Introduction
The Advanced Trading System v3.0 is a sophisticated Pine Script indicator designed for traders who demand precision, reliability, and comprehensive market analysis. This indicator combines multiple technical analysis methodologies into a single, powerful tool that helps identify high-probability trading opportunities across different market conditions.
Whether you’re a day trader, swing trader, or position trader, this system provides you with the tools needed to make informed trading decisions based on multiple timeframe analysis, momentum indicators, and intelligent signal filtering.
Core Features Overview
1. Hull Moving Average (HMA) Trend System
Unlike traditional EMA-based systems, this indicator uses Hull Moving Averages for smoother and more responsive trend identification. The HMA calculation eliminates lag while maintaining curve smoothness, giving you earlier entries without false signals.
Key Components:
- HMA 9 (Fast): Quick response to price movements
- HMA 21 (Slow): Confirms trend direction
- EMA 50 & 200: Long-term trend filters
Trend Classification:
- Strong Uptrend: HMA9 > HMA21 > EMA50 > EMA200
- Uptrend: HMA9 > HMA21 > EMA50
- Strong Downtrend: HMA9 < HMA21 < EMA50 < EMA200
- Downtrend: HMA9 < HMA21 < EMA50
2. Dual Momentum Engines
Choose between two powerful momentum indicators:
WaveTrend Oscillator:
- Highly responsive to market reversals
- Excellent for catching trend changes early
- Works well in ranging and trending markets
Zero-Lag MACD:
- Reduced lag compared to traditional MACD
- Strong trend confirmation
- Ideal for trending markets
3. Advanced Directional Index (ADX) with DI Filter
The indicator uses a sophisticated DI (Directional Indicator) crossover system:
- DI+ > DI-: Bullish momentum confirmed
- DI- > DI+: Bearish momentum confirmed
- ADX Confirmation: Optional strength filter (>20 in Strict modes)
This dual-layer approach ensures you’re only trading when directional momentum is clear.
4. Early Detection Module
Get ahead of the market with institutional-level detection tools:
Fair Value Gaps (FVG):
- Identifies inefficiencies in price action
- Spots potential reversal zones
- High-probability entry areas
Order Blocks (OB):
- Detects institutional buying/selling zones
- Marks areas where large orders were placed
- Provides strong support/resistance levels
Volume Delta Analysis:
- Tracks buying vs. selling pressure
- Confirms institutional participation
- Filters out weak signals
5. RSI Divergence Detection
Automatically identifies:
- Bullish Divergence: Price makes lower lows while RSI makes higher lows (reversal signal)
- Bearish Divergence: Price makes higher highs while RSI makes lower highs (reversal signal)
Visual divergence lines are drawn automatically on the chart for easy identification.
6. Multi-Timeframe Analysis
Analyzes trend alignment across three customizable timeframes:
- TF1 (Default: 5 min): Short-term momentum
- TF2 (Default: 15 min): Medium-term trend
- TF3 (Default: 60 min): Long-term trend
Signal Quality Modes:
- Normal: At least one timeframe aligned
- Strict: Two timeframes aligned
- Ultra Strict: All three timeframes aligned
7. Automatic Support & Resistance
The system automatically identifies and plots:
- Key resistance levels based on pivot highs
- Key support levels based on pivot lows
- Dynamic adjustment as new levels form
- ATR-based filtering to avoid duplicate levels
8. Intelligent Signal Cooldown System
Prevents overtrading with a smart cooldown mechanism:
- Static Cooldown: 6 bars between signals
- Dynamic Re-entry: Allows re-entry if trend continues
- Opposite Signal Blocking: Prevents whipsaw trades
- Trend Tracking: Monitors overall market direction
How to Use the Indicator
Setting Up
- Signal Quality Mode: Start with “Normal” mode to see more signals, then move to “Strict” or “Ultra Strict” as you gain confidence
- Risk:Reward Ratio: Default 2.5:1 provides good risk management
- ATR Stop Loss Multiplier: 1.8x ATR balances protection and room for movement
- Momentum Engine: Try both WaveTrend and Zero-Lag MACD to see which fits your style
Reading the Signals
BUY Signal Conditions:
- Strong uptrend confirmed by HMAs
- DI+ greater than DI-
- Multiple timeframes aligned (based on selected mode)
- Momentum crossover (WaveTrend or MACD)
- Volume confirmation (optional)
- ADX strength confirmation (in Strict modes)
SELL Signal Conditions:
- Strong downtrend confirmed by HMAs
- DI- greater than DI+
- Multiple timeframes aligned bearish
- Momentum crossunder
- Volume confirmation (optional)
- ADX strength confirmation (in Strict modes)
EARLY Signals:
- Fair Value Gaps or Order Blocks detected
- Volume delta confirms direction
- Trend alignment present
- Appears before main signals for advanced entry
The Dashboard
