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[Tradevietstock] Market Cycle Detector_Quantum Flux

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Best technical indicator to detect market cycles - Quantum Flux

Hello folks, it's Tradevietstock again! Today, I will introduce you to Quantum Flux Indicator, which can help you identify market cycle and find your best entry/exit effectively.

i. Overview

1. What is Market Cycle Detector_Quantum Flux?

The Quantum Flux Indicator is developed specifically to analyze and detect market cycles across a variety of asset classes. Whether you trade stocks, crypto, forex, or commodities, this indicator provides a consistent framework to track trends and time your positions.
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2. Supported Markets:

Stock Market
Crypto Market
Commodities
Forex

You can apply the same cycle-based strategy across all these markets using QFI.
Depending on the platform you're using, here’s how you can start using Quantum Flux:

TradingView Users:
Once your invite is approved, the indicator will be added to your TradingView account. You can access it directly through the Indicators tab.
MT5 / Amibroker Users:
After your payment is completed, we will send you the QFI script. You can then import it manually into your MT5 or Amibroker trading platform.

ii. Setting Up the Indicator

1. Choose Your Setup

There are two ways to configure the Quantum Flux - The best indicator to detect market cycles

Default Setup (Recommended)

This includes both the Quantum Aroon and some of the Premium MACD signals. This full setup is ideal for traders who want a complete view of the market cycle with detailed signals. You just need to turn off the Premium MACD_Components as the image below
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MACD-Only Setup

In this mode, the Quantum Aroon module is disabled. The indicator will rely solely on the Premium MACD Setting to generate signals. While this option is available, we recommend using the full setup for the most accurate performance.
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2. Recognize the Market Cycle Phases

According to Tradevietstock’s theory, every trading asset typically moves through four distinct phases in a complete cycle:

  • Bearish Phase - Bear Market
  • First Bullish Wave - The Recovery
  • Strong Correction Phase
  • Final Bullish Wave


Quantum Flux generates visual and data-driven signals to help you time your trades accurately.

  • Green Dots: MACD crossover → Potential buy signal
  • Red Dots: MACD crossunder → Potential sell signal
  • Quantum Aroon Crossover: Confirms bullish trend or Buy Signals
  • Quantum Aroon Crossunder: Confirms bearish trend or Exit Signals
  • Green background: Extreme Bullish Phase
  • Red background: Extreme Bearish Phase


The Extreme Bullish/Bearish Phase is a unique feature of our system that enhances trading signals by capturing moments when the market moves aggressively—either in a strong uptrend or downtrend. This phase often represents the peak of Greed in bullish markets and Fear in bearish ones, offering a way to gauge market sentiment visually. The intensity of the background color helps interpret this: a bolder green indicates a more extreme bull market, while a deeper red signals an extreme bear market.
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It's important to note that the Extreme Bullish/Bearish Phases are not direct entry or exit signals. Instead, they serve as enhancement signals that help traders make more informed decisions. These phases provide insight into whether it's wise to wait for additional confirmation before entering a trade, or to hold existing positions longer until clearer exit signals—like red dots or crosses—appear. By identifying the market's most intense emotional points, these signals help traders better align with momentum rather than react prematurely.
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=> In summary, the Extreme Bullish/Bearish Phase provides valuable insight into market sentiment by highlighting emotional extremes, helping traders navigate aggressive trends with greater confidence. However, like all features in the indicator, its purpose is to complement, not replace, the core entry and exit signals—which are still based on crosses and dots. As always, green indicates bullish conditions, and red indicates bearish, but sentiment alone doesn't drive the trades—signals do.

3. The logic of the indicator and its trading strategy

Many traders are familiar with Wyckoff's theory, which, while foundational, can feel outdated and inefficient for real-life trading in today's fast-paced markets. It takes time to apply and may not be the most practical approach. That’s why many turn to day trading, but without the right tools and strategy, it can lead to account blow-ups.
The traditional market cycle consists of four stages: accumulation, markup, distribution, and markdown. While this is accurate, it's not always sufficient for modern trading. We need something more practical.

According to Tradevietstock's theory, the market cycle can be broken into four stages: a bear market, recovery, correction wave, and a bull market (the strongest uptrend). This new approach offers a shorter and more efficient timeline compared to Wyckoff's or other older cycle theories, making it a safer and more practical alternative to intraday trading.

To trade with market cycles, you need to remember these four stages: 

Bearish Phase - Bear Market
First Bullish Wave - The Recovery
Strong Correction Phase
Final Bullish Wave


The logic for BUY/SELL (Entry/Exit) signals is built on a combination of crossover and crossunder events from the Quantum Aroon and Premium MACD indicators. Our Quantum Aroon is an enhanced version that applies a custom zero-lag smoothing function, making its trend signals more responsive and accurate than the traditional Aroon. It also includes a signal line for crossover alerts, along with visual enhancements like color-coded backgrounds, arrows, and gradient fills to highlight different market phases. Integrated with normalized MACD and RSI, it helps confirm signals and identify overbought or oversold conditions. Most importantly, it's aligned with Tradevietstock’s 4-phase market cycle—Bear Market, Recovery, Correction, and Bull Market—making it especially practical for real-world trading.

