MM CAPOA Dons right Hand
Standard Deviation is the game we are playing here
-3 levels to show the strength of both buy/sell
-Colors the candles based on signal (momentum) strength
-Multi timeframe feature
-Color candles for on chart confirmation ( with sensitivity the High you set it will only give you stronger signals)
-Alerts for different level signals including 0 crossover
-Can change the strength of the signal to show what Level you would like to confirm your trades with
Also built in Momentum squeeze indicator
-the Grey line indicates (BBands) SQUEEZE setting in
-the Bright Blue line indicates the EXPANSION of the BBands ( BUY )
-the Red line indicates the Expansion of the BBands ( Sell )
How to use
Confirm your on chart Strategy with the Momentum signal Of the MM capo with your preferred level of confirmation ( Level 1-3 )
You can set alerts to let you know when momentum as pick up and you can start looking for entry ( Usually means breaks of structure )
The Squeeze Indicator can show you if the momentum confirmation is goin to continue in that directions by seeing if you are in a tight BB squeeze or not
Video Explanation On YouTube channel
Link below or PM us for access to this indicator Happy Trading
Komut dosyalarını "momentum" için ara
Apex Edge - MTF Confluence PanelApex Edge – MTF Confluence Panel
Description:
The Apex Edge – MTF Confluence Panel is a powerful multi-timeframe analysis tool built to streamline trade decision-making by aggregating key confluences across three user-defined timeframes. The panel visually presents the state of five core market signals—Trend, Momentum, Sweep, Structure, and Trap—alongside a unified Score column that summarizes directional bias with clarity.
Traders can customize the number of bullish/bearish conditions required to trigger a score signal, allowing the tool to be tailored for both conservative and aggressive trading styles. This script is designed for those who value a clean, structured, and objective approach to identifying market alignment—whether scalping or swing trading.
How it Works:
Across each of the three selected timeframes, the panel evaluates:
Trend: Based on a user-configurable Hull Moving Average (HMA), the script compares price relative to trend to determine bullish, bearish, or neutral bias.
Momentum: Uses OBV (On-Balance Volume) with volume spike detection to identify bursts of strong buying or selling pressure.
Sweep: Detects potential liquidity grabs by identifying price rejections beyond prior swing highs/lows. A break below a previous low with reversal signals bullish intent (and vice versa for bearish).
Structure: Uses dynamic pivot-based logic to identify market structure breaks (BOS) beyond recent confirmed swing levels.
Trap: Flags potential false moves by measuring RSI overbought/oversold signal clusters combined with minimal price movement—highlighting exhaustion or deceptive breaks.
Score: A weighted consensus of the above components. The number of required confluences to trigger a score (default: 3) can be set by the user via input, offering flexibility in signal sensitivity.
Why It’s Useful for Traders:
Quick Decision-Making: The color-coded panel provides instant visual feedback on whether confluences align across timeframes—ideal for fast-paced environments like scalping or high-volatility news sessions.
Multi-Timeframe Confidence: Helps eliminate guesswork by confirming whether higher and lower timeframe conditions support your trade idea.
Customizability: Adjustable confluence threshold means traders can fine-tune how sensitive the system is—more signals for faster entries, stricter confluence for higher conviction trades.
Built-In Alerts: Automated alerts for score alignment, trap detection, and liquidity sweeps allow traders to stay informed even when away from the screen.
Strategic Edge: Supports directional bias confirmation and trade filtering with logic designed to mimic professional decision-making workflows.
Features:
Clean, real-time confluence table across three user-selected timeframes
Configurable score sensitivity via “Minimum Confluences for Score” input
Cell-based colour coding for at-a-glance trade direction
Built-in alerts for score alignment, traps, and sweep triggers
Note - This Indicator works great in sync with Apex Edge - Session Sweep Pro
Useful levels for TP = previous session high/low boxes or fib levels.
⚠️ Disclaimer:
This script is for informational and educational purposes only and should not be considered financial advice. Always perform your own due diligence and practice proper risk management when trading.
CoffeeShopCrypto Supply Demand PPO AdvancedCoffeeShopCrypto PPO Advanced is a structure-aware momentum oscillator and price-trend overlay designed to help traders interpret momentum strength, exhaustion, and continuation across evolving market conditions. It’s not a “buy/sell” signal tool — it's a momentum context tool that helps confirm trend intent.
Original Code derived from the Price Oscillator Indicators (PPO) found in the TradingView Technical Indicators categories. You can view the info and calculation for the original PPO here
www.tradingview.com
Much like the MACD, the PPO uses a couple lagging indicators to present Momentum as a percentage. But it lacks context to market structure.
What It’s Based On
This tool is based on a dual-moving-average PPO oscillator structure (Percentage Price Oscillator) enhanced by:
Oscillator pivot structure: detection of Lower Highs (LH) and Higher Lows (HL) inside the oscillator.
Detection of Supply and Demand Trends via Market Absorption
Ability to transfer its average plots to price action
Detection of Trend Exhaustion
Real-time price-based exhaustion levels: projecting potential future supply and demand using trendlines from weakening momentum.
Integrated fast and slow Moving Averages on price using the same inputs as the oscillator, to visualize alignment between short- and long-term trends.
These elements combine momentum context with price action in a visual, intuitive system.
How It Works
1. Oscillator Structure
LHs (above zero): momentum weakening in uptrends.
HLs (below zero): momentum strengthening in downtrends.
Only valid pivots are shown (e.g., an LH must be preceded by a valid LL).
2. Exhaustion Levels
Green demand lines: price is making new lows, but oscillator prints HL → potential exhaustion.
Red supply lines: price is making new highs, but oscillator prints LH → potential exhaustion.
These lines are future-facing, projecting likely reaction zones based on momentum weakening.
3. Moving Averages on Price
Two MAs are drawn on the price chart:
Fast MA (same length as PPO short input)
Slow MA (same length as PPO long input)
These are not signal lines — they're visual guides for trend alignment.
MA crossover = PO crosses zero. This indicates short- and long-term momentum are syncing — a powerful signal of trend conviction.
When price is above both MAs, and the PO is rising above zero, bullish momentum is dominant.
When price is below both MAs, and the PO is falling below zero, bearish momentum dominates.
How Traders Can Use It
✅ Spot Trend Initiation
Wait for clear trend confirmation in price.
Use PPO Momentum+ to confirm momentum structure is aligned (e.g., HH/HL in oscillator + price above both MAs).
🔁 Track Continuations
In uptrends, look for oscillator HH and HL sequences with price holding above both MAs.
In downtrends, seek LL and LH sequences with price below both MAs.
⚠️ Watch for Exhaustion
Price breaking below red (supply) lines after oscillator LH = bearish exhaustion signal.
Price breaking above green (demand) lines after oscillator HL = bullish exhaustion signal.
These levels act like pre-mapped S/R zones, showing where momentum previously failed and price may react.
Why This Is Different
Momentum tools often lag or mislead when used blindly. This tool visualizes structural failure in momentum and maps potential outcomes. The integration of oscillator and price-based tools ensures traders are always reading context, not just raw signals.
Demand Trendlines
Demand trendlines show us Wykoff's law of "Absorbed Supply Reversal" In real time.
When aggressive selling pressure is persistently absorbed by passive buying interest without significant downward price continuation, and supply becomes exhausted, the market structure shifts as demand regains control—resulting in a directional reversal to the upside.
This commonly happens in a 3 phase interaction of price.
1. Selling pressure is absorbed quickly by buyers.
This PPO tool will calculate the trend of this absorption process
2. After there is a notable Bearish Exhaustion of price action, the PPO tool will draw a trendline of this absorption showing us the potential future prices where aggressive buyers will want to step in at lower prices.
3. After higher lows are defined in the oscillator, you'll see prices react in a strong bullish pattern at this trendline where aggressive buyers stepped in to reverse price action to the upside.
Supply Trendlines
Supply trendlines show us Wykoff's law of "Absorbed Demand Reversal" In real time.
When aggressive buying pressure is persistently absorbed by passive selling interest without significant downward price continuation, and demand becomes exhausted, the market structure shifts as supply regains control—resulting in a directional reversal to the downside.
This commonly happens in a 3 phase interaction of price.
1. Buying pressure is absorbed quickly by sellers.
This PPO tool will calculate the trend of this absorption process.
2. After there is a notable Bullish Exhaustion of price action, the PPO tool will draw a trendline of this absorption showing us the potential future prices where aggressive sellers will want to step in at higher prices.
3. After lower highs are defined in the oscillator, you'll see prices react in a strong bearish pattern at this trendline where aggressive sellers stepped in to reverse price action to the downside.
Lower High and Higher Low Signals
When the oscillator signals Lower Highs or High Lows its only noting that momentum in that trend direction is slowing. THis indicates a coming pause in the market and the proceeding longs of an uptrend or shorts of a downtrend should be taken with caution.
**These LH and HL markers are not reading as divergences in price vs momentum.**
They are simply registering against the highs and lows of itself..
Moving Averages on Price Action
The Oscillator will cross over its ZERO level the same time your Short and Long MAs cross each other. This will indicate that the short term average trend is moving ahead of the long term.
Crossovers are not an entry signal. It's a method in determining you current timeframe trend strength. Always observe price action as it passes through each of your moving averages and compare it to the positioning and direction of the oscillator.
If price dips in between the moving averages while the oscillator still shows a strong trend strength, you can wait for price to move ahead of your fast moving average.
