Penny Stock Short Signal Pro# Penny Stock Short Signal Pro (PSSP) v1.0
## Complete User Guide & Documentation
---
# ๐ TABLE OF CONTENTS
1. (#introduction)
2. (#why-short-penny-stocks)
3. (#the-7-core-detection-systems)
4. (#installation--setup)
5. (#understanding-the-dashboard)
6. (#input-settings-deep-dive)
7. (#visual-elements-explained)
8. (#alert-configuration)
9. (#trading-strategies)
10. (#risk-management)
11. (#best-practices)
12. (#troubleshooting)
13. (#changelog)
---
# Introduction
**Penny Stock Short Signal Pro (PSSP)** is a comprehensive Pine Script v6 indicator specifically engineered for identifying high-probability short-selling opportunities on low-priced, high-volatility stocks. Unlike generic indicators that apply broad technical analysis, PSSP is purpose-built for the unique characteristics of penny stock price actionโwhere parabolic moves, retail FOMO, and violent reversals create predictable patterns for prepared traders.
## Key Features
- **7 Independent Detection Systems** working in concert to identify exhaustion points
- **Composite Signal Engine** that requires multiple confirmations before triggering
- **Real-Time Dashboard** displaying all signal states and market metrics
- **Automatic Risk Management** with dynamic stop-loss and profit target calculations
- **Customizable Sensitivity** for different trading styles (scalping vs. swing)
- **Built-in Alert System** for all major signal types
## Who Is This For?
- **Active Day Traders** looking to capitalize on intraday reversals
- **Short Sellers** who specialize in penny stocks and small caps
- **Momentum Traders** who want to identify when momentum is exhausting
- **Risk-Conscious Traders** who need clear entry/exit levels
---
# Why Short Penny Stocks?
## The Penny Stock Lifecycle
Penny stocks follow a remarkably predictable lifecycle that creates shorting opportunities:
```
PHASE 1: ACCUMULATION
โโโ Low volume, tight range
โโโ Smart money quietly building positions
PHASE 2: MARKUP / PROMOTION
โโโ News catalyst or promotional campaign
โโโ Volume increases, price begins rising
โโโ Early momentum traders enter
PHASE 3: DISTRIBUTION (YOUR OPPORTUNITY)
โโโ Parabolic move attracts retail FOMO buyers
โโโ Smart money selling into strength
โโโ Volume climax signals exhaustion
โโโ โ ๏ธ PSSP SIGNALS FIRE HERE โ ๏ธ
PHASE 4: DECLINE
โโโ Support breaks, panic selling
โโโ Price returns toward origin
โโโ Short sellers profit
```
## Why Shorts Work on Penny Stocks
1. **No Fundamental Support**: Most penny stocks have no earnings, revenue, or assets to justify elevated prices
2. **Promotional Nature**: Many rallies are driven by promoters who will eventually stop
3. **Retail Exhaustion**: Retail buying power is finiteโwhen it's exhausted, gravity takes over
4. **Float Dynamics**: Low float stocks move fast in both directions
5. **Technical Levels Matter**: VWAP, round numbers, and prior highs become self-fulfilling resistance
---
# The 7 Core Detection Systems
PSSP employs seven independent detection algorithms. Each identifies a specific type of exhaustion or reversal signal. When multiple systems fire simultaneously, the probability of a successful short dramatically increases.
---
## 1. PARABOLIC EXHAUSTION DETECTOR
### What It Detects
Identifies when price has moved too far, too fast and is likely to reverse. This system looks for the classic "blow-off top" pattern common in penny stock runners.
### Technical Logic
```
Parabolic Signal = TRUE when:
โโโ Consecutive green candles โฅ threshold (default: 3)
โโโ AND price extension from VWAP โฅ threshold ATRs (default: 1.5)
โโโ OR shooting star / upper wick rejection pattern forms
```
### Visual Representation
```
โฑโฒ โ Shooting star / upper wick
โฑ โฒ (Parabolic exhaustion)
โฑ
โฑ
โฑ
โโโโโโโโโโโโโโ VWAP
โฑ
โฑ
```
### Why It Works on Penny Stocks
Penny stocks are notorious for parabolic moves driven by retail FOMO. When everyone who wants to buy has bought, there's no one left to push prices higher. The shooting star pattern shows that sellers are already stepping in at higher prices.
### Key Settings
| Parameter | Default | Range | Description |
|-----------|---------|-------|-------------|
| Lookback Period | 10 | 3-30 | Bars to analyze for pattern |
| Extension Threshold | 1.5 ATR | 0.5-5.0 | How far above VWAP is "parabolic" |
| Consecutive Green Bars | 3 | 2-10 | Minimum green bars for exhaustion |
---
## 2. VWAP REJECTION SYSTEM
### What It Detects
Volume Weighted Average Price (VWAP) is the single most important level for institutional traders. This system identifies when price tests above VWAP and gets rejected back belowโa powerful short signal.
### Technical Logic
```
VWAP Rejection = TRUE when:
โโโ Candle high pierces above VWAP
โโโ AND candle closes below VWAP
โโโ AND candle is bearish (close < open)
โโโ AND rejection distance is within sensitivity threshold
```
### Visual Representation
```
High โโโ โฑโฒ
โฑ โฒ
VWAP โโโโโโโโโฑโโโโโฒโโโโโโโโโโโ
Close โโโ Rejection
```
### Extended VWAP Signals
The system also tracks VWAP standard deviation bands. Rejection from the upper band (2 standard deviations above VWAP) is an even stronger signal.
### Why It Works on Penny Stocks
- Algorithms and institutions use VWAP as their benchmark
- Failed attempts to reclaim VWAP often lead to waterfall selling
- VWAP acts as a "magnet" that price tends to revert toward
### Key Settings
| Parameter | Default | Range | Description |
|-----------|---------|-------|-------------|
| Rejection Sensitivity | 0.5 ATR | 0.1-2.0 | How close to VWAP for valid rejection |
| Show VWAP Line | True | - | Display VWAP on chart |
| Show VWAP Bands | True | - | Display standard deviation bands |
| Band Multiplier | 2.0 | 0.5-4.0 | Standard deviations for bands |
---
## 3. VOLUME CLIMAX DETECTOR
### What It Detects
Identifies "blow-off tops" where extreme volume accompanies a price spike. This often marks the exact top as it represents maximum retail participationโafter which buying power is exhausted.
### Technical Logic
```
Volume Climax = TRUE when:
โโโ Current volume โฅ (Average volume ร Climax Multiple)
โโโ AND one of:
โ โโโ Selling into the high (upper wick > lower wick on green bar)
โ โโโ OR post-climax weakness (red bar following climax bar)
```
### Visual Representation
```
Price: โฑโฒ
โฑ โฒ
โฑ โฒ
โฑ โฒ
โฑ
Volume:
โโโ
โโโโโ
โโโ
โ
Volume Climax (3x+ average)
```
### Why It Works on Penny Stocks
- Retail traders pile in at the top, creating volume spikes
- Market makers and smart money use this liquidity to exit
- Once the volume spike passes, there's no fuel left for higher prices
- The "smart money selling into dumb money buying" creates the top
### Key Settings
| Parameter | Default | Range | Description |
|-----------|---------|-------|-------------|
| Volume MA Length | 20 | 5-50 | Period for average volume calculation |
| Climax Volume Multiple | 3.0x | 1.5-10.0 | Multiple of average for "climax" |
| Show Volume Bars | True | - | Visual volume representation |
---
## 4. RSI DIVERGENCE ANALYZER
### What It Detects
Bearish divergence occurs when price makes higher highs but RSI (momentum) makes lower highs. This indicates that momentum is weakening even as price pushes higherโa warning of imminent reversal.
### Technical Logic
```
Bearish Divergence = TRUE when:
โโโ RSI is in overbought territory (> threshold)
โโโ AND RSI is declining (current < previous < prior)
โโโ Indicates momentum exhaustion before price catches up
```
### Visual Representation
```
Price: /\ /\
/ \ / \ โ Higher high
/ \/
/
/
RSI: /\
/ \ /\
/ \/ \ โ Lower high (DIVERGENCE)
/ \
โโโโโโโโโโโโโโโโโโโโ Overbought (70)
```
### Why It Works on Penny Stocks
- Penny stocks often push to new highs on weaker and weaker momentum
- Divergence signals that fewer buyers are participating at each new high
- Eventually, the lack of buying pressure leads to collapse
### Key Settings
| Parameter | Default | Range | Description |
|-----------|---------|-------|-------------|
| RSI Length | 14 | 5-30 | Standard RSI calculation period |
| Overbought Level | 70 | 60-90 | RSI level considered overbought |
| Divergence Lookback | 14 | 5-30 | Bars to look back for swing highs |
---
## 5. KEY LEVEL REJECTION TRACKER
### What It Detects
Identifies rejections from significant price levels where shorts are likely to be concentrated: High of Day (HOD), premarket highs, and psychological levels (whole and half dollars).
