CM Confluence Gradient (VRVP + BBW% + PMARP + ER)CM Confluence Gradient
A Multi-Factor Structural Confluence Model for Context Analysis
Purpose of This Script
Many indicators measure one isolated market property:
Volatility
Trend
Mean deviation
Volume distribution
This script was developed to address a specific structural problem:
Individual indicators often conflict because they measure independent market dimensions in isolation.
CM Confluence Gradient is not a simple mashup.
It is a normalized composite model designed to evaluate structural agreement across multiple independent market dimensions simultaneously.
The goal is not to generate trade signals, but to visually represent when different structural forces are aligned or misaligned.
Conceptual Framework
Markets operate across several structural axes:
Volatility regime
Directional efficiency
Mean extension
Volume distribution positioning
Progress toward structural targets
Each component captures a different market dimension.
When these dimensions align, structural conditions are stronger.
When they diverge, the environment is typically less stable or more rotational.
This script measures and normalizes each component before combining them into a composite intensity model.
How the Components Work Together
1. Volatility Regime (Bollinger Band Width Percentile)
easures expansion or compression relative to historical volatility.
This determines whether the market is structurally capable of continuation.
2. Extension Model (PMAR / PMARP)
Evaluates how far price is extended from its moving average and how extreme that extension is relative to historical distribution.
This identifies:
Structural imbalance
Mean deviation zones
Compression vs expansion conditions
3. Trend Efficiency (Kaufman ER)
Separates directional movement from noise.
This prevents volatility spikes from being mistaken for sustained structure.
4. Visible Range Volume Distribution (Custom VRVP Approximation)
This model approximates visible range volume concentration and identifies:
Point of Control
Value Area boundaries
Low-volume travel zones
Structural magnet behavior
This component introduces spatial context — not just price momentum.
5. Completion Model (ATR-Normalized Structural Distance)
Measures how far price has progressed relative to an ATR-adjusted structural objective.
This enables the script to distinguish:
Early-stage alignment
Acceleration phase
Late-stage structural maturity
Why This Is Not a Simple Mashup
Each component is:
Normalized to a 0–1 scale
Weighted
Combined into a unified composite intensity score
The script does not display individual indicator outputs
Instead, it evaluates multi-dimensional agreement and expresses that agreement through a mathematically shaped gradient model.
This produces:
Regime compression (grey / low intensity)
Structural alignment (increasing saturation)
Late-stage completion transitions (warning hues)
The interaction between volatility, efficiency, extension, and volume positioning is what creates the composite behavior.
Visual Model
The candle gradient is not binary.
It is shaped using:
Non-linear saturation curves
Chop detection with time-based dampening
Completion-based transitional coloring
Neutral filtering in weak structural environments
Color intensity reflects the degree of structural alignment — not prediction
Intended Use
This script is designed for:
Structural environment filtering
Confluence confirmation
Context evaluation
Discretionary framework integration
It is not a standalone entry system.
Users should combine this tool with independent analysis and risk management.
Closed-Source Note
This script contains custom structural normalization and weighting logic not fully disclosed in this description. However, the conceptual framework, component interactions, and intended usage are explained above to provide transparency into how the model operates.
Disclaimer
This script is provided for analytical and educational purposes only.
It does not constitute financial advice or guarantee performance.
All trading involves risk.
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