Bar Colors and Signal Line for Trend Strength
Good Bullish Trend = Oscillator above zero + Signal rising below Oscillator
Weak Bullish Trend = Oscillator above zero + Signal above Oscillator
Good Bearish Trend = Oscillator below zero + Signal falling above Oscillator
Weak Bearish Trend = Oscillator below zero + Signal below Oscillator
Bar Colors
Bars are colored to match Oscillator Momentum Strength. Colors are set by user.
Why alter the known PPO (Percentage Price Oscillator) in this manner?
The PPO tool is great for measuring the strength as percentage of price action over and average amount of candles however, with these changes,
you know have the ability to correlate:
Wycoff theory of supply and demand,
Measure the depth of reversals and pullback by price positioning against moving averages,
Project potential reversal and exhaustion pricing,
Visibly note the structure of momentum much like you would note market structure,
Its not enough to know there is momentum. Its better to know
A) Is it enough
B) Is there something in the way which will cause price to push back
C) Does this momentum correlate to the prevailing trend
Jigga-SectorTrendViewThe Jigga-SectorView script is indicator designed to analyze and visualize sector trends based on given input. Based on input of multiple sector indices, calculates key technical values, and presents a structured summary in a table.
Calculating Sector Strength & Momentum:
For each selected symbol
Step 1 - 52-week lowest low is fetched.
Step 2 - Daily closing price is retrieved.
Step 3 - A crossover between 50-day EMA and 200-day EMA determines trend shifts.
Step 4 - Percentage difference from the identified level is calculated.
Output:
A bottom-right table is created with sector-wise trend insights which shows Symbol name and how much its away from SL in percentage terms.
Enhanced Momentum Divergence Radar+ [Alpha Extract]Enhanced Momentum Divergence Radar+
The AE's Enhanced Momentum Divergence Radar+ is designed to detect momentum shifts and divergence patterns, helping traders identify potential trend reversals and continuation points. By normalizing momentum readings and applying divergence detection, it enhances market timing for entries and exits.
🔶 CALCULATION
The indicator calculates normalized momentum using a combination of Detrended Price Oscillator (DPO) and volatility-adjusted smoothing techniques. It highlights overbought and oversold conditions while identifying bullish and bearish divergences.
Core Calculation:
ATR-based volatility adjustment ensures dynamic sensitivity.
DPO is derived from the price minus a simple moving average (SMA) to isolate cyclical movements.
Momentum score is normalized using historical max values for consistent scaling.
Thresholds are dynamically adjusted based on average absolute momentum.
dpo = close - ma
sd = (dpo / volatility) * 100
normalizedSD = sd / maxAbsSD
The momentum score is plotted as a histogram, where:
Green bars indicate strong upward momentum.
Red bars indicate strong downward momentum.
Neutral values fade into gray.
🔶 DETAILS
📊 Visual Features:
Histogram bars dynamically color-coded based on momentum strength.
Threshold bands provide reference points for overbought and oversold levels.
Divergence markers (Bullish/Bearish & Hidden Bullish/Bearish) highlight key reversal signals.
🛠 How Divergences Work:
Bullish Divergence (𝓞𝓢): Price makes a lower low while momentum makes a higher low.
Bearish Divergence (𝓞𝓑): Price makes a higher high while momentum makes a lower high.
Hidden Divergences confirm trend continuations rather than reversals.
📌 Example of Divergence Logic:
bullishDiv = (low == priceLow) and (sd > momentumLow)
bearishDiv = (high == priceHigh) and (sd < momentumHigh)
🔶 EXAMPLES
📍 The chart below illustrates price reacting to momentum divergences, identifying potential tops and bottoms before major price moves.
📌 Example snapshots:
A bullish divergence leading to a reversal in price.
A bearish divergence marking the beginning of a downtrend.
🔶 SETTINGS
🔹 Customization Options:
Lookback Period: Adjusts sensitivity to market cycles.
Smoothing Period: Controls signal clarity.
Color Options: Enables bar coloring based on momentum strength.
Divergence Sensitivity: Choose to display hidden divergences.
Trend Momentum Strength Indicator, Built for Pairs TradingOverview:
This script combines multiple indicators to provide a comprehensive analysis of both trend strength and trend momentum. It is tailored specifically for pairs trading strategies but can also be used for other trading strategies.
Benefit of Comprehensive Analysis:
Having an indicator that evaluates both trend strength and trend momentum is crucial for traders looking to make informed decisions. It allows traders to not only identify the direction and intensity of a trend but also gauge the momentum behind it. This dual capability helps in confirming potential trade opportunities, whether for entering trades with strong trends or considering reversals during overbought or oversold conditions. By integrating both aspects into one tool, traders can gain a holistic view of market dynamics, enhancing their ability to time entries and manage risk effectively.
Features:
* Trend Strength:
Enhanced ADX Formula: The script includes modifications to the standard ADX formula along with DI+ and DI- to provide more responsive trend strength readings.
Directional Indicators: DI+ (green line) indicates positive directional movement, while DI- (red line) indicates negative directional movement.
Trend Momentum:
Modified Stochastic Indicators: The script uses %K and %D indicators, modified and combined with ADX to give a clear indication of trend momentum.
Momentum Strength: This helps determine the strength and direction of the momentum.
Trading Signals:
Combining Indicators: The script combines ADX, DI+, DI-, %K, and %D to generate comprehensive trading signals.
Optimal Entry Points: Designed to identify optimal entry points for trades, particularly in pairs trading.
Colored Area at Bottom:
This area provides two easy-to-read functions:
Color:
Green: Upward momentum (ratio above 1)
Red: Downward momentum (ratio below 1)
Height:
Higher in green: Stronger upward momentum
Lower in red: Stronger downward momentum
Legend:
Green Line: DI+ (Positive)
Red Line: DI- (Negative)
Black Line: ADX
How to Read This Indicator:
1) Trend Direction:
DI+ above DI-: Indicates an upward trend.
DI- above DI+: Indicates a downward trend.
2) Trend Strength:
ADX below 20: Indicates a neutral trend.
ADX between 20 and 25: Indicates a weak trend.
ADX above 25: Indicates a strong trend.
Trading Signals in Pairs Trading:
Neutral Trend: Ideal for pairs trading when no strong trend is detected.
Overbought/Oversold: Uses %K and %D to identify overbought/oversold conditions that support trade decisions.
Entry Signals: Green signals for long positions, red signals for short positions, based on combined criteria of neutral trend strength and supportive momentum.
Application in Pairs Trading:
Neutral trend: In pairs trading strategies, where neutral movement is often sought, this indicator provides signals that are especially relevant during periods of neutral trend strength and supportive momentum, aiding traders in identifying optimal entry
Risk Management: Combining signals from ADX, DI+, DI-, %K, and %D helps traders make more informed decisions regarding entry points, enhancing risk management.
Example Chart (The indicator is on the upper right corner):
Clean Presentation: The chart only includes the necessary elements to demonstrate the indicator’s functionality.
Demonstrates: Overbought/oversold conditions, upward/downward/no momentum, and trading signals with/without specific scenarios.
Volume-Enhanced Momentum Moving Average (VEMMA)Volume-Enhanced Momentum Moving Average (VEMMA)
Overview:
The Volume-Enhanced Momentum Moving Average (VEMMA) helps you spot market trends by combining momentum and volume as a moving average. This unique moving average adjusts itself based on the strength and activity of the market, giving you a clearer picture of what’s happening.
How It Works:
1. Key Settings (all of these are adjustable in the settings panel of the indicator):
◦ Base Length: Looks back over the last 50 days by default.
◦ Momentum Length: Uses the past 14 days to measure market strength.
◦ Volume Length: Uses the past 30 days to average trading volume.
◦ High/Low Thresholds: Considers RSI values above 70 as high momentum and below 30 as low momentum.
2. Momentum and Volume:
◦ Momentum: Calculated using the Relative Strength Index (RSI) to see if the market is gaining or losing strength.
◦ Volume: Average trading volume is calculated over the last 30 days to gauge trading activity.
3. VEMMA Calculation:
◦ For each of the past 50 days:
▪ Check Momentum: If RSI > 70, it’s high momentum; if RSI < 30, it’s low.
▪ Weight by Volume: High momentum days with high volume get more weight; low momentum days get less.
▪ Combine: Multiply the closing price by this weight and sum it up.
◦ Average: Divide the total by 50 to get the VEMMA value.
4. Visuals:
◦ Lines: Two lines, VEMMA1 (blue) and VEMMA2 (orange), show the adjusted moving averages.
◦ Colours: Background colors help you quickly spot high (green) and low (red) momentum periods.
How to Use:
• Spot Trends: Rising VEMMA lines suggest an uptrend; falling lines suggest a downtrend.
• Confirm Signals: When both VEMMA1 and VEMMA2 move together, it indicates a strong trend.
• Identify Reversals: Watch for background color changes from green to red or vice versa to catch potential trend reversals.
If the market has been strong and active, the VEMMA line will rise more sharply. If the market is weak and quiet, the line will be smoother.
Benefits:
• Integrated View: Combines market strength and trading activity for a fuller picture.
• Responsive: Adapts to significant market changes, highlighting key movements.
• Easy to Read: Clear visuals with color-coded backgrounds make interpretation simple.
Remember, just like any other indicator, this is not supposed to be used alone. Use it as part of your greater trading strategy. I do however believe it works exceptionally well for finding longer term trends early. The default VEMMA settings work very well as replacement for the EMA 200. Try it and see how it goes. Play around with the settings. Feedback appreciated.
Trend Spotter v1Trend Spotter - Advanced Trend and Momentum Trading Strategy
Overview:
Trend Spotter is an advanced trading script designed to help traders identify high-probability buy and sell opportunities in the market. This closed-source script combines trend detection and momentum analysis to deliver reliable and actionable trading signals.
