Hidden Impulse

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HIDDEN IMPULSE - Multi-Timeframe Momentum Detection System
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OVERVIEW

Hidden Impulse is an advanced momentum oscillator that combines the Schaff Trend Cycle (STC) and Force Index into a comprehensive multi-timeframe trading system. Unlike standard implementations of these indicators, this script introduces three distinct trading setups with specific entry conditions, multi-timeframe confirmation, and trend filtering.

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ORIGINALITY & KEY FEATURES

This indicator is original in the following ways:

1. DUAL-TIMEFRAME STC ANALYSIS
Standard STC implementations work on a single timeframe. This script
simultaneously analyzes STC on both your trading timeframe and a higher
timeframe, providing trend context and filtering out low-probability signals.

2. FORCE INDEX INTEGRATION
The script combines STC with Force Index (volume-weighted price momentum)
to confirm the strength behind price moves. This combination helps identify
when momentum shifts are backed by genuine buying/selling pressure.

3. THREE DISTINCT TRADING SETUPS
Rather than generic overbought/oversold signals, the indicator provides
three specific, rule-based setups:
- Setup A: Classic trend-following entries with multi-timeframe confirmation
- Setup B: Divergence-based reversal entries (highest probability)
- Setup C: Mean-reversion bounce trades at extreme levels

4. INTELLIGENT FILTERING
All signals are filtered through:
- 50 EMA trend direction (prevents counter-trend trades)
- Higher timeframe STC alignment (ensures macro trend agreement)
- Force Index confirmation (validates volume support)

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HOW IT WORKS - TECHNICAL EXPLANATION

SCHAFF TREND CYCLE (STC) CALCULATION:

The STC is a cyclical oscillator that combines MACD concepts with stochastic
smoothing to create earlier and smoother trend signals.

Step 1: Calculate MACD
- Fast MA = EMA(close, Length1) — default 23
- Slow MA = EMA(close, Length2) — default 50
- MACD Line = Fast MA - Slow MA

Step 2: First Stochastic Smoothing
- Apply stochastic calculation to MACD
- Stoch1 = 100 × (MACD - Lowest(MACD, Smoothing)) / (Highest(MACD, Smoothing) - Lowest(MACD, Smoothing))
- Smooth result with EMA(Stoch1, Smoothing) — default 10

Step 3: Second Stochastic Smoothing
- Apply stochastic calculation again to the smoothed stochastic
- This creates the final STC value between 0-100

The dual stochastic smoothing makes STC more responsive than MACD while
being smoother than traditional stochastics.

FORCE INDEX CALCULATION:

Force Index measures the power behind price movements by incorporating volume:

Force Raw = (Close - Close[1]) × Volume
Force Index = EMA(Force Raw, Period) — default 13

Interpretation:
- Positive Force Index = Buying pressure (bulls in control)
- Negative Force Index = Selling pressure (bears in control)
- Force Index crossing zero = Momentum shift
- Divergences with price = Weakening momentum (reversal signal)

TREND FILTER:

A 50-period EMA serves as the trend filter:
- Price above EMA50 = Uptrend → Only LONG signals allowed
- Price below EMA50 = Downtrend → Only SHORT signals allowed

This prevents counter-trend trading which accounts for most losing trades.

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THE THREE TRADING SETUPS - DETAILED

SETUP A: CLASSIC MOMENTUM ENTRY

Concept: Enter when STC exits oversold/overbought zones with trend confirmation

LONG CONDITIONS:
1. Higher timeframe STC > 25 (macro trend is up)
2. Primary timeframe STC crosses above 25 (momentum turning up)
3. Force Index crosses above 0 OR already positive (volume confirms)
4. Price above 50 EMA (local trend is up)

SHORT CONDITIONS:
1. Higher timeframe STC < 75 (macro trend is down)
2. Primary timeframe STC crosses below 75 (momentum turning down)
3. Force Index crosses below 0 OR already negative (volume confirms)
4. Price below 50 EMA (local trend is down)

Best for: Trending markets, continuation trades
Win rate: Moderate (60-65%)
Risk/Reward: 1:2 to 1:3

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SETUP B: DIVERGENCE REVERSAL (HIGHEST PROBABILITY)

Concept: Identify exhaustion points where price makes new extremes but
momentum (Force Index) fails to confirm

BULLISH DIVERGENCE:
1. Price makes a lower low (LL) over 10 bars
2. Force Index makes a higher low (HL) — refuses to follow price down
3. STC is below 25 (oversold condition)

Trigger: STC starts rising AND Force Index crosses above zero

BEARISH DIVERGENCE:
1. Price makes a higher high (HH) over 10 bars
2. Force Index makes a lower high (LH) — refuses to follow price up
3. STC is above 75 (overbought condition)

Trigger: STC starts falling AND Force Index crosses below zero

Why this works: Divergences signal that the current trend is losing steam.
When volume (Force Index) doesn't confirm new price extremes, a reversal
is likely.