### Technical Logic
```
Level Rejection = TRUE when:
โโโ Price touches key level (within 0.2% tolerance)
โโโ AND candle is bearish (close < open)
โโโ AND close is in lower portion of candle range
โ
โโโ Key Levels Tracked:
โ โโโ High of Day (HOD)
โ โโโ Premarket High
โ โโโ Psychological levels ($1.00, $1.50, $2.00, etc.)
```
### Visual Representation
```
HOD โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
โฑโฒ โ Rejection
โฑ โฒ
โฑ โฒ
โฑ
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
PM High โโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
```
### Why It Works on Penny Stocks
- **HOD**: The high of day is where the most traders are trapped long. Failure to break HOD often triggers stop-loss cascades
- **Premarket High**: Represents overnight enthusiasm; failure to exceed often means the "news" is priced in
- **Psychological Levels**: Round numbers ($1, $2, $5) attract orders and act as natural resistance
### Key Settings
| Parameter | Default | Range | Description |
|-----------|---------|-------|-------------|
| Track HOD Rejection | True | - | Monitor high of day |
| Track Premarket High | True | - | Monitor premarket resistance |
| Track Psychological Levels | True | - | Monitor round numbers |
---
## 6. FAILED BREAKOUT DETECTOR
### What It Detects
Identifies "bull traps" where price breaks above resistance but immediately fails and closes back below. This traps breakout buyers and often leads to accelerated selling.
### Technical Logic
```
Failed Breakout = TRUE when:
โโโ Price breaks above recent high (lookback period)
โโโ AND one of:
โ โโโ Same bar closes below the breakout level
โ โโโ OR following bars show consecutive red candles
```
### Visual Representation
```
โฑโฒ
โฑ โฒ โ False breakout
Recent High โโโฑโโโโโฒโโโโโโโโโโโโโโโโ
โฑ โฒ
โฑ โฒ
โฑ โฒ โ Trapped longs panic sell
```
### Why It Works on Penny Stocks
- Breakout traders enter on the break, providing exit liquidity for smart money
- When the breakout fails, these traders become trapped and must exit
- Their forced selling accelerates the decline
- Penny stocks have thin order books, making failed breakouts especially violent
### Key Settings
| Parameter | Default | Range | Description |
|-----------|---------|-------|-------------|
| Breakout Lookback | 5 | 2-15 | Bars to define "recent high" |
| Confirmation Bars | 2 | 1-5 | Bars to confirm failure |
---
## 7. MOVING AVERAGE BREAKDOWN SYSTEM
### What It Detects
Monitors exponential moving averages (EMAs) for bearish crossovers and price rejections. EMA crosses often signal trend changes, while rejections from EMAs indicate resistance.
### Technical Logic
```
MA Breakdown = TRUE when:
โโโ Bearish EMA cross (fast crosses below slow)
โโโ OR EMA rejection (price tests EMA from below and fails)
```
### Visual Representation
```
โฑโฒ โ Rejection from EMA
โฑ โฒ
EMA 9 โโโโโโโโโโโโฑโโโโโฒโโโโโโโโโโโ
โฒ
EMA 20 โโโโโโโโโโโโโโโโโโโโฒโโโโโโโโ
โฒ
Bearish cross โ
```
### Why It Works on Penny Stocks
- EMAs smooth out the noise and show underlying trend direction
- When fast EMA crosses below slow EMA, it signals momentum shift
- Rejected attempts to reclaim EMAs show sellers are in control
### Key Settings
| Parameter | Default | Range | Description |
|-----------|---------|-------|-------------|
| Fast EMA | 9 | 3-20 | Short-term trend |
| Slow EMA | 20 | 10-50 | Medium-term trend |
| Show EMAs | True | - | Display on chart |
---
# Installation & Setup
## Step 1: Access Pine Editor
1. Open TradingView (tradingview.com)
2. Open any chart
3. Click "Pine Editor" at the bottom of the screen
## Step 2: Create New Indicator
1. Click "Open" โ "New blank indicator"
2. Delete any existing code
3. Paste the entire PSSP code
## Step 3: Save and Add to Chart
1. Click "Save" (give it a name like "PSSP")
2. Click "Add to chart"
3. The indicator will appear with default settings
## Step 4: Configure Settings
1. Click the gear icon (โ๏ธ) on the indicator
2. Adjust settings based on your trading style (see Settings section)
3. Click "OK" to apply
## Recommended Chart Setup
- **Timeframe**: 1-minute or 5-minute for scalping, 15-minute for swing shorts
- **Chart Type**: Candlestick
- **Extended Hours**: Enable if trading premarket/afterhours
- **Volume**: Can disable default volume since PSSP tracks it
---
# Understanding the Dashboard
The real-time dashboard provides at-a-glance status of all systems:
```
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
โ ๐ SHORT SIGNAL DASHBOARD โ
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโค
โ Signal Strength: 5/7 โ
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโค
โ โโโ ACTIVE SIGNALS โโโ โ
โ โ
โ Parabolic Exhaustion ๐ด 2.1 ATR โ
โ VWAP Rejection ๐ด Above โ
โ Volume Climax ๐ด 4.2x Avg โ
โ RSI Divergence โช RSI: 68 โ
โ Level Rejection ๐ด @ HOD โ
โ Failed Breakout ๐ด โ
โ MA Breakdown โช Bullish โ
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโค
โ โโโ RISK LEVELS โโโ โ
โ Stop: $2.45 T1: $2.10 T2: $1.85 โ
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
```
## Dashboard Elements Explained
### Signal Strength Indicator
| Rating | Signals | Color | Interpretation |
|--------|---------|-------|----------------|
| STRONG | 5-7 | Red | High-confidence short opportunity |
| MODERATE | 3-4 | Orange | Decent setup, consider other factors |
| WEAK | 1-2 | Gray | Insufficient confirmation |
| NONE | 0 | Gray | No short signals active |
### Signal Status Icons
- ๐ด = Signal is ACTIVE (condition met)
- โช = Signal is INACTIVE (condition not met)
### Contextual Metrics
Each signal row includes relevant metrics:
- **Parabolic**: Shows ATR extension from VWAP
- **VWAP**: Shows if price is Above/Below VWAP
- **Volume**: Shows current volume as multiple of average
- **RSI**: Shows current RSI value
- **Level**: Shows which level was touched (HOD, PM High, etc.)
- **MA**: Shows EMA relationship (Bullish/Bearish)
### Risk Levels
When a composite short signal fires:
- **Stop**: Suggested stop-loss level (high + ATR multiple)
- **T1**: First profit target (1:1 risk/reward)
- **T2**: Second profit target (user-defined R:R)
---
# Input Settings Deep Dive
## Group 1: Parabolic Exhaustion
| Setting | Default | Conservative | Aggressive | Description |
|---------|---------|--------------|------------|-------------|
| Enable | True | True | True | Turn system on/off |
| Lookback Period | 10 | 15 | 5 | Bars analyzed for pattern |
| Extension Threshold | 1.5 | 2.0 | 1.0 | ATRs above VWAP for "parabolic" |
| Consecutive Green Bars | 3 | 4 | 2 | Minimum green bars required |
**Tuning Tips:**
- Lower thresholds = more signals but more false positives
- Higher thresholds = fewer signals but higher quality
- For very volatile penny stocks, consider higher thresholds
## Group 2: VWAP Rejection
| Setting | Default | Conservative | Aggressive | Description |
|---------|---------|--------------|------------|-------------|
| Enable | True | True | True | Turn system on/off |
| Rejection Sensitivity | 0.5 | 0.3 | 0.8 | ATR distance for valid rejection |
| Show VWAP Line | True | True | True | Display VWAP |
| Show VWAP Bands | True | True | True | Display deviation bands |
| Band Multiplier | 2.0 | 2.5 | 1.5 | Standard deviations for bands |
**Tuning Tips:**
- Tighter sensitivity (lower number) = must reject very close to VWAP
- Wider bands = less frequent upper band rejections but more significant
## Group 3: Volume Climax
| Setting | Default | Conservative | Aggressive | Description |
|---------|---------|--------------|------------|-------------|
| Enable | True | True | True | Turn system on/off |
| Volume MA Length | 20 | 30 | 10 | Baseline volume period |
| Climax Volume Multiple | 3.0 | 4.0 | 2.0 | Multiple for "climax" status |
| Show Volume Profile | True | True | True | Visual volume bars |
**Tuning Tips:**
- Higher multiple = only extreme volume spikes trigger
- Shorter MA = more responsive to recent volume changes
- For highly liquid stocks, consider higher multiples
## Group 4: Momentum Divergence
| Setting | Default | Conservative | Aggressive | Description |
|---------|---------|--------------|------------|-------------|
| Enable | True | True | True | Turn system on/off |
| RSI Length | 14 | 21 | 7 | RSI calculation period |
| Overbought Level | 70 | 75 | 65 | Threshold for "overbought" |
| Divergence Lookback | 14 | 20 | 10 | Bars for swing high detection |
**Tuning Tips:**
- Lower overbought threshold = more frequent signals
- Shorter RSI length = more responsive but noisier
## Group 5: Key Level Rejection
| Setting | Default | Description |
|---------|---------|-------------|
| Enable | True | Master toggle for level system |
| Track Premarket High | True | Monitor premarket resistance |
| Track HOD Rejection | True | Monitor high of day |
| Track Psychological Levels | True | Monitor round numbers |
**Tuning Tips:**
- Disable premarket tracking if stock doesn't have significant premarket activity
- Psychological levels work best on stocks under $10
## Group 6: Failed Follow-Through
| Setting | Default | Conservative | Aggressive | Description |
