Confluence Engine [BullByte]

CONFLUENCE ENGINE [BullByte]
Multi-Factor Technical Analysis Framework

OVERVIEW

Confluence Engine is a multi-dimensional technical analysis framework that evaluates market conditions across five distinct analytical pillars simultaneously. Rather than relying on a single indicator or signal source, this tool synthesizes Structure, Momentum, Volume, Volatility, and Pattern analysis into a unified scoring system that identifies high-probability trading opportunities when multiple technical factors align.

The core philosophy behind this indicator stems from a fundamental observation: isolated signals frequently fail, but when multiple independent analytical methods agree, the probability of a successful trade increases substantially. This indicator was developed after extensive research into why traders often receive conflicting signals from different indicators on their charts, leading to analysis paralysis and poor decision-making.

THE PROBLEM AND SOLUTION

The Problem:
Most traders use multiple indicators independently, often receiving contradictory signals. One indicator says "buy" while another says "wait." This creates confusion and leads to missed opportunities, premature entries based on incomplete analysis, difficulty quantifying how strong a setup actually is, and inconsistent decision-making across different market conditions.

The Solution:
Confluence Engine addresses this by providing a single, unified score (0-100) that represents the aggregate strength of a trading setup. Instead of mentally weighing five different indicators, traders receive a clear numerical score indicating setup quality, visual tier classification (ULTRA, HIGH, STANDARD), specific identification of which factors are strong or weak, and actionable guidance on what to watch for next.

THE FIVE ANALYTICAL DIMENSIONS

Each dimension was selected because it measures a fundamentally different aspect of market behavior:

[1] STRUCTURE ANALYSIS
Evaluates price position relative to key levels and recent swing points. Markets respect structure - previous highs, lows, and areas where price reversed. This dimension identifies when price interacts with these critical levels and measures the quality of that interaction.

What it detects: Price approaching or sweeping swing highs/lows, reclaim patterns after false breakouts, EMA alignment and trend structure, exhaustion after extended moves.

[2] MOMENTUM ANALYSIS
Measures the underlying strength and direction of price movement. Strong moves are characterized by momentum preceding price. This dimension evaluates whether momentum supports the current price direction.

What it detects: Oversold/overbought conditions with reversal potential, momentum divergence states, directional movement strength (ADX-based), momentum shifts before price confirmation.

[3] VOLUME ANALYSIS
Volume validates price movement. Significant moves require participation. This dimension measures current volume relative to recent averages to determine if market participants are genuinely committing to the move.

What it detects: Volume spikes confirming price action, below-average volume warning of weak moves, climactic volume at potential reversals, volume confirmation of rejection patterns.

[4] VOLATILITY ANALYSIS
Markets alternate between compression (low volatility) and expansion (high volatility). This dimension identifies these phases and recognizes when compression is likely to resolve into directional movement.

What it detects: Volatility squeeze conditions (Bollinger inside Keltner), squeeze release direction, ATR expansion indicating breakout potential, compression duration for timing breakouts.

[5] PATTERN ANALYSIS
Candlestick patterns reflect the battle between buyers and sellers within each bar. This dimension evaluates the quality and context of reversal and continuation patterns.

What it detects: Engulfing patterns with quality scoring, hammer and shooting star formations, rejection wicks indicating trapped traders, pattern confluence with other factors.

WHAT MAKES THIS INDICATOR ORIGINAL Not a mashup

This is NOT a mashup of indicators displayed together. The Confluence Engine represents an integrated analytical framework with the following unique characteristics:

Unified Scoring System: All five dimensions feed into a proprietary scoring algorithm that weights and combines their signals. The output is a single 0-100 score, not five separate readings.

Multi-Factor Gate: Beyond just scoring, the system requires a minimum number of factors to be "active" (meeting their individual thresholds) before allowing signals. This prevents signals based on one extremely strong factor masking four weak ones.

Regime-Aware Adjustments: The engine detects the current market regime (trending, ranging, volatile, weak) and automatically adjusts factor weights and score multipliers. A structure signal means something different in a trending market versus a ranging market.

Adaptive Risk Management: Take-profit and stop-loss levels are not static. They adapt based on current volatility, market regime, and signal quality - providing tighter targets in low-volatility environments and wider targets when volatility expands.

Liquidity Sweep Detection: A distinctive feature that identifies when price has swept beyond a swing high/low and then reclaimed back inside. This pattern often indicates stop hunts followed by reversals.

