Equal weight to all periods - RMA (Wilder's Moving Average): Smoother, less responsive - WMA (Weighted Moving Average): Recent prices weighted more heavily The price source can be configured as Close (standard), Open, High, Low, HL2, HLC3, or OHLC4. Alternative sources provide different sensitivity characteristics for various trading strategies. Configuration Presets: The script includes trading style presets that automatically configure MACD parameters: - Scalping: Fast/Responsive settings (8,18,6 with minimal smoothing) - Day Trading: Balanced settings (10,22,7 with minimal smoothing) - Swing Trading: Standard settings (12,26,9 with moderate smoothing) - Position Trading: Smooth/Conservative settings (15,35,12 with higher smoothing) - Custom: Full manual control over all parameters Histogram Smoothing: The histogram can be smoothed using EMA to reduce noise and filter minor fluctuations. Smoothing length of 1 = raw histogram (no smoothing), higher values (3-5) = smoother histogram. Increased smoothing reduces noise but may delay signals slightly. Percentage Mode: MACD values can be converted to percentage of price (MACD/Close*100) for cross-instrument comparison. This is useful when comparing MACD signals across instruments with different price levels (e.g., BTC vs ETH). The percentage mode normalizes MACD values, making them comparable regardless of instrument price. MACD Scale Factor: A scale factor multiplier (default 1.0) allows adjusting MACD display size for better visibility. Use 0.3-0.5 if MACD appears too compressed, or 2.0-3.0 if too small. Dynamic Overbought/Oversold Levels: Overbought and oversold levels are calculated dynamically based on MACD's mean and standard deviation over a lookback period. The formula: OB = MACD Mean + (StdDev × OB Multiplier), OS = MACD Mean - (StdDev × OS Multiplier). This adapts to current market conditions, widening in volatile markets and narrowing in calm markets. The lookback period (default 20) controls how quickly the levels adapt: longer periods (30-50) = more stable levels, shorter (10-15) = more responsive. OB/OS Background Coloring: Optional background coloring can highlight the entire panel when MACD enters overbought or oversold territory, providing prominent visual indication of extreme conditions. The background colors are drawn on top of the main background to ensure visibility. Divergence Detection Regular Divergence: The script uses the MACD line (not histogram) for divergence detection, which provides more reliable signals. Bullish divergence: Price makes a lower low while MACD line makes a higher low. Bearish divergence: Price makes a higher high while MACD line makes a lower high. Divergences often precede reversals and are powerful reversal signals. Pivot-Based Divergence: The divergence detection uses actual pivot points (pivotlow/pivothigh) instead of simple lowest/highest comparisons. This provides more accurate divergence detection by identifying significant pivot lows/highs in both price and MACD line. The pivot-based method compares two recent pivot points: for bullish divergence, price makes a lower low while MACD makes a higher low at the pivot points. This method reduces false divergences by requiring actual pivot points rather than just any low/high within a period. The pivot lookback parameters (left and right) control how many bars on each side of a pivot are required for confirmation. Higher values = more conservative pivot detection. Hidden Divergence: Continuation patterns that signal trend continuation rather than reversal. Bullish hidden divergence: Price makes a higher low but MACD makes a lower low. Bearish hidden divergence: Price makes a lower high but MACD makes a higher high. These patterns indicate the trend is likely to continue in the current direction. Zero-Line Filter: The "Don't Touch Zero Line" option ensures divergences occur in proper context: for bullish divergence, MACD must stay below zero; for bearish divergence, MACD must stay above zero. This filters out divergences that occur in neutral zones. Range Filtering: Minimum and maximum lookback ranges control the time window between pivots to consider for divergence. This helps filter out divergences that are too close together (noise) or too far apart (less relevant). Volume Confirmation System Volume threshold filtering requires current volume to exceed the volume SMA multiplied by the threshold factor. The formula: Volume Confirmed = Volume > (Volume SMA × Threshold). If the threshold is set to 1.0 or lower, volume confirmation is effectively disabled (always returns true). This allows you to use the indicator without volume filtering if desired. Volume confirmation significantly increases divergence and signal reliability. Volume Climax and Dry-Up Detection: The script can mark bars with extremely high volume (volume climax) or extremely low volume (volume dry-up). Volume climax indicates potential reversal points or strong momentum continuation. Volume dry-up indicates low participation and may produce unreliable signals. These markers use standard deviation multipliers to identify extreme volume conditions. Zero-Line Cross Detection MACD zero-line crosses indicate momentum shifts: above zero = bullish momentum, below zero = bearish momentum. The script includes alert conditions for zero-line crosses with cooldown protection to prevent alert spam. Zero-line crosses can provide early warning signals before MACD crosses the signal line. Histogram Analysis Tools Histogram Moving Average: A moving average applied to the histogram itself helps identify histogram trend direction and acts as a signal line for histogram movements. Supports EMA, SMA, RMA, and WMA types. Useful for identifying when histogram momentum is strengthening or weakening. Histogram Bollinger Bands: Bollinger Bands are applied to the MACD histogram instead of price. The calculation: Basis = SMA(Histogram, Period), StdDev = stdev(Histogram, Period), Upper = Basis + (StdDev × Deviation Multiplier), Lower = Basis - (StdDev × Deviation Multiplier). This creates dynamic zones around the histogram that adapt to histogram volatility. When the histogram touches or exceeds the bands, it indicates extreme conditions relative to recent histogram behavior. Stochastic MACD (StochMACD): Stochastic MACD applies the Stochastic oscillator formula to the MACD histogram instead of price. This normalizes the histogram to a 0-100 scale, making it easier to identify overbought/oversold conditions on the histogram itself. The calculation: %K = ((Histogram - Lowest Histogram) / (Highest Histogram - Lowest Histogram)) × 100. %K is smoothed, and %D is calculated as the moving average of smoothed %K. Standard thresholds are 80 (overbought) and 20 (oversold). Regression Forecasting The script includes advanced regression forecasting that predicts future MACD values using mathematical models. This helps anticipate potential MACD movements and provides forward-looking context for trading decisions. Regression Types: - Linear: Simple trend line (y = mx + b) - fastest, works well for steady trends - Polynomial: Quadratic curve (y = ax² + bx + c) - captures curvature in MACD movement - Exponential Smoothing: Weighted average with more weight on recent values - responsive to recent changes - Moving Average: Uses difference between short and long MA to estimate trend - stable and smooth Forecast Horizon: Number of bars to forecast ahead (default 5, max 50 for linear/MA, max 20 for polynomial due to performance). Longer horizons predict further ahead but may be less accurate. Confidence Bands: Optional upper/lower bands around forecast show prediction uncertainty based on forecast error (standard deviation of prediction vs actual). Wider bands = higher uncertainty. The confidence level multiplier (default 1.5) controls band width. Forecast Display: Forecast appears as dotted lines extending forward from current bar, with optional confidence bands. All forecast values respect percentage mode and scale factor settings. Strong Top/Bottom Signals The script detects strong recovery from extreme MACD levels, generating "sBottom" and "sTop" signals. These