Market Pulse Dual

Market Pulse Colored (Dual) – Dual-Horizon Market Momentum Indicator (Dynamic Colors)

Market Pulse Colored (Dual) is an advanced technical indicator designed to measure and visualize market momentum through a weighted combination of RSI, CCI, and an energy/volatility modulation based on ATR.
The indicator does not generate orders and does not perform automated trading: it is a visual tool that clearly synthesizes the direction and quality of momentum, highlighting bullish/bearish conditions, neutrality, and phases of possible weakening or directional change through specific colors.

The output is displayed in a separate window with a fixed scale from -100 to +100 and a zero line (0.0) used as a reference.

1) Indicator Structure: Two “Pulses” (Two Lines)

The indicator plots two colored lines:

✅ Pulse #1 – “Market Pulse” (thinner line, width 2)

• This is the main pulse: more reactive and suitable for capturing momentum direction with standard sensitivity.

• It uses RSI and CCI with user-defined periods.

✅ Pulse #2 – “Market Pulse II” (thicker line, width 4)

• This is the confirmation pulse / longer horizon: slower and more stable.

• It calculates RSI and CCI using periods multiplied by ×5 compared to standard ones.

• It uses a more sophisticated color logic, distinguishing not only above/below zero but also whether the pulse is rising or falling.

2) Calculation Components: RSI + CCI + ATR (Energy)

The Pulse value (both #1 and #2) is derived from three elements:

A) RSI Normalization

• RSI (0–100) is transformed into a -1 … +1 scale:

• 50 becomes the RSI “logical zero”.

• Above 50 → positive, below 50 → negative.

B) CCI Normalization

• CCI is divided by the scaling value InpCCIScale (default 50.0) and then limited between -1 … +1.

• In practice: the higher the absolute CCI value, the stronger its contribution to the pulse, without exceeding limits.

C) RSI / CCI Weights

The final contribution is a weighted average:

• InpWeightRSI (default 0.60)

• InpWeightCCI (default 0.40)

Weights are also internally normalized (if changed, the indicator automatically adjusts them proportionally).

D) ATR Modulation: Market Intensity / Energy

The indicator calculates:

• Current ATR ( ATR )

• ATR moving average ( ATR_MA ) with period InpATRMAPeriod

From this it derives an energy ratio:

• ratio = ATR / ATR_MA

This ratio is transformed into an intensity variable (0…1) and used to amplify or attenuate the pulse:

• “Low-energy” market (volatility below average) → weaker impulse

• “High-energy” market (volatility above average) → stronger impulse

This component is fundamental: two identical RSI/CCI signals may appear more or less powerful depending on market volatility.

3) Scale and Zero Line

Fixed Scale

• The indicator operates within a visual range of -100 … +100

• All values are clamped to this range.

Zero Line (0.0)

• Drawn in Silver with a dotted style

• Represents the boundary between:

  • Positive zone (above 0) → bullish bias

  • Negative zone (below 0) → bearish bias

4) Dead Zone (Neutral Zone Around Zero)

Parameter: InpDeadZone (default 5.0)

If the pulse value is between:

• -DeadZone and +DeadZone

it is considered NEUTRAL.

This zone is used to:

• filter micro-oscillations

• avoid continuous color changes near zero

• provide a cleaner interpretation

5) Colors: Exact Meaning, Above/Below Zero and Crossings

5.1 Pulse #1 (Market Pulse) – Simple and Immediate Colors

Pulse #1 uses three states (plus a technical invisible state):

🔵 LightSteelBlue = NEUTRAL

• When |Pulse1| <= InpDeadZone

• Meaning: weak momentum, indecision, sideways or transition phase.

🟢 Lime = POSITIVE

• When Pulse1 > InpDeadZone

• Meaning: prevailing bullish pressure (positive momentum).

🔴 Red = NEGATIVE

• When Pulse1 < -InpDeadZone

• Meaning: prevailing bearish pressure (negative momentum).