Signal Quality Tiers: Rather than just "signal" or "no signal," the engine classifies setups into tiers. ULTRA (80+) represents highest probability setups with all factors aligned. HIGH (70-79) represents strong setups with multiple factors confirming. STANDARD meets minimum threshold for acceptable setups.

HOW THE SCORING WORKS

Each of the five factors generates a raw score from 0-100 based on current market conditions. These raw scores are then weighted according to the selected trading style (Balanced, Scalper, Swing, Range, Trend), adjusted based on current market regime detection, modified by higher timeframe alignment (if enabled), bonused when multiple factors exceed their activation thresholds simultaneously, and multiplied by session factors (if session filter is enabled).

The result is a final Bull Score and Bear Score, each ranging from 0-100, representing the current strength of long and short setups respectively.

Signal Generation Requirements:
- Score meets minimum threshold (configurable: 60-95)
- Required number of factors are "active" (default: 3 of 5)
- Market regime is not blocked (if blocking enabled)
- Higher timeframe alignment passes (if required)
- Cooldown period from last signal has elapsed

UNDERSTANDING THE DASHBOARDS

Main Dashboard (Top Right)

The main dashboard displays real-time scores and market context:

LONG Score - Current bullish setup strength (0-100) with quality tier displayed
SHORT Score - Current bearish setup strength (0-100) with quality tier displayed
Regime - Current market state showing TREND UP, TREND DN, VOLATILE, RANGE, or WEAK
HTF - Higher timeframe alignment showing BULL, BEAR, NEUT, or OFF
Squeeze - Volatility state showing SQZ (in squeeze), REL+ (bullish release), REL- (bearish release), or NORM
Gate - Factor count versus requirement, for example 4/3 means 4 factors active with 3 required
Sweep L/S - Liquidity sweep status for long and short setups
ATR% - Current ATR as percentile of recent range indicating relative volatility
Vol - Current volume relative to 20-period average
R:R - Current risk-reward ratio based on adaptive TP/SL calculations
Trade - Active trade status and unrealized profit/loss percentage

Analysis Dashboard (Bottom Left)

The analysis dashboard provides actionable guidance:

Signal Readiness - Visual progress bars showing how close each direction is to generating a signal
Blocking Factors - Identifies which specific factor is weakest and preventing signals
Recommended Action - Context-aware guidance such as WATCH, WAIT, MANAGE, or SCAN
Watch For - Specific events to monitor for setup completion
Opportunity Level - Overall market opportunity rating from EXCELLENT to VERY POOR
Timing - Contextual timing guidance based on current conditions

Status Bar (Bottom Center)

Compact view displaying Long Score, Gate Status, Current State, Gate Status, and Short Score in a single row for quick reference.

Dashboard Size - Auto Mode Explained

When Dashboard Size is set to "Auto", the indicator intelligently adjusts text size based on your current chart timeframe to optimize readability:

Auto-Sizing Logic:

1-Minute to 5-Minute Charts → Tiny
- Lower timeframes show more bars on screen
- Tiny text prevents dashboard from obscuring price action
- Recommended for scalping and high-frequency monitoring

15-Minute Charts → Small
- Balanced size for intraday trading
- Readable without being intrusive

1-Hour to Daily Charts → Normal
- Standard size for most trading styles
- Optimal readability for swing trading

Weekly and Monthly Charts → Large
- Larger text for position trading
- Fewer bars visible so space is available

Manual Override:

You can override auto-sizing for any dashboard individually:
- Dashboard Size (All): Sets master size applied to all dashboards
- Main Dashboard Size: Override for top-right dashboard specifically
- Analysis Panel Size: Override for bottom-left panel specifically
- Status Bar Size: Override for bottom-center bar specifically

Example Use Case:
Trading on 5m chart (default = Tiny) but you have good eyesight and large monitor:
- Set "Dashboard Size (All)" to "Small" or "Normal" for better readability
- Individual dashboards will use your override instead of auto-sizing

Recommendation:
Start with Auto mode and only adjust if dashboards are too large or too small for your monitor/eyesight.

UNDERSTANDING SIGNAL LABELS

When a signal generates, a label appears with trade information:

Minimal Style Example:
[U] LONG 85
Shows tier icon, direction, and score only.

