📈Consortium Cipher

The Consortium Cipher is designed for Momentum Trading, and is to be used mainly with Heiken Ashi Candles (but does also support regular candles). It's the penultimate gauge for markets and trading.

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📈Consortium Cipher

The Consortium Cipher is designed for Momentum Trading, and is to be used mainly with Heiken Ashi Candles (but does also support regular candles). It's the penultimate gauge for markets and trading.

Momentum Waves: The Momentum Waves are utilized to gauge and visually represent the strength and direction of an asset. Consortium Cipher divides momentum into two waves. The light grey wave serves as a leading wave, illustrating momentum, while the grey wave functions as a lagging wave. Overlaying these waves helps identify when an asset's strength is increasing (oversold) or nearing exhaustion (overbought). Momentum Waves are also effective in detecting divergent price action.

Overbought Level: The Overbought Level is an adjustable alert line in the Consortium Cipher settings. Setting an alert at this level can provide early notification when the asset approaches a significant level.

Money Flow Wave: The Money Flow Wave is an indicator of market momentum that reveals the flow of money entering or leaving the market. It oscillates between a range of 100 and -100. A green wave signifies money flowing in, while a light blue wave signifies money flowing out. Additionally, the Money Flow Wave can be used to validate other indicators within the Consortium Cipher.

Money Flow Bar: The Money Flow Bar simplifies the display of the Money Flow Wave indicator, allowing for clearer visualization of zero crossings.

VWAP Momentum Wave: The VWAP Momentum Wave is different from the traditional VWAP (volume-weighted average price) indicator used in Consortium Cipher. This indicator aims to simulate certain aspects of the traditional VWAP but is based on momentum. It should be used in conjunction with other Consortium indicators for confirmation. Successful strategies involve going long when the wave crosses above zero and shorting when the wave crosses below zero. This differs from the traditional VWAP approach where shorting is done above VWAP and longing is done below it.

Bullish/Bearish Divergence Lines: The bullish or bearish lines aim to easily visualize when there is bullish or bearish divergence detected through the Cipher.

Oversold Level: The Oversold Level is an adjustable alert line in the Consortium Cipher settings. Its purpose is similar to that of the overbought level.

Stochastics: The Stochastics used in Consortium Cipher is a smoothed oscillator indicator that ranges from 0 to 100. Levels above 80 are considered overbought, while readings below 20 indicate oversold conditions. Stochastics can help identify short-term trends. When the Stochastics value is above 50, price action is seen as trending higher, and when it crosses below 50, price is considered to be trending lower. The strength of the signal is displayed through the color of the green and red lines.

RSI: The RSI indicator in Consortium Cipher is an oscillator, heavily modified and smoothed version of the stochastic indicator. These modifications combine the characteristics of the traditional RSI, resulting in a more responsive and effective signal within Consortium Cipher. The RSI ranges from 0 to 100, with levels above 80 considered overbought and readings below 20 considered oversold. This feature is useful for identifying short-term trends and divergences.

Momentum Wave Crossing: The Momentum Wave Crossing is an alert condition that triggers a small red dot when the light grey wave crosses below the grey momentum wave, indicating a current downward price movement. Conversely, a small green dot appears when the light grey momentum wave crosses above the grey wave, suggesting a current upward price action.

Momentum Green/Red Dots: The Momentum Green/Red Dot is a bullish indicator with an alert feature. It is strongest when located deep within the oversold area, suggesting a potential reversal. This indication is also useful as a pivot or anchor point, waiting for a trigger wave to form or for spotting price divergence.

Schaff Trend Cycle: Facilitates trend identification and signal generation in trading and investing, offering smoother and more responsive trend analysis compared to traditional moving averages (MAs) and, in certain cases, the MACD. It integrates cycle analysis and moving averages to detect trends and potential reversals in the market. Ranging from 0 to 100, values above 50 signify a bullish trend, while values below 50 indicate a bearish trend.

PreviousConsortium Momentum NextPMARP

Momentum Waves: The Momentum Waves are utilized to gauge and visually represent the strength and direction of an asset. Consortium Cipher divides momentum into two waves. The light grey wave serves as a leading wave, illustrating momentum, while the grey wave functions as a lagging wave. Overlaying these waves helps identify when an asset's strength is increasing (oversold) or nearing exhaustion (overbought). Momentum Waves are also effective in detecting divergent price action.

Overbought Level: The Overbought Level is an adjustable alert line in the Consortium Cipher settings. Setting an alert at this level can provide early notification when the asset approaches a significant level.

Money Flow Wave: The Money Flow Wave is an indicator of market momentum that reveals the flow of money entering or leaving the market. It oscillates between a range of 100 and -100. A green wave signifies money flowing in, while a light blue wave signifies money flowing out. Additionally, the Money Flow Wave can be used to validate other indicators within the Consortium Cipher.

Money Flow Bar: The Money Flow Bar simplifies the display of the Money Flow Wave indicator, allowing for clearer visualization of zero crossings.

VWAP Momentum Wave: The VWAP Momentum Wave is different from the traditional VWAP (volume-weighted average price) indicator used in Consortium Cipher. This indicator aims to simulate certain aspects of the traditional VWAP but is based on momentum. It should be used in conjunction with other Consortium indicators for confirmation. Successful strategies involve going long when the wave crosses above zero and shorting when the wave crosses below zero. This differs from the traditional VWAP approach where shorting is done above VWAP and longing is done below it.

Bullish/Bearish Divergence Lines: The bullish or bearish lines aim to easily visualize when there is bullish or bearish divergence detected through the Cipher.

Oversold Level: The Oversold Level is an adjustable alert line in the Consortium Cipher settings. Its purpose is similar to that of the overbought level.

Stochastics: The Stochastics used in Consortium Cipher is a smoothed oscillator indicator that ranges from 0 to 100. Levels above 80 are considered overbought, while readings below 20 indicate oversold conditions. Stochastics can help identify short-term trends. When the Stochastics value is above 50, price action is seen as trending higher, and when it crosses below 50, price is considered to be trending lower. The strength of the signal is displayed through the color of the green and red lines.

RSI: The RSI indicator in Consortium Cipher is an oscillator, heavily modified and smoothed version of the stochastic indicator. These modifications combine the characteristics of the traditional RSI, resulting in a more responsive and effective signal within Consortium Cipher. The RSI ranges from 0 to 100, with levels above 80 considered overbought and readings below 20 considered oversold. This feature is useful for identifying short-term trends and divergences.

Momentum Wave Crossing: The Momentum Wave Crossing is an alert condition that triggers a small red dot when the light grey wave crosses below the grey momentum wave, indicating a current downward price movement. Conversely, a small green dot appears when the light grey momentum wave crosses above the grey wave, suggesting a current upward price action.

Momentum Green/Red Dots: The Momentum Green/Red Dot is a bullish indicator with an alert feature. It is strongest when located deep within the oversold area, suggesting a potential reversal. This indication is also useful as a pivot or anchor point, waiting for a trigger wave to form or for spotting price divergence.

Schaff Trend Cycle: Facilitates trend identification and signal generation in trading and investing, offering smoother and more responsive trend analysis compared to traditional moving averages (MAs) and, in certain cases, the MACD. It integrates cycle analysis and moving averages to detect trends and potential reversals in the market. Ranging from 0 to 100, values above 50 signify a bullish trend, while values below 50 indicate a bearish trend.