How It Works:
Trend Spotter integrates two powerful technical indicators: the Moving Average Convergence Divergence (MACD) and the Stochastic Relative Strength Index (StochRSI). These indicators are known for their effectiveness in identifying market trends and momentum shifts, respectively.
MACD Component: The MACD indicator is used to determine the strength and direction of a trend. By calculating the difference between a fast and a slow exponential moving average (EMA) of the asset’s price, the MACD helps to identify changes in the strength, direction, momentum, and duration of a trend. This script uses optimized settings for MACD to filter out market noise and focus on significant trends.
StochRSI Enhancement: The StochRSI is an oscillator that applies the Stochastic formula to the Relative Strength Index (RSI) values, making it a more sensitive indicator for detecting overbought and oversold conditions. StochRSI provides early signals of potential trend reversals, adding an extra layer of precision to the MACD signals.
Signal Generation Logic:
Trend Spotter generates buy and sell signals based on a combination of MACD crossovers and StochRSI levels:
Buy Signal: A buy signal is triggered when the MACD line crosses above the signal line, indicating a potential bullish trend, and the StochRSI confirms rising momentum.
Sell Signal: A sell signal occurs when the MACD line crosses below the signal line, indicating a potential bearish trend, and the StochRSI confirms falling momentum.
How to Use the Script:
Apply to Chart: Add Trend Spotter to any asset’s chart. It is best suited for time frames of 1-hour or higher.
Interpret Signals: Look for green arrows below the bars for buy signals and red arrows above the bars for sell signals.
Risk Management: Use stop-loss and take-profit levels to manage risk, ideally based on the asset’s volatility.
Unique Features:
Adaptive Settings: Trend Spotter adjusts its sensitivity based on historical volatility and market conditions, ensuring that the signals remain relevant across different market environments.
Visual and Audible Alerts: Traders receive clear visual signals on the chart and optional audible alerts when a buy or sell condition is met, ensuring that no trading opportunity is missed.
Conclusion:
Trend Spotter provides traders with a robust tool for trend and momentum analysis, combining the strengths of MACD and StochRSI to generate high-quality trading signals. This script is ideal for traders looking for a reliable method to identify entry and exit points in various market conditions.
Disclaimer:
While Trend Spotter has been backtested and optimized for performance, it is important to use it as part of a comprehensive trading strategy. Past performance is not indicative of future results, and traders should practice proper risk management when using this tool.
RSI(EMA) - Reducing Noise This script is a modified version of the Relative Strength Indicator ( RSI ). While using RSI to trade the markets, the signals generated are very choppy.
Approach 1. One way to reduce this noise is to use a higher period for the RSI calculation. (say 20 instead of 14 period). In this approach, the valid signal comes quite late.
Approach 2. My unique solution is to use a Exponential Moving Average as the input for the RSI calculation. Usually RSI calculations are based on close value of the candles. If we use an appropriate EMA value, then the signal efficiency will increase.
Using the approach 2, strategies similar to regular RSI can be utilized i.e. RSI breakout, RSI divergence, RSI Hidden divergence.
RSI Colors explained
GREEN = BULLISH momentum when RSI >60
RED = BEARISH momentum when RSI <40
BLACK = NEUTRAL market conditions when RSI is between 40 and 60
Breakout Strategy
LONGS - RSI color is GREEN + Price breaks a Resistance
SHORTS - RSI color is RED + Price breaks a Support
Recommended default settings: EMA =7 period , RSI =14 period
ADDITIONAL TIP: Works wonderfully with Pivot Points (standard)
I recommended to use on minimum 5 MINUTE timeframe for intraday trades . But you can use different timeframes as well.
Please leave comment below If you have any question or development idea.
Multiple Standard Moving Averages {CyberNetwork}Multiple standard moving average plots in a single script, with golden cross (GX) and death cross (DX) indicators.
Momentum filters of each MA can be applied to the GX/DX indicators -- i.e. such that the 50 SMA /200 SMA GX will only trigger if the momentum of the 200 SMA is positive, etc.
Note: User can set the triggering criterion, scaled to the % of the respective MA value.
Setting this value to negative allows the triggering of GX when MA momentum is negative (-ve), and vice versa for DX.
Each plots and indicators can be individually enabled/disabled.
This script is base on the following Multiple Moving Averages script: which allows users to set their own preferred MA candle lengths.
Multiple Moving Averages {Cybernetwork}
Correlation Coefficient {Cybernetwork}Correlation Coefficient (CC): with CC momentum and acceleration oscillators, and momentum-divergence indicator.
TVMC - Composite Indicator with Technical RatingsDescription:
The TVMC (Trend, Volume, Momentum, Composite) indicator is a powerful multi-component tool designed to provide traders with a comprehensive understanding of market conditions. By combining four essential technical analysis components—trend, momentum, volume, and volatility—this indicator offers clear and actionable insights to assist in decision-making.
Key Features:
1. Trend Component (TC):
* Based on MACD (Moving Average Convergence Divergence), this component analyzes the relationship between two exponential moving averages (fast and slow) to determine the prevailing market trend.
* The MACD signal is normalized to a range of -1 to +1 for consistency and clarity.
2. Momentum Component (MC):
* Utilizes RSI (Relative Strength Index) to measure the strength and speed of price movements.
* This component highlights overbought or oversold conditions, which may indicate potential market reversals.
3. Volume Confirmation (VC):
* Compares the current trading volume to its moving average over a specified period.
* High volume relative to the average confirms the validity of the current trend.
4. Volatility Filter (VF):
* Uses ATR (Average True Range) to gauge market volatility.
* Adjusts and smooths signals to reduce noise during periods of high volatility.
5. Technical Ratings Integration:
* Incorporates TradingView’s Technical Ratings, allowing users to validate signals using moving averages, oscillators, or a combination of both.
* Users can choose their preferred source of ratings for enhanced signal confirmation.
How It Works:
The TVMC indicator combines the weighted contributions of the Trend, Momentum, and Volume components, further refined by the Volatility Filter. Each component plays a specific role:
* Trend: Identifies whether the market is bullish, bearish, or neutral.
* Momentum: Highlights the strength of price action.
* Volume: Confirms whether the current price action is supported by sufficient trading activity.
* Volatility: Filters out excessive noise in volatile market conditions, providing a smoother and more reliable output.
Visualization:
1. Bullish Signals:
* The indicator line turns green and remains above the zero line, indicating upward momentum.
2. Bearish Signals:
* The indicator line turns red and falls below the zero line, signaling downward momentum.
3. Neutral Signals:
* The line is orange and stays near zero, indicating a lack of strong trend or momentum.
4. Zones:
* Horizontal lines at +30 and -30 mark strong bullish and bearish zones, respectively.
* A zero line is included for clear separation between bullish and bearish signals.
Recommended Usage:
* Best Timeframes: The indicator is optimized for higher timeframes such as 4-hour (H4) and daily (D1) charts.
* Trading Style: Suitable for swing and positional trading.
* Customization: The indicator allows users to adjust all major parameters (e.g., MACD, RSI, volume, and ATR settings) to fit their trading preferences.
Customization Options:
* Adjustable weights for Trend, Momentum, and Volume components.
* Fully configurable settings for MACD, RSI, Volume SMA, and ATR periods.
* Timeframe selection for multi-timeframe analysis.
Important Notes:
1. Originality: The TVMC indicator combines multiple analysis methods into a unique framework. It does not replicate or minimally modify existing indicators.
2. Transparency: The description is detailed enough for users to understand the methodology without requiring access to the code.
3. Clarity: The indicator is explained in a way that is accessible even to users unfamiliar with complex technical analysis tools.
Compliance with TradingView Rules:
* The indicator is written in Pine Script version 5, adhering to TradingView’s language standards.
* The description is written in English to ensure accessibility to the global community, with a clear explanation of all components and functionality.
* No promotional content, links, or unrelated references are included.
* The chart accompanying the indicator is clean and demonstrates its intended use clearly, with no additional indicators unless explicitly explained.
Uptrick: Fisher Eclipse1. Name and Purpose
Uptrick: Fisher Eclipse is a Pine version 6 extension of the basic Fisher Transform indicator that focuses on highlighting potential turning points in price data. Its purpose is to allow traders to spot shifts in momentum, detect divergence, and adapt signals to different market environments. By combining a core Fisher Transform with additional signal processing, divergence detection, and customizable aggressiveness settings, this script aims to help users see when a price move might be losing momentum or gaining strength.
2. Overview
This script uses a Fisher Transform calculation on the average of each bar’s high and low (hl2). The Fisher Transform is designed to amplify price extremes by mapping data into a different scale, making potential reversals more visible than they might be with standard oscillators. Uptrick: Fisher Eclipse takes this concept further by integrating a signal line, divergence detection, bar coloring for momentum intensity, and optional thresholds to reduce unwanted noise.
3. Why Use the Fisher Transform
The Fisher Transform is known for converting relatively smoothed price data into a more pronounced scale. This transformation highlights where markets may be overextended. In many cases, standard oscillators move gently, and traders can miss subtle hints that a reversal might be approaching. The Fisher Transform’s mathematical approach tightens the range of values and sharpens the highs and lows. This behavior can allow traders to see clearer peaks and troughs in momentum. Because it is often quite responsive, it can help anticipate areas where price might change direction, especially when compared to simpler moving averages or traditional oscillators. The result is a more evident signal of possible overbought or oversold conditions.