Zero Crossing (Pulse #1)

• From below to above zero (beyond the dead zone) → red to green

• From above to below zero (beyond the dead zone) → green to red

• Near zero → tends toward neutral blue

Important: for Pulse #1, color changes are mainly related to sign and dead zone, not to slope.

5.2 Pulse #2 (Market Pulse II) – Dynamic Colors with “Strength” and “Weakness”

Pulse #2 distinguishes four main operational states (plus neutral):

🔵 DodgerBlue = NEUTRAL (Indecision Zone)

• When |Pulse2| <= InpDeadZone

• Meaning: no reliable bias, balanced or transitional market.

🟩 ForestGreen = LONG STRONG (Positive and Rising)

Conditions:

• Pulse2 > InpDeadZone (decisively above zero)

• slope > 0 (rising)

Meaning:

• confirmed and strengthening bullish phase

• increasing positive momentum

🟥 IndianRed = SHORT WEAK (Above Zero but Falling)

Conditions:

• Pulse2 > InpDeadZone (still positive)

• slope <= 0 (falling)

Meaning:

• market still above zero (residual bullish bias),
  but momentum is losing strength

• possible long exhaustion or preparation for reversal

🟩 DarkSeaGreen = LONG WEAK (Below Zero but Rising)

Conditions:

• Pulse2 < -InpDeadZone (below zero)

• slope > 0 (rising)

Meaning:

• market still in negative territory (short bias),
  but bearish momentum is weakening

• possible recovery / rebound / transition phase

🟣 Magenta = SHORT STRONG (Below Zero and Falling)

Conditions:

• Pulse2 < -InpDeadZone (negative)

• slope <= 0 (falling)

Meaning:

• confirmed and accelerating bearish phase

• increasing negative momentum

How Pulse #2 Slope Is Calculated

Parameter: InpSlopeBars (default 5)

The slope is not calculated on a single bar, but as an average slope over N bars:

• slope = (current_value - value_N_bars_ago) / N

This makes Pulse #2 colors more stable and less sensitive to noise.

6) Practical Interpretation: Combining Pulse #1 and Pulse #2

The best use comes from reading both lines together:

Strong Bullish Scenario

• Pulse #1 often green (Lime)

• Pulse #2 ForestGreen
  → long confirmed on both short and long horizons.

Bullish Momentum Weakening

• Pulse #1 may remain green or turn neutral

• Pulse #2 turns IndianRed (above zero but falling)
  → caution: bullish bias still present but losing energy.

Strong Bearish Scenario

• Pulse #1 often red

• Pulse #2 Magenta
  → well-structured and accelerating bearish trend.

Bearish Momentum Weakening / Recovery

• Pulse #2 turns DarkSeaGreen

• Pulse #1 may turn neutral or green
  → possible end of short pressure and transition.

7) What the Indicator Does NOT Do (Important)

• It does not generate automatic buy/sell signals.

• It is not a complete trading system.

• It does not predict the future: it only shows a synthesis of current conditions based on RSI, CCI, and volatility (ATR).

8) Available Parameters (Clear Explanation)

• InpRSIPeriod / InpCCIPeriod: base periods for Pulse #1.

• Pulse #2 automatically uses periods ×5.

• InpATRPeriod: ATR period.

• InpATRMAPeriod: ATR moving average period (energy baseline).

• InpWeightRSI / InpWeightCCI: RSI and CCI weights.

• InpCCIScale: CCI normalization scale (default 50).

• InpDeadZone: neutral zone around zero (default 5).

• InpSlopeBars: bars used to calculate the average slope for Pulse #2.

Important (Final Note)

Market Pulse Colored (Dual) is designed to provide a clean, instant, “at-a-glance” reading of market momentum:

• Pulse #1 delivers responsiveness and immediate direction (green/red/blue)

• Pulse #2 adds trend quality (strong/weak) through colors based on above/below zero + average slope