Detailed Style Example:
[U] ULTRA LONG
Score: 85
Entry: 50250.50
TP1: 50650.25
TP2: 51500.75
SL: 49850.25
R:R 1:2.5
Regime: TREND UP
HTF: BULL

Tier Icons Explained:
[U] indicates ULTRA quality with score 80 or higher
[H] indicates HIGH quality with score between 70 and 79
[S] indicates STANDARD quality with score meeting minimum threshold

UNDERSTANDING TRADE ZONES

When a signal generates, visual elements appear on the chart:

Entry Line (Purple) marks the entry price level
TP1 Line (Blue Dashed) marks the first take-profit target
TP2 Line (Cyan Dashed) marks the final take-profit target
SL Line (Orange Dotted) marks the stop-loss level
Trade Zone Box shows shaded area from SL to TP2

These elements extend forward as price progresses. When TP1 is hit, its line becomes solid to indicate achievement. When the trade completes at either TP2 or SL, all elements are cleaned up and the entry label converts to a compact ghost label for historical reference.

Exit Labels Explained:
[TP1] +X.XX% indicates first target reached with partial profit secured
[TP2] +X.XX% indicates full target reached with maximum profit achieved
[SL] -X.XX% indicates stop-loss triggered
[Exit] TP1 Hit, SL... indicates stopped out after TP1 was already hit (optional display)

OPPOSITE SIGNAL HANDLING

When market conditions shift dramatically, the engine may generate a signal in the opposite direction while an existing trade is active. This represents a significant change in confluence and is handled automatically:

Automatic Trade Reversal Process:

1. Detection: New signal triggers opposite to current trade direction (e.g., SHORT signal while LONG trade is active)

2. Current Trade Closure:
- All visual elements (entry line, TP/SL lines, trade zone) are deleted
- Current trade is marked as closed

3. Entry Label Conversion:
- The detailed entry label is converted to a compact ghost label
- Ghost label shows direction + score (e.g., "LONG 75")
- Marked with "OPP" outcome to indicate opposite signal closure
- Moved to a non-interfering position below/above price

4. New Trade Initialization:
- Fresh entry label created for new direction
- New TP1, TP2, SL levels calculated based on new signal quality
- Trade zone and price lines drawn for new trade

Example Scenario:
You enter a LONG trade at score 72. Price moves sideways for 8 bars, then market structure breaks down. Confluence shifts heavily bearish with a sweep reclaim bear + momentum + volume spike, generating a SHORT signal at score 81. The engine automatically:
- Closes the LONG trade
- Converts "LONG 72" entry label to a small ghost label
- Opens new SHORT trade at current price
- Displays new SHORT entry label with full trade details

Trading Implication:
This behavior ensures the engine is always aligned with the highest-probability direction based on current confluence. It prevents you from holding a position when all five factors have flipped against you.

Note: This does NOT happen for every small score change. The opposite signal must meet all signal generation requirements (minimum score, gate pass, regime check, HTF alignment) before triggering. Typically occurs during strong trend reversals or major support/resistance breaks.

EXAMPLE TRADE : LONG



Instrument and Exchange: Bitcoin / TetherUS (BTC/USDT) on Binance
Timeframe: 5-minute
Timestamp: Nov 27, 2025 12:39 UTC
Indicator Script: Confluence Engine [BullByte] v1.0
Trade Type: Long (Example Trade)
Setting Used: Default

Signal Details:
- Tier: HIGH
- Score: 70
- Entry Price: 90040.70
- TP1 Target: 90868.63
- TP2 Target: 92110.52
- Stop Loss: 89325.94
- Risk Reward: 1:2.9

Trade Outcome:
- TP1 hit after 12 bars (+0.95%)
- TP2 hit after 28 bars (+2.85%)
- Total gain: +2.85% on full position

EXAMPLE TRADE : SHORT with Dashboard Explanation and interpretation



Instrument and Exchange: Ethereum / U.S. Dollar (ETH/USD) — Coinbase
Timeframe: 1-hour
Timestamp (screenshot): Nov 28, 2025 16:41 UTC
Indicator Script: Confluence Engine [BullByte] v1.0
Trade Type: Short (Example Trade)
Setting Used: Default

Signal Details
-Tier: STANDARD (STD)
-Score: 64
-Entry Price: 3037.26
-TP1 Target: 2981.61 (-55.65 pts)
-TP2 Target: 2898.12 (-139.14 pts)
-Stop Loss: 3099.79 (+62.53 pts)
-Risk:Reward: ≈ 1 : 2.2 (TP2/SL)
-Market Context at Signal
-Regime: TREND UP (contextual regime at time of signal) — mixed environment for shorts
-HTF Alignment: OFF (no higher-timeframe confirmation)
-Gate Status: 3 / 3 (minimum factor groups active — gate passed)
-Squeeze Status: NORM (no active compression breakout)
-Volume: ~1.8× average (elevated participation)
-ATR%: 57% (elevated volatility)

Analysis Dashboard Reading (what the user sees)

