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Multi-Factor Reversal Analyzer

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Multi-Factor Reversal Analyzer – Quantitative Reversal Signal System


OVERVIEW

Multi-Factor Reversal Analyzer is a comprehensive technical analysis toolkit designed to detect market tops and bottoms with high precision. It combines trend momentum analysis, price action behavior, wave oscillation structure, and volatility breakout potential into one unified indicator.

This indicator is not a random mix of tools — each module is carefully selected for a specific purpose. When combined, they form a multi-dimensional view of the market, merging trend analysis, momentum divergence, and volatility compression to produce high-confidence signals.

Why Combine These Modules?
Module Combination Ideas & How to Use Them

Factor A: Trend Detector + Gold Zone
Concept:
• The Trend Detector (light yellow histogram) evaluates market strength:
• Histogram trending downward or staying below 50 → bearish conditions;
• Trending upward or staying above 50 → bullish conditions.
• The Gold Zone identifies areas of volatility compression — typically a prelude to explosive market moves.
Practical Application:
• When the Gold Zone appears and the Trend Detector is bearish → likely downside move;
• When the Gold Zone appears and the Trend Detector is bullish → likely upside breakout.
• Note: The Gold Zone does not mean the bottom is in. It is not a buy signal on its own — always combine it with other modules for directional bias.

Factor B: PAI + Wave Trend
Concept:
• PAI (Price Action Index) is a custom oscillator that combines price momentum with volatility dispersion, displaying strength zones:
• Green area → bullish dominance;
• Red area → bearish pressure.
• Wave Trend offers smoothed crossover signals via the main and signal lines.
Practical Application:
• When PAI is in the green zone and Wave Trend makes a bullish crossover → potential reversal to the upside;
• When PAI is in the red zone and Wave Trend shows a bearish crossover → potential start of a downtrend.

Factor C: Trend Detector + PAI
Concept:
• Combines directional trend strength with price action strength to confirm setups via confluence.
Practical Application:
• Trend Detector histogram bottoms out + PAI enters the green zone → high chance of upward reversal;
• Histogram tops out + PAI in the red zone → increased likelihood of downside continuation.

Multi-Factor Confluence (Advanced Use)
• When Trend Detector, PAI, and Wave Trend all align in the same direction (bullish or bearish), the directional signal becomes significantly more reliable.
• This setup is especially useful for trend-following or swing trade entries.


KEY FEATURES

1. Multi-Layer Reversal Logic
• Combines trend scoring, oscillator divergence, and volatility squeezes for triangulated reversal detection.
• Helps traders distinguish between trend pullbacks and true reversals.

2. Advanced Divergence Detection
• Detects both regular and hidden divergences using pivot-based confirmation logic.
• Customizable lookback ranges and pivot sensitivity provide flexible tuning for different market styles.

3. Gold Zone Volatility Compression
• Highlights pre-breakout zones using custom oscillation models (RSI, harmonic, Karobein, etc.).
• Improves anticipation of breakout opportunities following low-volatility compressions.

4. Trend Direction Context
• PAI and Trend Score components provide top-down insight into prevailing bias.
• Built-in “Straddle Area” highlights consolidation zones; breakouts from this area often signal new trend phases.

5. Flexible Visualization
• Color-coded trend bars, reversal markers, normalized oscillator plots, and trend strength labels.
• Designed for both visual discretionary traders and data-driven system developers.


USAGE GUIDELINES

1. Applicable Markets
• Suitable for stocks, crypto, futures, and forex
• Supports reversal, mean-reversion, and breakout trading styles

2. Recommended Timeframes
• Short-term traders: 5m / 15m / 1H — use Wave Trend divergence + Gold Zone
• Swing traders: 4H / Daily — rely on Price Action Index and Trend Detector
• Macro trend context: use PAI HTF mode for higher timeframe overlays

3. Reversal Strategy Flow
• Watch for divergence (WT/PAI) + Gold Zone compression
• Confirm with Trend Score weakening or flipping
• Use Straddle Area breakout for final trigger
• Optional: enable bar coloring or labels for visual reinforcement
• The indicator performs optimally when used in conjunction with a harmonic pattern recognition tool

4. Additional Note on the Gold Zone
The “Gold Zone” does not directly indicate a market bottom. Since it is displayed at the bottom of the chart, it may be misunderstood as a bullish signal. In reality, the Gold Zone represents a compression of price momentum and volatility, suggesting that a significant directional move is about to occur. The direction of that move—upward or downward—should be determined by analyzing the histogram:
• If histogram momentum is weakening, the Gold Zone may precede a downward move.
• If histogram momentum is strengthening, it may signal an upcoming rebound or rally.
Treat the Gold Zone as a warning of impending volatility, and always combine it with trend indicators for accurate directional judgment.


RISK DISCLAIMER

• This indicator calculates trend direction based on historical data and cannot guarantee future market performance. When using this indicator for trading, always combine it with other technical analysis tools, fundamental analysis, and personal trading experience for comprehensive decision-making.
• Market conditions are uncertain, and trend signals may result in false positives or lag. Traders should avoid over-reliance on indicator signals and implement stop-loss strategies and risk management techniques to reduce potential losses.
• Leverage trading carries high risks and may result in rapid capital loss. If using this indicator in leveraged markets (such as futures, forex, or cryptocurrency derivatives), exercise caution, manage risks properly, and set reasonable stop-loss/take-profit levels to protect funds.
• All trading decisions are the sole responsibility of the trader. The developer is not liable for any trading losses. This indicator is for technical analysis reference only and does not constitute investment advice.
• Before live trading, it is recommended to use a demo account for testing to fully understand how to use the indicator and apply proper risk management strategies.


CHANGELOG

v1.0: Initial release featuring integrated Price Action Index, Trend Strength Scoring, Wave Trend Oscillator, Gold Zone Compression Detection, and dual-type divergence recognition. Supports higher timeframe (HTF) synchronization, visual signal markers, and diversified parameter configurations.
Nota Keluaran
Update Notes:
· No updates this time, just explain to the community why these modules are combined.



This script combines multiple modules because each one solves a specific market analysis challenge, and together they provide a more complete and reliable trading system.

This design aims to filter noise, increase signal reliability, and adapt better to both trending and ranging markets.

- The **Trend Detector** identifies the overall direction of the market based on price and volume momentum.
- The **Gold Zone** detects volatility compression areas that often lead to large moves but needs a directional filter to be effective.
- The **Wave Trend** oscillator tracks momentum shifts and detects divergences, but without a volatility context, it can generate noise.
- The **Price Action Index (PAI)** measures trend strength using stochastic momentum and volatility dispersion, but works best when confirmed by trend and momentum indicators.

By combining these modules:
- **Trend Detector** sets the macro trend bias.
- **Gold Zone** alerts for upcoming volatility breakouts.
- **Wave Trend** and **PAI** fine-tune entry timing with momentum confirmation.
- Divergence signals are only considered strong when they align with trend and volatility context.

Each module complements the others, creating synergy and improving overall signal quality — this is a structured, purposeful integration rather than a simple mashup.

▶︎ I explain their use and combination principles in more detail in the chart on the indicator introduction page. If you have any questions, please leave a message.
Nota Keluaran
Optimize the text layout of charts on the indicator introduction page.
Nota Keluaran
Optimize the text layout of charts on the indicator introduction page
Nota Keluaran
Optimize the text layout of charts on the indicator introduction page.
Nota Keluaran
Optimize the text layout of charts on the indicator introduction page.

Penafian

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