OPEN-SOURCE SCRIPT
Grok/Claude Quantum Signal Pro V2 * Grok/Clause X Series
📊 Quantum Signal Pro+ Enhanced - Complete Guide
🎯 What This Script Does
This is an advanced momentum reversal trading system that combines multiple technical filters to identify high-probability buy and sell signals. It's designed to catch market reversals at extreme oversold/overbought levels while avoiding choppy, low-conviction trades.
🔍 Buy/Sell Signal Logic
BUY SIGNAL (Long Entry)
A BUY signal triggers when ALL core conditions are met:
Core Requirements (Always Required):
ADX Trending - Market must be trending (ADX > 20 by default)
RSI Oversold - RSI below 30 (extreme selling)
Fisher Oversold - Fisher Transform below -2.0 (momentum exhaustion)
Optional Filters (Can be toggled ON/OFF):
EMA Trend Alignment - Price must be above 50 EMA (uptrend confirmation)
Volume Surge - Volume must be 1.5x above average (strong participation)
Divergence Confirmation - Regular or Hidden bullish divergence detected
Signal Philosophy: Wait for extreme oversold conditions in a trending market, then enter when momentum exhausts.
SELL SIGNAL (Short Entry)
A SELL signal triggers when ALL core conditions are met:
Core Requirements (Always Required):
ADX Trending - Market must be trending (ADX > 20)
RSI Overbought - RSI above 70 (extreme buying)
Fisher Overbought - Fisher Transform above 2.0 (momentum exhaustion)
Optional Filters (Can be toggled ON/OFF):
EMA Trend Alignment - Price must be below 50 EMA (downtrend confirmation)
Volume Surge - Volume must be 1.5x above average
Divergence Confirmation - Regular or Hidden bearish divergence detected
Signal Philosophy: Wait for extreme overbought conditions in a trending market, then enter when momentum exhausts.
🛠️ Key Settings Explained
Dynamic Bands Settings
Basis Type: EMA (faster) or SMA (smoother)
Basis Length: 20 (default) - The midline
ATR Period: 14 - Volatility measurement window
ATR Multiplier: 2.5 - Band width (higher = wider bands)
Adaptive Band Width: ON - Bands widen in trending markets (ADX-based)
💡 Tip: Keep ATR multiplier at 2.5-3.0 for most markets. Lower values (1.5-2.0) for ranging markets.
Signal Filters (The Brain)
Fisher Transform
Period: 10 bars
Overbought: +2.0
Oversold: -2.0
More sensitive than RSI, catches momentum shifts faster
RSI (Relative Strength Index)
Period: 14 bars
Oversold: 30
Overbought: 70
Classic momentum indicator
ADX (Trend Strength)
Length: 14
Threshold: 20
Purpose: Filters out choppy/ranging markets
ADX < 20 = Ranging (no signals)
ADX > 20 = Trending (signals allowed)
💡 Critical Tip: ADX is your signal quality filter. Raise threshold to 25-30 for cleaner signals in volatile markets.
EMA Trend Filter (Optional - OFF by default)
Period: 50 bars
When ON: Only buys above EMA, only sells below EMA
Use case: Strong trending markets
💡 Tip: Turn this ON in strong trends, leave OFF in choppy markets for more signals.
Volume Filter (Optional - OFF by default)
Average Period: 20 bars
Surge Multiplier: 1.5x
When ON: Requires volume spike for signal confirmation
Use case: High-volume breakouts
💡 Tip: Enable this for crypto/stocks, disable for forex (lower volume reliability).
RSI Divergence Detection (Advanced)
Regular Divergences (Reversal Signals)
Regular Bullish: Price makes lower low, RSI makes higher low → Reversal UP
Regular Bearish: Price makes higher high, RSI makes lower high → Reversal DOWN
Line Color: Bright Light Blue (#00D9FF) - Solid lines
Meaning: Momentum is weakening, trend may reverse
Hidden Divergences (Continuation Signals)
Hidden Bullish: Price makes higher low, RSI makes lower low → Uptrend continues
Hidden Bearish: Price makes lower high, RSI makes higher high → Downtrend continues
Line Color: Purple (#9D4EDD) - Dashed lines
Meaning: Trend is healthy, expect continuation
Divergence Settings:
Pivot Lookback: 5 left, 5 right (sensitivity)
Max Lookback: 60 bars (how far back to compare)
Require Divergence: OFF by default (optional extra filter)
💡 Tip: Regular divergences are more reliable for reversals. Hidden divergences are great for trend-following entries.