-Long Readiness: Needs +36 points to qualify.
-Short Readiness: Needs +11 points to qualify (closer but not auto-entering).
-Blocking Factors: Structure = 0 — the single decisive blocker preventing fresh signals.
-Opportunity Level: VERY POOR (roughly 20 / 100) — low quality environment for adding positions.
-Timing: Wait for better setup (do not add new positions).
-Trade Outcome (screenshot moment)
-Trade state: Active SHORT (opened earlier).
-Live P&L (snapshot): +0.14% (managing trade).
-TP1/TP2: Targets shown on chart (TP1 2981.61, TP2 2898.12). Not closed yet at screenshot.
-Visuals: Entry label, TP/SL lines and trade zone are displayed and being extended while trade is active.

Interpretation

The engine produced a standard short (Score 64) while the market showed elevated volume and volatility but no HTF confirmation. Although the Gate passed (3/3), Structure = 0 blocks the indicator from issuing fresh entries — this is intentional and by design: one missing factor (structure) is enough to prevent new signals even when other factors look supportive. The currently open short is being managed (partial targets and SL visible), but the system's recommendation is to manage the existing trade only and not open new shorts until structure or HTF alignment improves.

Why this example matters (teaching point)

-Gate ≠ Go: Gate pass (factor count) alone does not force fresh trades — the system enforces additional checks (structure, regime, HTF) to avoid lower-quality setups.
-Volume & Volatility are necessary but not sufficient: High volume and wide ATR create movement but do not replace structural validation.
-Active trade vs new entries: The script will continue to manage an already open trade but will not create a new signal while a blocking factor remains. This prevents overtrading and reduces false positives.
-Practical trader actions shown by the example
-Manage existing SHORT only: Trail to breakeven if TP1 is taken; scale out at TP1; hold remaining if price respects trend and structure reclaims.
-Do not add fresh positions: Wait for Structure > 0 or a HTF alignment that lifts the block.
-Watch for signals that matter: Sweep reclaim, HTF alignment turning bullish for shorts (i.e., HTF changes to BEAR), or a squeeze release with volume spike — these can clear the blocker and validate new entries.

RECOMMENDED TIMEFRAMES

For Scalping on 1m, 5m, or 15m charts: Use higher factor thresholds and shorter cooldowns. The faster pace requires stricter filtering.

For Day Trading on 15m, 30m, or 1H charts: This provides a balance of signal frequency and reliability suitable for most active traders.

For Swing Trading on 1H, 4H, or Daily charts: Expect higher quality signals with longer hold periods and fewer false signals.

For Position Trading on Daily or Weekly charts: Focus on ULTRA signals only for maximum conviction on longer-term positions.

Higher Timeframe Alignment Recommendations:
When trading 5m, use 1H as your HTF
When trading 15m, use 1H or 4H as your HTF
When trading 1H, use 4H or Daily as your HTF
When trading 4H, use Daily as your HTF

The general rule is to select an HTF that is 4 to 12 times your trading timeframe.

TRADING STYLE PRESETS

Balanced (Default)
Equal weighting across all five factors at 20% each. Suitable for most market conditions and recommended as starting point.

Scalper
Emphasizes Volume at 30% and Volatility at 30%. Designed for quick in-and-out trades on lower timeframes where immediate momentum and volatility expansion matter most.

Swing Trader
Emphasizes Structure at 30% and Momentum at 30%. Focuses on catching larger moves where trend direction and key levels are paramount.

Range Trader
Emphasizes Structure at 35% and Pattern at 25%. Optimized for sideways markets where support/resistance levels and reversal patterns dominate.

Trend Follower
Emphasizes Momentum at 40%. Designed for trending markets where staying with the dominant direction is the priority.

QUALITY MODE SETTINGS

Custom Mode
Set your own minimum score threshold. Lower thresholds between 60 and 65 generate more signals but with lower average quality. Higher thresholds of 75 or above generate fewer but higher-quality signals.

High Quality Mode
Uses minimum score of 70. Recommended for most users as it filters out marginal setups while still providing reasonable signal frequency.

Ultra Only Mode
Uses minimum score of 80 for maximum selectivity. Only the highest-conviction setups generate signals. Recommended for swing and position traders or during uncertain market conditions.

REGIME DETECTION

The engine continuously evaluates market conditions and classifies them into five states:

TREND UP
Characteristics: Strong ADX reading with EMAs aligned in bullish order
Trading Implications: Long signals receive score boost while short signals are suppressed. Momentum factor gains additional weight.

