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Smart Divergence [Reason Edition]Stop trading divergences "in thin air". Start trading structural confluence. Most divergence indicators fail for one reason: they signal reversals based solely on oscillator math (RSI vs. Price), ignoring the chart's structure. This leads to costly entries against strong trends. Smart Divergence solves this by applying an Institutional Context Filter. It does not simply alert you of a divergence; it validates the signal against key market structures ("Walls") and—crucially—tells you exactly why the signal appeared directly on the label. 🚀 How It Works: The "Smart Filter" Logic This script operates on a strict rule: "No Structure, No Signal." For a Bullish or Bearish divergence to be valid, price must not only diverge from RSI but also physically touch or react to one of four key structural levels: BB (Bollinger Bands): Rejection due to volatility extension (2.0 StdDev). KC (Keltner Channels): Rejection due to average range deviation (1.5 ATR). Pivots (S1/R1): Rejection at standard daily algorithmic levels. VWAP: Rejection at the institutional average price (Volume Weighted Average Price). 🏷️ Dynamic "Reason" Labels This is the core feature of this edition. The label on your chart adapts dynamically to show the specific confluence behind the trade. Examples you will see: SMART BULL (BB) → The divergence is valid because price hit the Bollinger Band. SMART BULL (VWAP) → The divergence is valid because price bounced off the VWAP. SMART BULL (BB VWAP) → High Probability: Price hit the Bollinger Band AND the VWAP simultaneously. The Logic: The more "Reasons" (acronyms) appear inside the label, the stronger the structural wall, and the higher the probability of a reversal. 🛠️ Settings & Features 🛡️ Smart Filter (Toggle): ON (Default): Only shows high-quality signals that occur at Support/Resistance zones. OFF: Shows all raw technical divergences (standard mode). Alerts Included: Setup custom alerts for "Smart Bull" (Buys) and "Smart Bear" (Sells). Zero Repainting: Signals are confirmed upon candle close/pivot confirmation. 📋 How to Trade It Wait for the Label: Do not guess. Wait for the SMART label to appear. Check the Reason: Look at the text in parenthesis (...). Single reason (e.g., KC) is a valid setup. Cluster reasons (e.g., BB S1 VWAP) represent a "Concrete Wall" and are ideal for aggressive entries. Context: Works best on Intraday timeframes (1m, 5m, 15m) for scalping, and Daily timeframe for Swing Trading bottoms/tops. Disclaimer: This tool is for educational purposes and technical analysis assistance. Past performance does not guarantee future results. Manage your risk.
Pine Script® indicator
by CristobalSolisL
Black-Scholes Gamma Scalping Strategy# Black-Scholes Gamma Scalping Strategy ## Overview This strategy applies options market-making principles to spot/futures trading using the Black-Scholes pricing model. It simulates the behavior of a delta-hedged straddle position, generating buy and sell signals based on how a market maker would hedge their gamma exposure. --- ## The Concept: Gamma Scalping Professional options traders who hold long straddles (long call + long put at the same strike) profit when the underlying moves significantly in either direction. Here's why: - A straddle has **positive gamma**, meaning its delta increases as price rises and decreases as price falls - To stay delta-neutral, traders must **buy after dips** and **sell after rallies** - If **realized volatility > implied volatility**, the profits from these hedging trades exceed the daily theta (time decay) cost This strategy captures that edge by: 1. Calculating theoretical Greeks using Black-Scholes 2. Monitoring when delta deviates from neutral 3. Trading to "hedge" back to neutral — buying weakness, selling strength --- ## Black-Scholes Greeks Calculated | Greek | Symbol | What It Measures | |-------|--------|------------------| | Delta | Δ | Directional exposure | | Gamma | Γ | Rate of delta change | | Vega | ν | Sensitivity to volatility | | Theta | Θ | Time decay per day | All Greeks are calculated in real-time using the standard Black-Scholes formula with configurable inputs for strike, expiration, implied volatility, and risk-free rate. --- ## Entry Signals **Long Entry** (buy the underlying): - Price drops significantly (gamma scalp trigger), OR - Straddle delta falls below the lower hedge band - Volatility filter confirms favorable regime (HV > IV) **Short Entry** (sell the underlying): - Price rises significantly (gamma scalp trigger), OR - Straddle delta rises above the upper hedge