identify significant reversal potential when MACD recovers substantially from overbought/oversold extremes. Strong Bottom (sBottom): Triggered when: 1. MACD was at or near its lowest point in the bottom period (default 10 bars) 2. MACD was in or near the oversold zone 3. MACD has recovered by at least the threshold amount (default 0.5) from the lowest point 4. Recovery persists for confirmation bars (default 2 consecutive bars) 5. MACD has moved out of the oversold zone 6. Volume is above average 7. All enabled filters pass 8. Minimum bars have passed since last signal (reset period, default 5 bars) Strong Top (sTop): Triggered when: 1. MACD was at or near its highest point in the top period (default 7 bars) 2. MACD was in or near the overbought zone 3. MACD has declined by at least the threshold amount (default 0.5) from the highest point 4. Decline persists for confirmation bars (default 2 consecutive bars) 5. MACD has moved out of the overbought zone 6. Volume is above average 7. All enabled filters pass 8. Minimum bars have passed since last signal (reset period, default 5 bars) Label Placement: sTop/sBottom labels appear on the historical bar where the actual extreme occurred (not on current bar), showing the exact MACD value at that extreme. Labels respect the unified distance checking system to prevent overlaps with Buy/Sell Strength labels. Signal Strength Calculation The script calculates a composite signal strength score (0-100) based on multiple factors: - MACD distance from signal line (0-50 points): Larger separation indicates stronger signal - Volume confirmation (0-15 points): Volume above average adds points - Secondary timeframe alignment (0-15 points): Higher timeframe agreement adds points - Distance from zero line (0-20 points): Closer to zero can indicate stronger reversal potential Higher scores (70+) indicate stronger, more reliable signals. The signal strength is displayed in the statistics table and can be used as a filter to only accept signals above a threshold. Smart Label Placement System The script includes an advanced label placement system that tracks MACD extremes and places Buy/Sell Strength labels at optimal locations: Label Placement Algorithm: - Labels appear on the current bar at confirmation (not on historical extreme bars), ensuring they're visible when the signal is confirmed - The system tracks pending signals when MACD enters OB/OS zones or crosses the signal line - During tracking, the system continuously searches for the true extreme (lowest MACD for buys, highest MACD for sells) within a configurable historical lookback period - Labels are only finalized when: (1) MACD exits the OB/OS zone, (2) sufficient bars have passed (2x minimum distance), (3) MACD has recovered/declined by a configurable percentage from the extreme (default 15%), and (4) tracking has stopped (no better extreme found) Label Spacing and Overlap Prevention: - Minimum Bars Between Labels: Base distance requirement (default 5 bars) - Label Spacing Multiplier: Scales the base distance (default 1.5x) for better distribution. Higher values = more spacing between labels - Effective distance = Base Distance × Spacing Multiplier (e.g., 5 × 1.5 = 7.5 bars minimum) - Unified distance checking prevents overlaps between all label types (Buy Strength, Sell Strength, sTop, sBottom) Strength-Based Filtering: - Label Strength Minimum (%): Only labels with strength at or above this threshold are displayed (default 75%) - When multiple potential labels are close together, the system automatically compares strengths and keeps only the strongest one - This ensures only the most significant signals are displayed, reducing chart clutter Zero Line Polarity Enforcement: - Enforce Zero Line Polarity (default enabled): Ensures labels follow traditional MACD interpretation - Buy Strength labels only appear when the tracked extreme MACD value was below zero (negative territory) - Sell Strength labels only appear when the tracked extreme MACD value was above zero (positive territory) - This prevents counter-intuitive labels (e.g., Buy labels above zero line) and aligns with standard MACD trading principles Recovery/Decline Confirmation: - Recovery/Decline Confirm (%): Percent move away from the extreme required before finalizing (default 15%) - For Buy labels: MACD must recover by at least this percentage from the tracked bottom - For Sell labels: MACD must decline by at least this percentage from the tracked top - Higher values = more confirmation required, fewer but more reliable labels Historical Lookback: - Historical Lookback for Label Placement: Number of bars to search for true extremes (default 20) - The system searches within this period to find the actual lowest/highest MACD value - Higher values analyze more history but may be slower; lower values are faster but may miss some extremes Cross Quality Score The script calculates a MACD cross quality score (0-100) that rates crossover quality based on: - Cross angle (0-50 points): Steeper crosses = stronger signals - Volume confirmation (0-25 points): Volume above average adds points - Distance from zero line (0-25 points): Crosses near zero line are stronger This score helps identify high-quality crossovers and can be used as a filter to only accept signals meeting minimum quality threshold. Filtering System Histogram Filter: Requires histogram to be above zero for buy signals, below zero for sell signals. Ensures momentum alignment before generating signals. Signal Strength Filter: Requires minimum signal strength score for signals. Higher threshold = only strongest signals pass. This combines multiple confirmation factors into a single filter. Cross Quality Filter: Requires minimum cross quality score for signals. Rates crossover quality based on angle, volume, momentum, and distance from zero. Only signals meeting minimum quality threshold will be generated. All filters use the pattern: filterResult = not filterEnabled OR conditionMet. This means if a filter is disabled, it always passes (returns true). Filters can be combined, and all must pass for a signal to fire. Multi-Timeframe Analysis The script can display MACD from a secondary (higher) timeframe and use it for confirmation. When secondary timeframe confirmation is enabled, signals require the higher timeframe MACD to align (bullish/bearish) with the signal direction. This ensures signals align with the larger trend context, reducing counter-trend trades. Secondary Timeframe MACD: The secondary timeframe MACD uses the same calculation parameters (fast, slow, signal, MA type) as the main MACD but from a higher timeframe. This provides context for the current timeframe's MACD position relative to the larger trend. The secondary MACD lines are displayed on the chart when enabled. Noise Filtering Noise filtering hides small histogram movements below a threshold. This helps focus on significant moves and reduces chart clutter. When enabled, only histogram movements above the threshold are displayed. Typical threshold values are 0.1-0.5 for most instruments, depending on the instrument's price range and volatility. Signal Debounce Signal debounce prevents duplicate MACD cross signals within a short time period. Useful when MACD crosses back and forth quickly, creating multiple signals. Debounce ensures only one signal per period, reducing signal spam during choppy markets. This is separate from alert cooldown, which applies to all alert types. Background Color Modes The script offers three background color modes: - Dynamic: Full MACD heatmap based on OB/OS conditions, confidence, and momentum. Provides rich visual feedback. - Monotone: Soft neutral background but still allows overlays (OB/OS zones). Keeps the chart clean without overpowering candles. - Off: No MACD background (only overlays and plots). Maximum chart cleanliness. When OB/OS background colors are enabled, they are drawn on top of the main background to ensure visibility. Statistics Table A real-time statistics table displays current MACD values, signal strength, distance from zero line, secondary timeframe alignment, volume confirmation status, and all active filter