Best for: Reversal trading, range-bound markets
Win rate: High (70-75%)
Risk/Reward: 1:3 to 1:5

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SETUP C: QUICK BOUNCE AT EXTREMES

Concept: Catch rapid mean-reversion moves when price touches EMA50 in
extreme STC zones

LONG CONDITIONS:
1. Price touches 50 EMA from above (pullback in uptrend)
2. STC < 15 (extreme oversold)
3. Force Index > 0 (buyers stepping in)

SHORT CONDITIONS:
1. Price touches 50 EMA from below (pullback in downtrend)
2. STC > 85 (extreme overbought)
3. Force Index < 0 (sellers stepping in)

Best for: Scalping, quick mean-reversion trades
Win rate: Moderate (55-60%)
Risk/Reward: 1:1 to 1:2
Note: Use tighter stops and quick profit-taking

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HOW TO USE THE INDICATOR

STEP 1: CONFIGURE TIMEFRAMES

Primary Timeframe (STC - Primary Timeframe):
- Leave empty to use your current chart timeframe
- This is where you'll take trades

Higher Timeframe (STC - Higher Timeframe):
- Default: 30 minutes
- Recommended ratios:
* 5min chart → 30min higher TF
* 15min chart → 1H higher TF
* 1H chart → 4H higher TF
* Daily chart → Weekly higher TF

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STEP 2: ADJUST STC PARAMETERS FOR YOUR MARKET

Default (23/50/10) works well for stocks and forex, but adjust for:

CRYPTO (volatile):
- Length 1: 15
- Length 2: 35
- Smoothing: 8
(Faster response for rapid price movements)

STOCKS (standard):
- Length 1: 23
- Length 2: 50
- Smoothing: 10
(Balanced settings)

FOREX MAJORS (slower):
- Length 1: 30
- Length 2: 60
- Smoothing: 12
(Filters out noise in 24/7 markets)

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STEP 3: ENABLE YOUR PREFERRED SETUPS

Toggle setups based on your trading style:

Conservative Trader:
✓ Setup B (Divergence) — highest win rate
✗ Setup A (Classic) — only in strong trends
✗ Setup C (Bounce) — too aggressive

Trend Trader:
✓ Setup A (Classic) — primary signals
✓ Setup B (Divergence) — for entries on pullbacks
✗ Setup C (Bounce) — not suitable for trending

Scalper:
✓ Setup C (Bounce) — quick in-and-out
✓ Setup B (Divergence) — high probability scalps
✗ Setup A (Classic) — too slow

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STEP 4: READ THE SIGNALS

ON THE CHART:
Labels appear when conditions are met:

Green labels:
- "LONG A" — Setup A long entry
- "LONG B DIV" — Setup B divergence long (best signal)
- "LONG C" — Setup C bounce long

Red labels:
- "SHORT A" — Setup A short entry
- "SHORT B DIV" — Setup B divergence short (best signal)
- "SHORT C" — Setup C bounce short

IN THE INDICATOR PANEL (bottom):
- Blue line = Primary timeframe STC
- Orange dots = Higher timeframe STC (optional)
- Green/Red bars = Force Index histogram
- Dashed lines at 25/75 = Entry/Exit zones
- Background shading = Oversold (green) / Overbought (red)

INFO TABLE (top-right corner):
Shows real-time status:
- STC values for both timeframes
- Force Index direction
- Price position vs EMA
- Current trend direction
- Active signal type

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TRADING STRATEGY & RISK MANAGEMENT

ENTRY RULES:

Priority ranking (best to worst):
1st: Setup B (Divergence) — wait for these
2nd: Setup A (Classic) — in confirmed trends only
3rd: Setup C (Bounce) — scalping only

Confirmation checklist before entry:
☑ Signal label appears on chart
☑ TREND in info table matches signal direction
☑ Higher timeframe STC aligned (check orange dots or table)
☑ Force Index confirming (check histogram color)

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STOP LOSS PLACEMENT:

Setup A (Classic):
- LONG: Below recent swing low
- SHORT: Above recent swing high
- Typical: 1-2 ATR distance

Setup B (Divergence):
- LONG: Below the divergence low
- SHORT: Above the divergence high
- Typical: 0.5-1.5 ATR distance

Setup C (Bounce):
- LONG: 5-10 pips below EMA50
- SHORT: 5-10 pips above EMA50
- Typical: 0.3-0.8 ATR distance

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TAKE PROFIT TARGETS:

Conservative approach:
- Exit when STC reaches opposite level
- LONG: Exit when STC > 75
- SHORT: Exit when STC < 25

Aggressive approach:
- Hold until opposite signal appears
- Trail stop as STC moves in your favor

Partial profits:
- Take 50% at 1:2 risk/reward
- Let remaining 50% run to target

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WHAT TO AVOID:

❌ Trading Setup A in sideways/choppy markets
→ Wait for clear trend or use Setup B only

❌ Ignoring higher timeframe STC
→ Always check orange dots align with your direction

❌ Taking signals against the major trend
→ If weekly trend is down, be cautious with longs