band - Volatility filter confirms favorable regime --- ## Volatility Regime Filter The strategy compares **Historical Volatility (HV)** to **Implied Volatility (IV)**: - **HV/IV > 1.2** → Long volatility regime (gamma scalping profitable) → Trading enabled - **HV/IV < 0.8** → Short volatility regime (theta wins) → Trading paused or reversed - **Between** → Neutral, proceed with caution This filter helps avoid trading when market conditions don't favor the strategy. --- ## Key Inputs **Option Parameters:** - Strike Offset % — Distance from ATM (0 = at-the-money) - Days to Expiration — Synthetic option tenor (affects gamma magnitude) - Implied Volatility — Your estimate of fair IV - Risk-Free Rate — For BS calculation **Trading Parameters:** - Gamma Scalp Threshold — ATR multiple to trigger trades - Delta Hedge Band % — How far delta must deviate to signal - Volatility Regime Filter — Enable/disable HV/IV filter **Risk Management:** - Stop Loss / Take Profit (ATR multiples) - Max Drawdown % — Pauses trading if exceeded - Max Concurrent Positions --- ## How to Use 1. **Set Implied Volatility** to match current market IV (check options chain or VIX for reference) 2. **Adjust Days to Expiration** — Shorter = higher gamma, more signals; Longer = smoother 3. **Tune the Hedge Band** — Tighter bands = more trades; Wider = fewer, larger moves 4. **Enable Volatility Filter** for trend-following vol regimes, disable for pure mean-reversion **Best suited for:** - Range-bound or choppy markets - High realized volatility environments - Liquid instruments with tight spreads **Avoid using when:** - Strong directional trends (gamma scalping loses to delta) - Volatility is collapsing - Low liquidity / wide spreads --- ## Information Table The on-chart table displays real-time: - Current strike price - Straddle Delta, Gamma, Vega, Theta - Historical vs Implied Volatility - HV/IV Ratio - Current volatility regime --- ## Alerts Built-in alert conditions for: - Long entry signals - Short entry signals - Max drawdown protection triggered --- ## Disclaimer This strategy is provided for **educational purposes only**. It demonstrates how Black-Scholes option pricing theory can be applied to generate trading signals. - Past performance does not guarantee future results - Backtest results may not reflect live trading conditions - Always use proper position sizing and risk management - Paper trade extensively before using real capital **No financial advice is given or implied.** --- ## Credits Based on the Black-Scholes-Merton option pricing model (1973) and gamma scalping techniques used by professional options market makers. --- *If you find this useful, please leave a like or comment. Suggestions for improvements are welcome!*
Pine Script® strategy
by DrRRRKopp
Evil's Two Legged IndicatorA pullback strategy indicator designed for scalping. This attempts to Identify classic 2-leg pullback patterns and filters out signals during choppy market conditions for better signals. How It Works: The indicator detects when price forms two pullback legs (swing lows in an uptrend or swing highs in a downtrend) near key support/resistance zones, then signals when reversal confirmation occurs. Equal-level pullbacks (double bottoms/tops) are marked as stronger signals. Features: Channel Options: Donchian (default), Linear Regression, or ATR Bands Configurable EMA: For trend confirmation (default 21) Adjustable Leg Detection: Swing lookback period for different timeframes Equal Level Detection: Highlights stronger setups where both legs terminate at similar prices Three Chop Filters (can be combined): ADX Filter — suppresses signals when ADX is below threshold (default 25) EMA Slope Filter — suppresses signals when EMA is flat Chop Index Filter — suppresses signals when Chop Index indicates ranging conditions Signal Types: Standard signals: 2-leg pullback detected with trend confirmation Strong signals (highlighted): 2-leg pullback with equal highs/lows — higher probability setup Recommended Use: Best suited for scalping on 1-5 minute chart. Designed for 1.5:1 risk/reward setups. Settings Guide: Increase "Swing Lookback" for fewer, higher-quality signals Adjust "Equal Level Threshold" to fine-tune what counts as a double bottom/top Enable/disable chop filters based on your market and timeframe Use "Show Strong Signals Only" to filter for highest conviction setups
Pine Script® indicator
by evilTexan