|---------|---------|--------------|------------|-------------|
| Enable | True | True | True | Turn system on/off |
| Breakout Lookback | 5 | 8 | 3 | Bars defining "recent high" |
| Confirmation Bars | 2 | 3 | 1 | Bars to confirm failure |
**Tuning Tips:**
- Shorter lookback = more breakouts detected but smaller significance
- More confirmation bars = higher confidence but later entry
## Group 7: Moving Average Signals
| Setting | Default | Conservative | Aggressive | Description |
|---------|---------|--------------|------------|-------------|
| Enable | True | True | True | Turn system on/off |
| Fast EMA | 9 | 12 | 5 | Short-term trend |
| Slow EMA | 20 | 26 | 13 | Medium-term trend |
| Show EMAs | True | True | True | Display on chart |
**Tuning Tips:**
- Standard 9/20 works well for most penny stocks
- Faster EMAs (5/13) for scalping, slower (12/26) for swing trading
## Group 8: Composite Signal
| Setting | Default | Conservative | Aggressive | Description |
|---------|---------|--------------|------------|-------------|
| Minimum Signals | 3 | 4-5 | 2 | Signals needed for trigger |
| Show Dashboard | True | True | True | Display signal table |
| Dashboard Position | top_right | - | - | Screen location |
**Tuning Tips:**
- **Minimum Signals is the most important setting**
- Higher minimum = fewer trades but higher win rate
- Lower minimum = more trades but more false signals
## Group 9: Risk Management
| Setting | Default | Conservative | Aggressive | Description |
|---------|---------|--------------|------------|-------------|
| Show Stop Levels | True | True | True | Display stop loss |
| Stop ATR Multiple | 1.5 | 2.0 | 1.0 | Stop distance in ATRs |
| Show Targets | True | True | True | Display profit targets |
| Target R:R | 2.0 | 1.5 | 3.0 | Risk:Reward for Target 2 |
**Tuning Tips:**
- Tighter stops (lower ATR multiple) = less risk but more stop-outs
- Higher R:R targets = bigger winners but fewer targets hit
## Group 10: Visual Settings
| Setting | Default | Description |
|---------|---------|-------------|
| Bullish Color | Green | Color for bullish elements |
| Bearish Color | Red | Color for bearish/short signals |
| Warning Color | Orange | Color for caution signals |
| Neutral Color | Gray | Color for inactive elements |
---
# Visual Elements Explained
## Chart Overlays
### VWAP Line (Blue)
- **Solid blue line** = Volume Weighted Average Price
- Price above VWAP = bullish bias
- Price below VWAP = bearish bias
- **Use**: Short when price rejects from above VWAP
### VWAP Bands (Purple circles)
- Upper band = 2 standard deviations above VWAP
- Lower band = 2 standard deviations below VWAP
- **Use**: Extreme extension to upper band signals potential reversal
### EMAs (Orange and Red)
- **Orange line** = Fast EMA (9-period default)
- **Red line** = Slow EMA (20-period default)
- **Use**: Bearish cross or price rejection from EMAs confirms short
### HOD Line (Red, dashed)
- Shows the current day's high
- **Use**: Rejection from HOD is a key short signal
### Premarket High (Orange, dashed)
- Shows premarket session high
- **Use**: Failure to break PM high often signals weakness
## Signal Markers
### Individual Signal Markers (Small)
| Shape | Color | Signal |
|-------|-------|--------|
| โผ Triangle | Purple | Parabolic Exhaustion |
| โ X-Cross | Blue | VWAP Rejection |
| โ Diamond | Yellow | Volume Climax |
| โ Circle | Orange | RSI Divergence |
| โ Square | Red | Failed Breakout |
### Composite Short Signal (Large)
- **Large red triangle** with "SHORT" text
- Only appears when minimum signal threshold is met
- This is your primary trading signal
## Risk Level Lines
### Stop Loss (Red line)
- Calculated as: Entry + (ATR ร Stop Multiple)
- Represents maximum acceptable loss
- **RESPECT THIS LEVEL**
### Target 1 (Light green line)
- First profit target at 1:1 risk/reward
- Consider taking partial profits here
### Target 2 (Dark green line)
- Second profit target at user-defined R:R
- Let winners run to this level
## Background Coloring
### Light Red Background
- Appears when composite short signal is active
- Indicates you should be looking for shorts, not longs
### Light Purple Background
- Appears during extreme parabolic extension
- Warning of potential imminent reversal
---
# Alert Configuration
## Available Alerts
### 1. Composite Short Signal
**Best for**: Primary trading signal
```
Condition: Composite short signal fires
Message: "PSSP: Short Signal Triggered - {ticker} at {close}"
```
### 2. Parabolic Exhaustion
**Best for**: Early warning of potential top
```
Condition: Parabolic exhaustion detected
Message: "PSSP: Parabolic exhaustion detected on {ticker}"
```
### 3. Volume Climax
**Best for**: Blow-off top identification
```
Condition: Volume climax occurs
Message: "PSSP: Volume climax / blow-off top on {ticker}"
```
### 4. Strong Short Setup (5+ Signals)
**Best for**: High-confidence opportunities only
```
Condition: 5 or more signals active
Message: "PSSP: STRONG short setup on {ticker}"
```
### 5. Very Strong Short Setup (6+ Signals)
**Best for**: Maximum confidence trades
```
Condition: 6 or more signals active
Message: "PSSP: VERY STRONG short setup on {ticker}"
```
### 6. Failed Breakout
**Best for**: Bull trap identification
```
Condition: Failed breakout detected
Message: "PSSP: Failed breakout detected on {ticker}"
```
### 7. Key Level Rejection
**Best for**: Resistance level plays
```
Condition: Key level rejection occurs
Message: "PSSP: Key level rejection on {ticker}"
```
## Setting Up Alerts in TradingView
1. Right-click on the chart
2. Select "Add Alert"
3. Set Condition to "Penny Stock Short Signal Pro"
4. Choose your desired alert condition
5. Configure notification method (popup, email, webhook, etc.)
6. Set expiration (or "Open-ended" for permanent)
7. Click "Create"
## Alert Strategy Recommendations
### For Active Day Traders
- Enable: Composite Short Signal, Volume Climax
- Set to: Popup + Sound
- Check frequently during market hours
### For Swing Traders
- Enable: Strong Short Setup (5+), Very Strong Short Setup (6+)
- Set to: Email + Mobile Push
- Review at key times (open, lunch, close)
### For Part-Time Traders
- Enable: Very Strong Short Setup (6+) only
- Set to: Email + SMS
- Only trade highest-conviction setups
---
# Trading Strategies
## Strategy 1: The Parabolic Fade
**Setup Requirements:**
- Parabolic Exhaustion signal ACTIVE
- Extension from VWAP โฅ 2.0 ATR
- Volume climax or declining volume on push
**Entry:**
- Short on first red candle after signal
- Or short on break below prior candle's low
**Stop Loss:**
- Above the high of the parabolic move
- Maximum: 1.5 ATR above entry
**Targets:**
- T1: VWAP (take 50% off)
- T2: Lower VWAP band or LOD
**Best Time:** 9:30-10:30 AM (morning runners)
---
## Strategy 2: VWAP Rejection Short
**Setup Requirements:**
- VWAP Rejection signal ACTIVE
- Price came from below VWAP
- Rejection candle has significant upper wick
**Entry:**
- Short on close below VWAP
- Or short on break below rejection candle low
**Stop Loss:**
- Above VWAP + 0.5 ATR
- Or above rejection candle high
**Targets:**
- T1: Lower VWAP band
- T2: Prior support or LOD
**Best Time:** Midday (11:00 AM - 2:00 PM)
---
## Strategy 3: HOD Failure Short
**Setup Requirements:**
- Level Rejection signal ACTIVE (HOD)
- Multiple tests of HOD without breakthrough
- Volume declining on each test
**Entry:**
- Short on confirmed HOD rejection
- Wait for close below the rejection candle
**Stop Loss:**
- Above HOD + 0.25 ATR (tight)
- Clear invalidation if HOD breaks
**Targets:**
- T1: VWAP
- T2: Morning support levels
**Best Time:** 10:30 AM - 12:00 PM
---
## Strategy 4: Volume Climax Fade
**Setup Requirements:**
- Volume Climax signal ACTIVE
- Volume โฅ 3x average on green candle
- Followed by bearish candle or upper wick
**Entry:**
- Short on first red candle after climax
- Or short on break below climax candle low
**Stop Loss:**
- Above climax candle high
- Give room for volatility spike
**Targets:**
- T1: 50% retracement of the run
- T2: VWAP or start of the run
**Best Time:** First hour of trading
---
## Strategy 5: The Full Composite (High Conviction)
**Setup Requirements:**
- Composite Short signal ACTIVE
- Minimum 4-5 individual signals
- Clear visual of signal markers clustering
**Entry:**
- Short immediately on composite signal
- Use market order for fast-moving stocks
**Stop Loss:**
- Use indicator's automatic stop level
- Do not deviate from system
**Targets:**
- T1: Indicator's T1 level (1:1)
- T2: Indicator's T2 level (2:1)
**Best Time:** Any time with sufficient signals
---
# Risk Management
## Position Sizing Formula
```
Position Size = (Account Risk %) / (Stop Loss %)
Example:
- Account: $25,000
- Risk per trade: 1% = $250
- Entry: $2.00
- Stop: $2.20 (10% stop)
- Position Size: $250 / 10% = $2,500 worth
- Shares: $2,500 / $2.00 = 1,250 shares
```
## Risk Rules
### The 1% Rule
Never risk more than 1% of your account on any single trade. For a $25,000 account, max risk = $250.