❌ Overtrading Setup C
→ Maximum 2-3 bounce trades per session

❌ Trading during low volume periods
→ Force Index becomes unreliable

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ALERTS CONFIGURATION

The indicator includes 8 alert types:

Individual setup alerts:
- "Setup A - LONG" / "Setup A - SHORT"
- "Setup B - DIV LONG" / "Setup B - DIV SHORT" ⭐ recommended
- "Setup C - BOUNCE LONG" / "Setup C - BOUNCE SHORT"

Combined alerts:
- "ANY LONG" — fires on any long signal
- "ANY SHORT" — fires on any short signal

Recommended alert setup:
- Create "Setup B - DIV LONG" and "Setup B - DIV SHORT" alerts
- These are the highest probability signals
- Set "Once Per Bar Close" to avoid false alerts

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VISUALIZATION SETTINGS

Show Labels on Chart:
Toggle on/off the signal labels (green/red)
Disable for cleaner chart once you're familiar with the indicator

Show Higher TF STC:
Toggle the orange dots showing higher timeframe STC
Useful for visual confirmation of multi-timeframe alignment

Info Panel:
Cannot be disabled — always shows current status
Positioned top-right to avoid chart interference

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EXAMPLE TRADE WALKTHROUGH

SETUP B DIVERGENCE LONG EXAMPLE:

1. Market Context:
- Price in downtrend, below 50 EMA
- Multiple lower lows forming
- STC below 25 (oversold)

2. Divergence Formation:
- Price makes new low at $45.20
- Force Index refuses to make new low (higher low forms)
- This indicates selling pressure weakening

3. Signal Trigger:
- STC starts turning up
- Force Index crosses above zero
- Label appears: "LONG B DIV"

4. Trade Execution:
- Entry: $45.50 (current price at signal)
- Stop Loss: $44.80 (below divergence low)
- Target 1: $47.90 (STC reaches 75) — risk/reward 1:3.4
- Target 2: Opposite signal or trail stop

5. Trade Management:
- Price rallies to $47.20
- STC reaches 68 (approaching target zone)
- Take 50% profit, move stop to breakeven
- Exit remaining at $48.10 when STC crosses 75

Result: 3.7R gain

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ADVANCED TIPS

1. MULTI-TIMEFRAME CONFLUENCE
For highest probability trades, wait for:
- Primary TF signal
- Higher TF STC aligned (>25 for longs, <75 for shorts)
- Even higher TF trend in same direction (manual check)

2. VOLUME CONFIRMATION
Watch the Force Index histogram:
- Increasing bar size = Strengthening momentum
- Decreasing bar size = Weakening momentum
- Use this to gauge signal strength

3. AVOID THESE MARKET CONDITIONS
- Major news events (Force Index becomes erratic)
- Market open first 30 minutes (volatility spikes)
- Low liquidity instruments (Force Index unreliable)
- Extreme trending days (wait for pullbacks)

4. COMBINE WITH SUPPORT/RESISTANCE
Best signals occur near:
- Key horizontal levels
- Fibonacci retracements
- Previous day's high/low
- Psychological round numbers

5. SESSION AWARENESS
- Asia session: Use lower timeframes, Setup C works well
- London session: Setup A and B both effective
- New York session: All setups work, highest volume

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INDICATOR WINDOWS LAYOUT

MAIN CHART:
- Price action
- 50 EMA (green/red)
- Signal labels
- Info panel

INDICATOR WINDOW:
- STC oscillator (blue line, 0-100 scale)
- Higher TF STC (orange dots, optional)
- Force Index histogram (green/red bars)
- Reference levels (25, 50, 75)
- Background zones (green oversold, red overbought)

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PERFORMANCE OPTIMIZATION

For best results:

Backtesting:
- Test on your specific instrument and timeframe
- Adjust STC parameters if win rate < 55%
- Record which setup works best for your market

Position Sizing:
- Risk 1-2% per trade
- Setup B can use 2% risk (higher win rate)
- Setup C should use 1% risk (lower win rate)

Trade Frequency:
- Setup B: 2-5 signals per week (be patient)
- Setup A: 5-10 signals per week
- Setup C: 10+ signals per week (scalping)

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CREDITS & REFERENCES

This indicator builds upon established technical analysis concepts:

Schaff Trend Cycle:
- Developed by Doug Schaff (1996)
- Original concept published in Technical Analysis of Stocks & Commodities
- Implementation based on standard STC formula

Force Index:
- Developed by Dr. Alexander Elder
- Described in "Trading for a Living" (1993)
- Classic volume-momentum indicator

The multi-timeframe integration, three-setup system, and specific
entry conditions are original contributions of this indicator.

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DISCLAIMER

This indicator is a technical analysis tool and does not guarantee profits.
Past performance is not indicative of future results. Always:
- Use proper risk management
- Test on demo account first
- Combine with fundamental analysis
- Never risk more than you can afford to lose

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SUPPORT & QUESTIONS

If you find this indicator helpful, please:
- Leave a like and comment
- Share your feedback and results
- Report any bugs or issues

For questions about usage or optimization for specific markets,
feel free to comment below.

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