Reversal Zone from Price Scaling and MACD histogramOANDA:XAUUSD
This indicator is intended for upward reversal techniques only.
The reversal zone is calculated by reverse-engineering price scaling and the MACD histogram. The maximum and minimum values of the upper and lower zones are then plotted as the bands.
The adjacent table displays five reverse-calculated values for each of the upper and lower bands, as well as two mode values for each.
The principle is similar to Bollinger Bands, but a signal is generated only when there is clear buying or selling pressure.
We would like you to try it and share your feedback.
在腳本中搜尋"reversal"
Reversal Bar RecognizerThis script recognizes some specific reversal bars(different kinds of pin bars) and plot arrow on chart to determine the next possible move. It uses a basic algorithm to find only the best reversal bars not all of them. It can also be used to setup alerts on TradingView when these bars show up.
Reversal off EMASimple script find when a probable reversal will start. When price moves sharply away from the 13 EMA a BUY/SELL signal will pop up. Scripted to work on 5m 1h, 4h, and daily chart. But it doesn't work on all charts. Not sure why. I'm a forex trader and use this on NZDUSD. It doesn't give too good results on the JPY charts. I think its a fairly good reversal indicator. It definitely doesn't catch them all, and if there is a strong bearish or bullish impulse it doesn't work too well. But with all indicators, you need other conformations when to get in and when to get out. Hope it helps someone.
Reversal & Large Body Candle Identifierused for bulish and bearish and reversal candle identificaton
Reversal Signal avec TICK + RSIThis indicator is a potential reversal indicator for SCALPING, don't use it for swing. It's base on TICK and on an overbrought/oversold condition of the RSI. You can play with the setting, typicaly I like my TICK to be over reacting an 800/-800 and my rsi over 20 and 80, but it give not enough signal. So I set the TICK signal at 651/-651 and the RSI at 25/75. This indicator is made for SP500 and Nasdaq, so SPY/QQQ/SPX/ES/NQ should work well. It's the first version of it, so maybe I'll add so more data to it to increase signal and lower false one. For now I've test it on live market yet(26/7/25).
The RSI is Fast(5 period), I like to use it on the 1 or 5 min chart.
Please not that it only work during 9h30am to 4pm EST.(Because of the TICK)
Feel free to try and even comment. Don't be harsh on me, it's my first try!
(Sorry for my 'english' it's not my first language)
FAUCON
Reversal rehersal v1This indicator was designed to identify potential market reversal zones using a combination of RSI thresholds (shooting range/falling range), candlestick patterns, and Fair Value Gaps (FVGs). By combining all these elements into one indicator, it allow for outputting high probability buy/sell signals for use by scalpers on low timeframes like 1-15 mins, for quick but small profits.
Note: that this has been mainly tested on DE40 index on the 1 min timeframe, and need to be adjusted to whichever timeframe and symbol you intend to use. Refer to the backtester feature for checking if this indicator may work for you.
The indicator use RSI ranges from two timeframes to highlight where momentum is building up. During these areas, it will look for certain candlestick patterns (Sweeps as the primary one) and check for existance of fair value gaps to further enhance the hitrate of the signal.
The logic for FVG detection was based on ©pmk07's work with MTF FVG tiny indicator. Several major changes was implemented though and incorporated into this indicator. Among these are:
Automatically adjustments of FVG boxes when mitigated partially and options to extend/cull boxes for performance and clarity.
Backtesting Table (Experimental):
This indicator also features an optional simplified table to review historical theoretical performance of signals, including win rate, profit/loss, and trade statistics. This does not take commision or slippage into consideration.
Usage Notes:
Setup:
1. Add the indicator to your chart.
2. Decide if you want to use Long or Short (or both).
3. If you're scalping on ie. 1 min time frame, make sure to set FVG's to higher timeframes (ie. 5, 15, 60).
4. Enable the 'Show backtest results' and adjust the 'Signals' og 'Take profit' and 'Stop loss' values until you are satisfied with the results.
Use:
1. Setup an alert based on either of the 'BullishShooting range' or 'BearishFalling range' alerts. This will draw your attention to watch for the possible setups.
2. Verify if there's a significant imbalance prior to the signal before taking the trade. Otherwise this may invalidate the setup.
3. Once a signal is shown on the graph (either Green arrow up for buys/Red arrow down for sells) - you should enter a trade with the given 'Take profit' and 'Stop loss' values.
4. (optional) Setup an alert for either the Strong/Weak signals. Which corresponds to when one of the arrows are printed.
Important: This is the way I use it myself, but use at own risk and remember to combine with other indicators for further confluence. Remember this is no crystal ball and I do not guarantee profitable results. The indicator merely show signals with high probability setups for scalping.
Reversal Pivot PointsThis indicator aims to identify price levels where price action has quickly reversed from. These "pivots" establish major levels where major liquidity is located. Unlike standard support and resistance levels, when price breaks below or above a pivot, these pivots disappear from the chart. Comes with various customization features built to fit all.
Features
Pivot Timeframe: Identify and plot pivots from one specific timeframe and see it from all lower timeframes
Pivot left/right bar limit: A feature aimed at preventing false pivots identification
Remove On Close (ROC): Feature to only remove pivots once price close under it
ROC Timeframe: The timeframe the script uses to determine if the candle closed under the level
Wait For Close: Will only remove the pivot after the current candle closes
Line Extension Type: The extension of the line. None - extends line to current time, left - only extends line to the left, right - only extends line to the right, both - extends line both directions
Line Offset: How much to offset (in bars) the line and label from the current candle
Line Type: The style of line when plotted. Solid (─), dotted (┈), dashed (╌), arrow left (←), arrow right (→), arrows both (↔)
Display Level: Whether to or not to display the price of the pivot
Display Perfect Level: Whether to or not to display levels where price perfectly rejected off of
Alerts: Creates an alert when a level has been crossed
How to trade
1. Pivots can be traded to or from. The stock market (market makers) will tend to "chase" liquidity in order to fill orders at better averages. This allows us retail traders to to participate alongside these moves to these pivots. Once price action hits a pivot, it can do two things: break the pivot and continue or bounce off it. We can participate alongside these bounces after confirmation of a reversal (doji, volume, etc). These bounce plays are high risk as it's generally 50-50, but the risk to reward is typically also very high, making them very valuable to take.
2. Typically, the market is a fluid environment and should be "natural," so perfect things (manmade and filled with liquidity) should not occur. With this knowledge, we can expect these perfect levels, "PDT/PDB," to break as they are not natural occurrence and have heavy liquidity on and above/below them. We can trade to these levels and expect them to break/sweep if price action comes near them again.
Reversal Top Bottom HunterThis indicator is designed to detect buying and selling opportunities in financial markets by tracking peak and bottom points to identify potential reversal points, providing investors with potential entry and exit signals.
How It Works?
Peak and Bottom Definition: The indicator calculates the highest (peak) and lowest (bottom) prices for specified periods. These values form the basis of the signal triggering mechanism.
User Settings: Users can adjust the lookback period for identifying the peak and bottom points as well as the number of bars within which the conditions for buy or sell signals need to be met. This customization allows for greater flexibility and adaptation to different trading styles and market conditions.
Buy Signal: If the previous candle's lowest price equals the lowest bottom value over the specified period and other conditions are met (such as the previous high being lower than the one before it, and the closing price being higher than the previous opening price), a buy signal is generated. The buy signal is valid within a specified confirmation period and is triggered when the closing price is higher than the referenced high.
Sell Signal: If the previous candle's highest price equals the highest peak value over the specified period and other conditions are met (such as the previous low being higher than the one before it, and the closing price being lower than the previous high), a sell signal is generated. The sell signal is also valid within the specified confirmation period and is triggered when the closing price is lower than the referenced low.
Visual Signals
Buy Signal: Represented by a green triangle and displayed below the candle.
Sell Signal: Represented by a red triangle and displayed above the candle.
Alerts
The indicator includes alert conditions to inform users when buy and sell signals are generated. These alerts are triggered when a signal is produced within the defined confirmation period.
Conclusion
This indicator helps investors identify potential buying and selling points in the market. However, it is important to consider other market conditions and technical analysis tools before making any investment decisions. The customizable settings for the confirmation period and the number of bars for condition checks make this indicator adaptable to various market scenarios.
This indicator was inspired by the work of the analyst @TuncerSengoz.
Reversal finderThis script is used to visually highlight candles which may signal a reversal following a false break of a support or resistance level.
Inputs are:
Lookback period: look for the highest high and the lowest low of the prior x bars.
SMA length: used for a simple moving average of the range (high minus low) of the prior x bars.
Range multiple: used to filter out signals for any bars with a range smaller than the average range of the preceding bars (determined by SMA length above) e.g. a range multiple of 2 will only show signals for bars with a range twice of that of the average range of the preceding bars.
Range threshold: used to filter signals for bars both the open and close of the bar are at the extreme end of the bar e.g. a threshold setting of 33% will only show buy signals for bars which open and close within the upper 1/3rd of the bar’s high/low range (vice versa for sell signals). This helps highlight, for example, bars with a high which exceeds resistance in a current range but which close back inside the range.