📈 Visual Elements
Dynamic Bands (Envelope System)
Upper Band: Red line (resistance)
Lower Band: Green line (support)
Basis Line: Middle line (changes color with trend)
Green = Uptrend
Red = Downtrend
Yellow = Neutral
Cloud Fill: Shows trend strength
Green cloud = Bullish momentum
Red cloud = Bearish momentum
Info Panel (Top Right)
Displays real-time status of all indicators:
Fisher State (OVERSOLD/OVERBOUGHT/NEUTRAL)
RSI value
Volume status (SURGE/NORMAL)
ATR state (EXPANDING/CONTRACTING)
ADX value (color-coded: gray<15, orange 15-24, green>24)
Trend direction
DPO % (cycle position)
Regular Divergence status
Hidden Divergence status
💡 Tip: Watch the panel! When ADX turns green (>25) and RSI hits oversold/overbought, prepare for signals.
💡 Usage Tips & Best Practices
For Beginners:
Start with default settings - They work well across most markets
Keep ALL optional filters OFF initially - Get more signals to learn
Focus on ADX - Only trade when ADX > 20 (trending markets)
Use 15m-1H timeframes for day trading
Use 4H-Daily for swing trading
For Intermediate Traders:
Enable EMA Trend Filter - Cleaner signals in strong trends
Raise ADX threshold to 25 - Higher quality setups
Watch divergences - They add conviction to signals
Combine timeframes - Check 1H signals on 5m chart for entries
Adjust RSI levels for volatility:
Crypto: RSI 25/75 (more extreme)
Forex: RSI 30/70 (default)
Stocks: RSI 30/70 (default)
For Advanced Traders:
Enable Volume Filter for breakout confirmation
Enable "Require Divergence" for ultra-selective signals
Raise ADX threshold to 30 for only the strongest trends
Customize Fisher levels:
Aggressive: ±1.5
Conservative: ±2.5
Use multiple timeframes:
Check Daily for trend
Trade 1H signals
Enter on 15m pullbacks
Market-Specific Settings:
Crypto (High Volatility):
ATR Multiplier: 3.0-3.5
RSI: 25/75
ADX: 25
Volume Filter: ON
Forex (Trending):
ATR Multiplier: 2.5
RSI: 30/70
ADX: 20
EMA Filter: ON
Stocks (Balanced):
ATR Multiplier: 2.5
RSI: 30/70
ADX: 20
Volume Filter: ON (for breakouts)
Ranging Markets:
ATR Multiplier: 2.0
ADX: Keep at 20 but expect fewer signals
Disable EMA Filter
Focus on divergences
⚠️ Important Notes
What This Script Does Well:
✅ Catches momentum exhaustion reversals
✅ Filters out choppy, low-conviction trades
✅ Combines multiple confirmations
✅ Visual divergence detection
✅ Adaptive to market volatility
What This Script Doesn't Do:
❌ Predict the future (no indicator does)
❌ Work well in sideways/ranging markets (use ADX filter)
❌ Provide stop loss/take profit levels (you must decide)
❌ Guarantee profits (always use proper risk management)
Risk Management Tips:
Always use stop losses - Suggested: 1-1.5x ATR below entry
Position sizing - Risk 1-2% per trade maximum
Take profits - Consider 2-3x ATR targets
Don't force trades - Wait for all conditions to align
Avoid news events - Signals can fail during major news
🎯 Quick Setup Guide
Conservative Setup (Fewer, Higher Quality Signals):
ADX Threshold: 25-30
Enable: EMA Trend Filter
Enable: Volume Filter
Keep: Divergence optional
Balanced Setup (Default - Recommended):
ADX Threshold: 20
Disable: All optional filters
Let core logic work
Aggressive Setup (More Signals):
ADX Threshold: 15-18
Disable: All optional filters
Lower RSI thresholds: 35/65
📊 Alert System
The script includes comprehensive alerts:
🟢 BUY Signal - All conditions met
🔴 SELL Signal - All conditions met
⚠️ Setup Building - 4/5 conditions met (early warning)
📈 Market Trending - ADX crosses above threshold
📊 Market Ranging - ADX drops below threshold
💚 Regular Bullish Divergence - Reversal signal UP
❤️ Regular Bearish Divergence - Reversal signal DOWN
💙 Hidden Bullish Divergence - Uptrend continuation
💜 Hidden Bearish Divergence - Downtrend continuation
💡 Tip: Set up "Setup Building" alerts to prepare for signals before they trigger!
