Neon Crossover – Dynamic Momentum and Reversal Indicator
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Neon Crossover is a multi-functional indicator designed to detect momentum reversals and extreme conditions with precision. It analyzes deep price behavior using complex up/down pressure logic, combined with dynamic smoothing and Bollinger Bands. It’s optimized for scalping and intraday strategies on pairs like EURUSD, GBPUSD, USDJPY and GBPJPY on M1 - M5 - M15 - M30 and H1, but can be used across all assets and timeframes.
Core Logic Includes:
- Proprietary pressure-based value calculation using price extremes
- Smoothed signal line (SMA, EMA, etc.) to reduce noise
- Upper/Lower BB for volatility-based context
- Multi-level threshold detection: overbought, oversold, extreme OB/OS
When a level is crossed, the indicator draws arrows and (optionally) sends alerts based on standard and extreme thresholds.
How It Works
Signal generation is based on:
- Pressure Imbalance: It calculates the cumulative imbalance of price action over a defined control period, indicating strong bullish or bearish behavior.
- Smoothing Filter: The raw value is smoothed using your selected moving average type and period.
- Band Compression: BBs help confirm when price pressure is contracting or breaking out.
- Threshold Crosses: Arrows appear when values cross overbought/oversold or extreme levels.
All calculations are performed on closed candles – ensuring no repainting of values or signals.
Arrows and Alerts
The indicator provides highly visible arrows and flexible alert options:
- Green Arrows: Appear when value exits the oversold zone (-6 to -10)
- Red Arrows: Appear when value exits the overbought zone (6 to 10)
- Blue/Pink Arrows: Indicate extreme OB/OS crosses (stronger reversals)
- Alerts: Sound, popup, push, and email available
You can configure arrow size, color, offset, and whether they appear on regular or extreme conditions.
Parameters Overview
- Control_Period: Controls how many bars are used to compute pressure imbalance
- Signal_Period / Method: Adjust smoothing of the signal line
- BB Period / Deviation: Define sensitivity of volatility bands
- Thresholds: levelOb, levelOs, extremelevelOb, extremelevelOs
- Arrows / Alerts: On/off controls for visuals and notifications
All settings are fully customizable for scalping, day trading, or swing strategies.
Best Use Practices
- Recommended Pairs: EURUSD, GBPUSD, USDJPY and GBPJPY
- Best Timeframes: M1, M5, M15 and M30 for scalping – H1+ for reversals
- Sessions: Works best during London and New York overlap