The Premium MACD differs from the standard version by introducing several key improvements. It normalizes the MACD line, signal line, and histogram for consistent interpretation across assets and timeframes, improving visual clarity. It also supports multi-timeframe analysis, allowing users to choose between the current chart resolution or a custom timeframe. The indicator includes color-coded histogram bars to show momentum changes and uses large dynamic circles to highlight crossover points.

=> These enhancements improve signal accuracy and make trend reversals easier to spot. Paired with the Quantum Aroon, it serves as a powerful confirmation tool within the Tradevietstock cycle framework.

4. Get to practice

In the example of NVDA, you can observe all four phases in action. For medium- to long-term traders, Phase 2 and Phase 4 usually present the strongest buying opportunities. Phase 1 and Phase 3 are accumulation phases — where prices are lower and preparations are made for the next bullish leg.
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We can examine the following example to better understand Phase 1: The Bear Market. This phase only begins after a prior uptrend in the stock price. It’s crucial to remember that Phase 1 is not the start of the overall trend—it marks the reversal following a bullish run.

For instance, take the LMT stock: after a 50% rise, Quantum Flux displays a green background, indicating an 'Extreme Bullish Phase.' Once this bullish phase concludes, it sets the stage for a valid Phase 1—the beginning of the Bear Market.
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The stock price declines sharply, triggering Quantum Flux to display a red background as the Aroon line crosses below the signal line.
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Phase 1 concludes when we observe multiple crossover signals—most notably when the Aroon line crosses above the Signal line—and the red background, which signifies the Extreme Bearish Phase, disappears. Let's take a look at the image below:
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Let’s move on to Phase 2: The Recovery. This phase follows the Bear Market—Phase 1. After a significant decline in the stock price, a recovery or pullback is expected.
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Our signals for this phase include green dots and crosses, along with the confirmation signals that mark the end of Phase 1. This combination provides valid Buy signals and presents opportunities for mid-term investment strategies.
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Phase 3 is a correction wave after the recovery. We also incorporate the cross and dot signals during this phase. In Phase 2, the strategy involves preparing to sell or take profits once the recovery phase matures. Whenever red dots or red crosses appear, they serve as indicators to consider taking profits, signaling the potential end of the upward move.

In Phase 3, known as the correction wave, the key objective is to take profits before the price begins to decline. This phase represents a temporary pullback following the recovery. Importantly, the end of Phase 3 often presents a strong buying opportunity—just before the onset of Phase 4, which is the strongest bullish wave. Whenever green dots and crosses appear at this stage, they serve as clear Buy signals, allowing us to position early for the upcoming bullish momentum.
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Phase 4 is the strongest bullish wave—one that investors definitely don’t want to miss. Having entered at the end of Phase 3, the goal in Phase 4 is to maximize gains by targeting the highest highs.
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During this phase, we closely monitor our exit signals, which include the appearance of red dots and red crosses, as well as the disappearance of the Extreme Bullish Phase indicator (green background). These signals help us lock in profits at the peak of the bullish momentum.
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iii. Brief Conclusion on the Signals

End of Phase 1:
As Phase 1 nears completion, green dots start to appear. These serve as early entry signals, offering an opportunity to buy at lower prices before the trend reversal begins.

Phase 2 – Recovery:
Momentum begins to build during this phase. As it approaches its peak, red dots and Aroon line crossunders emerge—signaling that it's time to exit or reduce exposure in anticipation of a correction.

Phase 3 – Correction:
The indicator typically shows a red background, reflecting a bearish environment. This is a waiting phase—traders should remain cautious and avoid entering until green signals reappear.

Phase 4 – Strong Bullish Wave:
With the return of bullish signals (green dots, crosses, and green background), Phase 4 begins. After entering, the position is held to ride the strong momentum. Profit-taking signals include the appearance of red dots, red crosses, and the disappearance of the green background.

iv. Optimal Use by Market Type

Here’s how we suggest using QFI depending on what you trade:

  • Stocks: Best used on the Daily or Weekly chart for swing trades.
  • Cryptocurrency: Works well on BTC, ETH, or major altcoins using Daily and Weekly charts. Great for catching larger trend reversals.
  • CFDs and Forex: QFI is built for higher timeframes (H4, D1, W1), where it produces cleaner and more reliable signals.


Best Ways to Use It

🟢 Stocks
Works well on Weekly and Daily charts for swing entries
🟡 Crypto
Works best on Weekly and Daily charts
Good for trend-catching on BTC, ETH, or altcoins
🔴 CFDs
Designed with precision in mind — works on bigger timeframes, like H4, D1, and W1

The Quantum Flux Indicator is a flexible and powerful tool for anyone looking to navigate the full market cycle — from bottom to top and back again. With its ability to highlight key phases and generate timely signals, it becomes easier to plan your entries, hold through trends, and exit with confidence.
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If you're serious about understanding market structure and improving your timing, Quantum Flux, the best Indicator to detect market cycles, can become a central part of your strategy — no matter what market you're in.
Nota Keluaran
I improved the Default Mode.

Penafian

Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.