Nissen Heavenly Stems & Earthly Branches v2.0 (Calibrated)

Nissen Heavenly Stems & Earthly Branches v2.0 (Calibrated) - Complete Description
🎯 Originality & Unique Approach
What Makes This Script Original?
This indicator represents a novel fusion of traditional Chinese cyclical theory with modern financial market analysis. Unlike conventional technical indicators based solely on price action or volume, this tool incorporates:

Ancient Chinese Calendar Systems: Utilizes the 60-year Jia-Zi cycle (Heavenly Stems & Earthly Branches) dating back 4000+ years

Five Elements (Wu Xing) Theory: Applies Wood-Fire-Earth-Metal-Water cycles to market dynamics

Chinese Zodiac Correlation: Links 12 zodiac animals with market characteristics

Solar Term Integration: Considers traditional solar terms (particularly "Beginning of Spring") for accurate year transitions

No other TradingView indicator combines these specific traditional Chinese predictive systems with Western financial charting in this comprehensive manner.

📊 What This Indicator Does & How It Works
Core Functionality
This overlay indicator provides multi-timeframe market analysis based on traditional Chinese cyclical theories:

Yearly Cycle Analysis (Primary)

Identifies current position in the 10-year Heavenly Stem cycle (甲 to 癸)

Maps each year to specific market predictions based on historical patterns

Color-codes the chart background according to the current zodiac year

Monthly & Daily Analysis

Calculates monthly and daily Heavenly Stems & Earthly Branches

Provides short-term trend signals based on daily/monthly elements

Cycle Progress Tracking

Visual 10-year cycle progress bar showing current position

Countdown to next significant cycle transition points

Implementation Methodology
1. Calendar Calculation System:

Uses calibrated formulas for Heavenly Stems: (Year - 4) % 10

Calculates Earthly Branches: (Year - 4) % 12

Incorporates solar term adjustments (Beginning of Spring around Feb 4th)

Accurate for years 1900-2100 using Zeller's congruence algorithm for daily calculations

2. Prediction Mapping:


甲 (Jia) Years → Bear to Bull transition, Bottom years
乙 (Yi) Years → Bull markets
丙/丁 (Bing/Ding) Years → Super bull markets (Fire element)
戊/己 (Wu/Ji) Years → Bear markets (Earth element)
庚/辛 (Geng/Xin) Years → Structural markets, Risk years
壬/癸 (Ren/Gui) Years → Observation periods
3. Five Elements Integration:

Maps each Heavenly Stem to Wood-Fire-Earth-Metal-Water

Analyzes relationship between current year's element and "market element" (assumed as Water)

Generates "生成克制" (Generate-Control) relationship insights

Visual Components
Background Coloring: Entire chart background changes color based on zodiac animal of the year

Information Tables: Detailed tables showing:

Current lunar year and zodiac

Five Elements relationship to markets

Cycle progress and next transition points

Daily and monthly Stems & Branches with trend signals

Year Labels: Floating labels at year transitions showing year info and predictions

Cycle Progress Bar: Visual representation of 10-year cycle completion percentage

Special Markers: Highlighted markers for significant years (甲, 丙丁, 戊辛, 癸)

Trend Indicators: Directional arrows showing overall yearly trend

🧠 Core Theoretical Framework
Philosophical Foundation
This indicator operates on three interconnected cyclical theories:

1. 10-Year Heavenly Stem Cycle (天干循环)

Each of the 10 Heavenly Stems represents distinct market characteristics

Complete cycle repeats every 10 years with predictable patterns

Based on observed correlations between these cycles and historical market movements

2. 12-Year Earthly Branch/Zodiac Cycle (地支/生肖循环)

Each zodiac year has associated color coding and characteristics

Provides secondary confirmation to Heavenly Stem predictions

Creates 60-year combined cycle when multiplied with 10-year cycle

3. Five Elements Market Theory (五行市场理论)

Assumption: Financial markets exhibit characteristics of Water element (流动、变化)

Analysis: How each year's element interacts with Water:

