Pulse Volume Commitment [JOAT]

Pulse Volume Commitment [JOAT] - Three-Dimensional Momentum Analysis

Introduction and Purpose

Pulse Volume Commitment is an open-source oscillator indicator that analyzes price action through three distinct dimensions: Quantity (candle count), Quality (body structure), and Commitment (volume-weighted quality). The core problem this indicator solves is that simple bullish/bearish candle counts miss important context. A market can have more green candles but still be weak if those candles have small bodies and low volume.

This indicator addresses that by requiring all three dimensions to align before generating strong signals, filtering out weak moves that lack conviction.

Why These Three Dimensions Work Together

Each dimension measures a different aspect of market conviction:

1. Quantity - Counts bullish vs bearish candles over the lookback period. Tells you WHO is winning the candle count battle.

2. Quality - Scores candles by body size relative to total range. Full-bodied candles (small wicks) indicate stronger conviction than doji-like candles. Tells you HOW decisively price is moving.

3. Commitment - Weights quality scores by volume. High-quality candles on high volume indicate institutional participation. Tells you WHETHER smart money is involved.

When all three align (e.g., more bullish candles + bullish quality + bullish commitment), the signal is significantly more reliable.

How the Calculations Work

Quantity Analysis:

int greenCount = 0
int redCount = 0
for i = 0 to lookbackPeriod - 1
    if close > open
        greenCount += 1
    if close < open
        redCount += 1
bool quantityBull = greenCount > redCount

Quality Analysis (body-to-range scoring):

for i = 0 to lookbackPeriod - 1
    float candleBody = close - open  // Signed (positive = bull)
    float candleRange = high - low
    float bodyQuality = candleRange > 0 ? (candleBody / candleRange * 100) * candleRange : 0.0
    sumBodyQuality += bodyQuality
bool qualityBull = sumBodyQuality > 0

Signal Types

• FULL BULL - All three dimensions bullish (Quantity + Quality + Commitment)
  
• FULL BEAR - All three dimensions bearish
  
• LEAN BULL/BEAR - 2 of 3 dimensions agree
  
• MIXED - No clear consensus
  
• STRONG BUY/SELL - Full confluence + ADX confirms trending market
  

ADX Integration

The indicator includes ADX (Average Directional Index) to filter signals:
- ADX >= 20 = TRENDING market (signals more reliable)
- ADX < 20 = RANGING market (signals may whipsaw)

Strong signals only trigger when full confluence occurs in a trending environment.

Dashboard Information

• Quantity - BULL/BEAR/FLAT with green/red candle ratio
  
• Quality - Directional bias based on body quality scoring
  
• Commit - Volume-weighted commitment reading
  
• ADX - Trend strength (TRENDING/RANGING)
  
• Signal - Confluence status (FULL BULL/FULL BEAR/LEAN/MIXED)
  
• Action - STRONG BUY/STRONG SELL/WAIT
  

How to Use This Indicator

For High-Conviction Entries:
1. Wait for FULL BULL or FULL BEAR confluence
2. Confirm ADX shows TRENDING
3. Enter when Action shows STRONG BUY or STRONG SELL

For Filtering Weak Setups:
1. Avoid entries when signal shows MIXED
2. Be cautious when ADX shows RANGING
3. Require at least 2 of 3 dimensions to agree

For Divergence Analysis:
1. Watch for Quantity bullish but Commitment bearish (distribution)
2. Watch for Quantity bearish but Commitment bullish (accumulation)

Input Parameters

• Lookback Period (9) - Bars to analyze for all three dimensions
  
• ADX Smoothing (14) - Period for ADX calculation
  
• ADX DI Length (14) - Period for directional indicators
  

Timeframe Recommendations

• 15m-1H: Good for intraday momentum analysis
  
• 4H-Daily: Best for swing trading confluence
  
• Lookback period may need adjustment for different timeframes
  

Limitations

• Lookback period affects signal responsiveness vs reliability tradeoff
  
• Volume data quality varies by exchange
  
• ADX filter may cause missed entries in early trends
  
• Works best on liquid instruments with consistent volume
  

Open-Source and Disclaimer

This script is published as open-source under the Mozilla Public License 2.0 for educational purposes.

This indicator does not constitute financial advice. Confluence signals do not guarantee profitable trades. Always use proper risk management.

- Made with passion by officialjackofalltrades