### The 2x Stop Rule
If your stop gets hit twice on the same stock, stop trading it for the day. The pattern isn't working.
### The Daily Loss Limit
Set a maximum daily loss (e.g., 3% of account). Stop trading if hit.
### The Size-Down Rule
After a losing trade, reduce your next position size by 50%. Rebuild after a winner.
## Short-Specific Risks
### The Short Squeeze
- Penny stocks can squeeze violently
- ALWAYS use stops
- Never "hope" a position comes back
- Size appropriately for volatility
### The Hard-to-Borrow
- Check borrow availability before trading
- High borrow fees eat into profits
- Some stocks become HTB mid-trade
### The Halt Risk
- Penny stocks can halt on volatility
- Position size for worst-case halt against you
- Halts can open significantly higher
---
# Best Practices
## DO's
โ
**Wait for multiple signals** - Single signals have lower accuracy
โ
**Trade with the trend** - Short when daily trend is down
โ
**Use the dashboard** - Check signal count before entering
โ
**Respect stops** - The indicator calculates them for a reason
โ
**Size appropriately** - Penny stocks are volatile; position small
โ
**Trade liquid stocks** - Volume โฅ 500K daily average
โ
**Know the catalyst** - Understand why the stock is moving
โ
**Take partial profits** - Secure gains at T1
โ
**Journal your trades** - Track what works and what doesn't
โ
**Time your entries** - Best shorts often come 10:30-11:30 AM
## DON'Ts
โ **Don't short strong stocks** - If it won't go down, don't force it
โ **Don't fight the tape** - A stock going up can keep going up
โ **Don't average up on losers** - Adding to losing shorts is dangerous
โ **Don't ignore the dashboard** - It exists to help you
โ **Don't overtrade** - Quality over quantity
โ **Don't short into news** - Wait for the reaction first
โ **Don't trade the first 5 minutes** - Too chaotic for reliable signals
โ **Don't hold overnight** - Penny stock gaps can destroy accounts
โ **Don't trade without stops** - Ever.
โ **Don't trade on tilt** - After losses, take a break
## Optimal Trading Windows
| Time (ET) | Quality | Notes |
|-----------|---------|-------|
| 9:30-9:35 | โญ | Too volatile, avoid |
| 9:35-10:30 | โญโญโญโญโญ | Best shorts, morning runners exhaust |
| 10:30-11:30 | โญโญโญโญ | Secondary exhaustion, HOD rejections |
| 11:30-2:00 | โญโญ | Midday lull, lower quality |
| 2:00-3:00 | โญโญโญ | Afternoon setups develop |
| 3:00-3:30 | โญโญโญโญ | End of day momentum |
| 3:30-4:00 | โญโญ | Closing volatility, risky |
---
# Troubleshooting
## Common Issues
### "Signals aren't appearing"
- Check that the relevant system is enabled in settings
- Ensure minimum signals threshold isn't too high
- Verify the stock has sufficient volume for calculations
### "Too many false signals"
- Increase minimum signals threshold
- Use more conservative settings (see Settings section)
- Focus on stocks with cleaner price action
### "Dashboard not showing"
- Ensure "Show Signal Dashboard" is enabled
- Check that your chart has enough space
- Try a different dashboard position
### "VWAP line is missing"
- VWAP requires intraday timeframes (1m, 5m, 15m, etc.)
- VWAP resets daily; won't show on daily+ charts
- Ensure "Show VWAP Line" is enabled
### "Stop loss seems too tight/wide"
- Adjust Stop ATR Multiple in Risk Management settings
- Lower multiple = tighter stop
- Higher multiple = wider stop
### "Alerts not triggering"
- Verify alert is set to the correct indicator
- Check that alert hasn't expired
- Ensure notification settings are configured in TradingView
## Performance Optimization
If the indicator is slow:
1. Reduce the number of visual elements shown
2. Disable unused signal systems
3. Use on fewer simultaneous charts
4. Close unused browser tabs
---
# Changelog
## Version 1.0 (Initial Release)
- 7 core detection systems implemented
- Real-time signal dashboard
- Automatic risk management calculations
- 7 alert conditions
- Full visual overlay system
- Comprehensive input settings
## Planned Features (Future Updates)
- Scanner integration for multi-stock screening
- Machine learning signal weighting
- Backtesting statistics panel
- Volume profile analysis
- Level 2 data integration (if available)
- Custom timeframe VWAP options
---
# Support & Feedback
## Reporting Issues
When reporting issues, please include:
1. TradingView username
2. Stock symbol and timeframe
3. Screenshot of the issue
4. Your indicator settings
5. Steps to reproduce
## Feature Requests
We welcome suggestions for improving PSSP. Consider:
- What specific pattern are you trying to catch?
- How would this help your trading?
- Any reference examples?
---
# Disclaimer
**IMPORTANT: This indicator is for educational and informational purposes only.**
- Past performance does not guarantee future results
- Short selling carries unlimited risk potential
- Always use proper position sizing and stop losses
- Paper trade before using real capital
- The creator assumes no liability for trading losses
- Consult a financial advisor before trading
**Trade at your own risk.**
---
*Penny Stock Short Signal Pro v1.0*
*Pine Script v6*
*ยฉ 2025*
Forecasting
Adaptive Market Structure Channel By S B PrasadAdaptive Market Structure Channel (AMSC)
Institutional-Grade Trend, Volatility & Liquidity Framework
Overview
The Adaptive Market Structure Channel (AMSC) is a multi-engine, adaptive trading framework designed to read market structure, volatility, liquidity, and trend strength in real time.
It integrates ATR-based channels, pivot structure, supplyโdemand zones, liquidity sweeps, multi-factor momentum, and higher-timeframe confirmation into a single, coherent visual system.
AMSC is not a single-indicator strategy.
It is a context-driven decision framework intended to help traders align entries with dominant trend, structural levels, and institutional activity.
Core Components
1๏ธโฃ Adaptive ATR Trend Channel
Dynamic ATR-based support & resistance
Automatically adjusts to volatility
Color-coded trend strength (strong / weak regimes)
Acts as the primary trend bias filter
2๏ธโฃ Pivot-Based ATR Trend Channels
Channels built from confirmed pivot highs and lows
ATR-expanded structure, not fixed slopes
Separates impulse moves from corrections
Useful for trend continuation and pullback trades
3๏ธโฃ Market Structure: Supply & Demand Zones
Automatically plots fresh demand and supply zones
Zones extend forward until violated
Helps identify high-probability reaction areas
Used as a location filter, not a standalone signal
4๏ธโฃ Liquidity Sweep Detection (Smart Money Logic)
Identifies equal high / equal low liquidity pools
Detects stop-hunt style sweeps
Validates sweeps only when price reacts from structure zones
Prevents chasing false breakouts
5๏ธโฃ Multi-Factor Trend Confirmation Engine
Combines:
EMA structure
MACD momentum
RSI regime
VWAP positioning
Optional ribbon & HMA filters
Signals are generated only when a majority of factors align, avoiding single-indicator bias.
6๏ธโฃ Volatility Context (Bollinger Bands)
Provides volatility expansion / contraction context
Helps distinguish trend continuation vs compression
Works as a background regime filter
7๏ธโฃ Higher Timeframe Confirmation
Confirms trend using a user-selected HTF
Prevents counter-trend trades during strong HTF bias
Essential for intraday and swing traders
8๏ธโฃ Session-Aware Trading
Optional India, London, and New York session filters
Signals only during active market participation
Avoids low-liquidity false signals
9๏ธโฃ Professional Dashboard
Real-time display of:
Trend direction
Trend strength
Factor alignment
HTF bias
Active zone
Trade signal
Session status
Designed for quick decision-making, not clutter.
How to Use AMSC (Best Practice)
โ Trade in the direction of the ATR trend
โ Enter near demand/supply within the channel
โ Confirm with factor alignment & HTF bias
โ Use liquidity sweeps as entry triggers, not signals alone
โ Avoid trades during low-strength or inactive sessions
AMSC performs best when used as a confluence system, not a mechanical entry-exit robot.