4. How This Extension Improves on the Basic Fisher Transform
Uptrick: Fisher Eclipse adds multiple features to the classic Fisher framework in order to address different trading styles and market behaviors:
a) Divergence Detection
The script can detect bullish or bearish divergences between price and the oscillator over a chosen lookback period, helping traders anticipate shifts in market direction.
b) Bar Coloring
When momentum exceeds a certain threshold (default 3), bars can be colored to highlight surges of buying or selling pressure. This quick visual reference can assist in spotting periods of heightened activity. After a bar color like this, usually, there is a quick correction as seen in the image below.
c) Signal Aggressiveness Levels
Users can choose between conservative, moderate, or aggressive signal thresholds. This allows them to tune how quickly the indicator flags potential entries or exits. Aggressive settings might suit scalpers who need rapid signals, while conservative settings may benefit swing traders preferring fewer, more robust indications.
d) Minimum Movement Filter
A configurable filter can be set to ensure that the Fisher line and its signal have a sufficient gap before triggering a buy or sell signal. This step is useful for traders seeking to minimize signals during choppy or sideways markets. This can be used to eliminate noise as well.
By combining all these elements into one package, the indicator attempts to offer a comprehensive toolkit for those who appreciate the Fisher Transform’s clarity but also desire more versatility.
5. Core Components
a) Fisher Transform
The script calculates a Fisher value using normalized price over a configurable length, highlighting potential peaks and troughs.
b) Signal Line
The Fisher line is smoothed using a short Simple Moving Average. Crossovers and crossunders are one of the key ways this indicator attempts to confirm momentum shifts.
c) Divergence Logic
The script looks back over a set number of bars to compare current highs and lows of both price and the Fisher oscillator. When price and the oscillator move in opposing directions, a divergence may occur, suggesting a possible upcoming reversal or weakening trend.
d) Thresholds for Overbought and Oversold
Horizontal lines are drawn at user-chosen overbought and oversold levels. These lines help traders see when momentum readings reach particular extremes, which can be especially relevant when combined with crossovers in that region.
e) Intensity Filter and Bar Coloring
If the magnitude of the change in the Fisher Transform meets or exceeds a specified threshold, bars are recolored. This provides a visual cue for significant momentum changes.
6. User Inputs
a) length
Defines how many bars the script looks back to compute the highest high and lowest low for the Fisher Transform. A smaller length reacts more quickly but can be noisier, while a larger length smooths out the indicator at the cost of responsiveness.
b) signal aggressiveness
Adjusts the buy and sell thresholds for conservative, moderate, and aggressive trading styles. This can be key in matching the indicator to personal risk preferences or varying market conditions. Conservative will give you less signals and aggressive will give you more signals.
c) minimum movement filter
Specifies how far apart the Fisher line and its signal line must be before generating a valid crossover signal.
d) divergence lookback
Controls how many bars are examined when determining if price and the oscillator are diverging. A larger setting might generate fewer signals, while a smaller one can provide more frequent alerts.
e) intensity threshold
Determines how large a change in the Fisher value must be for the indicator to recolor bars. Strong momentum surges become more noticeable.
f) overbought level and oversold level
Lets users define where they consider market conditions to be stretched on the upside or downside.
7. Calculation Process
a) Price Input
The script uses the midpoint of each bar’s high and low, sometimes referred to as hl2.
hl2 = (high + low) / 2
b) Range Normalization
Determine the maximum (maxHigh) and minimum (minLow) values over a user-defined lookback period (length).
Scale the hl2 value so it roughly fits between -1 and +1:
value = 2 * ((hl2 - minLow) / (maxHigh - minLow) - 0.5)
This step highlights the bar’s current position relative to its recent highs and lows.
c) Fisher Calculation
Convert the normalized value into the Fisher Transform:
fisher = 0.5 * ln( (1 + value) / (1 - value) ) + 0.5 * fisher_previous
fisher_previous is simply the Fisher value from the previous bar. Averaging half of the new transform with half of the old value smooths the result slightly and can prevent erratic jumps.
ln is the natural logarithm function, which compresses or expands values so that market turns often become more obvious.
d) Signal Smoothing
Once the Fisher value is computed, a short Simple Moving Average (SMA) is applied to produce a signal line. In code form, this often looks like:
signal = sma(fisher, 3)
Crossovers of the fisher line versus the signal line can be used to hint at changes in momentum:
• A crossover occurs when fisher moves from below to above the signal.
• A crossunder occurs when fisher moves from above to below the signal.
e) Threshold Checking
Users typically define oversold and overbought levels (often -1 and +1).
Depending on aggressiveness settings (conservative, moderate, aggressive), these thresholds are slightly shifted to filter out or include more signals.
For example, an oversold threshold of -1 might be used in a moderate setting, whereas -1.5 could be used in a conservative setting to require a deeper dip before triggering.
f) Divergence Checks
The script looks back a specified number of bars (divergenceLookback). For both price and the fisher line, it identifies:
• priceHigh = the highest hl2 within the lookback
• priceLow = the lowest hl2 within the lookback
• fisherHigh = the highest fisher value within the lookback
• fisherLow = the lowest fisher value within the lookback
If price forms a lower low while fisher forms a higher low, it can signal a bullish divergence. Conversely, if price forms a higher high while fisher forms a lower high, a bearish divergence might be indicated.
g) Bar Coloring
The script monitors the absolute change in Fisher values from one bar to the next (sometimes called fisherChange):
fisherChange = abs(fisher - fisher )
If fisherChange exceeds a user-defined intensityThreshold, bars are recolored to highlight a surge of momentum. Aqua might indicate a strong bullish surge, while purple might indicate a strong bearish surge.
This color-coding provides a quick visual cue for traders looking to spot large momentum swings without constantly monitoring indicator values.
8. Signal Generation and Filtering
Buy and sell signals occur when the Fisher line crosses the signal line in regions defined as oversold or overbought. The optional minimum movement filter prevents triggering if Fisher and its signal line are too close, reducing the chance of small, inconsequential price fluctuations creating frequent signals. Divergences that appear in oversold or overbought regions can serve as additional evidence that momentum might soon shift.
9. Visualization on the Chart
Uptrick: Fisher Eclipse plots two lines: the Fisher line in one color and the signal line in a contrasting shade. The chart displays horizontal dashed lines where the overbought and oversold levels lie. When the Fisher Transform experiences a sharp jump or drop above the intensity threshold, the corresponding price bars may change color, signaling that momentum has undergone a noticeable shift. If the indicator detects bullish or bearish divergence, dotted lines are drawn on the oscillator portion to connect the relevant points.
10. Market Adaptability
Because of the different aggressiveness levels and the optional minimum movement filter, Uptrick: Fisher Eclipse can be tailored to multiple trading styles. For instance, a short-term scalper might select a smaller length and more aggressive thresholds, while a swing trader might choose a longer length for smoother readings, along with conservative thresholds to ensure fewer but potentially stronger signals. During strongly trending markets, users might rely more on divergences or large intensity changes, whereas in a range-bound market, oversold or overbought conditions may be more frequent.
11. Risk Management Considerations
Indicators alone do not ensure favorable outcomes, and relying solely on any one signal can be risky. Using a stop-loss or other protections is often suggested, especially in fast-moving or unpredictable markets. Divergence can appear before a market reversal actually starts. Similarly, a Fisher Transform can remain in an overbought or oversold region for extended periods, especially if the trend is strong. Cautious interpretation and confirmation with additional methods or chart analysis can help refine entry and exit decisions.
12. Combining with Other Tools
Traders can potentially strengthen signals from Uptrick: Fisher Eclipse by checking them against other methods. If a moving average cross or a price pattern aligns with a Fisher crossover, the combined evidence might provide more certainty. Volume analysis may confirm whether a shift in market direction has participation from a broad set of traders. Support and resistance zones could reinforce overbought or oversold signals, particularly if price reaches a historical boundary at the same time the oscillator indicates a possible reversal.
13. Parameter Customization and Examples
Some short-term traders run a 15-minute chart, with a shorter length setting, aggressively tight oversold and overbought thresholds, and a smaller divergence lookback. This approach produces more frequent signals, which may appeal to those who enjoy fast-paced trading. More conservative traders might apply the indicator to a daily chart, using a larger length, moderate threshold levels, and a bigger divergence lookback to focus on broader market swings. Results can differ, so it may be helpful to conduct thorough historical testing to see which combination of parameters aligns best with specific goals.
14. Realistic Expectations
While the Fisher Transform can reveal potential turning points, no mathematical tool can predict future price behavior with full certainty. Markets can behave erratically, and a period of strong trending may see the oscillator pinned in an extreme zone without a significant reversal. Divergence signals sometimes appear well before an actual trend change occurs. Recognizing these limitations helps traders manage risk and avoids overreliance on any one aspect of the script’s output.
15. Theoretical Background
The Fisher Transform uses a logarithmic formula to map a normalized input, typically ranging between -1 and +1, into a scale that can fluctuate around values like -3 to +3. Because the transformation exaggerates higher and lower readings, it becomes easier to spot when the market might have stretched too far, too fast. Uptrick: Fisher Eclipse builds on that foundation by adding a series of practical tools that help confirm or refine those signals.
16. Originality and Uniqueness
Uptrick: Fisher Eclipse is not simply a duplicate of the basic Fisher Transform. It enhances the original design in several ways, including built-in divergence detection, bar-color triggers for momentum surges, thresholds for overbought and oversold levels, and customizable signal aggressiveness. By unifying these concepts, the script seeks to reduce noise and highlight meaningful shifts in market direction. It also places greater emphasis on helping traders adapt the indicator to their specific style—whether that involves frequent intraday signals or fewer, more robust alerts over longer timeframes.