Institutional Alpha Vector | D_QUANTInstitutional Alpha Vector | D_QUANT Overview The Institutional Alpha Vector (IAV) is an enterprise-grade composite trend ecosystem designed to identify high-probability institutional order flow. Unlike standard indicators that rely on a single data point, the IAV synthesizes Price Action, Momentum Physics, Volatility Regimes, and Volume Flow into a single, unified Alpha Vector. This tool is not merely a signal generator, it is a market regime filter. It visualizes the consensus of four distinct quantitative models through a sophisticated "Electric Conduit" rendering engine, allowing traders to visualize the strength, direction, and volatility of the current trend instantly. The Quantitative Engine The IAV constructs its signal by calculating a weighted consensus across four distinct modules. These modules work in synergy to filter out noise and highlight sustained institutional moves. MODULE 1 :: PRICE_FILTER : A highly responsive Hull Moving Average that serves as the "Spine" of the trend, reducing lag while maintaining smoothness. MODULE 2 :: VOLATILITY_REGIME : A dynamic envelope that adjusts to market noise. This creates the "Conduit" width—expanding during high-volatility expansion and contracting during consolidation. MODULE 3 :: MOMENTUM_PHYSICS : A directional movement filter that ensures signals are only generated when trend strength exceeds a specific threshold (default: 20). MODULE 4 :: INSTITUTIONAL_FLOW : A volume-weighted money flow engine that confirms if price movement is supported by actual volume (Smart Money participation). The Alpha Vector The core of this system is the Alpha Vector calculation. The indicator normalizes the outputs of all active modules into a composite score between -1.0 (Strong Bearish Consensus) and +1.0 (Strong Bullish Consensus). Bullish Entry: When the Alpha Vector crosses above the Long Threshold (Default: 0.1). Bearish Entry: When the Alpha Vector crosses below the Short Threshold (Default: -0.1). Neutral/Cash: When the consensus is weak or conflicting, the ribbon turns Grey/Flat, advising the trader to remain on the sidelines. // ========================================== // 3. SIGNAL AGGREGATION // ========================================== calc_composite_matrix() => _hma = calc_hma_series(hma_src, hma_len) _hma_sig_v = 0 if ta.crossover(close, _hma) _hma_sig_v := 1 else if ta.crossunder(close, _hma) _hma_sig_v := -1 _adx_sig_v = calc_adx_state(adx_len, adx_thresh) _cmf_sig_v = calc_cmf_state(cmf_len) _rma_sig_v = calc_rma_filter_state(hma_src, lookback, atr_len) var int s_hma = 0 var int s_adx = 0 var int s_cmf = 0 var int s_rma = 0 if _hma_sig_v != 0 s_hma := _hma_sig_v if _adx_sig_v != 0 s_adx := _adx_sig_v if _cmf_sig_v != 0 s_cmf := _cmf_sig_v if _rma_sig_v != 0 s_rma := _rma_sig_v = request.security(syminfo.ticker, "D", calc_composite_matrix(), lookahead=barmerge.lookahead_on) float alpha_score_num = 0.0 int alpha_score_den = 0 if use_hma alpha_score_num += d_hma alpha_score_den += 1 if use_adx alpha_score_num += d_adx alpha_score_den += 1 if use_cmf alpha_score_num += d_cmf alpha_score_den += 1 if use_rma alpha_score_num += d_rma alpha_score_den += 1 alpha_vector = alpha_score_den > 0 ? alpha_score_num / alpha_score_den : 0.0 Visual Intelligence: The "Electric Conduit" The visualization logic uses a Differential Gradient Model to represent market energy: The Spine (Core): The solid, bright center line represents the immediate trend direction. The Conduit (Fill): The gradient fill represents the Volatility Regime. Thick/Wide Ribbon: High Volatility (Expansion Phase). Thin/Tight Ribbon: Low Volatility (Contraction/Squeeze Phase). Bar Coloring: Native bar coloring is integrated to instantly align price action with the Alpha Vector, removing the need for mental processing. Settings The indicator is fully customizable via a "Compute-Style" configuration menu: MODULES: Toggle specific engines (HMA, ADX, CMF, RMA) on or off to adapt the Alpha Vector to your specific asset class (Crypto, Forex, or Indices). THRESHOLDS: Adjust sensitivity for Long/Short entries. VISUALS: Customize the "Core" and "Edge" colors to match your charting theme. “Alpha is not about predicting the future. It is about aligning with the mathematical consensus of the present.” — D_QUANT
Pine Script® indicator
by D_QUANT
