3of3 Alert

3of3 Alert

This indicator identifies high-probability entry points for "Wave 3 of Wave 3" setups using a multi-layered filtering system. It's designed to catch the most powerful momentum phases in trend movements.

### ◆ Core Concept

The indicator uses the Rank Correlation Index (RCI) as its primary oscillator, combined with multiple confirmation filters to eliminate false signals. Signals only trigger when all conditions align, resulting in fewer but higher-quality entries.

### ◆ Signal Logic

**BUY Signal Requirements (All must be true):**
1. RCI Short-term ≤ -65 (oversold)
2. Price > SMA 200 (above long-term trend)
3. Price < SMA 50 (pullback to mid-term average)
4. RCI Long-term NOT falling (trend still intact)
5. RSI momentum NOT dropping fast (no capitulation)
6. History filter bullish (50+ bars above SMA200 in last 100 bars)

**SELL Signal Requirements (All must be true):**
1. RCI Short-term ≥ 65 (overbought)
2. Price < SMA 200 (below long-term trend)
3. Price > SMA 50 (bounce to mid-term average)
4. RCI Long-term NOT rising (downtrend intact)
5. RSI momentum NOT rising fast (no reversal)
6. History filter bearish (50+ bars below SMA200 in last 100 bars)

### ◆ Why This Indicator is Unique

**Multi-Layer Filtering System:**
- **Primary Filter**: RCI oscillator for mean-reversion timing
- **Trend Confirmation**: Long-term RCI direction check (200 period)
- **Momentum Filter**: RSI-SMA derivative analysis to avoid false breakouts
- **Regime Filter**: Historical price position relative to SMA200 (100 bar lookback)

This combination drastically reduces false signals compared to single-indicator approaches. The result is fewer signals, but each one appears at a statistically favorable point in the market structure.

### ◆ Settings Overview

**RCI Settings:**
- Short Period (26): Primary oscillator for entry timing
- Sell/Buy Thresholds (65/-65): Overbought/oversold levels
- Long Period (200): Trend direction confirmation
- Comparison Period (30): Lookback for trend direction

**Price SMA Settings:**
- Mid-term (50): Pullback reference level
- Long-term (200): Primary trend anchor

**RSI Filter:**
- Period (10): Momentum measurement
- SMA Period (20): Momentum smoothing
- Cancel Threshold (0.05): Fast momentum change detection

**History Filter:**
- Lookback (100): Regime analysis window
- Required Bars (50): Minimum trend consistency

**Display Settings:**
- Show Markers: Toggle circle markers on/off
- Label Display Mode: Time (default), BUY/SELL, Both, or None

**Time Label Settings:**
- Timezone: Exchange (default), UTC, Tokyo, Singapore, London, New York, Los Angeles
- Time Format: HH:mm, HH:mm:ss, MM/dd HH:mm, yyyy/MM/dd HH:mm
- Show Day of Week: Toggle weekday abbreviation
- Min Bar Interval: Minimum bars between labels
- Label Size: tiny, small, normal, large

**Distance Settings:**
- Marker Distance: ATR multiplier for marker position
- Label Distance: ATR multiplier for label position

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### 📌 Companion Indicator: All-3of3

For comprehensive environment analysis, I recommend using this indicator together with **"All-3of3 - Wave Trend Environment Analyzer"**, available in the **Scripts tab of my profile**.

👉 Link to

**All-3of3** provides continuous market environment visualization:
- Dynamic SMA/EMA Band System with auto-gradient coloring for trend strength
- Pivot-based Resistance/Support with automatic Fibonacci retracement levels
- Range Detector for consolidation pattern recognition

**Why Use Both Together:**

| Indicator | Role |
|-----------|------|
| **3of3 Alert** | Entry timing - WHEN to enter |
| **All-3of3** | Environment analysis - WHERE you are in the trend |

**Synergy Benefits:**
✓ Confirm trend strength with Band 200 color before acting on 3of3 Alert signals
✓ Use Fibonacci levels from All-3of3 for profit targets after entry
✓ Identify high-probability setups when Range Detector consolidation aligns with signals

**Using both indicators together enables more precise and higher-probability trading decisions.**