Signals Pro

The Signals Pro indicator provides a versatile technical analysis framework designed to identify high-probability buy and sell opportunities by combining candle patterns, momentum, and price stability metrics. It aims to filter market noise and provide actionable signals based on the confluence of multiple price action factors.

Usage

The Signals Pro indicator is used to identify potential trend reversals or continuations through visual labels on the chart. Traders can utilize the signals as part of a broader strategy or as standalone entries depending on their risk profile.

Example usage includes:

• Trend Reversals: Identifying Bullish or Bearish Engulfing patterns when the RSI indicates overbought or oversold conditions.
• Noise Reduction: Using the "Disable Repeating Signals" feature to avoid signal clusters during choppy markets, ensuring a cleaner chart and focus on primary movements.
• Trend Confirmation: Adjusting the "Candle Delta Length" to ensure signals are only generated after a sustained price movement in one direction.

Details

The script operates on three primary technical pillars:

• Candle Stability Index: This measures the ratio between the candle body and its total range (wicks). A higher stability index ensures that signals are only generated on "decisive" candles where the price didn't experience heavy retracement within the period.
• Momentum Filtering (RSI): The indicator uses a Relative Strength Index threshold to validate signals. Buy signals require the RSI to be below the user-defined index, while sell signals require it to be above the inverse (100 - index).
• Price Delta: The script calculates the price change over a specific lookback period (Candle Delta Length). For a buy signal, the current price must be lower than it was X bars ago, ensuring the signal occurs after a price drop.

Settings

Technical

• Candle Stability Index: Sets the minimum ratio of body size to candle range required for a signal (0 to 1).
• RSI Index: The threshold for overbought/oversold conditions used to filter signals.
• Candle Delta Length: The number of bars used to measure the price increase or decrease before a signal is triggered.
• Disable Repeating Signals: When enabled, prevents consecutive signals of the same type (e.g., won't show a second 'BUY' until a 'SELL' has appeared).

Cosmetic

• Label Size: Adjusts the visual size of the signal labels on the chart.
• Label Style: Changes the shape of the signal marker between text bubbles, triangles, and arrows.
• BUY/SELL Label Color: Customizes the background color of the signal markers.
• Label Text Color: Sets the color for the "BUY" or "SELL" text within bubbles.

FAQ

How do I use the Candle Stability Index?

The index filters out "weak" candles with long wicks. If you want more signals, lower this value; if you want only the most decisive price movements, increase it toward 1.0.

What is the Candle Delta Length?

This setting ensures that a signal only appears if the price has moved significantly over a specific period. For example, a setting of 5 ensures a BUY signal only appears if the current price is lower than the price 5 bars ago.

How do I access Signals Pro?

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