AMT CVD [hardiman]█ OVERVIEW AMT CVD is a Cumulative Volume Delta indicator with a unique numeric labeling system designed for the Auction Market Theory (AMT) methodology by Fabio Valentino. Instead of just showing CVD as a line, this indicator displays numeric labels (+3, +2, +1, 0, -1, -2, -3) and "A" for Absorption, making it easy to identify the current phase of the AMT workflow at a glance. █ KEY FEATURES • CVD with numeric aggression labels (+3 to -3) • "A" label for Absorption detection (high volume + price stagnation) • Automatic Exhaustion detection (aggression fading) • Entry signal markers (L for Long, S for Short) • Real-time workflow dashboard • Compact Mode for mobile users • Customizable thresholds and colors • Built-in alerts for each phase █ THE NUMERIC LABEL SYSTEM BUYER AGGRESSION: • +3 = Extremely aggressive buying (delta > 3.5x average) • +2 = Strong buying pressure (delta > 2.5x average) • +1 = Mild buying pressure (delta > 1.5x average) SELLER AGGRESSION: • -1 = Mild selling pressure (delta > 1.5x average) • -2 = Strong selling pressure (delta > 2.5x average) • -3 = Extremely aggressive selling (delta > 3.5x average) SPECIAL LABELS: • 0 = Neutral / Exhaustion (no significant aggression) • A = Absorption (high volume but price doesn't move) █ AMT WORKFLOW The indicator tracks the complete AMT entry workflow: 1️⃣ AGGRESSION → Look for +2/+3 or -2/-3 labels 2️⃣ ABSORPTION → Wait for "A" label (price held despite aggression) 3️⃣ EXHAUSTION → Watch labels decrease toward 0 4️⃣ ENTRY → Reversal label appears (direction change) SHORT SETUP EXAMPLE (at resistance): +1 → +2 → +3 → A → A → +1 → 0 → -1 → ENTRY SHORT LONG SETUP EXAMPLE (at support): -1 → -2 → -3 → A → A → -1 → 0 → +1 → ENTRY LONG █ DASHBOARD The dashboard shows real-time status: • Stage: Current workflow phase (1-5) • Aggression: Current numeric level • Absorption: ✓ NOW / ○ RECENT / ✗ NONE • Exhaustion: ✓ YES / ○ NO • Signal: WAIT / WATCH / READY / LONG / SHORT █ HOW TO USE 1. Add this indicator to a separate pane below your chart 2. Use TradingView's built-in SVP HD for key levels (POC/VAH/VAL) 3. Add AMT VWAP for bias determination 4. Wait for price to reach a key level 5. Watch the CVD labels for the AMT sequence 6. Enter when the dashboard shows "READY" or entry signal appears █ RECOMMENDED SETUP Complete AMT toolkit: • Main Chart: SVP HD (built-in) + AMT VWAP • Lower Pane: AMT CVD (this indicator) Timeframes: • Higher TF (H1/H4): Identify structure and key levels • Entry TF (15m): Execute using this CVD indicator █ SETTINGS Display: • Compact Mode - Simplified view for mobile • Show Numeric Labels - Toggle the +3/-3 labels • Label Size - Adjust for your preference • Dashboard Position - Move to any corner CVD Settings: • Relative Length - Period for threshold calculation (default: 20) • Threshold 1/2/3 - Multipliers for aggression levels Absorption: • Volume Multiplier - How much above average = high volume (default: 1.5x) • Price Threshold - Max price change % for absorption (default: 0.1%) Colors: • Fully customizable for buyer/seller/absorption █ ALERTS • Absorption Detected - "A" label appears • Exhaustion Detected - Aggression fading to 0 • Long Entry Signal - Full sequence complete for long • Short Entry Signal - Full sequence complete for short █ IMPORTANT NOTES ⚠️ CVD APPROXIMATION: This indicator approximates volume delta from OHLC data. For more accurate CVD, consider using exchange-native order flow tools or Volume Suite by Leviathan as a reference. ⚠️ CONFIRMATION REQUIRED: Signals should be confirmed with: • Price at key level (VAH/VAL/POC) • Visual rejection (wicks) • Higher timeframe bias alignment █ METHODOLOGY Based on Auction Market Theory by Fabio Valentino: "Don't predict, READ the market. Wait for evidence: Aggression → Absorption → Exhaustion → then Execute." Core principles: • Location is more important than technique • Be wrong immediately (tight stops at invalidation) • Evidence-based entries only █ CREDITS Based on Auction Market Theory methodology by Fabio Valentino. Designed for traders who want a systematic, evidence-based approach. If this helps your trading, please leave a like! 👍 Questions? Drop a comment below. ``` --- ## TAGS (for TradingView) ``` cvd, cumulative-volume-delta, volume-delta, order-flow, auction-market-theory, amt, fabio-valentino, absorption, exhaustion, aggression, entry-signal, day-trading, intraday, volume-analysis, delta ``` --- ## CATEGORY ``` Volume ```
Pine Script® indicator
by hardimans351
Today's Session High/Low + Previous LevelsDescription This indicator combines multiple powerful tools into one clean overlay: Today’s Session High & Low for Asia, London and New York, automatically drawn only for the current trading day. Previous High & Low levels based on configurable timeframes (hour, day, week, month or year), including optional filtering and area zones. EMA Trend Table showing EMA20, EMA50 and EMA200 alignment across multiple timeframes with clear bullish/bearish status. Designed to help traders quickly identify key intraday levels, higher-timeframe liquidity zones and overall market trend at a glance.