Highlight signal bars?: This will highlight bars with a buy signal in green, sell signal bars in red, and all other bars in grey. The script was designed for use with a dark background, so you will need to play around with the bar colours in the style settings to suit your preferences.
Settings used in the example chart are not the default – they are lookback: 5, SMA length: 20, range multiple: 1.2, range threshold: 33%.
Enjoy!
Reversal SignalsUsed to find reversal points.
Like any other indicators use it with confluence as opposed to blindly following the signals.
For crypto I've found this works best for 1hr and 4hr charts.
Reversal Closing Pricelong = (low < low and close > close )
short = (high > high and close < close )
Reversal Assistant V1Uses a combination of MACD, money flow index and a combination of EMA's to indicate possible reversal bars
Reversal Candlestick Pattern With Trend IndentifierThis script help to identified popular candlestick pattern combined with trend identifier.
Most script only focus on criteria of the pattern. Such as how much the length of the body compared to previous candle etc.
Besides criteria of the candle, this script also considered the trend into the logic.
For example bullish engulfing is a bullish reversal signal, which is only valid in a down trend.
To identified trend, I'm using RSI. Normally, RSI less than 50 is considered a down trend, and RSI greater than 50 is considered up trend. In this script, you can customize the criteria of how much RSI is up trend and down trend.
Default value RSI >= 55 is up trend, RSI <= 45 is down trend.
Your feedback and suggestion is welcome.
Supported pattern:
White Marubozu (wm)
Black Marubozu (bm)
Hammer (h)
Hanging Man (hm)
Inverted Hammer (ih)
Shooting Star (ss)
Bullish Engulfing (e)
Bearish Engulfing (e)
Tweezer Bottom (tb)
Tweezer Top (tt)
Three White Soldiers (tws)
Three Black Crows (tbc)
Morning Star (ms)
Evening Star (es)
Three Inside Up (tiu)
Three Inside Down (tid)
Reference:
babypips.com
Reversal Patterns Collection:ClowdCover and Piersing LineScript contains Dark Clowd Cover and Piersing Line patterns. User can select period for candle size calculation (for distinguish short and long candles), on/off highlighting of pattern candles.
Reversal Patterns Collection:EngulfingScript contains Engulfing patterns (busllish and bearish). User can select period for candle size calculation (for distinguish short and long candles), on/off patterns highlighting.
Reversal Patterns Collection:Hammer and Handing ManI've started to publish Reversal Patterns Collection. First script contains Hammer and Handing Man patterns. User can select period for candle size calculation (period with representative number of different size candles for accurate distinguish average, short and long candles)and on/off highlighting of pattern candles.
Bellcurves (Zeiierman)█ Overview
Bellcurves (Zeiierman) models impulse-driven expansion and contraction in price using a pair of adaptive “Bellcurve” flows (positive/negative), momentum dots, a sensitivity/normalization layer, pre-alerts, decline detection, and a built-in divergence suite. Instead of treating every bar equally, it builds scale-aware impulse fields from a weighted price source, normalizes them into comparable magnitudes, and then highlights impulse clusters, pre-alerts (rising pressure), and impulse declines. These waves behave like impulse envelopes: when expansion persists, columns cluster and momentum dots fire; when pressure fades, decline signals and divergences appear.
Use it to spot the first thrust of a new leg, the final push before exhaustion, or quiet accumulation/distribution within ranges.
⚪ Why This One Is Unique
Bellcurves (Zeiierman) combines several adaptive mechanisms into a single, self-tuning framework that captures both momentum expansion and directional decay. Its dual Bellcurve core extracts directional strength through asymmetric smoothers and non-linear amplification, isolating genuine impulses from random volatility. A Quick-Response mode enhances sensitivity in fast markets, while the normalization layer preserves consistency across instruments and timeframes.
█ Main features
⚪ Bellcurves
The Positive and Negative Bellcurves form the foundation of the indicator, visualizing directional expansion in price. Each curve is derived from weighted price dynamics and transformed into an adaptive field that expands with trend acceleration and contracts during exhaustion. Displayed as column waves (or oscillator-style), they reveal the rhythm of market impulses; steady clustering denotes continuation, while isolated bursts or fading peaks hint at potential reversals.
Price Acceleration
Trend Acceleration
Note: To visualize trend acceleration and sustained high-momentum trends, increase the Bellcurve Trend Length parameter to 200. This setting emphasizes long-term directional strength and filters out short-term noise.
Reversals
⚪ Impulse Dots
Impulse Dots mark the first and last bursts within a momentum cluster. Detected through adaptive clustering logic, these dots appear as green (positive) or red (negative) signals that often coincide with early breakouts or terminal exhaustion zones. Traders can interpret the first dot as potential momentum ignition. Alerts are provided for each stage, enabling fast reaction to shifting impulse conditions.
⚪ Divergences
The built-in Divergence Engine automatically identifies regular bullish and bearish divergences between price and the Bellcurves. By analyzing the declining and rising segments of the curves, it detects subtle mismatches between price movements and underlying impulse strength.
█ How to Use
⚪ Trend Trading
The Bellcurves help visualize the rhythm of market trends through alternating Positive (green) and Negative (red) Bellcurves. These represent periods of directional expansion when momentum builds and contraction when momentum fades.
Tip: To enable the Trend Bellcurves, increase Bellcurve Trend Length to 100–200. To detect regime shifts earlier, consider enabling Quick Response to respond more quickly to emerging trends.
Positive Trend (Green Bellcurve): Indicates bullish control. Sustained green clusters show stable upward participation and consistent buying pressure.
Negative Trend (Red Bellcurve): Indicates bearish control. Sustained red clusters reveal dominant selling pressure and downside continuation.
Trend Transitions
Positive Trend is Strengthening: When the green Bellcurve expands and height increases, momentum is accelerating and bullish conviction is building.
Positive Trend is Weakening: When the green Bellcurve contracts or begins to shrink, upward pressure is fading and potential exhaustion is developing.
Negative Trend is Strengthening: Red columns expand and deepen below the midline, bearish momentum building, and downside pressure increasing.
Negative Trend is Weakening: When the red Bellcurve contracts or softens, it signals that bearish pressure is losing force, a possible early sign of reversal or accumulation.
⚪ Reversal Trading
Reversal trading with the Bellcurves is one of the most effective and visually intuitive strategies, especially when going long after a Negative Bellcurve. These events often occur quickly and sharply, and when combined with key price levels such as the previous day’s close, high, or low, they can provide high-probability entry opportunities.
To focus on only the most meaningful reversals, disable “Activate Sensitive Bellcurves”. This filters out minor impulses and displays only the most significant Bellcurves across the chart, helping you isolate genuine exhaustion or inflection points.
Note: Reversal trading is inherently more challenging due to the increased volatility and emotional intensity (fear and greed) surrounding turning points. Use the Bellcurves as a confirmation tool, not a standalone entry signal. Always consider the broader market context. In strong trending markets, Bellcurve peaks may reflect continued strength rather than reversal.
A Green Positive Bellcurve forming after a fast upward move and rejection from a resistance zone can indicate a potential bearish reversal.
A Red Negative Bellcurve appearing near a support level often acts as confirmation for a potential bullish reversal, suggesting downside exhaustion and renewed buying interest.
⚪ Momentum / Impulse Trading
Momentum (or Impulse) Trading is designed for traders looking to enter in the direction of a strong, ongoing move. The Bellcurves indicator helps identify significant impulses on a higher timeframe, moments where directional pressure expands decisively. Once those impulses are identified, traders can refine entries on a lower timeframe, using an opposite Bellcurve as a trigger signal. This multi-timeframe approach allows for precise entries within larger momentum phases.
Bullish Momentum Trading
Start by analyzing a higher timeframe, for example, the 15-minute chart.
Identify a Positive (Green) Bellcurve and mark the first impulse dot, signaling the beginning of upward momentum.
Drop down to a lower timeframe (such as the 1-minute chart).
Wait for a Negative (Red) Bellcurve to peak; this short-term counter-impulse serves as a pullback entry point.
Enter long as the lower timeframe Bellcurve fades, aligning your trade with the dominant bullish impulse seen on the higher timeframe.
This approach ensures that your long entries occur within an expanding bullish phase, rather than chasing late moves.
Bearish Momentum Trading
Begin on a higher timeframe, such as the 1-hour chart, and locate a Negative (Red) Bellcurve with a visible impulse dot, confirming strong bearish momentum.
Shift to a lower timeframe like the 15-minute chart.
Wait for a Positive (Green) Bellcurve to peak; this short-term upward counter-move acts as a setup for continuation.
Enter short as that green Bellcurve begins to decline, synchronizing with the dominant bearish impulse from the higher timeframe.
This ensures that short trades align with expanding downside momentum, entering at moments of retracement within a broader selling phase.
█ How It Works
⚪ Bellcurve Construction Framework
The indicator generates directional Bellcurves through an adaptive modeling process that measures price displacement and trend curvature over time. Each Bellcurve reflects the evolving balance between expansion and absorption in market flow, forming the characteristic “bell” structures that widen during directional acceleration and compress during consolidation.