statuses. The table dynamically adjusts to show only enabled features, keeping it clean and relevant. The table position can be configured (Top Left, Top Right, Bottom Left, Bottom Right). Performance Statistics Table An optional performance statistics table shows comprehensive filter diagnostics: - Total buy/sell signals (raw crossover count before filters) - Filtered buy/sell signals (signals that passed all filters) - Overall pass rates (percentage of signals that passed filters) - Rejected signals count - Filter-by-filter rejection diagnostics showing which filters rejected how many signals This table helps optimize filter settings by showing which filters are most restrictive and how they impact signal frequency. The diagnostics format shows rejections as "X B / Y S" (X buy signals rejected, Y sell signals rejected) or "Disabled" if the filter is not active. Alert System The script includes separate alert conditions for each signal type: - MACD Cross: MACD line crosses above/below Signal line (with or without secondary confirmation) - Zero-Line Cross: MACD crosses above/below zero - Divergence: Regular and hidden divergence detections - Secondary Timeframe: Higher timeframe MACD crosses - Histogram MA Cross: Histogram crosses above/below its moving average - Histogram Zero Cross: Histogram crosses above/below zero - StochMACD: StochMACD overbought/oversold entries and %K/%D crosses - Histogram BB: Histogram touches/breaks Bollinger Bands - Volume Events: Volume climax and dry-up detections - OB/OS: MACD entry/exit from overbought/oversold zones - Strong Top/Bottom: sTop and sBottom signal detections Each alert type has its own cooldown system to prevent alert spam. The cooldown requires a minimum number of bars between alerts of the same type, reducing duplicate alerts during volatile periods. Alert types can be filtered to only evaluate specific alert types (All, MACD Cross, Zero Line, Divergence, Secondary Timeframe, Histogram MA, Histogram Zero, StochMACD, Histogram BB, Volume Events, OB/OS, Strong Top/Bottom). How Components Work Together MACD crossovers provide the primary signal when the MACD line crosses the Signal line. Zero-line crosses indicate momentum shifts and can provide early warning signals. Divergences identify potential reversals before they occur. Volume confirmation ensures signals occur with sufficient market participation, filtering out low-volume false breakouts. Histogram analysis tools (MA, Bollinger Bands, StochMACD) provide additional context for signal reliability and identify significant histogram zones. Signal strength combines multiple confirmation factors into a single score, making it easy to filter for only the strongest signals. Cross quality score rates crossover quality to identify high-quality setups. Multi-timeframe confirmation ensures signals align with higher timeframe trends, reducing counter-trend trades. Usage Instructions Getting Started: The default configuration shows MACD(12,26,9) with standard EMA calculations. Start with default settings and observe behavior, then customize settings to match your trading style. You can use configuration presets for quick setup based on your trading style. Customizing MACD Parameters: Adjust Fast Length (default 12), Slow Length (default 26), and Signal Length (default 9) based on your trading timeframe. Shorter periods (8,17,7) for faster signals, longer (15,30,12) for smoother signals. You can change the moving average type: EMA for responsiveness, RMA for smoothness, WMA for recent price emphasis. Price Source Selection: Choose Close (standard), or alternative sources (HL2, HLC3, OHLC4) for different sensitivity. HL2 uses the midpoint of the high-low range, HLC3 and OHLC4 incorporate more price information. Histogram Smoothing: Set smoothing to 1 for raw histogram (no smoothing), or increase (3-5) for smoother histogram that reduces noise. Higher smoothing reduces false signals but may delay signals slightly. Percentage Mode: Enable percentage mode when comparing MACD across instruments with different price levels. This normalizes MACD values, making them directly comparable. Dynamic OB/OS Levels: The dynamic thresholds automatically adapt to volatility. Adjust the multipliers (default 1.5) to fine-tune sensitivity: higher values (2.0-3.0) = more extreme thresholds (fewer signals), lower (1.0-1.5) = more frequent signals. Adjust the lookback period to control how quickly levels adapt. Enable OB/OS background colors for visual indication of extreme conditions. Volume Confirmation: Set volume threshold to 1.0 (default, effectively disabled) or higher (1.2-1.5) for standard confirmation. Higher values require more volume for confirmation. Set to 0.1 to completely disable volume filtering. Filters: Enable filters gradually to find your preferred balance. Start with histogram filter for basic momentum alignment, then add signal strength filter (threshold 50+) for moderate signals, then cross quality filter (threshold 50+) for high-quality crossovers. Combine filters for highest-quality signals but expect fewer signals. Divergence: Enable divergence detection and adjust pivot lookback parameters. Pivot-based divergence provides more accurate detection using actual pivot points. Hidden divergence is useful for trend-following strategies. Adjust range parameters to filter divergences by time window. Zero-Line Crosses: Zero-line cross alerts are automatically available when alerts are enabled. These provide early warning signals for momentum shifts. Histogram Analysis Tools: Enable Histogram Moving Average to see histogram trend direction. Enable Histogram Bollinger Bands to identify extreme histogram zones. Enable Stochastic MACD to normalize histogram to 0-100 scale for overbought/oversold identification. Multi-Timeframe: Enable secondary timeframe MACD to see higher timeframe context. Enable secondary confirmation to require higher timeframe alignment for signals. Signal Strength: Signal strength is automatically calculated and displayed in the statistics table. Use signal strength filter to only accept signals above a threshold (e.g., 50 for moderate, 70+ for strong signals only). Smart Label Placement: Configure label placement settings to control label appearance and quality: - Label Strength Minimum (%): Set threshold (default 75%) to show only strong signals. Higher = fewer, stronger labels - Label Spacing Multiplier: Adjust spacing (default 1.5x) for better distribution. Higher = more spacing between labels - Recovery/Decline Confirm (%): Set confirmation requirement (default 15%). Higher = more confirmation, fewer labels - Enforce Zero Line Polarity: Enable (default) to ensure Buy labels only appear when tracked extreme was below zero, Sell labels only when above zero - Historical Lookback: Adjust search period (default 20 bars) for finding true extremes. Higher = more history analyzed Cross Quality: Cross quality score is automatically calculated for crossovers. Use cross quality filter to only accept high-quality crossovers (threshold 50+ for moderate, 70+ for high quality). Alerts: Set up alerts for your preferred signal types. Enable alert cooldown (default enabled, 5 bars) to prevent alert spam. Use alert type filter to only evaluate specific alert types (All, MACD Cross, Zero Line, Divergence, Secondary Timeframe, Histogram MA, Histogram Zero, StochMACD, Histogram BB, Volume Events, OB/OS, Strong Top/Bottom). Each signal type has its own alert condition, so you can be selective about which signals trigger alerts. Visual Elements and Signal Markers The script uses various visual markers to indicate signals and conditions: - MACD Line: Green when above signal (bullish), red when below (bearish) if dynamic colors enabled. Optional black outline for enhanced visibility - Signal Line: Orange line with optional black outline for enhanced visibility - Histogram: Color-coded based on direction and momentum (green for bullish rising, lime for bullish falling, red for bearish falling, orange for bearish rising) - Zero Line: Horizontal reference line at MACD = 0 - Fill to Zero: Green/red semi-transparent fill between MACD line and zero line showing