Pine Script® indicator
by Sparkeltje
Universal Market Ranges█ OVERVIEW Universal Market Ranges is a universal market indicator that, within a single tool, identifies trend direction and regime, shows price movement ranges relative to volatility, can be used as dynamic SL and TP levels, and offers optional signals generated separately for each zone. The indicator is based on a smoothed moving average with an ATR-based significance filter and multi-level volatility bands, which organize the market into logical zones of increasing importance. Instead of generating isolated signals, Universal Market Ranges provides full market context, allowing traders to make their own informed decisions. █ CONCEPT The core idea behind the indicator is full configurability, which allows it to be used for a wide range of trading purposes. Depending on the settings and visibility of individual elements, Universal Market Ranges can function as: - a complete trading system - a clean trend indicator - a single volatility channel - a standalone filtered moving average - a zone-based structure for position management (SL / TP) By disabling selected bands, adjusting their multipliers, or modifying fill transparency, traders can tailor the indicator precisely to their trading style, market, and timeframe. Moving Average Logic The applied moving average is not classically weighted. ATR acts here as a significance filter, determining whether a given price change is meaningful enough to affect the average. When the price deviation from the MA exceeds a defined volatility threshold (ATR × multiplier), the moving average updates normally. When price changes are too small and remain within market noise, the moving average remains unchanged. As a result, the MA reacts only to significant price movements, ignoring minor fluctuations and consolidations. █ ZONE STRUCTURE - Trend Band (TB) A channel used to define the trend regime. - price breaking above the TB → trend shifts to bullish - price breaking below the TB → trend shifts to bearish The Trend Band can be visually disabled, while the trend logic continues to operate in the background. - wider TB → less sensitive, fewer and later trend changes - narrower TB → more sensitive, more frequent regime changes - Inner Band (IB) The primary zone of acceptable price deviation from the moving average. - represents equilibrium and “comfortable” price movement - Outer Band 1 (OB1) A zone of clear market extension. - first sign that price is moving away from equilibrium - often used as a partial profit-taking level - Outer Band 2 (OB2) An extreme zone. - very strong deviation from the moving average - statistically rare price movements - often marks the final phase of large impulses █ FEATURES Data Sources: - Filtered moving average (SMA / EMA / RMA / WMA) - ATR as the volatility measure for all zones - Candle coloring based on the current trend regime Signals (optional): - Zone exit and return signals (IB / OB1 / OB2) - Moving average cross in trend direction - Trend regime change (TB breakout) Visual Elements: - Trend-based candle coloring - Smooth fills between zones - Labels with current price levels on the right side of the chart Alerts: - IB Breakout / Return - OB1 & OB2 Exit / Return - MA Cross in trend direction - Trend Change (TB) █ HOW TO USE Adding the Indicator Paste the code into the Pine Editor or search for “Universal Market Ranges” on TradingView. Key Settings: - MA Length – moving average sensitivity - ATR Length – band stability and width - Minimum Deviation (ATR) – moving average update filter   → lower values: MA updates more frequently but filters less noise - Band Multipliers – define the significance of each zone - MA Smoothing Type – determines the reaction character █ USE CASES Universal Market Ranges can be used for: - trend trading – entries on trend regime changes - defining dynamic SL and TP levels - contrarian strategies – entries on price returns to zones - analyzing price range and movement quality Zone interpretation: - price near the MA → market equilibrium - price in OB1 → clear extension - price in OB2 → extreme deviation from equilibrium █ NOTES - The indicator works on all instruments and timeframes - Best results are achieved by adapting band multipliers to the market - Can be combined with other technical analysis methods such as Fibonacci levels, FVG, and pivot levels - This is not a signal-only system — it is a context-based analytical tool
Pine Script® indicator
by Uncle_the_shooter
Price Action Assistant V2All in One Assistant for Price Action Traders 1-Calculates and Displays the Opening Gap Relative to ADR. 2-Information Table Showing Yesterday’s and Today’s Range Plus Average Bar Range. 3-Displays Micro-Gaps (Fair Value Gaps). 4-Advanced Bar Numbering With an Option to Display at Custom Intervals, Using 9 or 12 Bar Color Multiples to Visualize the Closure of 45-Minute or 60-Minute Candles on an M5 Chart. 5-Plots Previous High, Low, and Close Levels Plus the Current Session Open. 6-Displays a 3-Bar Micro Channel in the Same Direction. 7-Includes Two Different Moving Averages. 8-Displays the Daily Date and Day-of-Week Label for Easy Journaling and Chart Archiving.