Ideal Use Cases
Intraday index trading
Swing trading in trending markets
Futures & FX structure-based trading
Traders who prefer context over indicators
What AMSC Is NOT
โ Not a scalping toy
โ Not a repainting indicator
โ Not a one-click signal generator
It is built for disciplined traders who understand structure and risk.
Final Note
AMSC is designed to think like the market, not predict it.
Use it to read conditions, not chase signals.
MSC โ BEST CLEAN SETUP (RECOMMENDED)
๐ฏ Design Philosophy
โContext first, signals last.โ
The goal is to:
Read trend & structure at a glance
Avoid indicator overload
Let price + zones + channel do the heavy lifting
1๏ธโฃ CORE VISUALS (KEEP ON)
These are non-negotiable.
๐น Adaptive ATR Trend Channel
โ
ON
Primary trend bias
Use ATR Trendline Color = ON
This alone defines:
Bull vs Bear
Strength vs weakness
๐ If price is above channel โ bullish context
๐ If price is below channel โ bearish context
๐น Pivot ATR Trend Channel
โ
ON
Channel fill: ON
Transparency โฅ 85
Purpose:
Visualise trend slope
Spot pullbacks inside trend
๐ Treat channel edges as dynamic structure, not entry signals.
๐น Supply & Demand Zones
โ
ON
Transparency: 80โ85
Zones auto-expire visually when violated
๐ These are your only horizontal levels.
2๏ธโฃ SMART FILTERS (SELECTIVE)
๐ง Liquidity Sweep
โ
ON
Lookback: 5
Tolerance: 0.15 ATR
๐ Use sweeps only near zones
โ Ignore sweeps in the middle of nowhere
โฑ Session Filter
โ
ON
Trade only one session
India (for NSE)
London (for FX)
New York (for US indices)
โ Do NOT enable multiple sessions simultaneously
๐ Higher Timeframe (HTF)
โ
ON
Intraday: Daily
Swing: Weekly
๐ If HTF disagrees โ no trade
3๏ธโฃ WHAT TO TURN OFF (CRITICAL)
This is where clutter dies.
โ Bollinger Bands
๐ซ OFF by default
Use only when studying volatility compression
Otherwise adds visual noise
โ Full ATR Channel (Ver 15)
๐ซ OFF
Redundant with pivot + ATR trend
Keep only one channel logic
โ SuperTrend Channel
๐ซ OFF
ATR Trend Channel already covers this
โ Pivot Levels (P, R1, S1โฆ)
๐ซ OFF
Zones replace static pivots
Too many horizontal lines = paralysis
โ Previous Day / Week Levels
๐ซ OFF
Turn ON only for index option trading
Otherwise clutter
4๏ธโฃ MOVING AVERAGES (STRICT RULE)
Keep ONLY:
EMA Fast (9)
EMA Slow (21)
Optional:
HMA โ ON only for scalping
โ Do NOT stack multiple MAs visually
5๏ธโฃ DASHBOARD (MINIMAL MODE)
๐งญ Dashboard
โ
ON
Position: Top Right
Text Size: Small
Watch only:
Trend
Strength
HTF
Zone
Signal
Ignore factor numbers once confidence develops.
6๏ธโฃ SIGNAL USAGE (DISCIPLINE RULE)
โ Signal must appear inside a zone
โ Signal must align with trend & HTF
โ Signal must be during session
โ Never take:
Signals mid-channel
Signals against HTF
Signals during flat strength (<30%)
7๏ธโฃ RECOMMENDED PRESETS (COPY THIS)
๐น Intraday (Clean)
Timeframe: 5m / 15m
HTF: Daily
Session: India / NY
BB: OFF
Full ATR: OFF
SuperTrend: OFF
Pivots: OFF
๐น Swing (Ultra Clean)
Timeframe: 1H / 4H
HTF: Weekly
Liquidity: ON
Zones: ON
Dashboard: ON (small)
8๏ธโฃ GOLDEN RULE (MOST IMPORTANT)
If you cannot explain the trade using only:
Trend channel
One zone
One sweep
Do not trade it.
๐ FINAL VERDICT
AMSC is not cluttered by design.
Clutter comes from turning everything ON.
Used correctly:
The chart stays clean
Decisions become obvious
Overtrading disappears
AMSC โ TRADE EXECUTION RULEBOOK
Framework rule:
Trend โ Structure โ Liquidity โ Entry โ Risk โ Exit
1๏ธโฃ MARKET PRE-CONDITIONS (MANDATORY)
โ NO TRADE unless ALL are TRUE
โ
Trend Filter
ATR Trend Channel = Bull for longs / Bear for shorts
Trend strength โฅ 40%
Price must be on the correct side of the channel
โ
HTF Confirmation
HTF bias must match LTF trend
If HTF is neutral โ NO TRADE
โ
Session Filter
Trade only during active session
No first 5 minutes after session open
No last 15 minutes before session close
2๏ธโฃ LOCATION RULE (MOST IMPORTANT)
๐น Long Trades
Price must be inside or just above a DEMAND zone
Zone must be:
Fresh (not tested more than twice)
Within the Pivot ATR Channel
๐น Short Trades
Price must be inside or just below a SUPPLY zone
Same freshness rules apply
โ No zone โ no trade
3๏ธโฃ LIQUIDITY CONFIRMATION (ENTRY TRIGGER)
๐น Long Entry Trigger
At the demand zone, you must see:
โ Sell-side liquidity sweep
โ Sweep candle closes bullish
โ Sweep occurs inside the zone
๐น Short Entry Trigger
At the supply zone, you must see:
โ Buy-side liquidity sweep
โ Sweep candle closes bearish
โ Sweep occurs inside the zone
4๏ธโฃ ENTRY RULE (EXECUTION)
๐ต LONG ENTRY
Enter BUY when all conditions align and:
Enter at:
Close of the sweep candle OR
50% retrace of the sweep candle (preferred)
๐ด SHORT ENTRY
Enter SELL when:
Enter at:
Close of the sweep candle OR
50% retrace of the sweep candle
5๏ธโฃ STOP-LOSS RULES (NON-NEGOTIABLE)
๐ป Long SL
Place SL at:
Lowest point of the demand zone
OR
Below sweep low โ 0.1 ATR (whichever is lower)
๐บ Short SL
Place SL at:
Highest point of the supply zone
OR
Above sweep high + 0.1 ATR (whichever is higher)
โ Never trail SL early
โ Never move SL to break-even before partial exit
6๏ธโฃ POSITION SIZE (FIXED RISK ONLY)
Risk per trade: 0.5% โ 1% max
If SL distance is large โ reduce position size
Do not widen SL to fit position
7๏ธโฃ EXIT RULES (STRUCTURED)
๐ฏ TARGET 1 (T1 โ Protection)
At 1R
Action:
Book 50%
Move SL to Break-Even
๐ฏ TARGET 2 (T2 โ Structure)
Next opposite zone
OR
Pivot ATR Channel mid-line
Book 30%
๐ฏ FINAL EXIT (TREND FOLLOW)
Exit remaining 20% when:
โ Opposite liquidity sweep occurs
โ Price closes beyond Pivot ATR Channel
โ HTF bias flips
โ Session ends
8๏ธโฃ NO-TRADE CONDITIONS (ABSOLUTE)
โ Trend strength < 30%
โ Zone already tested 3+ times
โ Liquidity sweep outside zone
โ Entry candle is oversized (>1.8 ATR)
โ Trade against HTF
โ Emotional or revenge trade
9๏ธโฃ ONE-SCREEN TRADE CHECKLIST
Before clicking BUY/SELL:
โ Trend aligned
โ HTF aligned
โ In session
โ At zone
โ Sweep confirmed
โ SL defined
โ R โฅ 2 possible
If any answer = NO โ skip trade
๐ DISCIPLINE STATEMENT (PRINT THIS)
AMSC does not pay for activity.
It pays for patience, location, and discipline.
๐ EXPECTED PERFORMANCE (REALISTIC)
Win rate: 45โ60%
R:R average: 1:2.5 to 1:4
Drawdown: low
Trade frequency: selective
Adaptive Market Structure Channel โ Visual Layout
5
๐งญ How to READ the Chart (Left โ Right)
1๏ธโฃ Core Trend Context (FIRST thing your eyes see)
ATR Trend Channel
Acts as dynamic support/resistance
Green = bullish regime
Red = bearish regime
No second trendline competing with it
๐ If price is on the wrong side โ no trade
2๏ธโฃ Pivot ATR Structure Channel (SECOND layer)
Sloping channel following real swing structure
Shows:
Trend acceleration
Healthy pullbacks
Channel fill is very light (high transparency)
๐ Pullbacks inside this channel are valid
๐ Breaks outside = caution / exit
3๏ธโฃ Supply & Demand Zones (ONLY horizontal objects)
Few, wide, soft-colored zones
No pivot clutter, no fibs, no grids
๐ Trades happen only here
4๏ธโฃ Liquidity Sweep Markers (EVENT-BASED)
Appears only near zones
Indicates stop-hunt, not entry by itself
๐ Sweep + zone + trend = setup
๐ Sweep alone = ignore
5๏ธโฃ Dashboard (Decision Support, not distraction)
Small
Corner-placed
Shows only:
Trend
Strength
HTF bias
Zone
Signal
Session
๐ After experience, youโll barely look at it
๐ซ What You DO NOT See (Very Important)
A clean AMSC chart intentionally avoids:
Multiple moving averages
Pivot levels (P/R/S)
Too many channels
Oscillator panels
Bright fills or thick lines
If your chart looks โbusyโ, something is ON that should be OFF.
