Pearson SL/TP

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📘 Description

Pearson SL/TP — Advanced Correlation-Based Strategy with Full Risk Management

The Pearson SL/TP indicator is an advanced market analysis tool that combines Pearson correlation, volatility-based stop/target levels, and dynamic signal strength evaluation.
It is designed for traders who want to visualize potential momentum shifts and risk/reward zones in a single, integrated chart.

🔍 Core Concept

This script measures the **Pearson correlation coefficient between recent price movements and time progression, highlighting potential trend exhaustion or momentum reversals when the correlation reaches extreme values.

* High positive correlation (near +1) → price moving steadily upward → possible overbought condition.
* High negative correlation (near -1) → price moving steadily downward → possible oversold condition.

When these extremes are reached, and confirmed by several internal filters, the script generates LONG or SHORT signals with fully calculated Stop Loss and Take Profit levels.

⚙️ Main Features

📈 Signal Generation

* Uses Pearson correlation as a primary indicator of trend intensity.
* Detects potential reversal zones when correlation crosses user-defined thresholds.
* Optional divergence confirmation enhances signal reliability.

💰 Risk Management

* Stop Loss (SL) and Take Profits (TP1 & TP2) automatically adapt to volatility using the ATR (Average True Range).
* Dynamic risk/reward ratios help assess trade quality.
* Adjustable multipliers let you fine-tune your risk parameters.

🧠 Signal Strength Analysis

Each signal is graded from Weak to Very Strong based on four factors:

1. Volume activity
2. Trend alignment
3. Pearson momentum
4. Correlation change intensity

🎨 Visualization

* Overbought / Oversold background zones
* Signal arrows (LONG / SHORT)
* SL / TP** price levels and labels
* Interactive dashboard** displaying:

* Current Pearson value
* Market state (Overbought / Oversold / Neutral)
* Signal strength
* Latest trade data (Entry, SL, TP1, TP2, Risk:Reward)

🔔 Alerts

Built-in alerts for:

* Confirmed LONG / SHORT signals
* Bullish / Bearish divergences


🧩 Customization

All major parameters — including **Pearson length, thresholds, ATR multipliers, and visual options — are fully customizable.
This allows you to adapt the indicator to any market, timeframe, or trading style.

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Phát hành các Ghi chú

Use with Trendmaster V2 to validate or invalidate signals.