Calculation: Employs a multi-layered smoothing and normalization process to enhance directional clarity while preserving overall balance within the signal field.
⚪ Momentum & Cluster Engine
Momentum dots are generated through a multi-stage transformation that identifies the initiation and termination points of impulse clusters. By scanning for statistically relevant minima and maxima within the Bellcurve stream, the system isolates bursts of meaningful directional activity.
Calculation: Applies recursive power mapping and localized clustering to detect temporal impulse boundaries and validate “first” and “last” bursts within each momentum sequence.
⚪ Divergence Module
The divergence framework maps relationships between price structure and Bellcurve dynamics to uncover weakening or strengthening flows beneath visible price action. It detects classical bullish and bearish divergences and projects them directly onto the chart as lines and markers.
Calculation: Uses anchored decline-state tracking, relative high–low comparison, and vector slope analysis to measure phase displacement between price and impulse flow, confirming divergence integrity without lag.
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Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
付費腳本
Tactical Deviation🎯 TACTICAL DEVIATION - Volume-Backed VWAP Deviation Analysis
What Makes This Different?
Unlike basic VWAP indicators, Tactical Deviation combines:
• Multi-timeframe VWAP deviation bands (Daily/Weekly/Monthly)
• Volume spike intelligence - signals only appear with volume confirmation
• Pivot reversal detection at deviation extremes
• Optional multi-VWAP confluence system
• Smart defaults for quality over quantity
This unique combination filters weak setups and identifies high-probability entries at extreme price deviations from fair value.
📊 DEFAULT SETTINGS (Ready to Use)
✅ Daily VWAP with ±2σ deviation bands
✅ Volume spike detection (1.5x average required)
✅ 2σ minimum deviation for signals
❌ Weekly/Monthly VWAPs (enable for multi-timeframe)
❌ Pivot reversal requirement (enable for stronger signals)
❌ Fill zones (optional visual enhancement)
Why: Daily VWAP is most relevant for intraday trading. 2σ bands catch meaningful moves. Volume spikes ensure conviction. Clean chart focuses on what matters.
🚀 HOW TO USE
BASIC USAGE:
• Green triangles (below bars) = Long signals at oversold deviations
• Red triangles (above bars) = Short signals at overbought deviations
SIGNAL QUALITY:
• Normal size, bright colors = Volume spike (best quality)
• Small size, lighter colors = Volume momentum
• Tiny size = No volume confirmation
DEVIATION ZONES:
• ±2σ = Extreme deviation (signals appear here)
• ±1σ to ±2σ = Extended but not extreme
• Within ±1σ = Normal range
TRADING APPROACHES:
Mean Reversion:
→ Enter when price reaches ±2σ with volume spike
→ Target: Return to VWAP or opposite band
→ Stop: Beyond extreme deviation
Trend Continuation:
→ Use bands to identify pullbacks
→ Enter pullback to VWAP in trending market
→ Volume confirms continuation
Reversal Trading:
→ Enable "Require Pivot Reversal" for stronger signals
→ Signals only when deviation + pivot reversal occur
→ Higher probability, fewer signals
⚙️ EXPLORE SETTINGS FOR FULL USE
VWAP SETTINGS:
• Show Weekly/Monthly VWAP = Multi-timeframe context
• Show ±1σ Bands = Normal deviation range
• Show ±3σ Bands = Extreme extremes (rare but powerful)
SIGNAL SETTINGS:
• Min Deviation: 1σ (more signals) | 2σ (default) | 3σ (fewer, extreme only)
• Require Pivot Reversal: OFF (default) | ON (stronger but fewer)
• Volume Spike Threshold: 1.5x (default) | 2.0x+ (major spikes) | 1.2x (more signals)
CONFLUENCE SETTINGS:
• Require Multi-VWAP Confluence: OFF (default) | ON (2+ VWAPs must agree)
• Min VWAPs: 2 (Daily + Weekly/Monthly) | 3 (all must agree)
VISUAL SETTINGS:
• Show Fill Zones = Shaded areas between bands
• Fill Opacity = Transparency adjustment
• Line Widths = Customize thickness
💡 PRO TIPS
1. Start with defaults, then enable features as you learn
2. Volume spike requirement filters weak moves - keep it enabled
3. Enable Weekly/Monthly VWAPs for higher timeframe context
4. Enable confluence for swing trading setups
5. Pivot reversals: ON for reversals, OFF for continuations
6. Check top-right info table for current deviation levels
🎨 VISUAL GUIDE
• Cyan Line = Daily VWAP (fair value)
• Cyan Bands = Daily deviation zones
• Orange Line = Weekly VWAP (if enabled)
• Purple Line = Monthly VWAP (if enabled)
• Green Triangle = Long signal (oversold)
• Red Triangle = Short signal (overbought)
⚠️ IMPORTANT
Educational purposes only. Always use proper risk management. Signals are based on statistical deviation, not guarantees. Volume confirmation improves quality but doesn't guarantee outcomes. Combine with your own analysis.
The unique combination of VWAP deviation analysis, volume profile confirmation, pivot identification, and multi-timeframe confluence in a single clean interface makes Tactical Deviation different from basic VWAP indicators.
Happy Trading! 📈
Project Pegasus RevenantDescription
Project Pegasus Revenant is a reversal and liquidity-trap detection system combining a configurable fractal reversal engine with the SweepTrigger liquidity finder. It highlights potential structural turning points and stop-hunt scenarios directly on the chart.
What’s unique
Fractal Reversal Engine: Adjustable strictness (1 = loose, 5 = strict) to fit different market conditions.
Signal Filtering: Minimum bar spacing to avoid clustering of false or repeated signals.
SweepTrigger Add-on: Detects liquidity sweeps with wick-based rejection logic, auto-doji detection, and range-strength confirmation.
Dual Signal Output: Circle markers for pure fractal reversals, triangles for sweep-based liquidity traps.
Adaptive Filters: Customizable thresholds for body size, candle range, and sweep strength.
How it works (technical)
Fractals: A reversal fractal is confirmed when the high/low at position n is surrounded by lower/higher highs/lows across a configurable frontier.
Signal confirmation: Once price trades back through the fractal level within a limited number of bars, a potential reversal is triggered.
Bar filter: Signals require a minimum distance in bars to prevent noise.
SweepTrigger logic:
Wick comparison (upper vs lower) determines rejection direction.
Doji and low-body candles are auto-filtered.
Range check ensures the current candle exceeds a configurable multiple of the average range.
Visuals:
Green/Red circles = fractal reversals.
Cyan/Purple triangles = liquidity sweep triggers.
How to use
Watch fractal signals to anticipate structural reversal points.
Combine SweepTrigger signals with liquidity highs/lows for identifying stop hunts and fakeouts.
Use as standalone reversal tool or as confirmation within a broader system (e.g., order blocks, volume profile, or market structure).
Key settings
Reversal Mode: 1–5 (controls strictness of fractals).
SweepTrigger: On/off toggle, lookback window, body-size filter, range strength multiplier.
Visuals: Shapes, sizes, and color-coded signals for clear separation between fractal and sweep triggers.
Notes & limitations
Works on all timeframes.
Signals are reactive (based on confirmed bars), not predictive — no lookahead logic.
Too strict settings may reduce signal frequency; too loose may increase noise.
Disclaimer
For educational and informational purposes only. Not financial advice.
WaveTrend With Divs & RSI(STOCH) Divs by WeloTradesWaveTrend with Divergences & RSI(STOCH) Divergences by WeloTrades
Overview
The "WaveTrend With Divergences & RSI(STOCH) Divergences" is an advanced Pine Script™ indicator designed for TradingView, offering a multi-dimensional analysis of market conditions. This script integrates several technical indicators—WaveTrend, Money Flow Index (MFI), RSI, and Stochastic RSI—into a cohesive tool that identifies both regular and hidden divergences across these indicators. These divergences can indicate potential market reversals and provide critical trading opportunities.
This indicator is not just a simple combination of popular tools; it offers extensive customization options, organized data presentation, and valuable trading signals that are easy to interpret. Whether you're a day trader or a long-term investor, this script enhances your ability to make informed decisions.
Originality and Usefulness
The originality of this script lies in its integration and the synergy it creates among the indicators used. Rather than merely combining multiple indicators, this script allows them to work together, enhancing each other's strengths. For example, by identifying divergences across WaveTrend, RSI, and Stochastic RSI simultaneously, the script provides multiple layers of confirmation, which reduces the likelihood of false signals and increases the reliability of trading signals.
The usefulness of this script is apparent in its ability to offer a consolidated view of market dynamics. It not only simplifies the analytical process by combining different indicators but also provides deeper insights through its divergence detection features. This comprehensive approach is designed to help traders identify potential market reversals, confirm trends, and ultimately make more informed trading decisions.
How the Components Work Together
1. Cross-Validation of Signals
WaveTrend: This indicator is primarily used to identify overbought and oversold conditions, as well as potential buy and sell signals. WaveTrend's ability to smooth price data and reduce noise makes it a reliable tool for identifying trend reversals.