17. Summary
Uptrick: Fisher Eclipse is an expanded take on the original Fisher Transform oscillator, including divergence detection, bar coloring based on momentum strength, and flexible signal thresholds. By adjusting parameters like length, aggressiveness, and intensity thresholds, traders can configure the script for day-trading, swing trading, or position trading. The indicator endeavors to highlight where price might be shifting direction, but it should still be combined with robust risk management and other analytical methods. Doing so can lead to a more comprehensive view of market conditions.
18. Disclaimer
No indicator or script can guarantee profitable outcomes in trading. Past performance does not necessarily suggest future results. Uptrick: Fisher Eclipse is provided for educational and informational purposes. Users should apply their own judgment and may want to confirm signals with other tools and methods. Deciding to open or close a position remains a personal choice based on each individual’s circumstances and risk tolerance.
Trend Strength Momentum Indicator (TSMI)Introducing the Trend Strength Momentum Indicator (TSMI)
With over two decades of experience, I've found that no single indicator can consistently predict market movements. The key lies in combining multiple indicators to capture different market dimensions—trend, momentum, and volume. With this in mind, I present the Trend Strength Momentum Indicator (TSMI), a comprehensive tool designed to spot emerging uptrends and downtrends in cryptocurrency and other asset markets.
1. Overview of TSMI
The TSMI amalgamates three critical market aspects:
Trend Direction and Strength: Utilizing Moving Averages (MA) and the Average Directional Index (ADX).
Momentum: Incorporating the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI).
Volume Confirmation: Employing the On-Balance Volume (OBV) indicator.
By combining these elements, TSMI aims to provide a robust signal that not only indicates the direction of the trend but also confirms its strength and sustainability through momentum and volume analysis.
2. Components and Calculations
A. Trend Component
Exponential Moving Averages (EMA):
50-day EMA: Captures the short to medium-term trend.
200-day EMA: Reflects the long-term trend.
Average Directional Index (ADX):
Measures the strength of the trend regardless of its direction.
A value above 25 indicates a strong trend, while below 20 suggests a weak or non-trending market.
B. Momentum Component
Moving Average Convergence Divergence (MACD):
Calculated by subtracting the 26-day EMA from the 12-day EMA.
The MACD line crossing above the signal line (9-day EMA of MACD) indicates bullish momentum; crossing below suggests bearish momentum.
Relative Strength Index (RSI):
Oscillates between 0 and 100.
Readings above 70 indicate overbought conditions; below 30 suggest oversold conditions.
C. Volume Component
On-Balance Volume (OBV):
Cumulatively adds volume on up days and subtracts volume on down days.
A rising OBV alongside rising prices confirms an uptrend; divergence may signal a reversal.
3. TSMI Calculation Steps
Step 1: Trend Analysis
EMA Crossover:
Identify if the 50-day EMA crosses above the 200-day EMA (Golden Cross), indicating a potential uptrend.
Conversely, if the 50-day EMA crosses below the 200-day EMA (Death Cross), it may signal a downtrend.
ADX Confirmation:
Confirm the strength of the trend. An ADX value above 25 supports the EMA crossover signal.
Step 2: Momentum Assessment
MACD Evaluation:
Look for MACD crossing above its signal line for bullish momentum or below for bearish momentum.
RSI Check:
Ensure RSI is not in overbought (>70) or oversold (<30) territory to avoid potential reversals against the trend.
Step 3: Volume Verification
OBV Direction:
Confirm that OBV is moving in the same direction as the price trend.
Rising OBV with rising prices strengthens the bullish signal; falling OBV with falling prices strengthens the bearish signal.
Step 4: Composite Signal Generation
Bullish Signal:
50-day EMA crosses above 200-day EMA (Golden Cross).
ADX above 25, indicating a strong trend.
MACD crosses above its signal line.
RSI is between 30 and 70, avoiding overbought conditions.
OBV is rising.
Bearish Signal:
50-day EMA crosses below 200-day EMA (Death Cross).
ADX above 25.
MACD crosses below its signal line.
RSI is between 30 and 70, avoiding oversold conditions.
OBV is falling.
4. How to Use the TSMI
A. Entry Points
Buying into an Uptrend:
Wait for the bullish signal criteria to align.
Enter the position after the 50-day EMA crosses above the 200-day EMA, supported by positive momentum (MACD and RSI) and volume (OBV).
Selling or Shorting into a Downtrend:
Look for the bearish signal criteria.
Initiate the position after the 50-day EMA crosses below the 200-day EMA, with confirming momentum and volume indicators.
B. Exit Strategies
Protecting Profits:
Monitor RSI for overbought or oversold conditions, which may indicate potential reversals.
Watch for MACD divergences or crossovers against your position.
Use trailing stops based on the ATR (Average True Range) to allow profits to run while protecting against sharp reversals.
C. Risk Management
Position Sizing:
Use the ADX value to adjust position sizes. A stronger trend (higher ADX) may justify a larger position, whereas a weaker trend suggests caution.
Avoiding False Signals:
Be cautious during sideways markets where EMAs may whipsaw.
Confirm signals with multiple indicators before acting.
5. Examples
Example 1: Spotting an Emerging Uptrend in Bitcoin
Date: Let's assume on March 1st.
Observations:
EMA Crossover: The 50-day EMA crosses above the 200-day EMA.
ADX: Reading is 28, indicating a strong trend.
MACD: Crosses above the signal line and moves into positive territory.
RSI: Reading is 55, comfortably away from overbought levels.
OBV: Shows a rising trend, confirming increasing buying pressure.
Action:
Enter a long position in Bitcoin.
Set a stop-loss below recent swing lows.
Outcome:
Over the next few weeks, Bitcoin's price continues to rise, validating the TSMI signal.
Example 2: Identifying a Downtrend in Ethereum
Date: Let's assume on July 15th.
Observations:
EMA Crossover: The 50-day EMA crosses below the 200-day EMA.
ADX: Reading is 30, confirming a strong trend.
MACD: Crosses below the signal line into negative territory.
RSI: Reading is 45, not yet oversold.
OBV: Declining, indicating selling pressure.
Action:
Initiate a short position or exit long positions in Ethereum.
Place a stop-loss above recent resistance levels.
Outcome:
Ethereum's price declines over the following weeks, confirming the downtrend.
6. When to Use the TSMI
Trending Markets: TSMI is most effective in markets exhibiting clear trends, whether bullish or bearish.
Avoiding Sideways Markets: In range-bound markets, EMAs and momentum indicators may provide false signals. ADX readings below 20 suggest it's best to stay on the sidelines.
Volatile Assets: Particularly useful in cryptocurrency markets, which are known for their volatility and extended trends.
7. Limitations and Considerations
Lagging Indicators: Moving averages and ADX are lagging by nature. Rapid reversals may not be immediately captured.
False Signals: No indicator is foolproof. Always confirm signals with multiple components of TSMI.
Market Conditions: External factors like news events can significantly impact prices. Consider combining TSMI with fundamental analysis.
8. Enhancing TSMI
Customization: Adjust EMA periods (e.g., 20-day and 100-day) based on the asset's volatility and your trading timeframe.
Additional Indicators: Incorporate Bollinger Bands to gauge volatility or Fibonacci retracement levels to identify potential support and resistance.
Conclusion
The Trend Strength Momentum Indicator (TSMI) offers a holistic approach to spotting emerging trends by combining trend direction, momentum, and volume. By synthesizing the strengths of various traditional indicators while mitigating their individual limitations, TSMI provides traders with a powerful tool to navigate the complex landscape of cryptocurrency and other asset markets.
Key Benefits of TSMI:
Comprehensive Analysis: Integrates multiple market dimensions for well-rounded insights.
Early Trend Identification: Aims to spot trends early for optimal entry points.
Risk Management: Helps in making informed decisions, thereby reducing exposure to false signals.
By applying TSMI diligently and complementing it with sound risk management practices, traders can enhance their ability to capitalize on market trends and improve their overall trading performance.
Nasan Rate of Change (ROC)**NOTE: FOR COMPARISON TRADITIONAL ROC IS PLOTTED WITH THE SAME ROC LENGTH OF 9. IT IS NOT PART OF THE INDICATOR"
The Nasan ROC indicator is smoothed version of the of the traditional ROC indicator. The Nasna ROC uses a triple pass moving average differencing strategy. A cumulative sum of the deviations obtained from the moving average differencing provides a smooth "noise free" trend and this cumulative sum of deviations is used for calculating ROC.
Let's break down the components and understand the indicator we discussed earlier:
Sequential Triple Pass Filter:
Three filters with lengths specified by length1, length2, and length3 are applied to the closing prices (close).
The filters involve calculating the cumulative sum of the differences between the closing prices and their respective moving averages.
The idea is to detrend the data and accumulate the deviations from the average over time, emphasizing longer-term trends.
Calculation of Rate of Change (ROC) of Cumulative Sum:
The Rate of Change (ROC) of the cumulative sum (rocCumulativeSum) is calculated using the ta.roc function with a specified length (rocLength).
ROC measures the percentage change in the cumulative sum over a specified period.
The ROC histogram provides insights into the momentum of the detrended series. Positive values suggest increasing momentum, while negative values suggest decreasing momentum.
Pay attention to the color of the histogram bars.
The histogram bars are colored green if the current ROC value is greater than or equal to the previous ROC value, and red otherwise.
This coloring is based on the concept that a positive ROC suggests upward momentum, while a negative ROC suggests downward momentum.
Volatility - Volume Impact:
The Average True Range (ATR) is calculated with a period of 14.
