Quad Rotation Stochastic

26 Apr

Quad Rotation Stochastic

The Quad Rotation Stochastic is a powerful and unique momentum oscillator that combines four different stochastic setups into one tool, providing an incredibly detailed view of market conditions. This multi-timeframe stochastic approach helps traders better anticipate trend continuations, reversals, and momentum shifts with greater precision than traditional single stochastic indicators.

Why this indicator is useful:

• Multi-layered Momentum Analysis: Instead of relying on one stochastic, this script tracks four independent stochastic readings, smoothing out noise and confirming stronger signals.
  
• Advanced Divergence Detection: It automatically identifies bullish and bearish divergences for each stochastic, helping traders spot potential reversals early.
  
• Background Color Alerts: When a configurable number (e.g., 3 or 4) of the stochastics agree in direction and position (overbought/oversold), the background colors green (bullish) or red (bearish) to give instant visual cues.
  
• ABCD Pattern Recognition: The script recognizes "shield" patterns when Stochastic 4 remains stuck at extreme levels (above 90 or below 10) for a set time, warning of potential trend continuation setups.
  
• Super Signal Alerts: If all four stochastics align in extreme conditions and slope in the same direction, the indicator plots a special "Super Signal," offering high-confidence entry opportunities.
  

Why this indicator is unique:

• Quad Confirmation Logic: Combining four different stochastics makes this tool much less prone to false signals compared to using a single stochastic.
  
• Customizable Divergence Coloring: Traders can choose to have divergence lines automatically match the stochastic color for clear visual association.
  
• Adaptive ABCD Shields: Innovative use of bar counting while a stochastic remains extreme acts as a "shield," offering a unique way to filter out minor fake-outs.
  
• Flexible Configuration: Each stochastic's sensitivity, divergence settings, and visual styling can be fully customized, allowing traders to adapt it to their own strategy and asset.
  

Example Usage: Trading Bitcoin with Quad Rotation Stochastic

When trading Bitcoin (BTCUSD), you might set the minimum count (minCount) to 3, meaning three out of four stochastics must be in agreement to trigger a background color.

If the background turns green, and you notice an ABCD Bullish Shield (Green X), you might look for bullish candlestick patterns or moving average crossovers to enter a long trade.

Conversely, if the background turns red and a Super Down Signal appears, it suggests high probability for further downside, giving you strong confirmation to either short BTC or avoid entering new longs.

By combining divergence signals with background colors and the ABCD shields, the Quad Rotation Stochastic provides a layered confirmation system that gives traders greater confidence in their entries and exits — particularly in fast-moving, volatile markets like Bitcoin.

6 hari lalu

Nota Keluaran

There has been some interesting modifications in this update. Massive thanks to Maff for his excellent coding work.

The script has now been updated from Pinescript Version 5 to Pinescript Version 6.

The divergence line width can now vary based on the amount of divergence. The goal is to see if a "girthier" line which correlates with a stronger likelihood of a big price move (which I think you'd expect) - or at least to indicate *something* e.g. that price and momentum are just seriously out of whack.

The alert notifications for the ABCD Pattern Detection have been modified slightly to include the words 'Green X' and 'Red X' to make things clearer.