bullish/bearish territory - Fill Between OB/OS: Blue semi-transparent fill between overbought/oversold thresholds highlighting neutral zone - OB/OS Background Colors: Background coloring when MACD enters overbought/oversold zones - Background Colors: Dynamic or monotone backgrounds indicating MACD state, or custom chart background - Divergence Labels: "🐂" for bullish, "🐻" for bearish, "H Bull" for hidden bullish, "H Bear" for hidden bearish - Divergence Lines: Colored lines connecting pivot points when divergences are detected - Volume Climax Markers: ⚡ symbol for extremely high volume - Volume Dry-Up Markers: 💧 symbol for extremely low volume - Buy/Sell Strength Labels: Show signal strength percentage (e.g., "Buy Strength: 75%") - Strong Top/Bottom Labels: "sTop" and "sBottom" for extreme level recoveries - Secondary MACD Lines: Purple lines showing higher timeframe MACD - Histogram MA: Orange line showing histogram moving average - Histogram BB: Blue bands around histogram showing extreme zones - StochMACD Lines: %K and %D lines with overbought/oversold thresholds - Regression Forecast: Dotted blue lines extending forward with optional confidence bands Signal Priority and Interpretation Signals are generated independently and can occur simultaneously. Higher-priority signals generally indicate stronger setups: 1. MACD Cross with Multiple Filters - Highest priority: Requires MACD crossover plus all enabled filters (histogram, signal strength, cross quality) and secondary timeframe confirmation if enabled. These are the most reliable signals. 2. Zero-Line Cross - High priority: Indicates momentum shift. Can provide early warning signals before MACD crosses the signal line. 3. Divergence Signals - Medium-High priority: Pivot-based divergence is more reliable than simple divergence. Hidden divergence indicates continuation rather than reversal. 4. MACD Cross with Basic Filters - Medium priority: MACD crosses signal line with basic histogram filter. Less reliable alone but useful when combined with other confirmations. Best practice: Wait for multiple confirmations. For example, a MACD crossover combined with divergence, volume confirmation, and secondary timeframe alignment provides the strongest setup. Chart Requirements For proper script functionality and compliance with TradingView requirements, ensure your chart displays: - Symbol name: The trading pair or instrument name should be visible - Timeframe: The chart timeframe should be clearly displayed - Script name: "Ultimate MACD " should be visible in the indicator title These elements help traders understand what they're viewing and ensure proper script identification. The script automatically includes this information in the indicator title and chart labels. Performance Considerations The script is optimized for performance: - Calculations use efficient Pine Script functions (ta.ema, ta.sma, etc.) which are optimized by TradingView - Conditional execution: Features only calculate when enabled - Label management: Old labels are automatically deleted to prevent accumulation - Array management: Divergence label arrays are limited to prevent memory accumulation The script should perform well on all timeframes. On very long historical data with many enabled features, performance may be slightly slower, but it remains usable. Known Limitations and Considerations - Dynamic OB/OS levels can vary significantly based on recent MACD volatility. In very volatile markets, levels may be wider; in calm markets, they may be narrower. - Volume confirmation requires sufficient historical volume data. On new instruments or very short timeframes, volume calculations may be less reliable. - Higher timeframe MACD uses request.security() which may have slight delays on some data feeds. - Stochastic MACD requires the histogram to have sufficient history. Very short periods on new charts may produce less reliable StochMACD values initially. - Divergence detection requires sufficient historical data to identify pivot points. Very short lookback periods may produce false positives. Practical Use Cases The indicator can be configured for different trading styles and timeframes: Swing Trading: Use MACD(12,26,9) with secondary timeframe confirmation. Enable divergence detection. Use signal strength filter (threshold 50+) and cross quality filter (threshold 50+) for higher-quality signals. Enable histogram analysis tools for additional context. Day Trading: Use MACD(8,17,7) or use "Day Trading" preset with minimal histogram smoothing for faster signals. Enable zero-line cross alerts for early signals. Use volume confirmation with threshold 1.2-1.5. Enable histogram MA for momentum tracking. Trend Following: Use MACD(12,26,9) or longer periods (15,30,12) for smoother signals. Enable secondary timeframe confirmation for trend alignment. Hidden divergence signals are useful for trend continuation entries. Use cross quality filter to identify high-quality crossovers. Reversal Trading: Focus on divergence detection (pivot-based for accuracy) combined with zero-line crosses. Enable volume confirmation. Use histogram Bollinger Bands to identify extreme histogram zones. Enable StochMACD for overbought/oversold identification. Multi-Timeframe Analysis: Enable secondary timeframe MACD to see context from larger timeframes. For example, use daily MACD on hourly charts to understand the larger trend context. Enable secondary confirmation to require higher timeframe alignment for signals. Practical Tips and Best Practices Getting Started: Start with default settings and observe MACD behavior. The default configuration (MACD 12,26,9 with EMA) is balanced and works well across different markets. After observing behavior, customize settings to match your trading style. Consider using configuration presets for quick setup. Reducing Repainting: All signals are based on confirmed bars, minimizing repainting. The script uses confirmed bar data for all calculations to ensure backtesting accuracy. Signal Quality: MACD crosses with multiple filters provide the highest-quality signals because they require alignment across multiple indicators. These signals have lower frequency but higher reliability. Use signal strength scores to identify the strongest signals (70+). Use cross quality scores to identify high-quality crossovers (70+). Filter Combinations: Start with histogram filter for basic momentum alignment, then add signal strength filter for moderate signals, then cross quality filter for high-quality crossovers. Combining all filters significantly reduces false signals but also reduces signal frequency. Find your balance based on your risk tolerance. Volume Filtering: Set volume threshold to 1.0 (default, effectively disabled) or lower to effectively disable volume filtering if you trade instruments with unreliable volume data or want to test without volume confirmation. Standard confirmation uses 1.2-1.5 threshold. MACD Period Selection: Standard MACD(12,26,9) provides balanced signals suitable for most trading. Shorter periods (8,17,7) for faster signals, longer (15,30,12) for smoother signals. Adjust based on your timeframe and trading style. Consider using configuration presets for optimized settings. Moving Average Type: EMA provides balanced responsiveness with smoothness. RMA is smoother and less responsive. WMA gives more weight to recent prices. SMA gives equal weight to all periods. Choose based on your preference for responsiveness vs. smoothness. Divergence: Pivot-based divergence is more reliable than simple divergence because it uses actual pivot points. Hidden divergence indicates continuation rather than reversal, useful for trend-following strategies. Adjust pivot lookback parameters to control sensitivity. Dynamic Thresholds: Dynamic OB/OS thresholds automatically adapt to volatility. In volatile markets, thresholds widen; in calm markets, they narrow. Adjust the multipliers to fine-tune sensitivity. Enable OB/OS background colors for visual indication. Zero-Line Crosses: Zero-line crosses indicate momentum shifts and can provide early warning signals before MACD crosses the signal line. Enable alerts for