RSI & Stochastic RSI: These momentum oscillators are used to measure the speed and change of price movements. While RSI identifies general overbought and oversold conditions, Stochastic RSI offers a more granular view by tracking the RSI’s level relative to its high-low range over a period of time. When these indicators align with WaveTrend signals, it adds a layer of confirmation that enhances the reliability of the signals.
Money Flow Index (MFI): This volume-weighted indicator assesses the inflow and outflow of money in an asset, giving insights into buying and selling pressure. By analyzing the MFI alongside WaveTrend and RSI indicators, the script can cross-validate signals, ensuring that buy or sell signals are supported by actual market volume.
Example Bullish scenario:
When a bullish divergence is detected on the RSI and confirmed by a corresponding bullish signal on the WaveTrend, along with an increasing Money Flow Index, the probability of a successful trade setup increases. This cross-validation minimizes the risk of acting on false signals, which might occur when relying on a single indicator.
Example Bearish scenario:
When a bearish divergence is detected on the RSI and confirmed by a corresponding bearish signal on the WaveTrend, along with an decreasing Money Flow Index, the probability of a successful trade setup increases. This cross-validation minimizes the risk of acting on false signals, which might occur when relying on a single indicator.
2. Divergence Detection and Market Reversals
Regular Divergences: Occur when the price action and an indicator (like RSI or WaveTrend) move in opposite directions. Regular bullish divergence signals a potential upward reversal when the price makes a lower low while the indicator makes a higher low. Conversely, regular bearish divergence suggests a downward reversal when the price makes a higher high, but the indicator makes a lower high.
Hidden Divergences: These occur when the price action and indicator move in the same direction, but with different momentum. Hidden bullish divergence suggests the continuation of an uptrend, while hidden bearish divergence suggests the continuation of a downtrend. By detecting these divergences across multiple indicators, the script identifies potential trend reversals or continuations with greater accuracy.
Example: The script might detect a regular bullish divergence on the WaveTrend while simultaneously identifying a hidden bullish divergence on the RSI. This combination suggests that while a trend reversal is possible, the overall market sentiment remains bullish, providing a nuanced view of the market.
A Regular Bullish Divergence Example:
A Hidden Bullish Divergence Example:
A Regular Bearish Divergence Example:
A Hidden Bearish Divergence Example:
3. Trend Strength and Sentiment Analysis
WaveTrend: Measures the strength and direction of the trend. By identifying the extremes of market sentiment (overbought and oversold levels), WaveTrend provides early signals for potential reversals.
Money Flow Index (MFI): Assesses the underlying sentiment by analyzing the flow of money. A rising MFI during an uptrend confirms strong buying pressure, while a falling MFI during a downtrend confirms selling pressure. This helps traders assess whether a trend is likely to continue or reverse.
RSI & Stochastic RSI: Offer a momentum-based perspective on the trend’s strength. High RSI or Stochastic RSI values indicate that the asset may be overbought, suggesting a potential reversal. Conversely, low values indicate oversold conditions, signaling a possible upward reversal.
Example:
During a strong uptrend, the WaveTrend & RSI's might signal overbought conditions, suggesting caution. If the MFI also shows decreasing buying pressure and the RSI reaches extreme levels, these indicators together suggest that the trend might be weakening, and a reversal could be imminent.
Example:
During a strong downtrend, the WaveTrend & RSI's might signal oversold conditions, suggesting caution. If the MFI also shows increasing buying pressure and the RSI reaches extreme levels, these indicators together suggest that the trend might be weakening, and a reversal could be imminent.
Conclusion
The "WaveTrend With Divergences & RSI(STOCH) Divergences" script offers a powerful, integrated approach to technical analysis by combining trend, momentum, and sentiment indicators into a single tool. Its unique value lies in the cross-validation of signals, the ability to detect divergences, and the comprehensive view it provides of market conditions. By offering traders multiple layers of analysis and customization options, this script is designed to enhance trading decisions, reduce false signals, and provide clearer insights into market dynamics.
WAVETREND
Display of WaveTrend:
Display of WaveTrend Setting:
WaveTrend Indicator Explanation
The WaveTrend indicator helps identify overbought and oversold conditions, as well as potential buy and sell signals. Its flexibility allows traders to adapt it to various strategies, making it a versatile tool in technical analysis.
WaveTrend Input Settings:
WT MA Source: Default: HLC3
What it is: The data source used for calculating the WaveTrend Moving Average.
What it does: Determines the input data to smooth price action and filter noise.
Example: Using HLC3 (average of High, Low, Close) provides a smoother data representation compared to using just the closing price.
Length (WT MA Length): Default: 3
What it is: The period used to calculate the Moving Average.
What it does: Adjusts the sensitivity of the WaveTrend indicator, where shorter lengths respond more quickly to price changes.
Example: A length of 3 is ideal for short-term analysis, providing quick reactions to price movements.
WT Channel Length & Average: Default: WT Channel Length = 9, Average = 12
What it is: Lengths used to calculate the WaveTrend channel and its average.
What it does: Smooths out the WaveTrend further, reducing false signals by averaging over a set period.
Example: Higher values reduce noise and help in identifying more reliable trends.
Channel: Style, Width, and Color:
What it is: Customization options for the WaveTrend channel's appearance.
What it does: Adjusts how the channel is displayed, including line style, width, and color.
Example: Choosing an area style with a distinct color can make the WaveTrend indicator clearly visible on the chart.
WT Buy & Sell Signals:
What it is: Settings to enable and customize buy and sell signals based on WaveTrend.
What it does: Allows for the display of buy/sell signals and customization of their shapes and colors.
When it gives a Buy Signal: Generated when the WaveTrend line crosses below an oversold level and then rises back, indicating a potential upward price movement.
When it gives a Sell Signal: Triggered when the WaveTrend line crosses above an overbought level and then declines, suggesting a possible downward trend.
Example: The script identifies these signals based on mean reversion principles, where prices tend to revert to the mean after reaching extremes. Traders can use these signals to time their entries and exits effectively.
WAVETREND OVERBOUGTH AND OVERSOLD LEVELS
Display of WaveTrend with Overbought & Oversold Levels:
Display of WaveTrend Overbought & Oversold Levels Settings:
WaveTrend Overbought & Oversold Levels Explanation
WT OB & OS Levels: Default: OB Level 1 = 53, OB Level 2 = 60, OS Level 1 = -53, OS Level 2 = -60
What it is: The default overbought and oversold levels used by the WaveTrend indicator to signal potential market reversals.
What it does: When the WaveTrend crosses above the OB levels, it indicates an overbought condition, potentially signaling a reversal or selling opportunity. Conversely, when it crosses below the OS levels, it indicates an oversold condition, potentially signaling a reversal or buying opportunity.
Example: A trader might use these levels to time entry or exit points, such as selling when the WaveTrend crosses into the overbought zone or buying when it crosses into the oversold zone.
Show OB/OS Levels: Default: True
What it is: Toggle options to show or hide the overbought and oversold levels on your chart.
What it does: When enabled, these levels will be visually represented on your chart, helping you to easily identify when the market reaches these critical thresholds.
Example: Displaying these levels can help you quickly see when the WaveTrend is approaching or has crossed into overbought or oversold territory, allowing for more informed trading decisions.
Line Style, Width, and Color for OB/OS Levels:
What it is: Options to customize the appearance of the OB and OS levels on your chart, including line style (solid, dotted, dashed), line width, and color.
What it does: These settings allow you to adjust how prominently these levels are displayed on your chart, which can help you better visualize and respond to overbought or oversold conditions.
Example: Setting a thicker, dashed line in a contrasting color can make these levels stand out more clearly, aiding in quick visual identification.
Example of Use:
Scenario: A trader wants to identify potential selling points when the market is overbought. They set the OB levels at 53 and 60, choosing a solid, red line style to make these levels clear on their chart. As the WaveTrend crosses above 53, they monitor for further price action, and upon crossing 60, they consider initiating a sell order.
WAVETREND DIVERGENCES
Display of WaveTrend Divergence:
Display of WaveTrend Divergence Setting:
WaveTrend Divergence Indicator Explanation
The WaveTrend Divergence feature helps identify potential reversal points in the market by highlighting divergences between the price and the WaveTrend indicator. Divergences can signal a shift in market momentum, indicating a possible trend reversal. This component allows traders to visualize and customize divergence detection on their charts.
WaveTrend Divergence Input Settings:
Potential Reversal Range: Default: 28
What it is: The number of bars to look back when detecting potential tops and bottoms.
What it does: Sets the range for identifying possible reversal points based on historical data.
Example: A setting of 28 looks back across the last 28 bars to find reversal points, offering a balance between responsiveness and reliability.
Reversal Minimum LVL OB & OS: Default: OB = 35, OS = -35
What it is: The minimum overbought and oversold levels required for detecting potential reversals.
What it does: Adjusts the thresholds that trigger a reversal signal based on the WaveTrend indicator.
Example: A higher OB level reduces the sensitivity to overbought conditions, potentially filtering out false reversal signals.