The real-time dashboard (top-right) displays:
- Current signal mode
- Trend status: Strong Up, Up, Down, Strong Down, or Ranging
- Multi-timeframe alignment: Bull, Bear, or Mixed
- DI Filter status: Which direction has control
- ADX strength: Current trend strength value
- RSI level: Overbought (>70), Oversold (<30), or neutral
- Momentum status: Current engine reading
- Early Detection: Enabled or Off
- Active Signal: BUY, SELL, or WAIT
- Risk:Reward Ratio: Current setting
Trading Strategy Examples
Strategy 1: Trend Following (Strict Mode)
- Set Signal Quality to “Strict”
- Wait for BUY signal with all indicators aligned
- Enter at close of signal candle
- Place stop loss at the level shown (ATR-based)
- Take profit at the TP level shown (2.5:1 R:R)
- Trailing stop optional after 1:1 R:R achieved
Strategy 2: Early Entry (Normal Mode + Early Detection)
- Enable Early Detection Module
- Use Normal mode for more opportunities
- Watch for EARLY LONG/SHORT labels
- Wait for price confirmation
- Enter on next confirming candle
- Tighter stop loss (1.5x ATR)
- Scale out at multiple levels
Strategy 3: Divergence Trading
- Enable RSI Divergence Display
- Wait for divergence line to appear
- Confirm with main BUY/SELL signal
- These are high-probability reversals
- Use wider stop loss (2.0x ATR)
- Consider longer holding period
Risk Management Guidelines
The indicator provides calculated levels for each trade:
For BUY Signals:
- Entry: Current close price
- Stop Loss: Entry – (ATR × ATR Multiplier)
- Take Profit: Entry + (ATR × ATR Multiplier × R:R Ratio)
For SELL Signals:
- Entry: Current close price
- Stop Loss: Entry + (ATR × ATR Multiplier)
- Take Profit: Entry – (ATR × ATR Multiplier × R:R Ratio)
Position Sizing Recommendation: Risk no more than 1-2% of your account per trade based on the stop loss distance.
Alert System
The indicator includes comprehensive alerts:
- BUY SIGNAL: Full entry details included
- SELL SIGNAL: Full entry details included
- EARLY LONG: Advanced warning signal
- EARLY SHORT: Advanced warning signal
Set up alerts in TradingView to receive notifications on your phone or email when signals appear.
Best Practices
- Start Conservative: Begin with “Strict” or “Ultra Strict” mode until you understand the signals
- Backtest First: Test the indicator on historical data for your specific instrument
- Combine with Price Action: Use support/resistance levels shown for confirmation
- Respect the Cooldown: Don’t force trades; the cooldown prevents overtrading
- Monitor Multiple Timeframes: Even if trading on 5-minute charts, check higher timeframes manually
- Volume Matters: Keep volume filter enabled for better quality signals
- News Awareness: Avoid trading around major news events regardless of signals
Common Mistakes to Avoid
- Ignoring the Dashboard: The dashboard provides crucial context for each signal
- Overriding Stops: The ATR-based stops are calculated for a reason
- Trading Against Higher Timeframes: Ultra Strict mode exists for a reason
- Chasing Signals: Wait for the cooldown period to complete
- Disabling Filters: The volume and ADX filters improve signal quality
Customization Tips
For Scalpers:
- Use Normal mode
- Enable Early Detection
- Reduce cooldown mentally (take every 3rd signal)
- Use tighter R:R (1.5:1 or 2:1)
For Swing Traders:
- Use Ultra Strict mode
- Focus on 1H or 4H timeframes
- Disable Early Detection
- Use wider R:R (3:1 or higher)
For Crypto Markets:
- Increase ATR Multiplier to 2.0-2.5
- Use WaveTrend momentum
- Keep volume filter enabled
- Consider 24/7 market conditions
Conclusion
The Advanced Trading System v3.0 represents a comprehensive approach to technical analysis, combining multiple proven methodologies into a single, coherent system. By using Hull Moving Averages for trend identification, dual momentum engines for timing, DI/ADX filters for confirmation, and advanced features like early detection and divergence spotting, this indicator provides traders with professional-grade tools for market analysis.
Remember that no indicator is perfect, and this system should be used as part of a complete trading plan that includes proper risk management, position sizing, and psychological discipline. The true power of this system comes from understanding each component and how they work together to identify high-probability trading opportunities.
Start with conservative settings, thoroughly test the system, and gradually adjust parameters to match your trading style and risk tolerance. With proper use, the Advanced Trading System v3.0 can become a valuable tool in your trading arsenal.
Disclaimer: Trading involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. Always trade with capital you can afford to lose and consider seeking advice from a qualified financial advisor.