zero-line crosses to catch these early signals. Alert Management: Enable alert cooldown (default enabled, 5 bars) to prevent alert spam. Use alert type filter to only evaluate specific alert types. Signal debounce (default enabled, 3 bars) prevents duplicate MACD cross signals during choppy markets. Technical Specifications - Pine Script Version: v6 - Indicator Type: Non-overlay (displays in separate panel below price chart) - Repainting Behavior: Minimal - all signals are based on confirmed bars, ensuring accurate backtesting results - Performance: Optimized with conditional execution. Features only calculate when enabled. - Compatibility: Works on all timeframes (1 minute to 1 month) and all instruments (stocks, forex, crypto, futures, etc.) - Edge Case Handling: All calculations include safety checks for division by zero, NA values, and boundary conditions. Alert cooldowns and signal debounce handle edge cases where conditions never occurred or values are NA. Technical Notes - All MACD values respect percentage mode conversion when enabled - Volume confirmation uses cached volume SMA for performance - Label arrays (divergence) are automatically limited to prevent memory accumulation - Background coloring: OB/OS backgrounds are drawn on top of main background to ensure visibility - All calculations are optimized with conditional execution - features only calculate when enabled (performance optimization) - Signal strength calculation combines multiple factors into a single score for easy filtering - Cross quality calculation rates crossover quality based on angle, volume, and distance from zero - Secondary timeframe MACD uses request.security() for higher timeframe data access - Histogram analysis features (Bollinger Bands, MA, StochMACD) provide additional context beyond basic MACD signals - Statistics table dynamically adjusts to show only enabled features, keeping it clean and relevant - Divergence detection uses MACD line (not histogram) for more reliable signals - Configuration presets automatically optimize MACD parameters for different trading styles - Smart label placement: Labels appear on current bar at confirmation, using strength from tracked extreme point - Label spacing uses effective distance (base distance × spacing multiplier) for better distribution - Zero line polarity enforcement ensures Buy labels only appear when tracked extreme MACD < 0, Sell labels only when tracked extreme MACD > 0 - Label finalization requires MACD exit from OB/OS zone, sufficient bars passed, and recovery/decline percentage confirmation - Strength-based filtering automatically compares and keeps only the strongest label when multiple signals are close together - Enhanced visualization: Line outlines drawn behind main lines for superior visibility (black default, configurable) - Enhanced visualization: Fill between MACD and zero line provides instant visual feedback (green above, red below) - Enhanced visualization: Fill between OB/OS thresholds highlights neutral zone when dynamic levels are active - Custom chart background overrides background mode when enabled, allowing theme-consistent indicator panels
Pine Script® indicator
by captain_ua
2
Divergences + Alerts (ANY Indicator)📊 Divergences + Alerts (ANY Indicator) This versatile indicator detects four types of divergences between price action and an oscillator: Buyer Exhaustion Buyer Absorption Seller Exhaustion Seller Absorption Each divergence type is automatically identified and visually marked on the chart with colored lines. The indicator also includes built-in alert conditions for all four divergence types, allowing traders to receive real-time notifications when potential reversal signals occur. By default, the oscillator is a candle-style visualization of the Money Flow Index (MFI), enhanced with volatility filtering via a VWMA-based ATR. However, users can replace the default MFI oscillator with any external source using the “Plug External Source” input, enabling full customization and compatibility with other indicators. Key features: 🔍 Detects both exhaustion and absorption divergences 🔔 Alerts for each divergence type 🕯️ Candle-style oscillator visualization 🔌 Optional input for external indicator sources ⚙️ ATR-based filtering for precision Ideal for traders seeking to spot early signs of trend reversals or momentum shifts with customizable flexibility.
Pine Script® indicator
by victhoreb
1
Divergence & Volume ThrustThis document provides both user and technical information for the "Divergence & Volume Thrust" (DVT) Pine Script indicator. Part 1: User Guide 1.1 Introduction The DVT indicator is an advanced tool designed to automatically identify high-probability trading setups. It works by detecting divergences between price and key momentum oscillators (RSI and MACD). A divergence is a powerful signal that a trend might be losing strength and a reversal is possible. To filter out weak signals, the DVT indicator includes a Volume Thrust component, which ensures that a divergence is backed by significant market interest before it alerts you. 🐂 Bullish Divergence: Price makes a new low, but the indicator makes a higher low. This suggests selling pressure is weakening. 🐻 Bearish Divergence: Price makes a new high, but the indicator makes a lower high. This suggests buying pressure is weakening. 1.2 Key Features on Your Chart When you add the indicator to your chart, here's what you will see: Divergence Lines: Bullish Lines (Teal): A line will be drawn on your chart connecting two price lows that form a bullish divergence. Bearish Lines (Red): A line will be drawn connecting two price highs that form a bearish divergence. Solid lines represent RSI divergences, while dashed lines represent MACD divergences. Confirmation Labels: "Bull Div ▲" (Teal Label): This label appears below the candle when a bullish divergence is detected and confirmed by a recent volume spike. This is a high-probability buy signal. "Bear Div ▼" (Red Label): This label appears above the candle when a bearish divergence is detected and confirmed by a recent volume spike. This is a high-probability sell signal. Volume Spike Bars (Orange Background): Any price candle with a faint orange background indicates that the volume during that period was unusually high (exceeding the average volume by a multiplier you can set). 1.3 Settings and Configuration You can customize the indicator to fit your trading style. Here's what each setting does: Divergence Pivot Lookback (Left/Right): Controls the sensitivity of swing point detection. Lower numbers find smaller, more frequent divergences. Higher numbers find larger, more significant ones. 5 is a good starting point. Max Lookback Range for Divergence: How many bars back the script will look for the first part of a divergence pattern. Default is 60. Indicator Settings (RSI & MACD): You can toggle RSI and MACD divergences on or off. Standard length settings for each indicator (e.g., RSI Length 14, MACD 12, 26, 9). Volume Settings: Use Volume Confirmation: The most important filter. When checked, labels will only appear if a volume spike occurs near the divergence. Volume MA Length: The lookback period for calculating average volume. Volume Spike Multiplier: The core of the "Thrust" filter. A value of 2.0 means volume must be 200% (or 2x) the average to be considered a spike. Visuals: Customize colors and toggle the confirmation labels on or off. 1.4 Strategy & Best Practices Confluence is Key: The DVT indicator is powerful, but it should not be used in isolation. Look for its signals at key support and resistance levels, trendlines, or major moving averages for the highest probability setups. Wait for Confirmation: A confirmed signal (with a label) is much more reliable than an unconfirmed divergence line. Context Matters: A bullish divergence in a strong downtrend might only lead to a small bounce, not a full reversal. Use the signals in the context of the overall market structure. Set Alerts: Use the TradingView alert system with this script. Create alerts for "Confirmed Bullish Divergence" and "Confirmed Bearish Divergence" to be notified of setups automatically.
