Smart Signals

The Smart Signals indicator is a regime-filtered oscillator designed to provide high-probability trend-following entries by filtering out counter-trend noise using a heavy trend baseline. It combines momentum analysis with structural hidden divergence to distinguish between standard pullbacks and high-conviction "sniper" entries.

Usage

The tool is designed to be used as a primary signal generator or a trend-following confirmation tool. Users should first identify the current market regime by observing the histogram and signal types.

• Bullish Regime: When the underlying trend filter is positive, only Buy signals are generated. Look for green bars or gold crosses.
• Bearish Regime: When the trend filter is negative, only Sell signals are generated. Look for red bars or gold crosses.

Signal Types

• Standard Signals (Diamonds): These appear at the top or bottom of the panel. They represent classic Stochastic pullbacks aligned with the trend, useful for "bread and butter" entries or pyramiding into existing positions.
• Sniper Signals (Gold Crosses): These appear on the zero line and represent hidden divergence (price makes a higher low while momentum makes a lower low, or vice-versa). These are considered high-conviction entries marking the end of a correction.

Details

The indicator utilizes several layers of logic to maintain signal quality:

• Trend Filter: A modified Hull Moving Average (HMA) acts as the "Sheriff." It determines the slope of the market. If the HMA is sloping up, the script mathematically deletes all sell signals to prevent trading against the dominant momentum.
• Momentum Histogram: Based on a MACD calculation (21, 34, 7), the histogram visualizes the energy of the move. The colors are dynamic: gold for active sniper setups, solid colors for standard signals, and gray for counter-trend noise that should be ignored.
• Hidden Divergence Engine: The script scans for specific structural resets where price holds a level but momentum resets deeper, creating a "slingshot" effect.

Settings

Trend Filter

• Trend Length (HMA): Determines the period for the Hull Moving Average baseline. Higher values create a more stable, slower trend filter.

Momentum

• MACD Fast: The fast period for the underlying MACD momentum calculation.
• MACD Slow: The slow period for the underlying MACD momentum calculation.
• MACD Signal: The signal line smoothing period for the momentum histogram.

Trigger

• Stoch Length: Sets the period for the Stochastic calculation used to trigger the Standard (Diamond) signals.

FAQ

How do I interpret the different histogram colors?

Gold bars indicate a high-priority sniper (hidden divergence) setup. Solid blue/red bars indicate a standard trend signal is active, while gray bars suggest the current move is counter-trend and should be ignored.

What is the difference between the Diamond and Cross symbols?

Diamonds represent standard trend pullbacks based on Stochastic levels, whereas Crosses represent structural hidden divergence, which typically indicates a stronger resumption of the trend.

How can I access Smart Signals?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.