Lookback Bar Left & Right: Default: Left = 10, Right = 1
What it is: The number of bars to the left and right used to confirm a top or bottom.
What it does: Helps determine the position of peaks and troughs in the price action.
Example: A larger left lookback captures more extended price action before the peak, while a smaller right lookback focuses on the immediate past.
Lookback Range Min & Max: Default: Min = 5, Max = 60
What it is: The minimum and maximum range for the lookback period when identifying divergences.
What it does: Fine-tunes the detection of divergences by controlling the range over which the indicator looks back.
Example: A wider range increases the chances of detecting divergences across different market conditions.
R.Div Minimum LVL OB & OS: Default: OB = 53, OS = -53
What it is: The threshold levels for detecting regular divergences.
What it does: Adjusts the sensitivity of the regular divergence detection.
Example: Higher thresholds make the detection more conservative, identifying only stronger divergence signals.
H.Div Minimum LVL OB & OS: Default: OB = 20, OS = -20
What it is: The threshold levels for detecting hidden divergences.
What it does: Similar to regular divergence settings but for hidden divergences, which can indicate potential reversals that are less obvious.
Example: Lower thresholds make the hidden divergence detection more sensitive, capturing subtler market shifts.
Divergence Label Options:
What it is: Options to display and customize labels for regular and hidden divergences.
What it does: Allows users to visually differentiate between regular and hidden divergences using customizable labels and colors.
Example: Using different colors and symbols for regular (R) and hidden (H) divergences makes it easier to interpret signals on the chart.
Text Size and Color:
What it is: Customization options for the size and color of divergence labels.
What it does: Adjusts the readability and visibility of divergence labels on the chart.
Example: Larger text size may be preferred for charts with a lot of data, ensuring divergence labels stand out clearly.
FAST & SLOW MONEY FLOW INDEX
Display of Fast & Slow Money Flow:
Display of Fast & Slow Money Flow Setting:
Fast Money Flow Indicator Explanation
The Fast Money Flow indicator helps traders identify the flow of money into and out of an asset over a shorter time frame. By tracking the volume-weighted average of price movements, it provides insights into buying and selling pressure in the market, which can be crucial for making timely trading decisions.
Fast Money Flow Input Settings:
Fast Money Flow: Length: Default: 9
What it is: The period used for calculating the Fast Money Flow.
What it does: Determines the sensitivity of the Money Flow calculation. A shorter length makes the indicator more responsive to recent price changes, while a longer length provides a smoother signal.
Example: A length of 9 is suitable for traders looking to capture quick shifts in market sentiment over a short period.
Fast MFI Area Multiplier: Default: 5
What it is: A multiplier applied to the Money Flow area calculation.
What it does: Adjusts the size of the Money Flow area on the chart, effectively amplifying or reducing the visual impact of the indicator.
Example: A higher multiplier can make the Money Flow more prominent on the chart, aiding in the quick identification of significant money flow changes.
Y Position (Y Pos): Default: 0
What it is: The vertical position adjustment for the Fast Money Flow plot on the chart.
What it does: Allows you to move the Money Flow plot up or down on the chart to avoid overlap with other indicators.
Example: Adjusting the Y Position can be useful if you have multiple indicators on the chart and need to maintain clarity.
Fast MFI Style, Width, and Color:
What it is: Customization options for how the Fast Money Flow is displayed on the chart.
What it does: Enables you to choose between different plot styles (line or area), set the line width, and select colors for positive and negative money flow.
Example: Using different colors for positive (green) and negative (red) money flow helps to visually distinguish between periods of buying and selling pressure.
Slow Money Flow Indicator Explanation
The Slow Money Flow indicator tracks the flow of money into and out of an asset over a longer time frame. It provides a broader perspective on market sentiment, smoothing out short-term fluctuations and highlighting longer-term trends.
Slow Money Flow Input Settings:
Slow Money Flow: Length: Default: 12
What it is: The period used for calculating the Slow Money Flow.
What it does: A longer period smooths out short-term fluctuations, providing a clearer view of the overall money flow trend.
Example: A length of 12 is often used by traders looking to identify sustained trends rather than short-term volatility.
Slow MFI Area Multiplier: Default: 5
What it is: A multiplier applied to the Slow Money Flow area calculation.
What it does: Adjusts the size of the Money Flow area on the chart, helping to emphasize the indicator’s significance.
Example: Increasing the multiplier can help highlight the Money Flow in markets with less volatile price action.
Y Position (Y Pos): Default: 0
What it is: The vertical position adjustment for the Slow Money Flow plot on the chart.
What it does: Allows for vertical repositioning of the Money Flow plot to maintain chart clarity when used with other indicators.
Example: Adjusting the Y Position ensures that the Slow Money Flow indicator does not overlap with other key indicators on the chart.
Slow MFI Style, Width, and Color:
What it is: Customization options for the visual display of the Slow Money Flow on the chart.
What it does: Allows you to choose the plot style (line or area), set the line width, and select colors to differentiate positive and negative money flow.
Example: Customizing the colors for the Slow Money Flow allows traders to quickly distinguish between buying and selling trends in the market.
RSI
Display of RSI:
Display of RSI Setting:
RSI Indicator Explanation
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It is typically used to identify overbought or oversold conditions in the market, providing traders with potential signals for buying or selling.
RSI Input Settings:
RSI Source: Default: Close
What it is: The data source used for calculating the RSI.
What it does: Determines which price data (e.g., close, open) is used in the RSI calculation, affecting how the indicator reflects market conditions.
Example: Using the closing price is standard practice, as it reflects the final agreed-upon price for a given time period.
MA Type (Moving Average Type): Default: SMA
What it is: The type of moving average applied to the RSI for smoothing purposes.
What it does: Changes the smoothing technique of the RSI, impacting how quickly the indicator responds to price movements.
Example: Using an Exponential Moving Average (EMA) will make the RSI more sensitive to recent price changes compared to a Simple Moving Average (SMA).
RSI Length: Default: 14
What it is: The period over which the RSI is calculated.
What it does: Adjusts the sensitivity of the RSI. A shorter length (e.g., 7) makes the RSI more responsive to recent price changes, while a longer length (e.g., 21) smooths out the indicator, reducing the number of signals.
Example: A 14-period RSI is commonly used for identifying overbought and oversold conditions, providing a balance between sensitivity and reliability.
RSI Plot Style, Width, and Color:
What it is: Options to customize the appearance of the RSI line on the chart.
What it does: Allows you to adjust the visual representation of the RSI, including the line width and color.
Example: Setting a thicker line width and a bright color like yellow can make the RSI more visible on the chart, aiding in quick analysis.
Display of RSI with RSI Moving Average:
RSI Moving Average Explanation
The RSI Moving Average adds a smoothing layer to the RSI, helping to filter out noise and provide clearer signals. It is particularly useful for confirming trend strength and identifying potential reversals.
RSI Moving Average Input Settings:
MA Length: Default: 14
What it is: The period over which the Moving Average is calculated on the RSI.
What it does: Adjusts the smoothing of the RSI, helping to reduce false signals and provide a clearer trend indication.
Example: A 14-period moving average on the RSI can smooth out short-term fluctuations, making it easier to spot genuine overbought or oversold conditions.
MA Plot Style, Width, and Color:
What it is: Customization options for how the RSI Moving Average is displayed on the chart.
What it does: Allows you to adjust the line width and color, helping to differentiate the Moving Average from the main RSI line.
Example: Using a contrasting color for the RSI Moving Average (e.g., magenta) can help it stand out against the main RSI line, making it easier to interpret the indicator.
STOCHASTIC RSI
Display of Stochastic RSI:
Display of Stochastic RSI Setting:
Stochastic RSI Indicator Explanation
The Stochastic RSI (Stoch RSI) is a momentum oscillator that measures the level of the RSI relative to its high-low range over a set period of time. It is used to identify overbought and oversold conditions, providing potential buy and sell signals based on momentum shifts.
Stochastic RSI Input Settings:
Stochastic RSI Length: Default: 14
What it is: The period over which the Stochastic RSI is calculated.
What it does: Adjusts the sensitivity of the Stochastic RSI. A shorter length makes the indicator more responsive to recent price changes, while a longer length smooths out the fluctuations, reducing noise.
Example: A length of 14 is commonly used to identify momentum shifts over a medium-term period, providing a balanced view of potential overbought or oversold conditions.
Display of Stochastic RSI %K Line:
Stochastic RSI %K Line Explanation
The %K line in the Stochastic RSI is the main line that tracks the momentum of the RSI over the chosen period. It is the faster-moving component of the Stochastic RSI, often used to identify entry and exit points.
Stochastic RSI %K Input Settings:
%K Length: Default: 3
What it is: The period used for smoothing the %K line of the Stochastic RSI.
What it does: Smoothing the %K line helps reduce noise and provides a clearer signal for potential market reversals.
Example: A smoothing length of 3 is common, offering a balance between responsiveness and noise reduction, making it easier to spot significant momentum shifts.
%K Plot Style, Width, and Color:
What it is: Customization options for the visual representation of the %K line.