Pine Script® indicator
by WhiteHuracan
2
SMT DivergenceSMT Divergence Indicator This powerful indicator identifies high-probability reversal points by detecting SMT (Smart Money Technique) divergences between two correlated assets. It spots subtle shifts in market momentum, revealing when one asset fails to confirm the price action of another—often signaling an impending trend change. Key Features: Inter-Market Divergence Detection: Automatically compares the price action of the main symbol with a second user-defined asset. Identifies Key Reversals: Pinpoints both bullish and bearish SMT divergences, highlighting hidden strength in downtrends and underlying weakness in uptrends. Customizable Pivot Detection: Allows fine-tuning of the pivot length to adjust sensitivity for different market conditions and timeframes. Flexible Display Modes: Choose between clean 'Lines' connecting the diverging pivots or precise 'Labels' marking the exact high/low points. Full Visual Customization: Complete control over the colors and line thickness for seamless integration with your existing chart layout. Built-in Alerts: Stay notified of every potential opportunity with alerts for both bullish and bearish signals. Settings: Core Parameters: Comparison Symbol: Select the second asset to compare against for divergence analysis (e.g., NQ1! if you are charting ES1!). Pivot Length: Defines the number of bars to the left and right required to confirm a pivot high or low. Visual Settings: Display Style: Choose to visualize divergences as 'Lines' or 'Labels'. Bearish/Bullish Color: Set custom colors for bearish and bullish divergence indicators. Line Width: Adjust the thickness of the divergence lines for optimal visibility. Perfect for traders who utilize inter-market analysis to confirm trade ideas. The SMT Divergence indicator provides a crucial edge by exposing non-confirmations between related assets, allowing for earlier and more confident entries into potential market reversals.
Pine Script® indicator
by ClayeWeight
1
Market Breadth Toolkit [LuxAlgo]The Market Breadth Toolkit allows traders to use up to 6 different market breadth measures on two different exchanges, for a total of 12 different views of the market. This toolkit includes divergence detection and allows setting custom fixed levels for traders who want to experiment with them. 🔶 USAGE The main idea behind Breadth is to measure the number of advancing and declining issues and/or volume by exchange to have an idea of the underlying strength of the whole exchange. On the other hand, thrusts represent big impulses in the breadth, as it is described by technicians to be the start of a new bullish trend. By default, the Toolkit is set to "Breadth Thrust Zweig", with divergences enabled. We will now explain all the different breadth measures available in the toolkit. 🔹 Deemer Breakaway Momentum The "Breakaway Momentum" is a concept related to market breadth introduced by legendary technical analyst Walter Deemer. As stated on his website: We coined the term "breakaway momentum" in the 1970's to describe this REALLY powerful upward momentum and: We now know that the stock market generates breakaway momentum when the 10-day total advances on the NYSE are greater than 1.97 times the 10-day total NYSE declines OR the 20-day total advances on the NYSE are greater than 1.72 times the 20-day total NYSE declines. As we can see in the chart above, which shows both methods, momentum is identified when the ratio of advancing issues to declining issues is greater than 1.97 for the 10-day average or 1.72 for the 20-day average. 🔹 Zweig Breadth Tools Legendary trader and author Marting Zweig, best known as the author of "Winning on Wall Street" and the creator of the Put/Call Ratio. In this toolkit, we feature two of his other tools: Breadth Thrust: Number of Advancing / (Number of Advancing + Number of Declining Stocks) Market Thrust: (Number of Advancing × Advancing Volume) — (Number of Declining Stocks × Declining Volume) As we can see on the above chart, the Breadth Thrust printed a new signal on April 24, 2025, which is a bullish signal on the daily chart that can last several months, considering the previous signals. On the right side, we have the Market Thrust as the delta between advancing minus declining volume weighted. 🔹 Whaley Measures Wayne Whaley received the 2010 Charles Dow Award from the CMT Association, as stated on their website: "In 1994, the CMT Association established the Charles H. Dow Award to recognize outstanding research in technical analysis." We include two of the tools from this paper: Advance Decline Thrust: Number of Advancing / (Number of Advancing + Number of Declining Stocks) Up/Down Volume Thrust Advancing Volume / (Advancing Volume + Declining Volume) The chart above shows Thrust signals at extreme readings as described in the paper. 🔹 Divergences The divergence detector is enabled by default, traders can disable it and fine-tune the detection length in the settings panel. 🔹 Fixed Levels Traders can adjust the Thrust detection thresholds in the settings panel. In the image above, we can see the Deemer Breakaway Momentum 10 with the original threshold (below) and with the 3.0 threshold (above). 🔶 SETTINGS Breadth: Choose between 6 different breadth thrust measurement methods. Data: Choose between NYSE or NASDAQ exchanges. Divergences: Enable/Disable divergences and select the length detection. 🔹 Levels Use Fixed Levels: Enable/Disable Fixed Levels. Top Level: Select the top-level threshold. Bottom Level: Select bottom level threshold. Levels Style: Choose between dashed, dotted, or solid style. 🔹 Style Breadth: Select breadth colors Divergence: Select divergence colors
Pine Script® indicator
by LuxAlgo
3
RSI Candlestick Oscillator [LuxAlgo]The RSI Candlestick Oscillator displays a traditional Relative Strength Index (RSI) as candlesticks. This indicator references OHLC data to locate each candlestick point relative to the current RSI Value, leading to a more accurate representation of the Open, High, Low, and Close price of each candlestick in the context of RSI. In addition to the candlestick display, Divergences are detected from the RSI candlestick highs and lows and can be displayed over price on the chart. 🔶 USAGE Translating candlesticks into the RSI oscillator is not a new concept and has been attempted many times before. This indicator stands out because of the specific method used to determine the candlestick OHLC values. When compared to other RSI Candlestick indicators, you will find that this indicator clearly and definitively correlates better to the on-chart price action. Traditionally, the RSI indicator is simply one running value based on (typically) the close price of the chart. By introducing high, low, and open values into the oscillator, we can better gauge the specific price action throughout the intrabar movements. Interactions with the RSI levels can now take multiple forms, whether it be a full-bodied breakthrough or simply a wick test. Both can provide a new analysis of price action alongside RSI. An example of wick interactions and full-bodied interactions can be seen below. As a result of the candlestick display, divergences become simpler to spot. Since the candlesticks on the RSI closely resemble the candlesticks on the chart, when looking for divergence between the chart and RSI, it is more obvious when the RSI and price are diverging. The divergences in this indicator not only show on the RSI oscillator, but also overlay on the price chart for clearer understanding. 🔹 Filtering Divergence With the candlesticks generating high and low RSI values, we can better sense divergences from price, since these points are generally going to be more dramatic than the (close) RSI value. This indicator displays each type of divergence: Bullish Divergence Bearish Divergence Hidden Bullish Divergence Hidden Bearish Divergence From these, we get many less-than-useful indications, since every single divergence from price is not necessarily of great importance. The Divergence Filter disregards any divergence detected that does not extend outside the RSI upper or lower values. This does not replace good judgment, but this filter can be helpful in focusing attention towards the extremes of RSI for potential reversal spotting from divergence. 🔶 DETAILS In order to get the desired results for a display that resembles price action while following RSI, we must scale. The scaling is the most important part of this indicator. To summarize the process: Identify a range on Price and RSI Consider them as equal to create a scaling factor Use the scaling factor to locate RSI's "Price equivalent" Upper, Lower, & Mid on the Chart Use those prices (specifically the RSI Mid) to check how far each OHLC value lies from it Use those differences to translate the price back to the RSI Oscillator, pinning the OHLC values at their relative location to our anchor (RSI Mid) 🔹 RSI Channel To better understand, and for your convenience, the indicator includes the option to display the RSI Channel on the chart. This channel helps to visualize where the scaled RSI values are relative to price. If you analyze the RSI channel, you are likely to notice that the price movement throughout the channel matches the same movement witnessed in the RSI Oscillator below. This makes sense since they are the exact same thing displayed on different scales. 