🏆 Pro Strategies
The Divergence Entry: Wait for regular divergence + signal arrow
The Trend Rider: Enable EMA filter, only trade with trend
The Breakout Hunter: Enable volume filter for explosive moves
The Patient Sniper: Enable ALL filters, take only perfect setups
Remember: The best traders wait for high-quality setups. Quality > Quantity! 🎯
🎯 What This Script Does
This is an advanced momentum reversal trading system that combines multiple technical filters to identify high-probability buy and sell signals. It's designed to catch market reversals at extreme oversold/overbought levels while avoiding choppy, low-conviction trades.
🔍 Buy/Sell Signal Logic
BUY SIGNAL (Long Entry)
A BUY signal triggers when ALL core conditions are met:
Core Requirements (Always Required):
ADX Trending - Market must be trending (ADX > 20 by default)
RSI Oversold - RSI below 30 (extreme selling)
Fisher Oversold - Fisher Transform below -2.0 (momentum exhaustion)
Optional Filters (Can be toggled ON/OFF):
EMA Trend Alignment - Price must be above 50 EMA (uptrend confirmation)
Volume Surge - Volume must be 1.5x above average (strong participation)
Divergence Confirmation - Regular or Hidden bullish divergence detected
Signal Philosophy: Wait for extreme oversold conditions in a trending market, then enter when momentum exhausts.
SELL SIGNAL (Short Entry)
A SELL signal triggers when ALL core conditions are met:
Core Requirements (Always Required):
ADX Trending - Market must be trending (ADX > 20)
RSI Overbought - RSI above 70 (extreme buying)
Fisher Overbought - Fisher Transform above 2.0 (momentum exhaustion)
Optional Filters (Can be toggled ON/OFF):
EMA Trend Alignment - Price must be below 50 EMA (downtrend confirmation)
Volume Surge - Volume must be 1.5x above average
Divergence Confirmation - Regular or Hidden bearish divergence detected
Signal Philosophy: Wait for extreme overbought conditions in a trending market, then enter when momentum exhausts.
🛠️ Key Settings Explained
Dynamic Bands Settings
Basis Type: EMA (faster) or SMA (smoother)
Basis Length: 20 (default) - The midline
ATR Period: 14 - Volatility measurement window
ATR Multiplier: 2.5 - Band width (higher = wider bands)
Adaptive Band Width: ON - Bands widen in trending markets (ADX-based)
💡 Tip: Keep ATR multiplier at 2.5-3.0 for most markets. Lower values (1.5-2.0) for ranging markets.
Signal Filters (The Brain)
Fisher Transform
Period: 10 bars
Overbought: +2.0
Oversold: -2.0
More sensitive than RSI, catches momentum shifts faster
RSI (Relative Strength Index)
Period: 14 bars
Oversold: 30
Overbought: 70
Classic momentum indicator
ADX (Trend Strength)
Length: 14
Threshold: 20
Purpose: Filters out choppy/ranging markets
ADX < 20 = Ranging (no signals)
ADX > 20 = Trending (signals allowed)
💡 Critical Tip: ADX is your signal quality filter. Raise threshold to 25-30 for cleaner signals in volatile markets.
EMA Trend Filter (Optional - OFF by default)
Period: 50 bars
When ON: Only buys above EMA, only sells below EMA
Use case: Strong trending markets
💡 Tip: Turn this ON in strong trends, leave OFF in choppy markets for more signals.
Volume Filter (Optional - OFF by default)
Average Period: 20 bars
Surge Multiplier: 1.5x
When ON: Requires volume spike for signal confirmation
Use case: High-volume breakouts
💡 Tip: Enable this for crypto/stocks, disable for forex (lower volume reliability).
RSI Divergence Detection (Advanced)
Regular Divergences (Reversal Signals)
Regular Bullish: Price makes lower low, RSI makes higher low → Reversal UP
Regular Bearish: Price makes higher high, RSI makes lower high → Reversal DOWN
Line Color: Bright Light Blue (#00D9FF) - Solid lines
Meaning: Momentum is weakening, trend may reverse
Hidden Divergences (Continuation Signals)
Hidden Bullish: Price makes higher low, RSI makes lower low → Uptrend continues
Hidden Bearish: Price makes lower high, RSI makes higher high → Downtrend continues
Line Color: Purple (#9D4EDD) - Dashed lines
Meaning: Trend is healthy, expect continuation
Divergence Settings:
Pivot Lookback: 5 left, 5 right (sensitivity)
Max Lookback: 60 bars (how far back to compare)
Require Divergence: OFF by default (optional extra filter)
💡 Tip: Regular divergences are more reliable for reversals. Hidden divergences are great for trend-following entries.