What it does: Allows you to adjust the appearance of the %K line on the chart, including line width and color, to fit your visual preferences.
Example: Setting a blue color and a medium width for the %K line makes it stand out clearly on the chart, helping to identify key points of momentum change.
%K Fill Color (Above):
What it is: The fill color that appears above the %K line on the chart.
What it does: Adds visual clarity by shading the area above the %K line, making it easier to interpret the direction and strength of momentum.
Example: Using a light blue fill color above the %K line can help emphasize bullish momentum, making it visually prominent.
Display of Stochastic RSI %D Line:
Stochastic RSI %D Line Explanation
The %D line in the Stochastic RSI is a moving average of the %K line and acts as a signal line. It is slower-moving compared to the %K line and is often used to confirm signals or identify potential reversals when it crosses the %K line.
Stochastic RSI %D Input Settings:
%D Length: Default: 3
What it is: The period used for smoothing the %D line of the Stochastic RSI.
What it does: Smooths out the %D line, making it less sensitive to short-term fluctuations and more reliable for identifying significant market signals.
Example: A length of 3 is often used to provide a smoothed signal line that can help confirm trends or reversals indicated by the %K line.
%D Plot Style, Width, and Color:
What it is: Customization options for the visual representation of the %D line.
What it does: Allows you to adjust the appearance of the %D line on the chart, including line width and color, to match your preferences.
Example: Setting an orange color and a thicker line width for the %D line can help differentiate it from the %K line, making crossover points easier to spot.
%D Fill Color (Below):
What it is: The fill color that appears below the %D line on the chart.
What it does: Adds visual clarity by shading the area below the %D line, making it easier to interpret bearish momentum.
Example: Using a light orange fill color below the %D line can highlight bearish conditions, making it visually easier to identify.
RSI & STOCHASTIC RSI OVERBOUGHT AND OVERSOLD LEVELS
Display of RSI & Stochastic with Overbought & Oversold Levels:
Display of RSI & Stochastic Overbought & Oversold Settings:
RSI & Stochastic Overbought & Oversold Levels Explanation
The Overbought (OB) and Oversold (OS) levels for RSI and Stochastic RSI indicators are key thresholds that help traders identify potential reversal points in the market. These levels are used to determine when an asset is likely overbought or oversold, which can signal a potential trend reversal.
RSI & Stochastic Overbought & Oversold Input Settings:
RSI & Stochastic Level 1 Overbought (OB) & Oversold (OS): Default: OB Level = 170, OS Level = 130
What it is: The first set of thresholds for determining overbought and oversold conditions for both RSI and Stochastic RSI indicators.
What it does: When the RSI or Stochastic RSI crosses above the overbought level, it suggests that the asset might be overbought, potentially signaling a sell opportunity. Conversely, when these indicators drop below the oversold level, it suggests the asset might be oversold, potentially signaling a buy opportunity.
Example: If the RSI crosses above 170, traders might look for signs of a potential trend reversal to the downside, while a cross below 130 might indicate a reversal to the upside.
RSI & Stochastic Level 2 Overbought (OB) & Oversold (OS): Default: OB Level = 180, OS Level = 120
What it is: The second set of thresholds for determining overbought and oversold conditions for both RSI and Stochastic RSI indicators.
What it does: These levels provide an additional set of reference points, allowing traders to differentiate between varying degrees of overbought and oversold conditions, potentially leading to more refined trading decisions.
Example: When the RSI crosses above 180, it might indicate an extreme overbought condition, which could be a stronger signal for a sell, while a cross below 120 might indicate an extreme oversold condition, which could be a stronger signal for a buy.
RSI & Stochastic Overbought (OB) Band Customization:
OB Level 1: Width, Style, and Color:
What it is: Customization options for the visual appearance of the first overbought band on the chart.
What it does: Allows you to set the line width, style (solid, dotted, dashed), and color for the first overbought band, enhancing its visibility on the chart.
Example: A dashed red line with medium width can clearly indicate the first overbought level, helping traders quickly identify when this threshold is crossed.
OB Level 2: Width, Style, and Color:
What it is: Customization options for the visual appearance of the second overbought band on the chart.
What it does: Allows you to set the line width, style, and color for the second overbought band, providing a clear distinction from the first band.
Example: A dashed red line with a slightly thicker width can represent a more significant overbought level, making it easier to differentiate from the first level.
RSI & Stochastic Oversold (OS) Band Customization:
OS Level 1: Width, Style, and Color:
What it is: Customization options for the visual appearance of the first oversold band on the chart.
What it does: Allows you to set the line width, style (solid, dotted, dashed), and color for the first oversold band, making it visually prominent.
Example: A dashed green line with medium width can highlight the first oversold level, helping traders identify potential buying opportunities.
OS Level 2: Width, Style, and Color:
What it is: Customization options for the visual appearance of the second oversold band on the chart.
What it does: Allows you to set the line width, style, and color for the second oversold band, providing an additional visual cue for extreme oversold conditions.
Example: A dashed green line with a thicker width can represent a more significant oversold level, offering a stronger visual cue for potential buying opportunities.
RSI DIVERGENCES
Display of RSI Divergence Labels:
Display of RSI Divergence Settings:
RSI Divergence Lookback Explanation
The RSI Divergence settings allow traders to customize the parameters for detecting divergences between the RSI (Relative Strength Index) and price action. Divergences occur when the price moves in the opposite direction to the RSI, potentially signaling a trend reversal. These settings help refine the accuracy of divergence detection by adjusting the lookback period and range. ( NOTE: This setting only imply to the RSI. This doesn't effect the STOCHASTIC RSI. )
RSI Divergence Lookback Input Settings:
Lookback Left: Default: 10
What it is: The number of bars to look back from the current bar to detect a potential divergence.
What it does: Defines the left-side lookback period for identifying pivot points in the RSI, which are used to spot divergences. A longer lookback period may capture more significant trends but could also miss shorter-term divergences.
Example: A setting of 10 bars means the script will consider pivot points up to 10 bars before the current bar to check for divergence patterns.
Lookback Right: Default: 1
What it is: The number of bars to look forward from the current bar to complete the divergence pattern.
What it does: Defines the right-side lookback period for confirming a potential divergence. This setting helps ensure that the identified divergence is valid by allowing the script to check subsequent bars for confirmation.
Example: A setting of 1 bar means the script will look at the next bar to confirm the divergence pattern, ensuring that the signal is reliable.
Lookback Range Min: Default: 5
What it is: The minimum range of bars required to detect a valid divergence.
What it does: Sets a lower bound on the range of bars considered for divergence detection. A lower minimum range might capture more frequent but possibly less significant divergences.
Example: Setting the minimum range to 5 ensures that only divergences spanning at least 5 bars are considered, filtering out very short-term patterns.
Lookback Range Max: Default: 60
What it is: The maximum range of bars within which a divergence can be detected.
What it does: Sets an upper bound on the range of bars considered for divergence detection. A larger maximum range might capture more significant divergences but could also include less relevant long-term patterns.
Example: Setting the maximum range to 60 bars allows the script to detect divergences over a longer timeframe, capturing more extended divergence patterns that could indicate major trend reversals.
RSI Divergence Explanation
RSI divergences occur when the RSI indicator and price action move in opposite directions, signaling potential trend reversals. This section of the settings allows traders to customize the appearance and detection of both regular and hidden bullish and bearish divergences.
RSI Divergence Input Settings:
R. Bullish Div Label: Default: True
What it is: An option to display labels for regular bullish divergences.
What it does: Enables or disables the visibility of labels that mark regular bullish divergences, where the price makes a lower low while the RSI makes a higher low, indicating a potential upward reversal.
Example: A trader might use this to spot buying opportunities in a downtrend when a bullish divergence suggests the trend may be reversing.
Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bullish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Selecting a green label color and a distinct line width makes bullish divergences easily recognizable on your chart.
R. Bearish Div Label: Default: True
What it is: An option to display labels for regular bearish divergences.
What it does: Enables or disables the visibility of labels that mark regular bearish divergences, where the price makes a higher high while the RSI makes a lower high, indicating a potential downward reversal.
Example: A trader might use this to spot selling opportunities in an uptrend when a bearish divergence suggests the trend may be reversing.
Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bearish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Choosing a red label color and a specific line width makes bearish divergences clearly stand out on your chart.
H. Bullish Div Label: Default: False
What it is: An option to display labels for hidden bullish divergences.
What it does: Enables or disables the visibility of labels that mark hidden bullish divergences, where the price makes a higher low while the RSI makes a lower low, indicating potential continuation of an uptrend.
Example: A trader might use this to confirm an existing uptrend when a hidden bullish divergence signals continued buying strength.
Hidden Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bullish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A softer green color with a thinner line width might be chosen to subtly indicate hidden bullish divergences, keeping the chart clean while providing useful information.
H. Bearish Div Label: Default: False
What it is: An option to display labels for hidden bearish divergences.
What it does: Enables or disables the visibility of labels that mark hidden bearish divergences, where the price makes a lower high while the RSI makes a higher high, indicating potential continuation of a downtrend.
Example: A trader might use this to confirm an existing downtrend when a hidden bearish divergence signals continued selling pressure.