🔹 Scaling the Open While the scaling method used is important, and provides a very close view of the real price bar's relative locations on the RSI oscillator… It is designed for a single purpose. The scaling does NOT make the price candles display perfectly on the RSI oscillator. The largest place where this is noticeable is with the opening of each candle. For this reason, we have included a setting that modifies the opening of each RSI candle to be more accurate to the chart's price candles. This setting positions the current bar's opening RSI candlestick value accurately relative to the price's open location to the previous closing price. As seen below. 🔶 SETTINGS 🔹 RSI Candles RSI Length: Sets the Length for the RSI Oscillator. Overbought/Oversold Levels: Sets the Overbought and Oversold levels for the RSI Oscillator. Scale Open for Chart Accuracy: As described above, scales the open of each candlestick bar to more accurately portray the chart candlesticks. 🔹 Divergence Show on Chart: Choose to display divergence line on the chart as well as on the Oscillator. Divergence Length: Sets the pivot width for divergence detection. Normal Fractal Pivot Detection is used. Divergence Style: Change color and line style for Regular and Hidden divergences, as well as toggle their display. Divergence Filter: As described above, toggle on or off divergence filtering. 🔹 RSI Channel Toggle: Display RSI Channel on Chart. Color: Change RSI Channel Color
Pine Script® indicator
by LuxAlgo
23
Quarterly Theory ICT 04 [TradingFinder] SSMT 4Quarter Divergence🔵 Introduction Sequential SMT Divergence is an advanced price-action-based analytical technique rooted in the ICT (Inner Circle Trader) methodology. Its primary objective is to identify early-stage divergences between correlated assets within precise time structures. This tool not only breaks down market structure but also enables traders to detect engineered liquidity traps before the market reacts. In simple terms, SMT (Smart Money Technique) occurs when two correlated assets—such as indices (ES and NQ), currency pairs (EURUSD and GBPUSD), or commodities (Gold and Silver)—exhibit different reactions at key price levels (swing highs or lows). This lack of alignment is often a sign of smart money manipulation and signals a lack of confirmation in the ongoing trend—hinting at an imminent reversal or at least a pause in momentum. In its Sequential form, SMT divergences are examined through a more granular temporal lens—between intraday quarters (Q1 through Q4). When SMT appears at the transition from one quarter to another (e.g., Q1 to Q2 or Q3 to Q4), the signal becomes significantly more powerful, often aligning with a critical phase in the Quarterly Theory—a framework that segments market behavior into four distinct phases: Accumulation, Manipulation, Distribution, and Reversal/Continuation. For instance, a Bullish SMT forms when one asset prints a new low while its correlated counterpart fails to break the corresponding low from the previous quarter. This usually indicates absorption of selling pressure and the beginning of accumulation by smart money. Conversely, a Bearish SMT arises when one asset makes a higher high, but the second asset fails to confirm, signaling distribution or a fake-out before a decline. However, SMT alone is not enough. To confirm a true Market Structure Break (MSB), the appearance of a Precision Swing Point (PSP) is essential—a specific candlestick formation on a lower timeframe (typically 5 to 15 minutes) that reveals the entry of institutional participants. The combination of SMT and PSP provides a more accurate entry point and better understanding of premium and discount zones. The Sequential SMT Indicator, introduced in this article, dynamically scans charts for such divergence patterns across multiple sessions. It is applicable to various markets including Forex, crypto, commodities, and indices, and shows particularly strong performance during mid-week sessions (Wednesdays and Thursdays)—when most weekly highs and lows tend to form. Bullish Sequential SMT : Bearish Sequential SMT : 🔵 How to Use The Sequential SMT (SSMT) indicator is designed to detect time and structure-based divergences between two correlated assets. This divergence occurs when both assets print a similar swing (high or low) in the previous quarter (e.g., Q3), but in the current quarter (e.g., Q4), only one asset manages to break that swing level—while the other fails to reach it. This temporal mismatch is precisely identified by the SSMT indicator and often signals smart money activity, a market phase transition, or even the presence of an engineered liquidity trap. The signal becomes especially powerful when paired with a Precision Swing Point (PSP)—a confirming candle on lower timeframes (5m–15m) that typically indicates a market structure break (MSB) and the entry of smart liquidity. 🟣 Bullish Sequential SMT In the previous quarter, both assets form a similar swing low. In the current quarter, one asset (e.g., EURUSD) breaks that low and trades below it. The other asset (e.g., GBPUSD) fails to reach the same low, preserving the structure. This time-based divergence reflects declining selling pressure, potential absorption, and often marks the end of a manipulation phase and the start of accumulation. If confirmed by a bullish PSP candle, it offers a strong long opportunity, with stop-losses defined just below the swing low. 🟣 Bearish Sequential SMT In the previous quarter, both assets form a similar swing high. In the current quarter, one asset (e.g., NQ) breaks above that high. The other asset (e.g., ES) fails to reach that high, remaining below it. This type of divergence signals weakening bullish momentum and the likelihood of distribution or a fake-out before a price drop. When followed by a bearish PSP candle, it sets up a strong shorting opportunity with targets in the discount zone and protective stops placed above the swing high. 🔵 Settings ⚙️ Logical Settings Quarterly Cycles Type : Select the time segmentation method for SMT analysis. Available modes include: Yearly, Monthly, Weekly, Daily, 90 Minute, and Micro. These define how the indicator divides market time into Q1–Q4 cycles. Symbol : Choose the secondary asset to compare with the main chart asset (e.g., XAUUSD, US100, GBPUSD). Pivot Period : Sets the sensitivity of the pivot detection algorithm. A smaller value increases responsiveness to price swings. Activate Max Pivot Back : When enabled, limits the maximum number of past pivots to be considered for divergence detection. Max Pivot Back Length : Defines how many past pivots can be used (if the above toggle is active). Pivot Sync Threshold : The maximum allowed difference (in bars) between pivots of the two assets for them to be compared. Validity Pivot Length : Defines the time window (in bars) during which a divergence remains valid before it's considered outdated. 🎨 Display Settings Show Cycle :Toggles the visual display of the current Quarter (Q1 to Q4) based on the selected time segmentation Show Cycle Label : Shows the name (e.g., "Q2") of each detected Quarter on the chart. Show Bullish SMT Line : Draws a line connecting the bullish divergence points. Show Bullish SMT Label : Displays a label on the chart when a bullish divergence is detected. Bullish Color : Sets the color for bullish SMT markers (label, shape, and line). Show Bearish SMT Line : Draws a line for bearish divergence. Show Bearish SMT Label : Displays a label when a bearish SMT divergence is found. Bearish Color : Sets the color for bearish SMT visual elements. 🔔 Alert Settings Alert Name : Custom name for the alert messages (used in TradingView’s alert system). Message Frequency : All: Every signal triggers an alert. Once Per Bar: Alerts once per bar regardless of how many signals occur. Per Bar Close: Only triggers when the bar closes and the signal still exists. Time Zone Display : Choose the time zone in which alert timestamps are displayed (e.g., UTC). Bullish SMT Divergence Alert : Enable/disable alerts specifically for bullish signals. Bearish SMT Divergence Alert : Enable/disable alerts specifically for bearish signals 🔵 Conclusion The Sequential SMT (SSMT) indicator is a powerful and precise tool for identifying structural divergences between correlated assets within a time-based framework. Unlike traditional divergence models that rely solely on sequential pivot comparisons, SSMT leverages Quarterly Theory, in combination with concepts like liquidity sweeps, market structure breaks (MSB) and precision swing points (PSP), to provide a deeper and more actionable view of market dynamics. By using SSMT, traders gain not only the ability to identify where divergence occurs, but also when it matters most within the market cycle. This empowers them to anticipate major moves or traps before they fully materialize, and position themselves accordingly in high-probability trade zones. Whether you're trading Forex, crypto, indices, or commodities, the true strength of this indicator is revealed when used in sync with the Accumulation, Manipulation, Distribution, and Reversal phases of the market. Integrated with other confluence tools and market models, SSMT can serve as a core component in a professional, rule-based, and highly personalized trading strategy.