TREND DN
Characteristics: Strong ADX reading with EMAs aligned in bearish order
Trading Implications: Short signals receive score boost while long signals are suppressed. Momentum factor gains additional weight.

VOLATILE
Characteristics: High ATR percentile, wide Bollinger Bands, elevated volume
Trading Implications: Both directions remain viable but wider stops are recommended. Volume factor gains additional weight.

RANGE
Characteristics: Low ADX reading, narrow Bollinger Bands, low ATR percentile
Trading Implications: Structure signals are emphasized while momentum signals are suppressed. Pattern recognition becomes more important.

WEAK
Characteristics: Unclear or mixed conditions that do not fit other categories
Trading Implications: Reduced confidence in all signals. Consider waiting for clearer market conditions.

Filter Mode Options:
Off - Regime is detected and displayed but no score adjustments are applied
Adjust Scores - Automatically modifies factor weights based on current regime
Block Weak Regimes - Prevents signals from generating when regime is RANGE or WEAK

VOLATILITY SQUEEZE DETECTION

A volatility squeeze occurs when Bollinger Bands contract inside the Keltner Channel, indicating reduced volatility and potential energy building for a breakout.

Squeeze States Explained:

SQZ with bar count (example: SQZ 15)
Indicates currently in squeeze for the displayed number of bars. A score penalty is applied during this phase because compression represents uncertainty about direction.

REL+ (Release Bullish)
Indicates squeeze has released with price above the basis line. Score bonus is applied for long setups as this often precedes strong upward moves.

REL- (Release Bearish)
Indicates squeeze has released with price below the basis line. Score bonus is applied for short setups as this often precedes strong downward moves.

NORM (Normal)
No active squeeze detected. Standard scoring applies.

Trading Implication:
Squeeze releases often produce strong directional moves. The engine detects both the squeeze duration and the release direction, awarding bonus points to signals that align with the release. Longer squeeze duration often corresponds to more powerful breakouts.

LIQUIDITY SWEEP DETECTION

Markets often sweep beyond obvious support and resistance levels to trigger stops before reversing. The engine detects these patterns:

Bullish Sweep Reclaim
Price sweeps below recent swing low, triggering stop losses, then reclaims back above the swing low. This often indicates smart money accumulation after retail stops are collected.

Bearish Sweep Reclaim
Price sweeps above recent swing high, triggering stop losses, then reclaims back below the swing high. This often indicates smart money distribution after retail stops are collected.

Sweep Status in Dashboard:

RCL (Reclaim) - Reclaim has been confirmed. This receives highest structure score as the pattern is complete.

PND (Pending) - Sweep has occurred and price is near the level but full reclaim not yet confirmed. Watching for completion.

ACT (Active) - Sweep is currently in progress with price beyond the swing level.

Dash (-) - No sweep activity detected.

MULTI-FACTOR GATE SYSTEM

Beyond overall score, the engine counts how many individual factors meet their activation threshold.

Example Calculation:
Structure score 45 with threshold 35 equals ACTIVE
Momentum score 25 with threshold 30 equals INACTIVE
Volume score 50 with threshold 35 equals ACTIVE
Volatility score 40 with threshold 30 equals ACTIVE
Pattern score 35 with threshold 30 equals ACTIVE

Result: 4 of 5 factors are active

If minimum required factors is set to 3, this example passes the gate and receives a 4-factor bonus.

Gate Bonuses:
4 factors active adds 8 points to final score (default setting)
5 factors active adds 15 points to final score (perfect confluence)

Purpose:
This mechanism prevents scenarios where one extremely high factor score masks four weak factors. A score of 75 with only 2 active factors is less reliable than a score of 70 with 4 active factors.

ADAPTIVE RISK MANAGEMENT

Take-profit and stop-loss distances adjust dynamically based on three inputs:

Volatility Influence (default 40% weight)
Low ATR percentile produces tighter targets
High ATR percentile produces wider targets
This ensures stops are not too tight in volatile conditions or too wide in calm conditions.

Regime Influence (default 30% weight)
Trending market with aligned signal produces extended targets
Ranging market produces contracted targets
Volatile regime produces wider stops for protection

Score Influence (default 30% weight)
ULTRA signals (high conviction) receive extended targets
STANDARD signals receive standard targets
Higher conviction justifies larger profit expectations.

You can configure the weight of each influence in settings to match your trading style.

SESSION FILTER (Optional Feature)

When enabled, the engine applies score multipliers based on the trading session:

Asian Session (default 0.9x multiplier)
Characterized by lower volatility and ranging tendency. Score reduction reflects reduced opportunity.