Hidden Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bearish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A muted red color with a thinner line width might be selected to indicate hidden bearish divergences without overwhelming the chart.
Divergence Text Size and Color: Default: S (Small)
What it is: Settings to adjust the size and color of text labels for RSI divergences.
What it does: Allows you to customize the size and color of text labels that display the divergence information on the chart.
Example: Choosing a small text size with a bright white color can make divergence labels easily readable without taking up too much space on the chart.
STOCHASTIC DIVERGENCES
Display of Stochastic RSI Divergence Labels:
Display of Stochastic RSI Divergence Settings:
Stochastic RSI Divergence Explanation
Stochastic RSI divergences occur when the Stochastic RSI indicator and price action move in opposite directions, signaling potential trend reversals. These settings allow traders to customize the detection and visual representation of both regular and hidden bullish and bearish divergences in the Stochastic RSI.
Stochastic RSI Divergence Input Settings:
R. Bullish Div Label: Default: True
What it is: An option to display labels for regular bullish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark regular bullish divergences, where the price makes a lower low while the Stochastic RSI makes a higher low, indicating a potential upward reversal.
Example: A trader might use this to spot buying opportunities in a downtrend when a bullish divergence in the Stochastic RSI suggests the trend may be reversing.
Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bullish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Selecting a blue label color and a distinct line width makes bullish divergences in the Stochastic RSI easily recognizable on your chart.
R. Bearish Div Label: Default: True
What it is: An option to display labels for regular bearish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark regular bearish divergences, where the price makes a higher high while the Stochastic RSI makes a lower high, indicating a potential downward reversal.
Example: A trader might use this to spot selling opportunities in an uptrend when a bearish divergence in the Stochastic RSI suggests the trend may be reversing.
Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bearish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Choosing an orange label color and a specific line width makes bearish divergences in the Stochastic RSI clearly stand out on your chart.
H. Bullish Div Label: Default: False
What it is: An option to display labels for hidden bullish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark hidden bullish divergences, where the price makes a higher low while the Stochastic RSI makes a lower low, indicating potential continuation of an uptrend.
Example: A trader might use this to confirm an existing uptrend when a hidden bullish divergence in the Stochastic RSI signals continued buying strength.
Hidden Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bullish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A softer blue color with a thinner line width might be chosen to subtly indicate hidden bullish divergences, keeping the chart clean while providing useful information.
H. Bearish Div Label: Default: False
What it is: An option to display labels for hidden bearish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark hidden bearish divergences, where the price makes a lower high while the Stochastic RSI makes a higher high, indicating potential continuation of a downtrend.
Example: A trader might use this to confirm an existing downtrend when a hidden bearish divergence in the Stochastic RSI signals continued selling pressure.
Hidden Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bearish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A muted orange color with a thinner line width might be selected to indicate hidden bearish divergences without overwhelming the chart.
Divergence Text Size and Color: Default: S (Small)
What it is: Settings to adjust the size and color of text labels for Stochastic RSI divergences.
What it does: Allows you to customize the size and color of text labels that display the divergence information on the chart.
Example: Choosing a small text size with a bright white color can make divergence labels easily readable without taking up too much space on the chart.
Alert System:
Custom Alerts for Divergences and Reversals:
What it is: The script includes customizable alert conditions to notify you of detected divergences or potential reversals based on WaveTrend, RSI, and Stochastic RSI.
What it does: Helps you stay informed of key market movements without constantly monitoring the charts, enabling timely decisions.
Example: Setting an alert for regular bearish divergence on the WaveTrend could notify you of a potential sell opportunity as soon as it is detected.
How to Use Alerts:
Set up custom alerts in TradingView based on these conditions to be notified of potential trading opportunities. Alerts are triggered when the indicator detects conditions that match the selected criteria, such as divergences or potential reversals.
By following the detailed guidelines and examples above, you can effectively use and customize this powerful indicator to suit your trading strategy.
For further understanding and customization, refer to the input settings within the script and adjust them to match your trading style and preferences.
How Components Work Together
Synergy and Cross-Validation: The indicator combines multiple layers of analysis to validate trading signals. For example, a WaveTrend buy signal that coincides with a bullish divergence in RSI and positive fast money flow is likely to be more reliable than any single indicator’s signal. This cross-validation reduces the likelihood of false signals and enhances decision-making.
Comprehensive Market Analysis: Each component plays a role in analyzing different aspects of the market. WaveTrend focuses on trend strength, Money Flow indicators assess market sentiment, while RSI and Stochastic RSI offer detailed views of price momentum and potential reversals.
Ideal For
Traders who require a reliable, multifaceted tool for detecting market trends and reversals.
Investors seeking a deeper understanding of market dynamics across different timeframes and conditions, whether in forex, equities, or cryptocurrency markets.
This script is designed to provide a comprehensive tool for technical analysis, combining multiple indicators and divergence detection into one versatile and customizable script. It is especially useful for traders who want to monitor various indicators simultaneously and look for convergence or divergence signals across different technical tools.
Acknowledgements
Special thanks to these amazing creators for inspiration and their creations:
I want to thank these amazing creators for creating there amazing indicators , that inspired me and also gave me a head start by making this indicator! Without their amazing indicators it wouldn't be possible!
vumanchu: VuManChu Cipher B Divergences.
MisterMoTa: RSI + Divergences + Alerts .
DevLucem: Plain Stochastic Divergence.
Note
This indicator is designed to be a powerful tool in your trading arsenal. However , it is essential to backtest and adjust the settings according to your trading strategy before applying it to live trading . If you have any questions or need further assistance, feel free to reach out.
SCE ReversalsThis tool uses past market data to attempt to identify where changes in “memory” may occur to spot reversals. The Hurst Exponent was a big inspiration for this code. The main driver is identifying when past ranges expand and contract, leading to a change in direction. With the use of Sum of Squared Errors, users do not need to input anything.
Getting optimized parameters
// Define ranges for N and lkb
N_range = array.from(15, 20, 25, 30, 35, 40, 45, 50, 55, 60)
// Function to calculate SSE
sse_calc(_N) =>
x = math.pow(close - close , 2)
y = math.pow(close - close , 2) + math.pow(close, 2)
z = x / y
scaled_z = z * math.log(_N)
min_r = ta.lowest(scaled_z, _N)
max_r = ta.highest(scaled_z, _N)
norm_r = (scaled_z - min_r) / (max_r - min_r)
SMA = ta.sma(close, _N)
reversal_bullish = norm_r == 1.000 and norm_r < 0.90 and close < SMA and session.ismarket and barstate.isconfirmed
reversal_bearish = norm_r == 1.000 and norm_r < 0.90 and close > SMA and session.ismarket and barstate.isconfirmed
var float error = na
if reversal_bullish or reversal_bearish
error := math.pow(close - SMA, 2)
error
else
error := 999999999999999999999999999999999999999
error
error
var int N_opt = na
var float min_SSE = na
// Loop through ranges and calculate SSE
for N in N_range
sse = sse_calc(N)
if na(min_SSE) or sse < min_SSE
min_SSE := sse
N_opt := N
The N_range list encompasses every lookback value to check with. The sse_calc function accepts an individual element to then perform the calculation for Reversals. If there is a reversal, the error becomes how far away the close is from a moving average with that look back. Lowest error wins. That would be the look back used for the Reversals calculation.
Reversals calculation
// Calculating with optimized parameters
x_opt = math.pow(close - close , 2)
y_opt = math.pow(close - close , 2) + math.pow(close, 2)
z_opt = x_opt / y_opt
scaled_z_opt = z_opt * math.log(N_opt)
min_r_opt = ta.lowest(scaled_z_opt, N_opt)
max_r_opt = ta.highest(scaled_z_opt, N_opt)
norm_r_opt = (scaled_z_opt - min_r_opt) / (max_r_opt - min_r_opt)
SMA_opt = ta.sma(close, N_opt)
reversal_bullish_opt = norm_r_opt == 1.000 and norm_r_opt < 0.90 and close < SMA_opt and close > high and close > open and session.ismarket and barstate.isconfirmed
reversal_bearish_opt = norm_r_opt == 1.000 and norm_r_opt < 0.90 and close > SMA_opt and close < low and close < open and session.ismarket and barstate.isconfirmed
X_opt and y_opt are the compared values to develop the system. Everything done afterwards is scaling and using it to spot the Reversals. X_opt is the current close, minus the close with the optimal N bars back, squared. Then y_opt is also that but plus the current close squared. Z_opt is then x_opt / y_opt. This gives us a pretty small number that will go up when we approach tops or bottoms. To make life a little easier I normalize the value between 0 and 1.
After I find the moving average with the optimal N, I can check if there is a Reversal. Reversals are there when the last value is at 1 and the current value drops below 0.90. This would tell us that “memory” was strong and is now changing. To determine direction and help with accuracy, if the close is above the moving average it is a bearish alert, and vice versa. As well as the close must be below the last low for a bearish Reversal, above the last high for a bullish Reversal. Also the close must be above the open for a bullish Reversal, and below for a bearish one.
