NLR-ADX Divergence Strategy Triple-Confirmed by Cmo22
By Cmo22
Performance Metrics
- Author: Cmo22
- Symbol: NASDAQ:PLTR
- Timeframe: 1 minute
- Net P&L: +17.91 USD (+0.00%)
- Win Rate: 61.5%
- Profit Factor: 1.684
- Max Drawdown: 30.61 USD (0.00%)
- Total Trades: 13
Description
How it works Builds a cleaner DMI/ADXRecomputes classic +DI, −DI, ADX over a user-set length.Then “non-linear regresses” each series toward a mean (your choice: dynamic EMA of the series or a fixed Static Mid like 50).The further a value is from the mean, the stronger the pull (controlled by alphaMin/alphaMax and the γ exponent), giving smoother, more stable DI/ADX lines with less whipsaw.Optional EMA smoothing on top of that.Lock in values at confirmed pivotsUses price pivots (left/right bars) to confirm swing lows and highs.When a pivot confirms, the script captures (“freezes”) the current +DI, −DI, and ADX values at that bar and stores them. This avoids later drift from smoothing/EMAs.Check for triple divergenceFor a bullish setup (potential long):Price makes a Lower Low vs. a prior pivot low,+DI is higher than before (bulls quietly stronger),−DI is lower (bears weakening),ADX is lower (trend fatigue).For a bearish setup (potential short)Price makes a Higher High,+DI is lower, −DI is higher,ADX is lower.Adds a “no-intersection” sanity check: between the two pivots, the live series shouldn’t snake across the straight line connecting endpoints. This filters messy, low-quality structures.Trade logicOn a valid triple-confirm, places a strategy.entry (Long for bullish, Short for bearish) and optionally labels the bar (BUY or SELL with +DI/−DI/ADX arrows).Simple flip behavior: if you’re long and a new short signal prints (or vice versa), it closes the open side and flips.Key inputs you can tweakCustom DMI SettingsDMI Length — base length for DI/ADX.Non-Linear Regression ModelMean Reference — EMA(series) (dynamic) or Static mid (e.g., 50).Dynamic Mean Length & Deviation Scale Length — govern the mean and scale used for regression.Min/Max Regression & Non-Linearity Exponent (γ) — how strongly values are pulled toward the mean (stronger when far away).Divergence EnginePivot Left/Right Bars — how strict the swing confirmation is (larger = more confirmation, more delay).Min Bars Between Pivots — avoids comparing “near-duplicate” swings.Max Historical Pivots to Store — memory cap.