๐ง Mental Model (Keep This Image in Mind)
AMSC chart =
1 dynamic trend
1 structure channel
1 zone
1 liquidity event
1 decision
Anything more โ clutter
Anything less โ blind trading
โ
Final Visual Checklist (Before Trading)
โ Chart background visible
โ Candles clearly readable
โ Zones visible but not loud
โ Channel guides the eye
โ Nothing overlaps price excessively
If yes โ you are trading AMSC correctly
Sweeps + FVG + IFVG The ICT stuff in an indicator
Shows liquidity sweeps
Shows HTF FVG
shows IFVG
shows entries and take profit
RSI Statistics [Honestcowboy]โฏ Overview
Research tool for analysing price behaviour based on RSI, find out how your favorite trading pair / timeframe combinations react to RSI. 5 Different projections based on 5 different value zones of RSI:
RSI between 100-80 (very overbought)
RSI between 80-60 (overbought)
RSI between 60-40 (normal)
RSI between 40-20 (oversold)
RSI between 20-00 (very oversold)
The script simply show price projections of different RSI environments so you can get an idea of what price could do when RSI reaches this RSI value zone. Ofcourse past price performance does not guarantee future returns and this is just projections based on the past.
The script also projects RSI just like it does with price so you can get an idea of how long RSI might stay in overbought or very overbought etc
Script is mainly a research tool to use to get ideas to explore further and build upon. Here are some examples:
โฏ Settings
RSI Lenght: this is just normal RSI settings you find in standard RSI (bars used to calculate RSI)
Projection Length: Amount of bars to save for projections. The projections will also project this many bars in futre. Higher values here increase loading time drastically.
Price Action Boundaries: turn the highs / lows of projection zone on or off. I usually turn this off to look more closely at the averages themselves.
Maximum Stats history: Not on by default, in case you only want to show the average projection of last X amount of occurences RSI was in a specific RSI value zone
Selection of the different zones: in case you want to look at a specific zone alone or turn of some zones. It will no longer project for that zone both in the price projection and RSI projections.
โฏ How are these calculated?
To calculate the average price reaction script uses a very simple approach. On each bar it will save price action array up to projection length back in time. It will then check what the RSI value was there and store the array inside the right matrix.
It will use this matrix to calculate the averages, highs and lows of all these arrays for that specific RSI zone. It uses a simple arithmatic averaging method to get average value.
The script uses a similar approach for projecting the RSI itself into the future.
I include a visual showing it a bit better. This is from a different indicator of me using same approach:
The script will force you into a specific background, bar color and color template. Script is not meant to be used with other scripts and should be used as a standalone tool.
Hedge Mini Calculator (Avg Long/Short + Alerts) with dca
Hedge Mini Calculator is a position-management indicator for traders who use long & short hedging.
It plots:
Long average price
Short average price
Optional hedge close level (+% above hedge average)
The indicator also provides alerts when price reaches the long or short average, helping you manage hedge exits and directional bias with precision.
Designed for risk control, not signals.
๐น How to Use (Simple & Clear)
1. Enter Your Positions
In the indicator settings:
Add the dollar amount and entry price for each long leg
Add the dollar amount and entry price for each short leg
Set your leverage (default x4)
The indicator does not connect to your exchange.
All values are entered manually.
2. Read the Lines
Avg Long line โ average entry of all long positions
Avg Short line โ average entry of all short positions
Hedge Close line (optional) โ price level where you may close shorts and stay long
3. Use Alerts
You can create alerts for:
Price reaching Avg Long
Price reaching Avg Short
Alerts trigger when the candle touches the average price (highโlow range).
4. Manage the Hedge
Typical workflow:
Keep both long & short active while price is inside the range
When price moves favorably and reaches your target level:
Close the hedge leg (usually shorts)
Keep the directional position (longs)
5. PnL Awareness
The info table shows:
Estimated Long PnL
Estimated Short PnL
Net PnL (based on margin & leverage)
These values are approximations for decision support.
โ ๏ธ Disclaimer
This indicator is not a trading signal.
It is a position management tool for hedging, scaling, and risk control.
SHFE Silver Premium vs COMEX (USD/oz)This indicator measures the SHFEโCOMEX silver premium/discount in USD per troy ounce.
SHFE silver is quoted in CNY per kilogram, so the script first converts SHFE:AG1! into USD/oz using the current USD/CNY exchange rate and the exact kg โ troy oz factor (32.1507466). It then calculates:
Premium (USD/oz) = SHFE_USD/oz โ COMEX_USD/oz
How to interpret:
Positive bars: SHFE is trading above COMEX (premium)
Negative bars: SHFE is trading below COMEX (discount)
Persistent regimes can reflect currency dynamics, regional liquidity, import/export constraints, and shifts in industrial demand.
How to use:
Add this indicator beneath the companion overlay indicator โSHFE Silver Price Discovery (USD/oz)โ to keep the price chart readable while still visualizing divergence.
Watch for sustained premium expansions/contractions as inter-market confirmation signals, especially during volatile periods.
This indicator is intended for macro and inter-market analysis, not short-term scalping.
SHFE Silver Price Discovery (USD/oz)This indicator converts Shanghai Futures Exchange (SHFE) silver futures into USD per troy ounce and optionally overlays COMEX silver futures for direct, same-unit comparison.
SHFE silver is quoted in CNY per kilogram, while COMEX is quoted in USD per troy ounce. To make SHFE prices comparable on the same chart, the script:
pulls SHFE:AG1! close (CNY/kg)
pulls USD/CNY FX rate
converts to USD/oz using the exact kg โ troy oz factor (32.1507466)
Why this is useful:
SHFE pricing often reflects different drivers than Western paper markets (currency effects, local liquidity, industrial demand, and regional availability). Normalizing SHFE into USD/oz lets traders and investors monitor inter-market alignment and spot periods where Eastern pricing diverges from COMEX.
How to use:
Use the SHFE USD/oz line as a โphysical-demand-sensitiveโ reference.
Overlay COMEX to compare regional pricing and identify multi-week divergence regimes.
For the premium/discount histogram, use the companion indicator: โSHFE Silver Premium vs COMEX (USD/oz)โ.
This indicator is designed for macro and inter-market analysis rather than short-term scalping.
DJ's Macro Catch-Up (BTC/NDX Ratio)Calculates the BTC/NDX ratio and plots the ratio line (white line)
Highlights the Background in Green specifically when a Bullish Divergence forms (Ratio makes a Lower Low, but RSI makes a Higher Low).
Look for the Green Zones: Don't buy in the green zone blindly. Wait for the White Line (Ratio) to cross above the Yellow Line (50 EMA). That is your confirmation that the rotation has started.
1H Buy: Engulf @ 20EMA + Vol + HTF Bull + Break Highbuy signal on the one hour for bullish engulfing strategy. Forms at the 20EMA, volume expansion, higher timeframe (4h) is bullish, next candle breaks engulfing candle.
Consolidating Trend MasterA complimentary Oscillator to the Hybrid ST/EMA Trend Table Indicator to help provide confident Confluence signals and when the market is consolidating/choppy/moving sideways.
This Oscillator may also help someone with scalping.
warning as always, no chart is 100% accurate.
T3 MACD BB flow What this script does โ in plain words
Smoothes the MACD with a special T3 filter, turning the raw MACD into a smoother line so shortโterm noise is reduced.
Draws Bollingerโstyle bands around that smoothed MACD, giving a โmidโฏlineโ and upper/lower envelopes that show how far the line is from its recent average.
Colors the main line green when itโs rising and red when itโs falling, helping you see the trend at a glance.
Adds a bold zero line plus light gray markers on the bands so you can spot crossovers easily.
Includes a translucent blue fill between the upper and lower bands for visual emphasis.
This gives a clear, colorโcoded view of MACD momentum plus volatility bandsโall on the same indicator pane.
Bull Engulf @ Rolling Support + HTF Confluence (2-8w) This indicator is designed to identify high-probability bullish reversal setups that occur at proven support levels, with confirmation from higher timeframes.
It is built for swing traders targeting 2โ8 week moves, prioritizing win rate and trade quality over frequency.
The script focuses on institutional-style price behavior: pullbacks into support, seller exhaustion, and clear buyer confirmation before entry.
Core Logic
A signal is generated only when all of the following align:
Bullish Engulfing Candle
Current candle fully engulfs the prior candleโs body
Optional filters ensure strong momentum (close above prior high, meaningful candle size)
Rolling-Low Support
Price must be near a rolling support level based on recent swing lows
Support adapts dynamically to market structure
Higher Timeframe (HTF) Confluence
Daily setups can require alignment with weekly and monthly support
Weekly setups can require monthly support
This dramatically reduces low-quality signals
Strongest-Only Scoring System
Each setup is scored based on:
Proximity to support
HTF confluence
Candle strength
Volume and volatility filters
Only setups meeting a minimum score threshold are shown
Signals & Labels
SETUP / TOP label
Appears when a valid bullish engulfing forms at support with HTF confirmation.