Volume strength is calculated as a factor (VCF) that considers the ratio of the simple moving average (SMA) of the current volume to the SMA of the volume over a longer period (144).
This volume factor (VCF) is then multiplied by ATR, creating a synergy with volatility and volume.
Visualization with Background Color Gradient:
A background color gradient is applied to the chart based on the calculated volume strength (f1).
The gradient color ranges from black (indicating low ATR and volume strength) to purple (indicating high ATR and volume strength). A low value indicates a ranging market with no significant price movements and it is safter to avoid signals generated from ROC histogram in these region.
Synergy of ROC and Volume Strength:
Observe how the ROC signals align with the background color gradient. For example, confirm whether positive ROC aligns with periods of high ATR and volume strength.
This synergy can provide confirmation or divergence signals, adding another layer of analysis.
Trend_Trader_WMA (Momentum)<---> Caution! This is first test version of indicator. I am ready to get more ideas+feedback to develop it more. <--->
The "Momentum_Trader_WMA" indicator is a versatile technical analysis tool designed to help traders identify potential trend changes and momentum shifts in the market. It combines multiple indicators and moving averages to provide a comprehensive view of price action and momentum.
Key Features:
Weighted Moving Averages (WMAs): The indicator calculates two different WMAs with user-defined lengths, providing a smoothed representation of price data.
Average True Range (ATR) Bands: ATR is used to calculate dynamic bands around the WMA Average. These bands can help traders gauge market volatility and potential breakout points. The color of the ATR bands can be seen as an early signal of trends or the continuation of current trends.
Commodity Channel Index (CCI): CCI is a momentum oscillator that measures the relative strength of price changes. The indicator calculates CCI values based on a user-defined period.
Exponential Moving Average (EMA) of CCI: An EMA of CCI is plotted to help identify trends and momentum shifts.
Color-Coded Bands: The ATR bands change colors based on CCI conditions, providing visual cues for potential trading opportunities. When ATR bands transition from narrow (indicating low volatility) to wide (indicating increased volatility), it can be seen as an early signal of a potential trend change or the continuation of the current trend.
Buy and Sell Signals: The indicator generates buy and sell signals based on crossovers of WMAs and CCI thresholds, making it easier for traders to identify entry and exit points.
Customizable Moving Averages: Traders can enable or disable different moving averages (e.g., SMA, EMA, WMA, RMA, VWMA, HMA) with various periods and colors to adapt the indicator to their trading preferences.
CCI Dot Alerts: Dots are displayed at the bottom of the chart based on CCI values, helping traders spot extreme CCI conditions.
How to Use:
Trend Identification: The WMAs and ATR bands can help identify the current trend direction and its strength. When the WMAs are in an uptrend (green) and the ATR bands widen, it may indicate a strong bullish trend. Conversely, when the WMAs are in a downtrend (red) and the ATR bands narrow, it may suggest a weakening bearish trend.
Momentum Confirmation: The CCI and its EMA provide insights into market momentum. Look for CCI crossovers above 100 for potential bullish momentum and below -100 for potential bearish momentum.
Buy and Sell Signals: Pay attention to the buy and sell signals generated by the indicator. Buy when the WMAs cross over and CCI crosses above 100. Sell when the WMAs cross under and CCI crosses below -100.
ATR Bands as Early Signals: The color changes in the ATR bands can be seen as early signals of trends or the continuation of current trends. Wide ATR bands may indicate increased volatility and potential trend changes, while narrow ATR bands suggest reduced volatility and potential trend continuation.
Moving Averages: Customize the indicator by enabling or disabling specific moving averages according to your preferred trading strategy.
CCI Dots: Use the CCI dots to identify extreme CCI conditions, which may indicate overbought or oversold market conditions.
PS:
Recommended to use Indicator with price action conecpts(eg. support and resistance) as they play important role in any market.
Buy and sell signals are not really accurate. I would personally look for trend shift in WMA middle line and confirmation from CCI dots at bottom. For example. If middle line turns green and within recent 3-4 candles (or next 3-4 candles) dots tunrns green also, that means momentum has been rised in the direction of bulls.
pls, take s/r concepts first when working. I am thinking to add more precise buy sell signal method to make it easier to trade.
Good luck with your trades :)
MOM HEATThe "MOM HEAT" indicator combines MACD, Stochastic, MFI, and RSI to create a heat map of market momentum.
It calculates wave values based on these indicators for four different timeframes.
The wave values are then normalized and combined to determine overall momentum.
The indicator plots squares on the chart to represent the wave values for each timeframe.
It also draws a line to indicate potential momentum shifts.
Additionally, a table displays the timeframes and their corresponding colors (lib kaigouthro/hsvColor/15).
Overall, the indicator provides a visual representation of market momentum and potential shifts.
Strength Analyzer [DW]This is an experimental hybrid between relative strength and spectrum analysis methods aimed to deliver useful insights about cyclical dominance and momentum.
This study utilizes a modified RSI formula and a modified Goertzel algorithm to determine relative strength and spectral dominance for periods 8 through 50.
These periods are theorized by many analysts to be the main cyclical components of market movement.
In this study, you are given the option to apply equalization (EQ) to the dataset before estimating strength.
This enables you to transform your data and observe how strength estimates changes as well.
Whether you want to give emphasis to some frequencies, isolate specific bands, or completely alter the shape of your waveform, EQ filtration makes for an interesting experience.
The default EQ preset in this script cuts low end presence, dampens high frequency oscillations, and cleanly passes main cyclic components.
There are many ways to use EQ to transform your dataset, so play around with the settings and find the presets that work best for your analysis setup.
After EQ processing, the data is then passed through the modified RSI algorithm to generate momentum information
The modified RSI in this script is rescaled to oscillate between -1 and 1, and has the option to pass through a 2 pole Butterworth low pass filter before and after processing for a smoother output.
The strength thresholds are determined by the threshold value, which quantifies distance above and below 0.
The threshold value can also be thought of as conventional RSI distance from 50 rescaled so that an increment of 0.1 is equivalent to an increment of 5 on a conventional RSI.
A threshold value of 0.4 is equivalent to thresholds of 70 and 30 on a conventional RSI, so this is the default. The maximum threshold value is 1, which is equivalent to thresholds of 100 and 0.
This script plots colored sections for each period value using a gradient color scheme based on their respective strength estimates.
The color scheme in this script is a multicolored gradient that shows green scaled colors for bullish strength and red scaled colors for bearish strength.
Darker, less vibrant colors indicate lower strength. Brighter, more vibrant colors indicate higher strength.
Strength values near 0 will show the darkest colors, and values near the positive or negative threshold value will show the brightest.
The data is fed parallel through the modified Goertzel algorithm to obtain cyclic power information and to estimate the dominant cycle.
Gerald Goertzel's algorithm is a unique Fourier related transform that identifies tonal properties by quantifying resonance in a set of second order IIR filters with direct-form structure.
It is computationally more efficient than typical DFT or FFT algorithms, and yields decent spectral resolution.
In this variation of the algorithm, data is first passed through a 2 pole high pass filter to attenuate spectral dilation, then passed through a Hamming Window to tidy up the frequency range.
The clean windowed data is then passed through a recursive resonance loop over the frequency block to calculate filter coefficients, which are then used to identify real and imaginary magnitude components.
From there, the magnitude components are used to calculate cyclic power.
The power outputs of each period are then compared for dominant cycle estimation, which is plotted over the gradient.
The dominant cycle can also be optionally smoothed or halved based on your preferences.
Bar colors are included in this script. The color scheme is a gradient based on dominant cycle momentum.
Signals and alert conditions are included in this script as well, and can be customized to your liking.
The two main signal types in this script are:
-> Dominant Cycle - Signals based on dominant cycle or half dominant cycle changes from positive to negative strength or vice versa.
-> Confluence - Signals based on confluence emergence. Based on the majority of measured cycles or all measured cycles showing positive or negative strength.
The signals in this are also externally accessible by other scripts.
The output format is 1 for long signals, and -1 for short signals.
To integrate these signals with your own system, use a source input in your script and assign it to this script's "Direction Signals" output variable from the dropdown tab.
In addition, I included two external output variables that show dominant cycle strength and average cycle strength.
They can be integrated into your own scripts by using a source input and selecting the proper output variable, just like the signals.
The Strength Analyzer is a versatile and powerful analytical tool to have in the arsenal for generating unique insights about momentum and cycle dominance.
By analyzing strength on a spectral basis, we can look at relative price movements on a deeper level and gain insights that aren't necessarily obvious from simply looking at a price chart.
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This is a premium script, and access is provided on an invite-only basis.
To gain access, get a copy of the script overview, or for any other inquiries, send me a direct message!
I look forward to hearing from you!
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General Disclaimer:
Trading stocks, futures, Forex, options, ETFs, cryptocurrencies or any other financial instrument has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in stocks, futures, Forex, options, ETFs or cryptocurrencies.
Don’t trade with money you can’t afford to lose.
This is neither a solicitation nor an offer to Buy/Sell stocks, futures, Forex, options, ETFs, cryptocurrencies or any other financial instrument.
No representation is being made that any account will or is likely to achieve profits or losses of any kind.
The past performance of any trading system or methodology is not necessarily indicative of future results.
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Note:
Because TV's UI can't handle displaying style options for 43 fills with 42 colors, the color scheme of the analyzer is currently not editable.
However, no other sacrifices to functionality or quality were made in this project.
As the TV team performs updates on the platform, the ability to customize this color scheme will likely come as well.
Also, it's important to note that this script uses a heavy amount of calculations to generate this output.
At times (very infrequently), TV will throw an error message saying "Calculation Takes Too Long", likely due to a momentary lull in available server space.