Pine Script® indicator
by TFlab
8
SMT Divergence ICT 02 [TradingFinder] Smart Money Technique SMC🔵 Introduction SMT Divergence (Smart Money Technique Divergence) is a price action-based trading concept that detects discrepancies in market behavior between two assets that are generally expected to move in the same direction. Rooted in ICT (Inner Circle Trader) methodology, this approach helps traders recognize subtle signs of market manipulation or imbalance, often ahead of traditional indicators. The core idea behind SMT divergence is simple: when two correlated instruments—such as currency pairs, indices, or assets from the same sector—start forming different swing points (highs or lows), this can reveal a lack of confirmation in the trend. Such divergence is often a precursor to a price reversal or pause in momentum. This technique works effectively across various markets including Forex, stocks, and cryptocurrencies. It’s particularly valuable when used alongside concepts like liquidity sweeps, market structure breaks (MSBs), or order block identification. In advanced use cases, Sequential SMT helps uncover patterns of alternating divergences across sessions, often signaling engineered liquidity traps before price reacts. When combined with the Quarterly Theory—which segments market behavior into Accumulation, Manipulation, Distribution, and Continuation/Reversal phases—traders gain insight not only into where divergence happens, but when it's most likely to be significant within the market cycle. Bullish SMT : Bullish SMT Divergence occurs when one asset prints a higher low while the correlated asset forms a lower low. This asymmetry often suggests that the downside move is losing strength, hinting at a potential bullish shift. Bearish SMT : Bearish SMT Divergence is formed when one asset creates a higher high, while the second asset fails to confirm by printing a lower high. This typically signals weakening bullish pressure and the possibility of a reversal to the downside. 🔵 How to Use The SMT Divergence indicator is designed to detect imbalances between two positively correlated assets—such as major currency pairs, indices, or commodities. These divergences often indicate early signs of market inefficiency or smart money manipulation and can help traders anticipate trend shifts with higher precision. Unlike traditional divergence indicators or earlier versions of this script, this upgraded version does not rely solely on consecutive pivot comparisons. Instead, it dynamically scans all available pivots within the chart to identify divergences at any structural level—major or minor—across the price action. This broader detection method increases the reliability and frequency of meaningful SMT signals. Moreover, when integrated with Sequential SMT logic, the indicator is capable of identifying multiple divergence sequences across sessions. These sequences often signal engineered liquidity traps and can be mapped within the Quarterly Theory framework, allowing traders to pinpoint not just the presence of divergence but also the phase of the market cycle it appears in (Accumulation, Manipulation, Distribution, or Continuation). 🟣 Bullish SMT Divergence This signal occurs when the primary asset forms a higher low, while the correlated asset forms a lower low. This pattern implies weakening bearish momentum and a potential shift to the upside. If the correlated asset breaks its previous low but the primary asset does not, this divergence suggests absorption of selling pressure and possible accumulation by smart money—making it a strong bullish signal, especially when aligned with a favorable market phase (e.g., the end of a manipulation phase in Q2). 🟣 Bearish SMT Divergence This signal occurs when the primary asset creates a higher high, while the correlated asset forms a lower high. This mismatch indicates fading bullish momentum and a potential reversal to the downside. If the correlated asset fails to confirm a breakout made by the main asset, the divergence may point to distribution or exhaustion. When seen within Q3 or Q4 phases of the Quarterly Theory, this pattern often precedes sharp declines or fake-outs engineered by smart money 🔵 Settings ⚙️ Logical Settings Symbol : Choose the secondary asset to compare with the main chart asset (e.g., XAUUSD, US100, GBPUSD). Pivot Period : Sets the sensitivity of the pivot detection algorithm. A smaller value increases responsiveness to price swings. Activate Max Pivot Back : When enabled, limits the maximum number of past pivots to be considered for divergence detection. Max Pivot Back Length : Defines how many past pivots can be used (if the above toggle is active). Pivot Sync Threshold : The maximum allowed difference (in bars) between pivots of the two assets for them to be compared. Validity Pivot Length : Defines the time window (in bars) during which a divergence remains valid before it's considered outdated. 🎨 Display Settings Show Bullish SMT Line : Draws a line connecting the bullish divergence points. Show Bullish SMT Label : Displays a label on the chart when a bullish divergence is detected. Bullish Color : Sets the color for bullish SMT markers (label, shape, and line). Show Bearish SMT Line : Draws a line for bearish divergence. Show Bearish SMT Label : Displays a label when a bearish SMT divergence is found. Bearish Color : Sets the color for bearish SMT visual elements. 🔔 Alert Settings Alert Name : Custom name for the alert messages (used in TradingView’s alert system). Message Frequency : All : Every signal triggers an alert. Once Per Bar : Alerts once per bar regardless of how many signals occur. Per Bar Close : Only triggers when the bar closes and the signal still exists. Time Zone Display : Choose the time zone in which alert timestamps are displayed (e.g., UTC). Bullish SMT Divergence Alert : Enable/disable alerts specifically for bullish signals. Bearish SMT Divergence Alert : Enable/disable alerts specifically for bearish signals 🔵Conclusion The SMT Plus indicator offers a refined and powerful approach to detecting smart money behavior through divergence analysis between correlated assets. By removing the limitations of consecutive pivot comparisons and allowing for broader structural detection, it captures more accurate and timely signals that often precede major market moves. When paired with frameworks like Sequential SMT and the Quarterly Theory, the indicator not only highlights where divergence occurs, but also when in the market cycle it's most likely to matter. Its flexible settings, customizable visuals, and integrated alert system make it suitable for intraday scalpers, swing traders, and even long-term macro analysts. Whether you're using it as a standalone decision-making tool or combining it with other ICT concepts, SMT Plus gives you an edge in recognizing manipulation, timing reversals, and staying in sync with the real market narrative—not just the chart.
Pine Script® indicator
by TFlab
16