📈 Visual Elements
Dynamic Bands (Envelope System)
Upper Band: Red line (resistance)
Lower Band: Green line (support)
Basis Line: Middle line (changes color with trend)
Green = Uptrend
Red = Downtrend
Yellow = Neutral
Cloud Fill: Shows trend strength
Green cloud = Bullish momentum
Red cloud = Bearish momentum
Info Panel (Top Right)
Displays real-time status of all indicators:
Fisher State (OVERSOLD/OVERBOUGHT/NEUTRAL)
RSI value
Volume status (SURGE/NORMAL)
ATR state (EXPANDING/CONTRACTING)
ADX value (color-coded: gray<15, orange 15-24, green>24)
Trend direction
DPO % (cycle position)
Regular Divergence status
Hidden Divergence status
💡 Tip: Watch the panel! When ADX turns green (>25) and RSI hits oversold/overbought, prepare for signals.
💡 Usage Tips & Best Practices
For Beginners:
Start with default settings - They work well across most markets
Keep ALL optional filters OFF initially - Get more signals to learn
Focus on ADX - Only trade when ADX > 20 (trending markets)
Use 15m-1H timeframes for day trading
Use 4H-Daily for swing trading
For Intermediate Traders:
Enable EMA Trend Filter - Cleaner signals in strong trends
Raise ADX threshold to 25 - Higher quality setups
Watch divergences - They add conviction to signals
Combine timeframes - Check 1H signals on 5m chart for entries
Adjust RSI levels for volatility:
Crypto: RSI 25/75 (more extreme)
Forex: RSI 30/70 (default)
Stocks: RSI 30/70 (default)
For Advanced Traders:
Enable Volume Filter for breakout confirmation
Enable "Require Divergence" for ultra-selective signals
Raise ADX threshold to 30 for only the strongest trends
Customize Fisher levels:
Aggressive: ±1.5
Conservative: ±2.5
Use multiple timeframes:
Check Daily for trend
Trade 1H signals
Enter on 15m pullbacks
Market-Specific Settings:
Crypto (High Volatility):
ATR Multiplier: 3.0-3.5
RSI: 25/75
ADX: 25
Volume Filter: ON
Forex (Trending):
ATR Multiplier: 2.5
RSI: 30/70
ADX: 20
EMA Filter: ON
Stocks (Balanced):
ATR Multiplier: 2.5
RSI: 30/70
ADX: 20
Volume Filter: ON (for breakouts)
Ranging Markets:
ATR Multiplier: 2.0
ADX: Keep at 20 but expect fewer signals
Disable EMA Filter
Focus on divergences
⚠️ Important Notes
What This Script Does Well:
✅ Catches momentum exhaustion reversals
✅ Filters out choppy, low-conviction trades
✅ Combines multiple confirmations
✅ Visual divergence detection
✅ Adaptive to market volatility
What This Script Doesn't Do:
❌ Predict the future (no indicator does)
❌ Work well in sideways/ranging markets (use ADX filter)
❌ Provide stop loss/take profit levels (you must decide)
❌ Guarantee profits (always use proper risk management)
Risk Management Tips:
Always use stop losses - Suggested: 1-1.5x ATR below entry
Position sizing - Risk 1-2% per trade maximum
Take profits - Consider 2-3x ATR targets
Don't force trades - Wait for all conditions to align
Avoid news events - Signals can fail during major news
🎯 Quick Setup Guide
Conservative Setup (Fewer, Higher Quality Signals):
ADX Threshold: 25-30
Enable: EMA Trend Filter
Enable: Volume Filter
Keep: Divergence optional
Balanced Setup (Default - Recommended):
ADX Threshold: 20
Disable: All optional filters
Let core logic work
Aggressive Setup (More Signals):
ADX Threshold: 15-18
Disable: All optional filters
Lower RSI thresholds: 35/65
📊 Alert System
The script includes comprehensive alerts:
🟢 BUY Signal - All conditions met
🔴 SELL Signal - All conditions met
⚠️ Setup Building - 4/5 conditions met (early warning)
📈 Market Trending - ADX crosses above threshold
📊 Market Ranging - ADX drops below threshold
💚 Regular Bullish Divergence - Reversal signal UP
❤️ Regular Bearish Divergence - Reversal signal DOWN
💙 Hidden Bullish Divergence - Uptrend continuation
💜 Hidden Bearish Divergence - Downtrend continuation
💡 Tip: Set up "Setup Building" alerts to prepare for signals before they trigger!
🏆 Pro Strategies
The Divergence Entry: Wait for regular divergence + signal arrow
The Trend Rider: Enable EMA filter, only trade with trend
The Breakout Hunter: Enable volume filter for explosive moves
The Patient Sniper: Enable ALL filters, take only perfect setups
Remember: The best traders wait for high-quality setups. Quality > Quantity! 🎯
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.