London Session (default 1.1x multiplier)
Characterized by high volatility and trend initiation. Score boost reflects increased opportunity.

London/NY Overlap (default 1.2x multiplier)
Characterized by highest liquidity and strongest moves. Maximum score boost reflects peak trading conditions.

New York Session (default 1.05x multiplier)
Characterized by volatility but typically after initial moves have occurred.

Configure your UTC offset in settings to align session detection with your chart timezone.

ALERT SYSTEM

The indicator provides comprehensive alerts with dynamic data:

Signal Alerts:
- ULTRA Long Signal with full trade details
- ULTRA Short Signal with full trade details
- HIGH Long Signal with key levels
- HIGH Short Signal with key levels
- Any Long Signal with basic info
- Any Short Signal with basic info

Trade Management Alerts:
- TP1 Reached with profit percentage
- TP2 Full Target with total profit
- Stop Loss Hit with loss percentage and status

Technical Event Alerts:
- Squeeze Release
- Liquidity Sweep
- Perfect Confluence
- Regime Change

All alerts include actual calculated values such as score, entry price, target levels, stop level, and risk-reward ratio at the time of trigger.

AUTOMATIC SETTINGS VALIDATION

The indicator performs comprehensive validation when first loaded on a chart. If configuration errors are detected, a warning label appears on the chart with specific guidance.

Critical Errors (Prevent Signal Generation):

ULTRA threshold must exceed HIGH threshold
- Example error: HIGH = 75, ULTRA = 70
- Fix: Ensure ULTRA threshold is higher than HIGH threshold
- Default safe values: HIGH = 70, ULTRA = 80

Minimum factors cannot exceed 5
- The gate requires 3 to 5 factors (you cannot require 6 of 5 factors)
- Fix: Set minimum active factors to 3, 4, or 5

TP2 multiplier must exceed TP1 multiplier
- Example error: TP1 = 3.0 ATR, TP2 = 2.0 ATR
- Fix: Ensure TP2 (final target) is farther than TP1 (partial target)
- Default safe values: TP1 = 2.0, TP2 = 5.0

Swing lookback minimum is 3 bars
- Liquidity sweep detection requires at least 3 bars to identify swing highs/lows
- Fix: Increase swing lookback period to 3 or higher

ATR period minimum is 5 bars
- ATR calculation requires sufficient data for accuracy
- Fix: Increase ATR period to 5 or higher (14 recommended)

Higher timeframe must be larger than chart timeframe
- Example error: Trading on 1H chart with MTF set to 15m
- Fix: Select HTF that is 4-12x your chart timeframe
- Example: If trading 15m, use 1H or 4H as HTF

Warnings (Signal Generation Continues):

Score threshold below 50 generates many signals
- Lower thresholds increase signal frequency but reduce quality
- Recommendation: Use minimum 60 for active trading, 70+ for swing trading

Cooldown below 3 bars may cause signal clustering
- Very short cooldowns can produce multiple signals in quick succession
- Recommendation: Use 5+ bars for lower timeframes, 3+ for higher timeframes

Validation Label Display:

When errors are detected, a label appears at the top of the chart showing:

SETTINGS QUICK REFERENCE

Signal Quality Section:

Quality Mode: High Quality recommended for most users
Custom Minimum Score: Used when Quality Mode is set to Custom (range 30-95)
HIGH Threshold: Score required for HIGH tier classification (default 70)
ULTRA Threshold: Score required for ULTRA tier classification (default 80)

Regime Engine Section:

Enable Regime Detection: Activates automatic market state classification
Filter Mode: Off, Adjust Scores, or Block Weak Regimes
ADX Strong Threshold: ADX level indicating strong trend (default 25)
ADX Weak Threshold: ADX level indicating ranging conditions (default 15)
Show Regime Background: Displays subtle background color for current regime

Liquidity and Squeeze Section:

Enable Liquidity Sweep Detection: Activates sweep and reclaim pattern detection
Swing Lookback Period: Bars used to identify swing highs and lows (default 8)
Reclaim Threshold: Percentage of range price must reclaim after sweep (default 15%)
Enable Volatility Squeeze Detection: Activates Bollinger/Keltner squeeze detection
Keltner Channel Multiplier: Width multiplier for Keltner Channel (default 1.5)
Squeeze Penalty: Points subtracted during active squeeze (default 25)
Squeeze Release Bonus: Points added on squeeze release (default 20)
Enable Multi-Factor Gate: Requires minimum factors active before signaling
Minimum Active Factors: How many factors must meet threshold (default 3)
Individual Factor Thresholds: Customize activation threshold for each factor
4-Factor Bonus: Points added when 4 of 5 factors active (default 8)
5-Factor Bonus: Points added when all 5 factors active (default 15)

