Opus46 H v1

The Opus46 H indicator is a companion oscillator designed to visualize the internal signal engine states of the Opus46 system, including spread dynamics, money flow, regime phases, and pressure conditions. It provides traders with forward visibility into the technical factors driving signals, such as institutional conviction and divergence events.

Usage

The Usage section describes how the script can be used to interpret price regimes and momentum. For optimal results, users should place Opus46 H in a pane below the Opus46 overlay and ensure that settings for the SMMA ribbon, regime detection, and DMFI are synchronized between both tools.

Spread and Regime Interpretation

The primary histogram displays the ATR-normalized spread between a fast SMMA (8) and a slow SMMA (32).

• Green Bars: Indicate a bullish regime.
• Red Bars: Indicate a bearish regime.
• Transparency: Solid bars indicate spread expansion (strengthening momentum), while faded bars indicate contraction (weakening momentum).

Money Flow and Conviction

The script overlays a filled "Money Flow Wave" based on a smoothed MFI. This identifies whether institutional flow confirms price action. For example, a green wave during a red (bearish) histogram suggests building buy conviction despite the current downtrend.

Market Pressure and Gates

The indicator tracks specific "gate" conditions that must be met before a signal is validated:

• Pain Gate: Cyan up-triangles indicate seller exhaustion (capitulation), while magenta down-triangles indicate buyer euphoria.
• Z-Override: Diamond markers highlight extreme spread deviations (z-score), indicating areas where signals may bypass standard regime maturity gates.
• Regime Maturity: The indicator tracks the "age" of a trend to ensure signals do not fire on premature or exhausted moves.

Details

The script utilizes a series of normalization techniques to ensure visual consistency across different assets and timeframes.

• ATR Normalization: The spread is normalized using the Average True Range to maintain a consistent scale regardless of volatility.
• Adaptive Scaling: The Money Flow Wave and DMFI (Double-Pass Money Flow Index) are adaptively scaled based on the 100-bar peak spread, keeping the oscillator components proportional.
• Divergence Detection: The tool uses pivot-based logic (default 5 left, 3 right bars) to detect bullish and bearish divergences in both the spread and RSI. These markers act as lead indicators for trend exhaustion or reversals.
• Phase Calculations: The script tracks the "age" and "peak" of regimes to calculate phase boosts, which influence the conviction levels of the main signal engine.

Settings

SMMA Ribbon

• Source: The price source used for calculations (default HL2).
• Fast/Slow SMMA: The lengths for the Smoothed Moving Averages that define the regime.

Z-Score & Maturity

• Buy/Sell Override: Sets the sigma (standard deviation) thresholds for extreme spread reversals.
• Enable Regime Maturity Gate: When enabled, requires a minimum number of bars or ATR depth before a regime is considered "mature."

Pain Gate

• Cost Basis Lookback: The window used to calculate the VWAP-based cost basis.
• Capitulation/Euphoria σ: The z-score thresholds for detecting extreme market pressure.

DMFI & Divergence

• Enable DMFI Display: Toggles the Double-Pass Money Flow Index conviction area.
• Show Spread/RSI Divergence: Toggles visibility for pivot-based divergence markers.

Display

• Show Money Flow Wave: Toggles the smoothed MFI background wave.
• Show Status Table: Displays a real-time dashboard of all engine components (Spread Z, Regime Age, Gate Status, etc.).

FAQ

How do I interpret the different background colors? The subtle background tint represents the current trend regime (green for bullish, red for bearish). Brighter shading appears when the RSI is in overbought (>70) or oversold (<30) territory, highlighting high-conviction confluence zones.

What is the difference between the circle and diamond markers? Circles represent spread-based divergences, while diamonds represent RSI-based divergences. When these appear, they signal that the underlying engine is priming a size multiplier for a potential reversal.

How do I get access to Opus46 H? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.