Flux Capacitor (FC)

# Flux Capacitor

**A volume-weighted, outlier-resistant momentum oscillator designed to expose hidden directional pressure from institutional participants.**

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### Why "Flux Capacitor"?

The name pays homage to the fictional energy core in *Back to the Future* — an invisible engine that powers movement. Similarly, this indicator detects whether price movement is being powered by real market participation (volume) or if it's coasting without conviction.

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### Methodology

The Flux Capacitor fuses three statistical layers:

- **Normalized Momentum**: `(Close – Open) / ATR`
Controls for raw price size and volatility.

- **Volume Scaling**:
Amplifies the effect of price moves that occur with elevated volume.

- **Robust Normalization**:
- *Winsorization* caps outlier spikes.
- *MAD-Z scoring* normalizes the signal across assets (crypto, futures, stocks).
- This produces consistent scaling across timeframes and symbols.

The result is a smooth oscillator that reliably indicates **liquidity-backed momentum** — not just price movement.

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### Signal Events

- **Divergence (D)**: Price makes higher highs or lower lows, but Flux does not.
- **Absorption (A)**: Candle shows high volume and small body, while Flux opposes the candle direction — indicates smart money stepping in.
- **Compression (◆)**: High volume with low momentum — potential breakout zone.
- **Zero-Cross**: Indicates directional regime flip.
- **Flux Acceleration**: Histogram shows pressure rate of change.
- **Regime Background**: Color fades with weakening trend conviction.

All signals are color-coded and visually compact for easy pattern recognition.

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### Interpreting Divergence & Absorption Correctly

Signal strength improves significantly when it appears **in the correct zone**:

#### Divergence:

| Signal | Zone | Meaning | Strength |
|--------|------------|------------------------------------------|--------------|
| Green D | Below 0 | Bullish reversal forming in weakness | **Strong** |
| Green D | Above 0 | Bullish, but less convincing | Moderate |
| Red D | Above 0 | Bearish reversal forming in strength | **Strong** |
| Red D | Below 0 | Bearish continuation — low warning value | Weak |

#### Absorption:

| Signal | Zone | Meaning | Strength |
|--------|------------|-----------------------------------------|--------------|
| Green A | Below 0 | Buyers absorbing panic-selling | **Strong** |
| Green A | Above 0 | Support continuation | Moderate |
| Red A | Above 0 | Sellers absorbing FOMO buying | **Strong** |
| Red A | Below 0 | Trend continuation — not actionable | Weak |

Look for **absorption or divergence signals in “enemy territory”** for the most actionable entries.

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### Reducing Visual Footprint

If your chart shows a long line of numbers across the top of the Flux Capacitor pane (e.g. "FC 14 20 9 ... Bottom Right"), it’s due to TradingView’s *status line input display*.

**To fix this**:
Right-click the indicator pane → **Settings** → **Status Line** tab → uncheck “Show Indicator Arguments”.
This frees up vertical space so top-edge signals (like red `D` or yellow `◆`) remain visible and unobstructed.

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### Features

- Original MAD-Z based momentum design
- True volume-based divergence and absorption logic
- Built-in alerts for all signal types
- Works across timeframes (1-min to weekly)
- Minimalist, responsive layout
- 25+ customizable parameters
- No future leaks, no repainting

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### Usage Scenarios

- **Trend confirmation**: Flux > 0 confirms bullish trend strength
- **Reversal detection**: Divergence or absorption in opposite territory = high-probability reversal
- **Breakout anticipation**: Compression signal inside range often precedes directional move
- **Momentum shifts**: Watch for zero-crosses + flux acceleration spikes

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### ⚠ Visual Note for BTC, ETH, Crude Oil & Futures

These high-priced or rapidly accelerating instruments can visually compress any linear oscillator. You may notice the Flux Capacitor’s line appears "flat" or muted on these assets — especially over long lookbacks.

> **This does not affect signal validity.** Divergence, absorption, and compression triggers still fire based on underlying logic — only the line’s amplitude appears reduced due to scaling constraints.

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### Disclaimer

This indicator is for educational purposes only. It is not trading advice. Past results do not guarantee future performance. Use in combination with your own risk management and analysis.