[SpaghettiForex] SFK - MACD Wave Divergences + Keltner x3SFK — MACD Wave Divergences (PRE + CONF) + Keltner x3 is a context indicator that highlights MACD histogram “wave” divergences on price, with two modes:
- PRE (Turning Point): earlier, faster markers inside the current wave (may be invalidated if the wave continues).
- CONF (Wave Peak): confirmed markers based on the true peak of each completed wave (typically more stable).
It also plots three Keltner Channel bands to provide volatility/extension context around the same areas.
This tool does not predict the market and it is not a guaranteed entry system. Divergences can fail. SFK is designed to help you spot potential momentum/structure mismatches and then decide what to do with your own process and risk management.
What it shows:
- PRE divergence markers (optional): triggered at the first histogram turning point inside a wave.
- CONF divergence markers (optional): triggered when a wave ends and its true peak is confirmed.
- Divergence lines connecting the two reference peaks (optional).
- Keltner Channels x3 (optional): EMA basis + ATR bands (1x / 1.5x / 2x).
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Screenshots (examples):
Screenshot 1 — Overview (Keltner x3 + divergences)
A clean chart view showing Keltner Channels and a couple of divergence examples.
Use this to communicate what SFK looks like in normal use.
Screenshot 2 — PRE divergence (early turning point)
Example of a PRE divergence: earlier detection during the wave as the histogram turns.
PRE is faster but can be invalidated if the wave continues and a stronger peak forms.
Screenshot 3 — CONF divergence (wave peak confirmed)
Example of a CONF divergence: the signal is generated at wave end using the confirmed wave peak.
This mode is slower but generally more stable and easier to validate visually.
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How it works (high level):
1. SFK computes the MACD histogram and splits it into “waves” based on histogram sign (positive vs negative).
2. For each wave, it tracks one peak per wave:
- Positive wave → maximum histogram value + corresponding price high.
- Negative wave → minimum histogram value + corresponding price low.
3. A divergence is detected when two peaks of the same colour meet classic conditions:
- Bearish: price makes a higher high while histogram peak is lower.
- Bullish: price makes a lower low while histogram peak is higher.
4. PRE uses an early turning point inside the current wave; CONF uses the confirmed peak when the wave ends.
Practical use (context, not entries):
- Use CONF for confirmed wave-peak divergences (fewer, more stable by design).
- Use PRE for early turning-point alerts (faster, may be invalidated as the wave develops).
- Use the Keltner bands to contextualise whether price is expanding/extended when a divergence appears.
ALERTS
Optional alerts are available for:
- PRE bearish / PRE bullish divergences.
- CONF bearish / CONF bullish divergences.
If “Alert On Bar Close Only” is enabled, alerts are evaluated only on confirmed bar close.
Important note:
SFK is a context indicator. It does not provide financial advice or performance guarantees. Divergences can appear in strong trends and still fail. Always apply appropriate risk management and confirmation rules from your own process.
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