QPulse

QPulse - A Volume-Normalized RSI Indicator

WHAT THIS IS

QPulse Pro is an RSI-based momentum indicator that solves a major problem most traders face: false signals during low volume periods. You know those overnight spikes or pre-market moves that look extreme but mean nothing? This indicator dampens those signals by normalizing them against actual volume participation.

At its core, it combines volume-weighted RSI with ATR-adaptive RSI in a hybrid calculation that automatically adjusts based on market conditions. The result is an RSI that responds more intelligently to what the market is actually doing, not just price movement alone.

HOW IT WORKS

The indicator calculates RSI in three ways and blends them based on current market regime. When volume is high and confirming price action, it leans into volume-weighted calculations. When volatility is spiking, it adapts the lookback period using ATR. The hybrid mode automatically switches between these approaches depending on what matters most in the current market environment.

The volume normalization is the key differentiator. Every signal gets scaled by volume participation. If volume is at 30 percent of normal, the indicator dampens that signal strength accordingly. Statistically insignificant moves get filtered out so you are not chasing noise.
The heatmap shows historical RSI intensity over time, making it easy to spot when momentum is building or fading across multiple bars rather than just looking at the current reading.

HOW TO USE IT

The indicator displays as a histogram oscillating around a zero line. Positive values indicate bullish momentum, negative values indicate bearish momentum. The dynamic overbought and oversold zones adjust based on volatility and trend strength, so they are not just static 70 and 30 levels that get ignored in strong trends.

For entries, watch for the histogram crossing the zero line with confirmation from volume participation. If the indicator shows extreme readings but volume participation is weak, treat it skeptically. The divergence markers will automatically appear when price makes new highs or lows but RSI does not confirm.

The quant features add additional context. Intermarket divergence alerts you when your asset is behaving differently from correlated markets. CVD proxy tracks cumulative buying versus selling pressure. Volatility of volatility helps predict when breakouts are more likely.

PROS

Honest assessment of what this does well. The volume normalization actually works and eliminates a ton of false signals during illiquid periods. I have tested this across futures, stocks, and crypto and the filtering is consistent.

The hybrid calculation is genuinely adaptive. It does not just use a fixed formula. The indicator monitors market regime in real-time and shifts weighting between volume and volatility factors.

This means it performs reasonably well in both choppy ranges and strong trends.
The divergence detection is more reliable than standard RSI divergences because it is working with volume-adjusted data. You get fewer fake divergence signals.

All the calculations are optimized and cached where possible so it does not lag your charts. The code runs efficiently even with all features enabled.

Multiple timeframe thinking is built in through the advanced ATR calculations which look at efficiency and volatility across different periods.

CONS

Let me be straight about the limitations. This is still an RSI indicator. It is not magic. In extremely strong trending markets, it will stay pegged at extremes just like any momentum oscillator. The dynamic levels help but they do not solve the fundamental issue that RSI is not a great tool in runaway trends.

The volume normalization works great for filtering out noise but it also means you might miss legitimate moves that happen on lower volume. Early trend changes often start quietly before volume kicks in. This indicator will be slower to signal those.

The quant features like intermarket divergence and VoV are sophisticated but they add complexity. If you do not understand what they are measuring, you will probably ignore them or misuse them. They are not magic bullets.

The indicator has a lot of settings. You can tune it for your specific markets and timeframes but that means you need to put in the work to understand what each parameter does. Default settings are reasonable but not optimized for every use case.

It works best on liquid instruments with consistent volume patterns. If you trade low volume altcoins or illiquid options, the volume normalization might not have enough data to work properly.

BEST USE CASES

Futures traders will get the most out of this. The volume normalization shines during overnight sessions and the intermarket divergence features are built specifically for ES, NQ, and RTY traders.

Day traders and scalpers benefit from the real-time volume filtering. You can trust the signals more during regular trading hours.
Swing traders can use the divergence detection and volatility signature features to time entries and exits around multi-day setups.

It works across timeframes but I would say 5-minute to 1-hour charts are the sweet spot. On very low timeframes the volume data gets too noisy. On daily charts you lose some of the intraday volume context.

WHAT YOU SHOULD KNOW

This is not a standalone system. It is a tool that gives you better information about momentum and volume relationship. You still need price action context, support and resistance, and your own trading plan.

The alerts are extensive. There are alerts for overbought, oversold, zero line crosses, divergences, volume spikes, volatility events, and quant signals. You will want to be selective about which ones you enable or you will get alert fatigue.

The indicator performs best when you understand what type of market you are in. Ranging, trending, or volatile. The hybrid mode tries to auto-detect this but you should still be aware of the bigger picture context.

Volume normalization means the indicator will be quieter during low participation periods. This is by design. If you prefer indicators that always give signals regardless of volume, this is not for you.

FINAL THOUGHTS

This is a serious tool for serious traders who understand that volume and price need to be analyzed together. It is not going to make trading easy but it will give you better quality information to make decisions with. The learning curve is real but if you put in the time to understand how it works, it genuinely adds value.

Use it as part of a complete trading approach. Combine it with your price action analysis, risk management, and market structure awareness. The indicator will tell you when momentum is legitimate and when it is just noise. What you do with that information is still up to you.