MTF Confluence Section:

Enable MTF Confluence: Activates higher timeframe trend analysis
Higher Timeframe: Select timeframe for trend alignment (recommend 4-12x chart TF)
Require HTF Alignment: Block signals opposing higher timeframe trend
Show HTF EMAs: Display higher timeframe EMA 21 and EMA 50 on chart

Trading Style Section:

Enable Style Weighting: Activates factor weight adjustments based on style
Trading Style: Balanced, Scalper, Swing Trader, Range Trader, or Trend Follower
Custom Weights: Individual weight sliders when fine-tuning is needed

Session Filter Section:

Enable Session Filter: Activates session-based score multipliers
Your UTC Offset: Your timezone offset for accurate session detection
Session Multipliers: Individual multipliers for Asian, London, New York, and Overlap sessions

Risk Parameters Section:

ATR Period: Period for Average True Range calculation (default 14)
TP1 ATR Multiple: First target distance as ATR multiple (default 2.0)
TP2 ATR Multiple: Final target distance as ATR multiple (default 5.0)
SL ATR Multiple: Stop loss distance as ATR multiple (default 2.0)
Enable Adaptive TP/SL: Activates dynamic adjustment based on conditions
Volatility Weight: Influence of ATR percentile on adaptive calculation (default 40%)
Regime Weight: Influence of market regime on adaptive calculation (default 30%)
Score Weight: Influence of signal score on adaptive calculation (default 30%)

Appearance Section:

Color Theme: Matrix (green/red), Dark (modern dark), or Light (clean light)
Label Detail: Minimal (score only), Standard (key info), or Detailed (full breakdown)
Dashboard Size Controls: Master size and individual overrides for each dashboard
Show Trade Zones: Display shaded box from SL to TP2 for active trades
Show TP/SL Labels: Display price labels on target and stop lines
Show Trailing Exit Labels: Display exit label when stopped after TP1 hit
Show Main Dashboard: Toggle main dashboard visibility (top right)
Show Analysis Dashboard: Toggle analysis panel visibility (bottom left)
Show Status Bar: Toggle compact status bar visibility (bottom center)

Performance Section:

Performance Mode: Reduces visual elements on lower timeframes automatically
Max Ghost Labels: Maximum historical signal labels to retain (default 50)
Signal Cooldown: Minimum bars between signals in same direction (default 5)
Enable Script Alerts: Controls whether alert() calls fire automatically (default ON)
- ON: Dynamic alerts with calculated values fire automatically
- OFF: alert() suppressed, alertcondition() still available for manual creation
- Use OFF when testing settings or monitoring multiple instruments visually
- Toggle per-chart for selective alert coverage across watchlist

Show Factor Markers: Display shapes on chart when 3, 4, or 5 factors align
Show Score Breakdown: Display detailed factor scores table in debug panel
Show Regime Debug: Display regime state and ADX value in debug panel
Show MTF Debug: Display higher timeframe status in debug panel

DEBUG MODE AND FACTOR MARKERS

The indicator includes optional debug tools for traders who want deeper insight into the scoring mechanics and factor analysis. These features are disabled by default to keep the chart clean but can be enabled in the Debug Mode settings group.

FACTOR MARKERS

When "Show Factor Markers" is enabled, visual shapes appear on the chart indicating confluence states:

Perfect Confluence (5/5 Factors Active)
A circle appears below the bar for bullish or above the bar for bearish setups. This represents maximum confluence where all five analytical dimensions meet their activation thresholds simultaneously. A small label showing "5/5" also appears. This is a rare occurrence and typically precedes the highest quality signals. Background color shifts to highlight this exceptional alignment.

Strong Confluence (4/5 Factors Active)
A diamond shape appears below the bar for bullish or above the bar for bearish setups. This represents strong confluence with four of five factors active. A label showing "4/5" appears when this state is first achieved. This level of confluence is associated with high-quality setups.

Ready Confluence (3/5 Factors Active)
A triangle appears below the bar (pointing up) for bullish or above the bar (pointing down) for bearish setups. This represents the minimum confluence level required when gate is set to 3 factors. No label appears for this level to reduce visual clutter.

Confluence Background
When factor markers are enabled, a subtle background color appears indicating the current confluence state. Stronger colors indicate higher confluence levels. Bullish confluence shows green tints while bearish confluence shows red tints.

