This indicator helps traders identify high-conviction points where strong market participants are active, signaling potential shifts in momentum or continuation of a trend. It aims to provide a clearer understanding of underlying market dynamics, allowing for more informed decision-making in various trading strategies, from identifying entry points to confirming trend strength.
🚀 Points of Innovation
● Z-Score for Delta Analysis: Utilizes statistical Z-scores to objectively identify statistically significant anomalies in buying/selling pressure, moving beyond simple, arbitrary thresholds.
● Dynamic Confidence Scoring: Assigns a multi-star confidence rating (1-4 stars) to each signal, factoring in high volume, trend alignment, and specific confirmation criteria, providing a nuanced view of signal strength.
● Integrated Trend Filtering: Offers an optional Exponential Moving Average (EMA)-based trend filter to ensure signals align with the broader market direction, reducing false positives in ranging markets.
● Strict Confirmation Logic: Implements specific confirmation criteria for higher-confidence signals, including price action and a time-based gap from previous signals, enhancing reliability.
● Intuitive Info Dashboard: Provides a real-time summary of market trend and the latest signal’s direction and confidence directly on the chart, streamlining information access.
🔧 Core Components
● Core Delta Engine: Estimates the net buying/selling pressure (bar Delta) by analyzing price movement within each bar relative to volume. It also calculates average volume to identify bars with unusually high activity.
● Anomaly Detection (Z-Score): Computes the Z-score for the current bar’s Delta, indicating how many standard deviations it is from its recent average. This statistical measure is central to identifying significant anomalies.
● Trend Filter: Utilizes a dual Exponential Moving Average (EMA) cross-over system to define the prevailing market trend (uptrend, downtrend, or range), providing contextual awareness.
● Signal Processing & Confidence Algorithm: Evaluates anomaly conditions against trend filters and confirmation rules, then calculates a dynamic confidence score to produce actionable, contextualized signal information.
🔥 Key Features
● Advanced Delta Anomaly Detection: Pinpoints bars with exceptionally high buying or selling pressure, indicating potential institutional activity or strong market conviction.
● Multi-Factor Confidence Scoring: Each signal comes with a 1-4 star rating, clearly communicating its reliability based on high volume, trend alignment, and specific confirmation criteria.
● Optional Trend Alignment: Users can choose to filter signals, so only those aligned with the prevailing EMA-defined trend are displayed, enhancing signal quality.
● Interactive Signal Labels: Displays compact labels on the chart at anomaly points, offering detailed tooltips upon hover, including signal type, direction, confidence, and contextual information.
● Customizable Bar Colors: Visually highlights bars with Delta anomalies, providing an immediate visual cue for strong buying or selling activity.
● Real-time Info Dashboard: A clean, customizable dashboard shows the current market trend and details of the latest detected signal, keeping key information accessible at a glance.
● Configurable Alerts: Set up alerts for bullish or bearish Delta anomalies to receive real-time notifications when significant market pressure shifts occur.
🎨 Visualization
Signal Labels:
* Placed at the top/bottom of anomaly bars, showing a “📈” (bullish) or “📉” (bearish) icon.
* Tooltip: Hovering over a label reveals detailed information: Signal Type (e.g., “Delta Anomaly”), Direction, Confidence (e.g., “★★★☆”), and a descriptive explanation of the anomaly.
* Interpretation: Clearly marks actionable signals and provides deep insights without cluttering the chart, enabling quick assessment of signal strength and context.
● Info Dashboard:
* Located at the top-right of the chart, providing a clean summary.
* Displays: “PhenLabs – VFAS” header, “Market Trend” (Uptrend/Downtrend/Range with color-coded status), and “Direction | Conf.” (showing the last signal’s direction and star confidence).
* Optional “💡 Hover over signals for details” reminder.
* Interpretation: A concise, real-time summary of the market’s pulse and the most recent high-conviction event, helping traders stay informed at a glance.
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