Visual examples
This NASDAQ:TSLA chart shows how alerts may come around. The bullish and bearish labels are plotted on the chart along with a reference line to see price interact with.
The indicator has the potential to be inactive, like we see here on $OKLO. There is only one alert, and it marks the bottom nicely.
Stocks with strong trends like NYSE:NOW may be more susceptible to false alerts. Assets that are volatile and bounce around a lot may be better.
It works on intra day charts the same as on Daily or longer charts. We see here on NASDAQ:QQQ it spotted the bottom on this particular trading day.
This tool is meant to aid traders in making decisions, not to be followed blindly. No trading tool is 100% accurate and Sum of Squared Errors does not guarantee the most optimal value. I encourage feedback and constructive criticism.
WaveTrend Momentum (Zeiierman)█ Overview
WaveTrend Momentum (Zeiierman) reveals the underlying rhythm of market movement through positive and negative momentum waves that visualize both sides of trend behavior. This dual-wave structure makes it easy to see how impulses and retracements interact in real time, helping you distinguish between a normal pullback within strength and the early signs of a trend losing momentum.
The indicator layers its waves with higher-timeframe trend alignment and adaptive context filters, mapping when momentum expands, when it fades, and where a pullback is approaching exhaustion or renewed trend strength is likely to emerge.
⚪ Why This One Is Unique
Unlike conventional wave oscillators, this design uses dual, phase-managed wave construction with adaptive scaling across symbols and timeframes. At its core is a three-mode Trend Strength engine (Adaptive, Stability, Structure) that dynamically adjusts to market conditions, supported by higher-timeframe regime sourcing and a dedicated impulse-and-divergence framework.
█ Main features
⚪ WaveTrend Momentum Waves
The foundation of the indicator lies in its ability to build positive and negative momentum waves that visualize both sides of market movement. This dual-wave structure makes it easy to identify trend direction, impulses, retracements, and exhaustion in real time, showing how momentum evolves within broader market phases. The waves can be used directly to gauge trend strength and direction, helping traders stay aligned with prevailing momentum or recognize when a shift is forming.
⚪ Extreme Moves
Extreme Zones highlight points where momentum reaches statistically stretched conditions, areas where price action often pauses, rebalances, or reverses. These zones help traders anticipate potential exhaustion before it becomes visible on price, improving timing for entries, exits, and scaling decisions.
⚪ Impulse Moves
Impulse Markers identify bursts of directional momentum, moments when trend energy expands sharply. These points often align with breakouts, accelerations, or continuation signals, helping traders focus on active opportunities rather than noise or consolidation.
⚪ Trend Strength
The Trend Strength Line adapts dynamically to shifting market regimes. It can operate in three modes: Adaptive, Stability, and Structure, each offering a different sensitivity level to trend changes. This feature helps confirm whether the trend is building, stabilizing, or losing strength, and serves as a foundation for bias filtering or trade direction confirmation.
⚪ Higher-Timeframe Trend Alignment
Integrates a higher-timeframe trend reference directly into the analysis, giving each wave context. This alignment clarifies when local pullbacks occur in harmony or conflict with the broader trend, making it easier to distinguish temporary corrections from true reversals.
⚪ Divergence Engine
A fully integrated divergence detection system that automatically spots both regular and hidden divergences between price and momentum. By surfacing early signs of trend weakening or continuation potential, it gives traders a structured way to detect subtle momentum shifts before they manifest in price.
█ How to Use
⚪ Trend Trading
WaveTrend Momentum excels as a trend-following framework by combining wave direction, Trend Strength, and higher-timeframe alignment to reveal when momentum is expanding or contracting within the broader market phase.
Note: To get trend waves, consider increasing the Wave Transition value to above 40.
Bullish WaveTrend Trend: When the positive momentum waves are above the neutral midpoint, the market is trending upward. Minor downward retracements within this structure often resolve back into trend continuation once buying pressure reasserts itself, particularly when the higher-timeframe context confirms a bullish regime.
Bearish WaveTrend Trend: When the negative wave dominates and remains below the midpoint, downside momentum controls the market. Minor upward retracements within this structure often resolve back into trend continuation once selling pressure reasserts itself, particularly when the higher-timeframe context confirms a bearish regime.
Bullish Trend Strength Line: A Trend Strength Line positioned above the midline indicates a bullish trend. A rising line reflects growing momentum and persistent buying pressure. The steeper the slope, the stronger the current regime. As long as the line continues to rise alongside positive waves, the trend remains structurally intact.
Bearish Trend Strength Line: A Trend Strength Line positioned below the midline indicates a bearish trend. A declining line reflects increasing selling pressure and persistent downside momentum. The steeper the slope, the stronger the current bearish regime. As long as the line continues to fall alongside negative waves, the trend remains structurally intact.
⚪ Momentum Trading
Momentum trading focuses on capturing the energy and force behind price movement, identifying whether the market is accelerating, losing steam, or preparing for a reversal. Momentum shifts can reveal temporary exhaustion, trend-strength continuation, or breakout acceleration before price action fully confirms it.
The indicator includes several features designed to detect and visualize momentum:
Waves: The core element of the indicator. The size and slope of the waves reflect the strength of momentum. Expanding waves indicate strong directional pressure, while contracting waves suggest cooling or consolidation.
Extreme Zones: When waves reach or exceed the extreme levels, the market enters statistically stretched conditions, signaling potential exhaustion or reversal zones. However, these events can also occur during strong trends, indicating continued strength in that direction. Market context is essential to determine whether an extreme should be interpreted as a reversal signal or as confirmation of trend momentum.
Impulse Markers: Highlight sudden bursts of momentum, often associated with breakouts or continuation events. Like Extreme Zones, Impulse Markers can appear within both reversals and strong trending phases. Context from price structure and higher timeframes helps identify whether the impulse reflects a trend-strength expansion or the final surge before exhaustion.
You can use any of these features to identify:
Breakouts: When Impulse or Extreme Markers align with expanding waves.
Reversals: When momentum reaches extreme levels followed by a fade in strength, it signals potential exhaustion before a structural shift. However, strong trends can also produce temporary fades that quickly recover, so context is key to distinguishing between true reversals and brief pauses within the trend.
⚪ Pullback Trading
Pullbacks represent short pauses or retracements within a prevailing trend. The combination of the Wave, Impulse Markers, and the Trend Strength Line helps identify when a pullback is maturing and when continuation is likely to resume.
Bullish WaveTrend and Trend Strength Pullback
In an uptrend, a brief dip in the negative wave, paired with a bullish Trend Strength, typically signals a healthy pullback rather than a reversal. When the negative wave begins to turn upward again, it confirms momentum recovery and potential for continuation.
Bearish WaveTrend and Trend Strength Pullback
In a downtrend, a short-lived rise in the positive wave while Trend Strength remains negative usually signals a counter-trend rally within weakness. As the positive wave fades and the negative wave expands again, downside continuation becomes more probable.
⚪ Divergence Trading
Divergence trading focuses on identifying moments when price and momentum move out of sync, signaling a potential shift in market direction or a slowdown in trend strength. These divergences often appear before reversals, consolidations, or major transitions in structure, making them a valuable early warning tool for traders.
The integrated Divergence Engine automatically detects these imbalances between price action and momentum. When price continues to move in one direction but momentum begins to fade, it suggests that the underlying strength driving the move is weakening.
█ How It Works
⚪ Wave Construction
The momentum wave is derived from phase-managed price smoothers, then normalized and bounded to express both positive and negative momentum within a single coherent structure.
Calculation: Composite moving frameworks with phase management, nonlinear rescaling, and amplitude companding to stabilize wave height and maintain consistent sensitivity.
⚪ Extremes
An auxiliary equilibrium tracker measures deviations from a dynamic mean to identify statistically stretched conditions in which momentum may begin to rebalance.
Calculation: Robust deviation mapping of a smoothed equilibrium series with adaptive thresholds for regime-consistent extremes.
⚪ Trend Strength Core
A tri-mode core measures directional persistence and adapts dynamically to changing market regimes, with optional higher-timeframe sourcing for context.
Calculation: Return-aggregated momentum with envelope gating (Adaptive), stability-biased curvature tracking (Stability), and structure-driven range midpoint logic (Structure).
⚪ Range & Regime Filter
A volatility-adjusted filter produces a smoothed state line and internal bias zones, allowing the indicator to contextualize momentum behavior within current volatility conditions.
Calculation: Volatility-normalized range synthesis with slow/fast quantization modes and optional smoothing to mitigate market chop.
⚪ Impulse Detection
Detects short-term bursts of directional energy and marks them as impulse events. These impulses highlight when momentum rapidly expands, often signaling breakouts, accelerations, or the end of low-volatility phases.
Calculation: Nonlinear impulse-response mapping that emphasizes higher-order rate changes while filtering out micro-noise.
⚪ Divergence Engine (Regular & Hidden)
Compares price swings against the wave’s momentum structure to identify early disagreement between price and internal strength.
Calculation: Swing-logic comparators analyze price relative to normalized wave amplitude to detect momentum shifts and potential divergence setups.
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Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
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