Bellcurves (Zeiierman)

Feb 27, 2023

█ Overview
Bellcurves (Zeiierman) models impulse-driven expansion and contraction in price using a pair of adaptive “Bellcurve” flows (positive/negative), momentum dots, a sensitivity/normalization layer, pre-alerts, decline detection, and a built-in divergence suite. Instead of treating every bar equally, it builds scale-aware impulse fields from a weighted price source, normalizes them into comparable magnitudes, and then highlights impulse clusters, pre-alerts (rising pressure), and impulse declines. These waves behave like impulse envelopes: when expansion persists, columns cluster and momentum dots fire; when pressure fades, decline signals and divergences appear.

Use it to spot the first thrust of a new leg, the final push before exhaustion, or quiet accumulation/distribution within ranges.


⚪ Why This One Is Unique
Bellcurves (Zeiierman) combines several adaptive mechanisms into a single, self-tuning framework that captures both momentum expansion and directional decay. Its dual Bellcurve core extracts directional strength through asymmetric smoothers and non-linear amplification, isolating genuine impulses from random volatility. A Quick-Response mode enhances sensitivity in fast markets, while the normalization layer preserves consistency across instruments and timeframes.

█ Main features

⚪ Bellcurves
The Positive and Negative Bellcurves form the foundation of the indicator, visualizing directional expansion in price. Each curve is derived from weighted price dynamics and transformed into an adaptive field that expands with trend acceleration and contracts during exhaustion. Displayed as column waves (or oscillator-style), they reveal the rhythm of market impulses; steady clustering denotes continuation, while isolated bursts or fading peaks hint at potential reversals.

Price Acceleration

Trend Acceleration

Note: To visualize trend acceleration and sustained high-momentum trends, increase the Bellcurve Trend Length parameter to 200. This setting emphasizes long-term directional strength and filters out short-term noise.

Reversals


⚪ Impulse Dots
Impulse Dots mark the first and last bursts within a momentum cluster. Detected through adaptive clustering logic, these dots appear as green (positive) or red (negative) signals that often coincide with early breakouts or terminal exhaustion zones. Traders can interpret the first dot as potential momentum ignition. Alerts are provided for each stage, enabling fast reaction to shifting impulse conditions.


⚪ Divergences
The built-in Divergence Engine automatically identifies regular bullish and bearish divergences between price and the Bellcurves. By analyzing the declining and rising segments of the curves, it detects subtle mismatches between price movements and underlying impulse strength.


█ How to Use

⚪ Trend Trading
The Bellcurves help visualize the rhythm of market trends through alternating Positive (green) and Negative (red) Bellcurves. These represent periods of directional expansion when momentum builds and contraction when momentum fades.

Tip: To enable the Trend Bellcurves, increase Bellcurve Trend Length to 100–200. To detect regime shifts earlier, consider enabling Quick Response to respond more quickly to emerging trends.

• Positive Trend (Green Bellcurve): Indicates bullish control. Sustained green clusters show stable upward participation and consistent buying pressure.
  
• Negative Trend (Red Bellcurve): Indicates bearish control. Sustained red clusters reveal dominant selling pressure and downside continuation.
  

Trend Transitions

• Positive Trend is Strengthening: When the green Bellcurve expands and height increases, momentum is accelerating and bullish conviction is building.
  
• Positive Trend is Weakening: When the green Bellcurve contracts or begins to shrink, upward pressure is fading and potential exhaustion is developing.
  
• Negative Trend is Strengthening: Red columns expand and deepen below the midline, bearish momentum building, and downside pressure increasing.
  
• Negative Trend is Weakening: When the red Bellcurve contracts or softens, it signals that bearish pressure is losing force, a possible early sign of reversal or accumulation.
  

⚪ Reversal Trading
Reversal trading with the Bellcurves is one of the most effective and visually intuitive strategies, especially when going long after a Negative Bellcurve. These events often occur quickly and sharply, and when combined with key price levels such as the previous day’s close, high, or low, they can provide high-probability entry opportunities.