ENTRY label
Appears when price breaks above the high of the engulfing candle (confirmation entry).
Support Lines
Local (rolling) support
Weekly and Monthly support (when applicable)
Each label includes:
Timeframe
Score
Support distance
Suggested risk level
A standardized options structure for 2โ8 week trades
Intended Trading Style
Timeframe: Daily and Weekly charts
Trade Duration: ~2โ8 weeks
Market Type: Stocks (best on liquid, mid/large-cap names)
Approach:
Wait for price to come to support
Wait for buyers to prove control
Enter only after confirmation
This indicator is not designed for:
Day trading
Chasing breakouts
High-frequency signals
Fewer signals is intentional.
How to Use
Apply the indicator to Daily or Weekly charts
Wait for a SETUP/TOP label at support
Enter only after the ENTRY confirmation (break above engulfing high)
Use the displayed risk level to define invalidation
Let the trade develop over multiple weeks
Alerts can be enabled for:
Pre-market watchlist signals (yesterdayโs setups)
Confirmed signals at the close
Entry confirmation
Why This Works
Markets often reverse at support, not randomly.
By combining:
Structural support
Price-action confirmation
Higher timeframe alignment
this indicator filters out most noise and focuses on areas where larger participants are likely active.
Disclaimer
This indicator is for educational and analytical purposes only.
It does not constitute financial advice. Always manage risk appropriately.
Pro-Vision ATR + ExhaustionThis indicator is designed to provide Real-Time Volatility Guardrails. Unlike standard ATR indicators that plot a single line at the bottom of your chart, this tool projects volatility "shells" directly onto the price action from the current candle.
It answers the most critical question in a live trade: "How far can this stock move right now before it is statistically exhausted?"
The Components
Current ATR Centerpiece: The lines originate from the most recent price action, updating live with every tick.
Target Lines (1.5x ATR - Yellow): These represent the "Normal Expected Move." In a healthy trend, price often reaches these levels without much resistance.
Exhaustion Lines (3.0x ATR - Red): These represent "Extreme Volatility." Statistically, it is rare for price to sustain a move beyond 3x its average range in a single period without a pullback or consolidation.
How to Trade It
1. Profit Taking (The "Target" Exit)
If you are in a long position and price hits the Yellow Upper Line, it has achieved its expected volatility move for that timeframe.
Strategy: Scale out 50% of your position here. This locks in gains based on math rather than emotion.
2. Reversal Trading (The "Exhaustion" Play)
When price pierces or touches the Red Exhaustion Line, the asset is "overbought" or "oversold" relative to its recent volatility.
Strategy: Look for a reversal candle (like a shooting star or hammer) touching the red line.
The Trade: Short the asset at the red line with a tight stop, or close your long position immediately. These levels often act as "invisible" ceilings.
3. Setting "Smart" Stop Losses
Standard stops are often placed at arbitrary percentages. Using this indicator, you can place your stop just outside the 1.5x ATR line.
Strategy: If you enter a trade and price moves past the opposite ATR line, the volatility has shifted against you, and the original trade thesis is likely invalid.
4. Filtering Bad Entries (The "Don't Chase" Rule)
Strategy: If you are looking to go Long, but the price is already sitting at the Yellow Line, the "meat of the move" is likely over.
Rule: Never enter a new position if the price is already 75% of the way to the Red Exhaustion line. Wait for a mean reversion back to the middle.
MoneyMakers Scalping Signals1-5 min frame, a versatile market indicator designed to highlight emerging trends and structural shifts in crypto price action before they fully develop. By combining price dynamics, momentum behavior and market context into a clean visual output, it helps traders make more informed decisions without noise or lag. Suitable for both short- and mid-term analysis, the indicator offers a clearer view of potential reversal zones, trend continuations and key market cycles.
ATH Dip Levels - Crypto Edition with Reactive TPHarika bir fikir! Bu indikatรถrรผ toplulukla paylaลฤฑrken (TradingView Public Library veya GitHub gibi), insanlarฤฑn stratejinin mantฤฑฤฤฑnฤฑ ve gรผcรผnรผ anlamalarฤฑ iรงin etkileyici bir ฤฐngilizce aรงฤฑklama hazฤฑrladฤฑm.
ฤฐลte paylaลฤฑmฤฑn iรงin kullanabileceฤin baลlฤฑk, รถzet ve รถzellikler listesi:
๐ Indicator Title: ATH Dip Levels - Crypto Reactive Strategy
Overview
This indicator is a specialized "Buy the Dip" and "Reactive Take Profit" system designed specifically for the high volatility of the crypto market. Instead of following lagging indicators, it focuses on the most fundamental metric: Percentage drawdown from the rolling All-Time High (ATH).
It identifies historical discount zones and automatically calculates a "Reactive Take Profit" target for each entry, allowing you to scale out during market bounces.
Key Features
๐ 1. Dynamic Buy Zones (DCA Levels)
The script tracks a rolling 220-day ATH and plots 7 distinct discount levels:
Minor Pullbacks: 10%, 20%
Major Corrections: 30%, 40%
Capitulation / Bear Market Bottoms: 55%, 70%, 85% (Highlighted in Neon for max opportunity).
๐ฐ 2. Reactive Take Profit (The "Half-Drop" Rule)
This is the core of the strategy. For every buy level triggered, the script automatically sets a "RE-SELL" target based on the severity of the drop:
Logic: The profit target is exactly half of the percentage drop.
Example: If you buy at a 30% dip, the target is a +15% recovery from that entry.
Example: If you buy at a 70% dip, the target is a +35% recovery from that entry. This captures the natural "Dead Cat Bounce" or "Mean Reversion" common in crypto.
๐ง 3. Intelligent State Management
Single Trigger per Cycle: Each level triggers only once per ATH cycle to avoid "choppy" market noise.
Automatic Reset: All levels and status flags reset automatically when the price makes a New ATH, preparing you for the next market cycle.
๐ 4. Live Status Dashboard
A clean, real-time table on the top-right shows you:
Current ATH price.
Which buy levels have been Hit (โ
).
Which profit targets have been Sold (๐ฐ).
How to Use
Accumulate: When price hits a green "BUY" label, it's a historical discount zone.
Scale Out: When price hits the purple "RE-SELL" label, take profits on that specific position to reclaim liquidity.
HODL the Rest: Use this to lower your break-even price while keeping a "moon bag" for the next ATH.
Author's Note
Best used on 4H and 1D timeframes. This is a mathematical approach to volatility, removing emotions from your trading.
Prev Candle Fibonacci Levels (38.2 / 50 / 61.8)Very basic tool that show the main FIB ( 38.2 / 50 / 61.8) of the previous candle
7,25,50 EMA Convergence Detector It is to detect coins for conversing 3 EMAs.
As you know well, it is a good chance to take a position when the MA lines are conversing.
This is designed to detect the point.
Percentage Price LevelsPercentage Price Levels displays dynamic price levels based on percentage gains and losses from the current price. Instantly visualize where price would be at ยฑ2%, ยฑ4%, ยฑ6%, ยฑ8%, ยฑ10%(and beyond) โ perfect for setting profit targets, stop-losses, and understanding potential price movement.
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
๐ฏ WHAT IT DOES
โข Draws horizontal lines at percentage-based price levels above and below current price
โข Green lines = potential profit targets (positive %)
โข Red lines = potential stop-loss zones (negative %)
โข Yellow line = current price reference
โข Summary table shows all levels in a clean, easy-to-read format
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
โ๏ธ FEATURES
โข Up to 8 positive and 8 negative percentage levels
โข Fully customizable percentages (set your own values)
โข Toggle each level on/off individually
โข Adjustable font size (Tiny to Huge)
โข Multiple line styles (Solid, Dashed, Dotted)
โข Movable summary table (any corner)
โข Base price options: Close, Open, High, Low, HL2, OHLC4
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
๐ HOW TO USE
1. Add the indicator to your chart
2. Default shows ยฑ2%, ยฑ4%, ยฑ6%, ยฑ8%, ยฑ10% levels
3. Open Settings to customize:
โข Enable/disable specific levels
โข Change percentage values
โข Adjust colors and font size
โข Move table position
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
๐ก USE CASES
โข Day Trading โ Quick intraday profit targets
โข Swing Trading โ Visualize multi-day price zones
โข Risk Management โ Set stop-losses based on % risk tolerance
โข Options Trading โ Find strike prices relative to spot
โข Position Sizing โ See exact dollar values at each level
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
๐ง DEFAULT SETTINGS
Positive: +2%, +4%, +6%, +8%, +10% (3 extra slots available)
Negative: -2%, -4%, -6%, -8%, -10% (3 extra slots available)
Font Size: Normal
Line Style: Dashed
โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
If you find this useful, please leave a like! Feedback and suggestions welcome in the comments.