Same element (Water-Water): Harmony, stable trends

Generating element (Metal-Water): Supportive, bullish

Controlling element (Earth-Water): Restrictive, bearish

Generated element (Water-Wood): Draining, volatile

Controlling element (Water-Fire): Dominant, trend strong

Historical Correlation Basis
The prediction mappings derive from observed correlations between Chinese calendar years and major market movements:

丙丁 (Bing/Ding) Fire Years: Historically correlated with major bull markets (e.g., 1997丁丑年 Asian boom, 2007丁亥年 pre-crisis peak)

戊己 (Wu/Ji) Earth Years: Often associated with market corrections or bear phases

甲 (Jia) Years: Frequently mark cycle beginnings and transitional phases

🎮 Practical Usage Guide
For Long-Term Investors
Cycle Positioning: Determine where we are in the 10-year cycle

Yearly Outlook: Use the yearly prediction to set overall portfolio bias

Cycle Transitions: Watch for 甲 (Jia) year beginnings and 癸 (Gui) year endings for major rebalancing

For Swing Traders
Monthly Signals: Check monthly Heavenly Stems for intermediate-term bias

Element Relationships: Use Five Elements analysis for sector rotation ideas

Cycle Progress: Monitor the 10-year progress bar for approaching transitions

For Short-Term Traders
Daily Stems & Branches: Use daily signals for short-term directional bias

Intraday Context: Align short-term trades with the larger cycle direction

Alert System: Set alerts for significant year/month transitions

Specific Trading Applications
1. Trend-Following Enhancement

Use yearly trend direction to filter counter-trend trades

Align with the predominant element's characteristics (e.g., Fire years favor momentum strategies)

2. Mean Reversion Timing

Earth and Metal years often show increased mean reversion characteristics

Use daily signals to time entries during counter-trend moves

3. Sector Rotation Framework

Different elements favor different sectors:

Wood/Water years: Technology, Innovation

Fire years: Energy, Growth stocks

Earth years: Real Estate, Materials

Metal years: Financials, Industrials

4. Risk Management

Heighten caution during 辛 (Xin) Metal years (designated "Risk Years")

Reduce leverage during controlling element relationships

⚙️ Configuration Options
Visual Customization
Adjust background brightness and colors for each zodiac year

Customize label positions, sizes, and colors

Toggle various display elements on/off based on preference

Analytical Focus
Choose to emphasize yearly, monthly, or daily signals

Adjust the cycle progress bar position and appearance

Customize which special year markers to display

Alert System
Enable alerts for year transitions

Customize which cycle transitions trigger alerts

Combine with other indicators for confirmation

⚠️ Important Considerations
Theoretical Nature
This indicator is based on cyclical correlation theories, not causal relationships. It should be used as:

A Complementary Tool: Not a standalone trading system

A Framework for Thinking: About market cycles and rhythms

A Sentiment Indicator: Of longer-term market positioning

Practical Limitations
Not a Timing Tool: Doesn't provide precise entry/exit points

Cultural Specificity: Based on Eastern cyclical concepts

Historical Correlation: Past patterns may not repeat identically

Recommended Usage
Combine with Technical Analysis: Use alongside traditional indicators

Verify with Fundamental Analysis: Ensure cycle signals align with economic reality

Risk Management First: Never rely solely on cyclical predictions for position sizing

📈 Integration with Other Strategies
With Trend Following
Use yearly trend direction to determine primary trend bias

Filter trade signals to align with cycle direction

With Counter-Trend Strategies
Identify years with high mean reversion probability

Use daily signals for timing counter-trend entries

With Seasonal Patterns
Overlay traditional seasonal patterns with Chinese calendar cycles

Look for convergence/divergence between different cyclical systems

🔮 Future Development Path
The current implementation focuses on yearly cycles, but the framework can expand to:

Smaller Timeframes: Applying the system to weekly/daily cycles

Inter-market Analysis: Different elements for different asset classes

Geographical Variations: Adjusting for different market characteristics by region

Combination with Western Cycles: Integrating with Kondratieff waves, decennial patterns