Smart Signals

The Smart Signals module is the heart of the indicator. It is a comprehensive system designed to automatically identify market trends and generate clear, actionable entry signals. It's built to be adaptable, offering different modes and algorithms to suit various trading styles, from long-term swing trading to fast-paced scalping.

Key Concepts

Before diving into the settings, it's essential to understand the two fundamental choices you'll make when configuring the core engine: the Signal Mode and the Algorithm Mode.

1. Signal Mode: Trend vs. Reversal

This setting defines the type of trading strategy the signals will follow.

• Trend Mode (Default): This is a trend-following strategy. The goal is to identify the direction of the primary market momentum and generate signals to trade with that trend. A bullish signal (▲) will only appear when the underlying trend is bullish, and a bearish signal (▼) will only appear when the trend is bearish. This mode is designed to capture profits from sustained market moves.

• Reversal Mode: This is a counter-trend or "mean reversion" strategy. The system looks for points of potential exhaustion within an established trend, aiming to catch a pullback or a turning point. For example, it might generate a bullish signal (▲) during a temporary dip in a larger uptrend, or a bearish signal (▼) during a short-lived rally in a larger downtrend. This mode is for traders looking to enter at more favorable prices during temporary pullbacks.

2. Algorithm Mode: Swing vs. Scalping

This setting determines the underlying mathematical model used to analyze the market and generate signals. Each is optimized for different timeframes and trading paces.

• Swing Mode (Default): This algorithm is designed for stability and is ideal for higher timeframes (15-minute and above). It uses a robust method based on price data and volatility to identify major trends while filtering out minor market noise. It is the preferred mode for swing traders looking to capture larger, more significant price movements.

• Scalping Mode: This is a highly adaptive and responsive algorithm built for lower timeframes (5-minute and under). It uses a machine-learning model to dynamically analyze market volatility. By adapting its sensitivity in real-time, it can generate faster signals suitable for scalping and very short-term day trading.

The Signals Explained

The Smart Signals module generates four distinct visual signals on your chart.

Signal	Name	Appears In	Description
▲	Bullish Signal	Trend & Reversal	A standard signal to enter a long position. In Trend Mode, it confirms a continuation of the uptrend. In Reversal Mode, it suggests a potential bottom or a bullish pullback.
▼	Bearish Signal	Trend & Reversal	A standard signal to enter a short position. In Trend Mode, it confirms a continuation of the downtrend. In Reversal Mode, it suggests a potential top or a bearish pullback.
+▲	Strong Bullish	Trend Mode Only	A higher-confidence bullish signal. It indicates that the uptrend is particularly strong or accelerating, providing more confirmation for a long entry.
+▼	Strong Bearish	Trend Mode Only	A higher-confidence bearish signal. It indicates that the downtrend is particularly strong or accelerating, providing more confirmation for a short entry.

Candle Coloring

The indicator colors the chart's candles to provide an at-a-glance view of the market state.

• Green/Red Candles: Indicate the dominant trend direction (bullish or bearish).

• Gray Candles: This is a crucial feature that highlights periods of consolidation or ranging price action. When gray candles appear within an established trend, it signals that momentum is weakening. This can serve as a warning to be cautious with new entries or to consider taking partial profits, as the trend may be about to pause or reverse.

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Settings Reference: Smart Signals Group

Here is a detailed breakdown of each setting within the "Smart Signals" group in the indicator's input menu.

• Enable Smart Signals

  • Default: On

  • Description: This is the master switch for the entire Smart Signals module. Turning this off will disable the core signals (▲/▼), candle coloring, and related logic. Keep it on to use the primary features of the indicator.

• Detect Ranging Candles (Gray)

  • Default: On

  • Description: Enables or disables the gray candle feature. It is highly recommended to keep this enabled, as it provides valuable insight into weakening momentum and potential range-bound conditions.

• Signal Mode

  • Default: Trend

  • Options: Trend, Reversal

  • Description: Selects the core trading strategy. Choose Trend to trade with the prevailing market direction or Reversal to identify and trade pullbacks against the short-term trend.

• Time Horizon

  • Default: 3

  • Range: 1 to 7

  • Description: This setting controls the sensitivity and lookback period of the trend detection algorithm.

    • Higher values (e.g., 5-7): Create a less sensitive, "smoother" trend analysis. This results in fewer signals but focuses on longer, more established market moves. Ideal for higher timeframes.

    • Lower values (e.g., 1-2): Create a more sensitive, responsive analysis. This results in faster signals that react quickly to price changes. Ideal for lower timeframes and scalping.

• Smart Signals Mode

  • Default: Swing

  • Options: Swing, Scalping

  • Description: Switches between the two underlying algorithms. Use Swing for stable, long-term trend analysis on higher timeframes. Use Scalping for a fast, adaptive model better suited for lower timeframes.