If you receive this error, simply hide then unhide the indicator, and everything should function as expected.
Hybrid Adaptive Momentum Average (HAMA)Hybrid Adaptive Momentum Average (HAMA)
Imagine you want a moving average line on your chart that's usually smooth but gets really quick to follow the price when the market suddenly makes a big, fast move. That's what HAMA tries to be.
Here's the simple breakdown:
Slightly Better Starting Price: Instead of just using the closing price, HAMA first creates a slightly "smarter" starting price by giving a bit more importance to the very latest prices (like a quick WMA).
Checks Market Speed (Momentum): It then looks at how fast this "smarter price" has been moving recently.
-If the price is shooting up or down quickly, HAMA knows there's strong momentum.
-If the price is just drifting sideways, momentum is low.
Adjusts Its Own Speed: Based on this momentum:
-Strong Momentum (Fast Market): HAMA makes itself "faster." This means its line will stick closer to the current price and react quickly to changes. (It uses a shorter "period" internally).
-Weak Momentum (Slow/Choppy Market): HAMA makes itself "slower." Its line will be smoother and less jumpy, ignoring minor wiggles. (It uses a longer "period" internally).
-Draws the Line: Finally, it calculates and draws the moving average line using this automatically adjusted speed.
Why "Hybrid"?
It's called "hybrid" because it takes bits and pieces of ideas from several standard moving averages:
-Like an EMA, it's built to be responsive.
-Like a WMA, it initially focuses on recent prices.
-Inspired by the HMA, it tries to be smart about detecting momentum to adjust itself.
In a Nutshell:
The HAMA is a custom moving average that tries to be the best of both worlds: smooth in calm markets and quick to react in fast-moving markets by automatically changing its own calculation speed based on price momentum.
PhenLabs - Market Fluid Dynamics📊 Market Fluid Dynamics -
Version: PineScript™ v6
📌 Description
The Market Fluid Dynamics - Phen indicator is a new thinking regarding market analysis by modeling price action, volume, and volatility using a fluid system. It attempts to offer traders control over more profound market forces, such as momentum (speed), resistance (thickness), and buying/selling pressure. By visualizing such dynamics, the script allows the traders to decide on the prevailing market flow, its power, likely continuations, and zones of calmness and chaos, and thereby allows improved decision-making.
This measure avoids the usual difficulty of reconciling multiple, often contradictory, market indications by including them within a single overarching model. It moves beyond traditional binary indicators by providing a multi-dimensional view of market behavior, employing fluid dynamic analogs to describe complex interactions in an accessible manner.
🚀 Points of Innovation
Integrated Fluid Dynamics Model: Combines velocity, viscosity, pressure, and turbulence into a single indicator.
Normalized Metrics: Uses ATR and other normalization techniques for consistent readings across different assets and timeframes.
Dynamic Flow Visualization: Main flow line changes color and intensity based on direction and strength.
Turbulence Background: Visually represents market stability with a gradient background, from calm to turbulent.
Comprehensive Dashboard: Provides an at-a-glance summary of key fluid dynamic metrics.
Multi-Layer Smoothing: Employs several layers of EMA smoothing for a clearer, more responsive main flow line.
🔧 Core Components
Velocity Component: Measures price momentum (first derivative of price), normalized by ATR. It indicates the speed and direction of price changes.
Viscosity Component: Represents market resistance to price changes, derived from ATR relative to its historical average. Higher viscosity suggests it’s harder for prices to move.
Pressure Component: Quantifies the force created by volume and price range (close - open), normalized by ATR. It reflects buying or selling pressure.
Turbulence Detection: Calculates a Reynolds number equivalent to identify market stability, ranging from laminar (stable) to turbulent (chaotic).
Main Flow Indicator: Combines the above components, applying sensitivity and smoothing, to generate a primary signal of market direction and strength.
🔥 Key Features
Advanced Smoothing Algorithm: Utilizes multiple EMA layers on the raw flow calculation for a fluid and responsive main flow line, reducing noise while maintaining sensitivity.
Gradient Flow Coloring: The main flow line dynamically changes color from light to deep blue for bullish flow and light to deep red for bearish flow, with intensity reflecting flow strength. This provides an immediate visual cue of market sentiment and momentum.
Turbulence Level Background: The chart background changes color based on calculated turbulence (from calm gray to vibrant orange), offering an intuitive understanding of market stability and potential for erratic price action.
Informative Dashboard: A customizable on-screen table displays critical metrics like Flow State, Flow Strength, Market Viscosity, Turbulence, Pressure Force, Flow Acceleration, and Flow Continuity, allowing traders to quickly assess current market conditions.
Configurable Lookback and Sensitivity: Users can adjust the base lookback period for calculations and the sensitivity of the flow to viscosity, tailoring the indicator to different trading styles and market conditions.
Alert Conditions: Pre-defined alerts for flow direction changes (positive/negative crossover of zero line) and detection of high turbulence states.
🎨 Visualization
Main Flow Line: A smoothed line plotted below the main chart, colored blue for bullish flow and red for bearish flow. The intensity of the color (light to dark) indicates the strength of the flow. This line crossing the zero line can signal a change in market direction.
Zero Line: A dotted horizontal line at the zero level, serving as a baseline to gauge whether the market flow is positive (bullish) or negative (bearish).
Turbulence Background: The indicator pane’s background color changes based on the calculated turbulence level. A calm, almost transparent gray indicates low turbulence (laminar flow), while a more vibrant, semi-transparent orange signifies high turbulence. This helps traders visually assess market stability.
Dashboard Table: An optional table displayed on the chart, showing key metrics like ‘Flow State’, ‘Flow Strength’, ‘Market Viscosity’, ‘Turbulence’, ‘Pressure Force’, ‘Flow Acceleration’, and ‘Flow Continuity’ with their current values and qualitative descriptions (e.g., ‘Bullish Flow’, ‘Laminar (Stable)’).
📖 Usage Guidelines
Setting Categories
Show Dashboard - Default: true; Range: true/false; Description: Toggles the visibility of the Market Fluid Dynamics dashboard on the chart. Enable to see key metrics at a glance.
Base Lookback Period - Default: 14; Range: 5 - (no upper limit, practical limits apply); Description: Sets the primary lookback period for core calculations like velocity, ATR, and volume SMA. Shorter periods make the indicator more sensitive to recent price action, while longer periods provide a smoother, slower signal.
Flow Sensitivity - Default: 0.5; Range: 0.1 - 1.0 (step 0.1); Description: Adjusts how much the market viscosity dampens the raw flow. A lower value means viscosity has less impact (flow is more sensitive to raw velocity/pressure), while a higher value means viscosity has a greater dampening effect.
Flow Smoothing - Default: 5; Range: 1 - 20; Description: Controls the length of the EMA smoothing applied to the main flow line. Higher values result in a smoother flow line but with more lag; lower values make it more responsive but potentially noisier.
Dashboard Position - Default: ‘Top Right’; Range: ‘Top Right’, ‘Top Left’, ‘Bottom Right’, ‘Bottom Left’, ‘Middle Right’, ‘Middle Left’; Description: Determines the placement of the dashboard on the chart.
Header Size - Default: ‘Normal’; Range: ‘Tiny’, ‘Small’, ‘Normal’, ‘Large’, ‘Huge’; Description: Sets the text size for the dashboard header.
Values Size - Default: ‘Small’; Range: ‘Tiny’, ‘Small’, ‘Normal’, ‘Large’; Description: Sets the text size for the metric values in the dashboard.
✅ Best Use Cases
Trend Identification: Identifying the dominant market flow (bullish or bearish) and its strength to trade in the direction of the prevailing trend.
Momentum Confirmation: Using the flow strength and acceleration to confirm the conviction behind price movements.
Volatility Assessment: Utilizing the turbulence metric to gauge market stability, helping to adjust position sizing or avoid choppy conditions.
Reversal Spotting: Watching for divergences between price and flow, or crossovers of the main flow line above/below the zero line, as potential reversal signals, especially when combined with changes in pressure or viscosity.
Swing Trading: Leveraging the smoothed flow line to capture medium-term market swings, entering when flow aligns with the desired trade direction and exiting when flow weakens or reverses.
Intraday Scalping: Using shorter lookback periods and higher sensitivity to identify quick shifts in flow and turbulence for short-term trading opportunities, particularly in liquid markets.
⚠️ Limitations
Lagging Nature: Like many indicators based on moving averages and lookback periods, the main flow line can lag behind rapid price changes, potentially leading to delayed signals.
Whipsaws in Ranging Markets: During periods of low volatility or sideways price action (high viscosity, low flow strength), the indicator might produce frequent buy/sell signals (whipsaws) as the flow oscillates around the zero line.
Not a Standalone System: While comprehensive, it should be used in conjunction with other forms of analysis (e.g., price action, support/resistance levels, other indicators) and not as a sole basis for trading decisions.
Subjectivity in Interpretation: While the dashboard provides quantitative values, the interpretation of “strong” flow, “high” turbulence, or “significant” acceleration can still have a subjective element depending on the trader’s strategy and risk tolerance.
💡 What Makes This Unique
Fluid Dynamics Analogy: Its core strength lies in translating complex market interactions into an intuitive fluid dynamics framework, making concepts like momentum, resistance, and pressure easier to visualize and understand.
Market View: Instead of focusing on a single aspect (like just momentum or just volatility), it integrates multiple factors (velocity, viscosity, pressure, turbulence) to provide a more comprehensive picture of market conditions.
Adaptive Visualization: The dynamic coloring of the flow line and the turbulence background provide immediate, adaptive visual feedback that changes with market conditions.