Purpose of Factor Markers:
These markers help traders visualize when confluence is building before a signal triggers. You might see a 4/5 diamond appear one or two bars before the actual signal, giving you advance notice that conditions are aligning. This can help with preparation and timing.

DEBUG PANEL (Bottom Right)

When any debug option is enabled, a debug panel appears in the bottom right corner of the chart providing detailed scoring information.

Score Breakdown Table
When "Show Score Breakdown" is enabled, the panel displays:

Factor column showing Structure, Momentum, Volume, Volatility, and Pattern
Bull column showing raw score (0-100) for each bullish factor
Bear column showing raw score (0-100) for each bearish factor
Weight column showing current percentage weight for each factor

Below the factor rows:
FINAL row shows the calculated final Bull and Bear scores after all adjustments
Adj row shows total adjustments applied including gate bonus, squeeze adjustment, and exhaustion adjustment with positive or negative sign

This breakdown allows you to see exactly which factors are contributing to the score and which are lagging. If you notice Structure consistently low, you know to wait for better price positioning relative to swing levels.

Regime Debug
When "Show Regime Debug" is enabled, the panel displays:
Current regime state (TREND UP, TREND DN, VOLATILE, RANGE, WEAK)
Current ADX value driving the regime classification

This helps you understand why certain score adjustments are being applied and verify the regime detection is working as expected for current market conditions.

MTF Debug
When "Show MTF Debug" is enabled, the panel displays:
Current MTF alignment status (BULL, BEAR, NEUT)
The higher timeframe being analyzed

This confirms the higher timeframe data is being read correctly and shows you the trend bias from the larger timeframe perspective.

Using Debug Mode Effectively

For Learning: Enable all debug options when first using the indicator to understand how scores are calculated and what drives signal generation.

For Optimization: Use score breakdown to identify which factors are consistently weak in your chosen market and timeframe. This can inform whether to adjust factor thresholds or switch trading styles.

For Troubleshooting: If signals seem inconsistent, enable debug to see exactly what values the engine is working with. This helps identify if a specific factor is behaving unexpectedly.

For Live Trading: Disable debug features to keep chart clean and reduce visual distraction. The main dashboards provide sufficient information for trade execution.

Debug Settings Summary:

Show Factor Markers - Displays shapes on chart when 3, 4, or 5 factors align. Useful for seeing confluence build before signals trigger.

Show Score Breakdown - Displays detailed table with all raw factor scores, weights, and adjustments. Useful for understanding exactly how final score is calculated.

Show Regime Debug - Adds regime state and ADX value to debug panel. Useful for verifying regime detection accuracy.

Show MTF Debug - Adds higher timeframe status and timeframe to debug panel. Useful for confirming MTF data is loading correctly.

PERFORMANCE CONSIDERATIONS

On lower timeframes such as 1-minute and 5-minute charts, the indicator creates visual elements including labels, lines, and boxes that may impact performance on slower devices.

Performance Mode automatically reduces visual elements, optimizes calculation frequency, and limits historical ghost labels when enabled.

Configure Max Ghost Labels (default 50) to control how many historical signal labels are retained on the chart.

NON-REPAINTING DESIGN

Signal Integrity:
All entry and exit signals generate only on confirmed (closed) bars using barstate.isconfirmed checks. This ensures signals do not appear and disappear during bar formation.

Higher Timeframe Data:
MTF analysis uses request.security with lookahead disabled (barmerge.lookahead_off) to prevent future data from influencing current calculations.

Visual Elements:
Lines, boxes, and labels for active trades update in real-time for monitoring purposes but this visual updating does not affect signal generation logic. Entry decisions are made solely on confirmed bar data.

DISCLAIMER

Trading financial instruments involves substantial risk of loss and is not suitable for all investors. Past performance does not guarantee future results. This indicator is a technical analysis tool provided for educational purposes only. It does not constitute financial advice, trading recommendations, or solicitation to buy or sell any financial instrument.

The developer makes no representations regarding the accuracy of signals or the profitability of trading based on this indicator. Users assume full responsibility for their trading decisions and should conduct their own analysis before entering any trade.

Always use proper risk management. Never risk more than you can afford to lose. Consider consulting a qualified financial advisor before making trading decisions.

VERSION HISTORY

v1.0 - Initial Release
- Five-factor confluence scoring system
- Regime detection and automatic adaptation
- Liquidity sweep and reclaim detection
- Volatility squeeze state machine
- Multi-factor gate with bonus system
- Adaptive risk management
- Comprehensive alert system
- Three dashboard display panels
- Session filter with multipliers
- Multiple trading style presets
- Theme customization options

Developed by BullByte
Pine Script v6
2025