Multi Cycles Predictive System ML - GBM IntegratedMulti-Cycle Predictive System: The Gradient Boosting Machine (GBM) Revolution
Introduction: The Death of Static Analysis
The financial markets are not static; they are a living, breathing, and chaotic system. Yet, for decades, traders have relied on static indicatorsโusing the same RSI settings, the same MACD parameters, and the same Moving Averages regardless of whether the market is trending, chopping, or crashing.
The Multi-Cycle Predictive System (MCPS) represents a paradigm shift. It is not just an indicator; it is an Adaptive Machine Learning Engine running directly on your chart.
By integrating a fully functional Gradient Boosting Machine (GBM), this script does not guessโit learns. It monitors 13 distinct algorithmic models, calculates their real-time accuracy against future price action, and dynamically reallocates influence to the "winning" models using gradient descent.
This is Survival of the Fittest applied to technical analysis.
1. The Core Engine: Gradient Boosting & Adaptive Learning
At the heart of the MCPS is a custom-coded Gradient Boosting Machine. While most "ML" scripts on TradingView simply average a few indicators, this system replicates the architecture of advanced data science models.
How the GBM Works:
Ensemble Prediction: The system aggregates signals from 13 different mathematical models.
Residual Calculation: It compares the ensemble's previous predictions against the actual price movement (Price Return) to calculate the error (Residual).
Gradient Descent: It calculates the gradient of the loss function. We utilize a Huber Loss Gradient, which is robust against outliers (market spikes), ensuring the model doesn't overreact to volatility.
Weight Optimization: Using a configurable learning rate, the system updates the weights of each sub-algorithm. Models that predicted correctly gain weight; models that failed lose influence.
Softmax Normalization: Finally, weights are passed through a Softmax function (with Temperature control) to convert them into probabilities that sum to 1.0.
The "Winner-Takes-All" Philosophy
A common failure in ensemble systems is "Signal Dilution"โwhere good signals are drowned out by bad ones.
The MCPS solves this with Aggressive Weight Concentration:
Top 3 Logic: The script identifies the top 3 performing algorithms based on historical accuracy.
The 90% Rule: It forces the system to allocate up to 90% of the total decision weight to these top 3 performers.
Result: If Ehlers and Schaff are reading the market correctly, but MACD is failing, MACD is effectively silenced. The system listens only to the winners.
2. The 13 Algorithmic Pillars
The MCPS draws from a diverse library of Digital Signal Processing (DSP), Statistical, and Momentum algorithms. It does not rely on simple moving averages.
Ehlers Bandpass Filter: Isolates the dominant cycle in price data, removing trend and noise.
Zero-Lag EMA (ZLEMA): Reduces lag to near-zero to track momentum shifts instantly.
Coppock Curve: A classic long-term momentum indicator, modified here for adaptive responsiveness.
Detrended Price Oscillator (DPO): Eliminates the trend to identify short-term cycles.
Schaff Trend Cycle (STC): A double-smoothed stochastic of the MACD, excellent for identifying cycle turns.
Fisher Transform: Converts price into a Gaussian normal distribution to pinpoint turning points.
MESA Adaptive: Uses Maximum Entropy Spectral Analysis to detect the current dominant cycle period.
Goertzel Algorithm: A DSP technique used to identify the magnitude of specific frequency components in the price wave.
Hilbert Transform: Extracts the instantaneous amplitude and phase of the price action.
Autocorrelation: Measures the similarity between the price series and a lagged version of itself to detect periodicity.
Singular Spectrum Analysis (SSA): Decomposes the time series into trend, seasonal, and noise components (Simplified).
Wavelet Transform: Analyzes data at different scales (frequencies) simultaneously.
Empirical Mode Decomposition (EMD): Splits data into Intrinsic Mode Functions (IMFs) to isolate pure cycles.
3. The Dashboard: Total Transparency
Black-box algorithms are dangerous. You need to know why a signal is being generated. The MCPS features two detailed dashboards (tables) located at the bottom of your screen.
The Weight & Accuracy Table (Bottom Right)
This is your "Under the Hood" view. It displays:
Algorithm: The name of the model.
Accuracy: The rolling historical accuracy of that specific model over the lookback period (e.g., 58.2%).
Weight: The current influence that model has on the final signal. Watch this change in real-time. You will see the system "giving up" on bad models and "betting heavy" on good ones.
Prob/Sig: The raw probability and directional signal (Up/Down).
The GBM Stats Table (Bottom Left)
Tracks the health of the Machine Learning engine:
Iterations: How many learning cycles have occurred.
Entropy: A measure of market confusion. High entropy means weights are spread out (models disagree). Low entropy means the models are aligned.
Top 3 Weight: Shows how concentrated the decision power is. If this is >80%, the system is highly confident in specific models.
Confidence & Agreement: Statistical measures of the signal strength.
4. How to Trade with MCPS
This system outputs a single, composite Cycle Line (oscillating between -1 and 1) and a background Regime Color.
Strategy A: The Zero-Cross (Trend Reversal)
Bullish: When the Cycle Line crosses above 0. This indicates that the weighted average of the top-performing algorithms has shifted to a net-positive expectation.
Bearish: When the Cycle Line crosses below 0.
Strategy B: Probability Extremes (Mean Reversion)
Strong Buy: When the Cycle Line drops below -0.5 (Oversold) and turns up. This indicates a high-probability cycle bottom.
Strong Sell: When the Cycle Line rises above +0.5 (Overbought) and turns down.
Strategy C: Regime Filtering
The background color changes based on the aggregate consensus:
Green/Lime: Bullish Regime. Look primarily for Long entries. Ignore weak sell signals.
Red/Orange: Bearish Regime. Look primarily for Short entries.
Gray: Neutral/Choppy. Reduce position size or wait.
5. Configuration & GBM Settings
The script is highly customizable for advanced users who want to tune the Machine Learning hyperparameters.
Prediction Horizon: How many days into the future are we trying to predict? (Default: 3).
Accuracy Lookback: How far back does the model check to calculate "Accuracy"?
GBM Learning Rate: Controls how fast the model adapts.
High (0.2+): Adapts instantly to new market conditions but may be "jumpy."
Low (0.05): Very stable, long-term adaptation.
Temperature: Controls the "Softmax" function. Higher temperatures allow for softer, more distributed weights. Lower temperatures force a "Winner Takes All" outcome.
Max Top 3 Weight: The cap on how much power the top 3 models can hold (Default: 90%).
6. Technical Nuances (For the Geeks)
Huber Gradient: We use Huber loss rather than MSE (Mean Squared Error) for the gradient descent. This is crucial for financial time series because price spikes (outliers) can destroy the learning process of standard ML models. Huber loss transitions from quadratic to linear error, making the model robust.
Regularization: L2 Regularization is applied to prevent overfitting, ensuring the model doesn't just memorize past noise.
Memory Decay: The model has a "fading memory." Recent accuracy is weighted more heavily than accuracy from 200 bars ago, allowing the system to detect Regime Shifts (e.g., transitioning from a trending market to a ranging market).
Disclaimer:
This tool is a sophisticated analytical instrument, not a crystal ball. Machine Learning attempts to optimize probabilities based on historical patterns, but no algorithm can predict black swan events or fundamental news shocks. Always use proper risk management.
The "Warmup Period" is required. The script needs to process 50 bars of history before the GBM engine initializes and produces signals.
Author's Note:
I built the MCPS because I was tired of indicators that stopped working when the market "personality" changed. By integrating GBM, this script adapts to the market's personality in real-time. If the market is cycling, Ehlers and Goertzel take over. If the market is trending, Coppock and ZLEMA take the lead. You don't have to chooseโthe math chooses for you.
Please leave a boost and a comment if you find this helpful!
Precision Trend Signal V5Strategy Logic OverviewThis indicator is a "Triple-Confirmation" trend-following system. It combines volume-weighted smoothing, immediate price action, and momentum filtering.1. Core ComponentsEMA 1 (The Trigger): Since the period is set to 1, this represents the raw price action. It acts as the fastest possible trigger to capture entries at the exact moment a trend shifts.SALMA (The Baseline): This is a double-smoothed moving average. It provides a stabilized support/resistance line that filters out market noise better than a standard SMA.Tillson T3 (The Trend Filter): Known for its low lag and extreme smoothness. We use this as a "Guardrail." We only take BUY signals when price is above the T3 and SELL signals when price is below it.RSI (The Momentum Filter): Ensures that we only enter a trade when there is sufficient strength ($> 50$ for Long, $< 50$ for Short).2. Signal Rules๐ BUY SignalA green BUY label appears when:Crossover: EMA 1 crosses above the SALMA line.Trend: The current price is trading above the Tillson T3 line.Momentum: RSI is greater than 50.๐ป SELL SignalA red SELL label appears when:Crossunder: EMA 1 crosses below the SALMA line.Trend: The current price is trading below the Tillson T3 line.Momentum: RSI is less than 50.3. Execution & ManagementTake Profit (TP): Based on your preference, the suggested target is 2%.Alerts: The script includes alertcondition functions. You can set up TradingView alerts to send Webhooks to your quant infrastructure or bot, solving the "manual execution" problem you mentioned.