To focus on only the most meaningful reversals, disable “Activate Sensitive Bellcurves”. This filters out minor impulses and displays only the most significant Bellcurves across the chart, helping you isolate genuine exhaustion or inflection points.

Note: Reversal trading is inherently more challenging due to the increased volatility and emotional intensity (fear and greed) surrounding turning points. Use the Bellcurves as a confirmation tool, not a standalone entry signal. Always consider the broader market context. In strong trending markets, Bellcurve peaks may reflect continued strength rather than reversal.

• A Green Positive Bellcurve forming after a fast upward move and rejection from a resistance zone can indicate a potential bearish reversal.
  
• A Red Negative Bellcurve appearing near a support level often acts as confirmation for a potential bullish reversal, suggesting downside exhaustion and renewed buying interest.
  

⚪ Momentum / Impulse Trading
Momentum (or Impulse) Trading is designed for traders looking to enter in the direction of a strong, ongoing move. The Bellcurves indicator helps identify significant impulses on a higher timeframe, moments where directional pressure expands decisively. Once those impulses are identified, traders can refine entries on a lower timeframe, using an opposite Bellcurve as a trigger signal. This multi-timeframe approach allows for precise entries within larger momentum phases.

Bullish Momentum Trading

1. Start by analyzing a higher timeframe, for example, the 15-minute chart.
   
2. Identify a Positive (Green) Bellcurve and mark the first impulse dot, signaling the beginning of upward momentum.
   
3. Drop down to a lower timeframe (such as the 1-minute chart).
   
4. Wait for a Negative (Red) Bellcurve to peak; this short-term counter-impulse serves as a pullback entry point.
   
5. Enter long as the lower timeframe Bellcurve fades, aligning your trade with the dominant bullish impulse seen on the higher timeframe.
   

This approach ensures that your long entries occur within an expanding bullish phase, rather than chasing late moves.


Bearish Momentum Trading

1. Begin on a higher timeframe, such as the 1-hour chart, and locate a Negative (Red) Bellcurve with a visible impulse dot, confirming strong bearish momentum.
   
2. Shift to a lower timeframe like the 15-minute chart.
   
3. Wait for a Positive (Green) Bellcurve to peak; this short-term upward counter-move acts as a setup for continuation.
   
4. Enter short as that green Bellcurve begins to decline, synchronizing with the dominant bearish impulse from the higher timeframe.
   

This ensures that short trades align with expanding downside momentum, entering at moments of retracement within a broader selling phase.


█ How It Works

⚪ Bellcurve Construction Framework
The indicator generates directional Bellcurves through an adaptive modeling process that measures price displacement and trend curvature over time. Each Bellcurve reflects the evolving balance between expansion and absorption in market flow, forming the characteristic “bell” structures that widen during directional acceleration and compress during consolidation.

• Calculation: Employs a multi-layered smoothing and normalization process to enhance directional clarity while preserving overall balance within the signal field.
  

⚪ Momentum & Cluster Engine
Momentum dots are generated through a multi-stage transformation that identifies the initiation and termination points of impulse clusters. By scanning for statistically relevant minima and maxima within the Bellcurve stream, the system isolates bursts of meaningful directional activity.

• Calculation: Applies recursive power mapping and localized clustering to detect temporal impulse boundaries and validate “first” and “last” bursts within each momentum sequence.
  

⚪ Divergence Module
The divergence framework maps relationships between price structure and Bellcurve dynamics to uncover weakening or strengthening flows beneath visible price action. It detects classical bullish and bearish divergences and projects them directly onto the chart as lines and markers.

• Calculation: Uses anchored decline-state tracking, relative high–low comparison, and vector slope analysis to measure phase displacement between price and impulse flow, confirming divergence integrity without lag.
  

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Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.

May 8, 2023

Release Notes

Performance Improvements!

• Divergence is added