Nova_Stream Indicator V16.1

Technical Documentation: Nova_Stream V16.1

Core Methodology
Nova_Stream is a multi-layered trend analysis framework designed for Version 6 of Pine Script. It operates by analyzing the convergence and divergence of two distinct moving average clusters against a long-term institutional baseline. Unlike standard oscillators, Nova_Stream evaluates market "velocity" through linear regression and volatility-adjusted distance metrics.


The Multi-Wave Engine
The system processes price data through 12 specific Exponential Moving Averages (EMAs), divided into two functional groups:

Momentum Cluster (Traders Group): Six blue EMAs (Periods 3 to 15) tracking immediate liquidity and short-term trend shifts.

Value Cluster (Investors Group): Six orange EMAs (Periods 50 to 100) representing the core psychological support and resistance zones of the market.

The Backbone (Institutional Filter): A 200-period EMA that acts as a global trend switch. For a signal to be valid, price action must maintain a specific relationship with this line to ensure institutional alignment.

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  The Intelligent Dashboard (UI Engine)
  The integrated dashboard serves as a real-time data processor. It translates complex mathematical states into a readable format:
  
  Market Status: Uses Linear Regression to determine the slope of the Backbone. If the slope is within the slopeThreshold, the market is classified as RANGE.
  
  Squeeze Radar: Monitors the distance between the Momentum and Value clusters. A "Squeeze" alert is triggered when the distance is less than a fraction of the ATR, signaling potential volatility expansion.
  
  Correction Risk: Measures the standard deviation of price from the Value Cluster. High deviation triggers an OVERBOUGHT/OVERSOLD warning to prevent entries at exhaustion points.
  
  Volume Flow: A cumulative net-volume tracker that filters out low-conviction price moves.
  
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  Alert System Architecture
  Nova_Stream includes a comprehensive alert suite based on alertcondition. These are designed to be used for both "Execution" and "Risk Management".
  Nova/SuperNova Signals: Triggered when all technical layers (Trend, Volume, and MTF) align.
  
  Safe Exit (SF): A specialized alert for closing positions. It triggers when the price shows exhaustion (Overbought/Oversold) and loses its momentum relative to the exitWave.
  
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  Multi-Timeframe (MTF) Verification
  To increase the probability of success, the script includes a built-in MTF filter. It automatically fetches the trend state of a higher timeframe (e.g., 1-hour trend for a 10-minute chart) to ensure the user is not trading against the dominant market direction.
  
  Disclaimer: This script is an educational and analytical tool only. It is not intended to be financial advice, and should not be used as the sole basis for any investment decision. Trading involves significant risk, and past performance is not indicative of future results. The author of this script shall not be held liable for any financial losses incurred through the use of this tool. Always perform your own due diligence and consult with a certified financial professional before trading.