🔬 How It Works
Price Velocity Calculation: The indicator first calculates price velocity by measuring the rate of change of the closing price over a given ‘lookback’ period. The raw velocity is then normalized by the Average True Range (ATR) of the same lookback period. Normalization enables comparison of momentum between assets or timeframes by scaling for volatility. This is the direction and speed of initial price movement.
Viscosity Calculation: Market ‘viscosity’ or resistance to price movement is determined by looking at the current ATR relative to its longer-term average (SMA of ATR over lookback * 2). The further the current ATR is above its average, the lower the viscosity (less resistance to price movement), and vice-versa. The script inverts this relationship and bounds it so that rising viscosity means more resistance.
Pressure Force Measurement: A ‘pressure’ variable is calculated as a function of the ratio of current volume to its simple moving average, multiplied by the price range (close - open) and normalized by ATR. This is designed to measure the force behind price movement created by volume and intraday price thrusts. This pressure is smoothed by an EMA.
Turbulence State Evaluation: A equivalent ‘Reynolds number’ is calculated by dividing the absolute normalized velocity by the viscosity. This is the proclivity of the market to move in a chaotic or orderly fashion. This ‘reynoldsValue’ is smoothed with an EMA to get the ‘turbulenceState’, which indicates if the market is laminar (stable), transitional, or turbulent.
Main Flow Derivation: The ‘rawFlow’ is calculated by taking the normalized velocity, dampening its impact based on the ‘viscosity’ and user-input ‘sensitivity’, and orienting it by the sign of the smoothed ‘pressureSmooth’. The ‘rawFlow’ is then put through multiple layers of exponential moving average (EMA) smoothing (with ‘smoothingLength’ and derived values) to reach the final ‘mainFlow’ line. The extensive smoothing is designed to give a smooth and clear visualization of the overall market direction and magnitude.
Dashboard Metrics Compilation: Additional metrics like flow acceleration (derivative of mainFlow), and flow continuity (correlation between close and volume) are calculated. All primary components (Flow State, Strength, Viscosity, Turbulence, Pressure, Acceleration, Continuity) are then presented in a user-configurable dashboard for ease of monitoring.
💡 Note:
The “Market Fluid Dynamics - Phen” indicator is designed to offer a unique perspective on market behavior by applying principles from fluid dynamics. It’s most effective when used to understand the underlying forces driving price rather than as a direct buy/sell signal generator in isolation. Experiment with the settings, particularly the ‘Base Lookback Period’, ‘Flow Sensitivity’, and ‘Flow Smoothing’, to find what best suits your trading style and the specific asset you are analyzing. Always combine its insights with robust risk management practices.
Swing + 3-Bar Breakout(Mastersinnifty)Overview
This script is a hybrid trading tool combining swing-based structural analysis, momentum filtering, and breakout validation — designed to detect early reversals and confirm trend continuations within a single unified system.
It integrates five major components:
- ZigZag Structural Detection — to identify critical swing highs and lows.
- Momentum Validation — using RSI and Rate of Change (ROC) to confirm the strength behind swings.
- Three-Bar Breakout Confirmation — spotting trend continuation beyond swing structures.
- Dynamic Trailing Stop System — managing trades adaptively via ATR-based trailing stops.
- Projected Target Levels — estimating future price destinations based on measured swings.
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What Makes This Script Unique
Rather than using standard indicators in isolation, this script layers multiple conditions sequentially and contextually:
- Structural Foundation: Identifies pivots through a tight ZigZag algorithm tuned with a low-depth setting for early detection.
- Momentum Checkpoint: Validates pivots only if RSI extremes and ROC momentum surges align, reducing false breakouts during sideways movements.
- Breakout Validation: Confirms trend continuation when price breaches critical multi-bar highs/lows post-swing formation.
- Risk-Managed Progression: Initiates adaptive ATR-based trailing stops immediately after signal generation, tightening risk dynamically as trends unfold.
- Target Projection: Estimates potential move size by projecting the magnitude of the last completed swing, offering realistic price milestones.
This combination provides a dual-purpose tool for both reversals and breakouts, allowing flexible trading styles within a single indicator.
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How the Script Works
- Swing Detection
- A swing low is identified when a price bottom forms (via ZigZag) and momentum conditions are met (RSI < 20, ROC > +0.5).
- A swing high is identified when a price top forms and momentum conditions are met (RSI > 80, ROC < -0.5).
- Breakout Confirmation
- After a swing is detected, if price crosses above/below a three-bar swing structure, a secondary breakout signal is triggered.
- Trailing Stop Activation:
- Upon a confirmed swing or breakout, an ATR-multiplied trailing stop is initialized below/above the entry point to secure profits dynamically.
- Projection Logic
- Swing height is measured from the latest high-low sequence, and potential future targets are plotted for visual guidance.
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Who Can Benefit From This Indicator
- Swing Traders — who seek early entries around reversal zones.
- Scalpers & Intraday Traders — needing fast-reacting momentum-based confirmation.
- Breakout Traders — to time entries after multi-bar compressions.
- Risk Managers — through integrated ATR trailing stops for dynamic exit management.
- Price Action Analysts — utilizing projected swing targets for strategic planning.
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How to Use
- Entry Identification
- Look for buy signals at swing lows with strong positive momentum.
- Look for sell signals at swing highs with strong negative momentum.
- Use breakout confirmations to validate the trend continuation beyond swings.
- Risk Management
- Monitor trailing stop lines to track trade health.
- Watch projected targets to anticipate realistic move completions.
- Chart Visibility
- All plotted points, breakout markers, trailing stops, and projected levels are generated automatically for clarity.
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Disclaimer
This script is intended for educational and analytical purposes only.
It does not constitute financial advice, and past performance does not guarantee future results.
All trading involves risk. Users are responsible for their own trading decisions.
Candle Spread
Candle Spread is an indicator that helps traders measure the range of price movement within each candle over a specified time period. It calculates the range of the candle between the High and Low (High - Low) and displays it in a separate window below the chart as columns.
Key Features:
Colored Bars: The bars are colored based on the candle's direction:
Bullish Candle: Bars are Green.
Bearish Candle: Bars are Red.
Moving Average: The indicator includes a 30-period Simple Moving Average (SMA), which represents the overall average range of the candles.
Helps Identify Market Volatility: This indicator helps traders identify wide-range candles (signaling high volatility in the market), which could indicate a surge in momentum or potential trend reversals.
Absolute Move BandsOverview:
The Absolute Move Bands indicator calculates the absolute value of the expected return, also known as "momentum" by some traders, and then displays it with standard deviation bands. The indicator also shows a moving average and a Kalman filter of the absolute move. If you take the expected return, you get what many traders commonly call "momentum." Now, if you turn the negative values into positive values by getting the magnitude of the expected return, it shows the "strength or intensity of the expected return." A low value of the absolute value of the expected return shows that the expected return is close to 0, which means that there is no significant trending behavior. The higher the value, the higher the deviation is from the mean, indicating stronger trend moves in the expected return itself. This indicator then gets the standard score of the absolute value of the expected return and then gets the moving average and Kalman Filter.
This indicator is not a directional indicator, but it can help you time moves and determine the "strength" of the expected returns (also known as momentum).
Interpreting the Magnitude:
Low Values: A low absolute value of the expected return indicates that the expected return is close to 0, suggesting no significant trending behavior in the market.
High Values: A high absolute value indicates a strong deviation from the mean, reflecting stronger trend moves in the expected return itself.
Standard Score Calculation:
This indicator computes the standard score (z-score) of the absolute value of the expected return. The value shows how many standard deviations the absolute return is from the mean. This helps in identifying periods of extreme magnitude.
Moving Average and Kalman Filter:
Moving Average: The indicator calculates the moving average of the standard score to smooth out the short-term fluctuations and show the longer-term trends in the absolute returns.
Kalman Filter: Applied to further reduce noise and provide a clearer signal, it enhances the indicator's effectiveness in determining the strength of the expected returns.
Standard Deviation Bands
Purpose: The standard deviation bands help determine if the standard score is at an extreme low or high.
High Standard Score (+2 Standard Deviation Band): Indicates that the absolute value of the expected return is at a high level, suggesting a strong trend. This could mean that the trend is at its peak and might be nearing completion.
Low Standard Score (-2 Standard Deviation Band): Indicates that the absolute value of the expected return is at a low level, suggesting minimal or no trending behavior. This could imply that the expected return is around 0, and a new trend (in any direction) may start soon.
How to interpret and use this indicator
Two ways will be discussed on how you can use this indicator. First of all lets go back over the interpretation of the standard score and bands.
High Standard Score: Indicates that the absolute value is significantly higher than usual, which suggest a strong trend which may be nearing its peak. Some traders who entered a trade at a low standard score value might want to consider taking profits or preparing for a potential reversal.
Low Standard Score: Indicates that the absolute value is significantly low, close to 0, which suggest minimal trending behavior and a new trend or move may soon start.
This indicator shouldn't be used alone; you may need an indicator that shows you the trend with an expected return indicator or a "momentum" indicator, because all this shows you is the strength of the trend or "momentum." So let's say that if you see that the standard score is low and the Kalman filter is increasing, then this shows that a trend may start soon, so you can use the "momentum" indicator and enter with whatever the trend is on.
Another way to use the indicator is to trade extreme occurrences. If on an indicator that shows the expected returns, or "momentum," and its at an extreme standard deviation occurrence level like -2 standard deviation from the mean, and the standard score is at 2 standard deviation (the top band), and the Kalman filter starts decreasing, then the downtrend may be over and you could place a long.