Pine Script® indicator
by b3hzad
1
Killzones [Tradeuminati]Killzones is a precise TradingView indicator designed to display the most important institutional trading windows (“Killzones”) based strictly on New York local time. The indicator focuses on accurate session timing, automatic asset classification, and stable chart behavior without affecting price scale or candle colors. 🔹 Included Killzones (NY Local Time) London Killzone 02:00 – 05:00 New York Killzone (AM) Indices & Index CFDs: 09:30 – 11:00 All other assets (Forex, Crypto, Commodities such as Gold, DXY): 07:00 – 10:00 New York PM Killzone 14:00 – 15:00 🔹 Asset Logic (Fully Automatic & Locked) - Indices and Index CFDs are detected automatically - Forex, Crypto, Commodities (e.g. Gold/XAUUSD, DXY) always use the 07:00–10:00 New York Killzone - Stocks (Equities) are completely excluded → no lines, no table, no status display This ensures the indicator is purpose-built for intraday trading in highly liquid markets and intentionally not designed for stock charts. 🔹 Chart Visualization - Vertical session lines are drawn statically at the start of each New York trading day - Lines are not dependent on bar timestamps - No distortion of the price scale - Session lines are shown only on intraday timeframes below 4H - Line color, width, and style are fully adjustable 🔹 Status Table (Top Right) - Clear overview of all Killzones with start and end times - Live status indicator (green/red) based on the real current time (timenow), not the last printed candle - The table remains visible on all timeframes (except stocks) 🔹 Technical Highlights - Pure New York time–based logic, independent of chart timezone - No future-bar plotting - Stable across different brokers and CFD feeds - Does not interfere with other indicators or candle coloring ⚠️ Disclaimer This indicator is intended for technical analysis only and does not constitute trading or investment advice.
Pine Script® indicator
by DonauTrading
Dragon Trend+Arrows Suite This indicator is a volatility-normalized momentum + trend state tool designed to provide a clean “market regime” read: UP / DOWN / NEUTRAL, with optional visual confirmation on the chart. Works on collection of clasic indicators and some simple math. ⚙️ How it works (logic) 1) Adaptive baseline The core reference line is an EMA(basisLen) acting as a dynamic equilibrium price. You can treat this setting as a sensitivity for entire thing. 2) ATR volatility envelope An ATR channel is built around the baseline: Upper Band = EMA + (ATR × multiplier) Lower Band = EMA − (ATR × multiplier) This scales signals to current volatility (tight markets vs. fast markets). 3) “Impulse” detection Bull impulse when price is above both the baseline and the upper ATR band. Bear impulse when price is below both the baseline and the lower ATR band. 4) Momentum confirmation (filters) Signals are confirmed only when momentum agrees: RSI must be on the correct side of 50 MACD Histogram must match direction (positive for bullish / negative for bearish) So a signal requires price expansion (ATR breakout) + momentum agreement (RSI + MACD). 🧭 Trend state behavior When a new BUY/SELL impulse is confirmed, the script updates a persistent trend state (“BUY”, “SELL”, or “NONE”). That state stays active until the opposite confirmed impulse appears. ✅ Visuals & Usage Made some minor, mostly visual upgrades on this release: Baseline + ATR bands are smoothed for cleaner visuals. Optional BUY/SELL arrows are plotted outside the channel to avoid overlap with channel. Optional full-chart background shading reflects the current trend state: Green = UPTREND Red = DOWNTREND A minimal top panel shows the current regime (UP / DOWN / NEUTRAL). I also recently added this channel smoother parameter (for Dragon Channel), if you want it to have less spikes on those MAs just use the bigger number, I picked 8 for default. Actualy its as simple as just follow the arrows direction, given the correct settings with slightly higher basisLen on higher TFs you can get prety accurate long shots. Ofcourse you can still can get random signals or noise on lower TFs, so it can be used as a background trend/momentum confirmation layer alongside your other favorite indicators or strategy tools.
Pine Script® indicator
by FxShareRobots