Quantum Edge 2.0

Quantum Edge is a closed-source, invite-only indicator designed to detect shifts in market momentum using a unique blend of a Proprietary Noise-Reduction Technique and volatility measurements. It leverages a Proprietary Momentum-to-Volatility Measure along with a standard deviation-based threshold to highlight potential turning points in price behavior.

What Makes Quantum Edge Original

Noise-Reduction Technique

Quantum Edge applies a self-tuning filter that adapts its smoothing level to changing market dynamics. This approach aims to minimize false signals by focusing on meaningful price fluctuations while retaining responsiveness to sudden changes.

Volatility Assessment

A standard deviation–based filter is integrated to ensure signals occur only when price movements exceed a particular volatility threshold. This helps traders differentiate between normal price oscillations and more consequential market shifts.

How It Works (High-Level Overview)

Momentum & Volatility Interaction


A Momentum-to-Volatility Measure evaluates the movement volatility. This helps the indicator assess whether the market is trending strongly or merely oscillating sideways.

Noise-Reduction Technique

By changing its smoothing level dynamically, Quantum Edge works to reduce minor fluctuations without delaying significant trend changes.

Standard Deviation Threshold
The script calculates volatility envelopes to confirm that signals have exceeded statistically significant thresholds, aiming to improve reliability in both low-volatility and high-volatility conditions.

Signal Generation
Buy signals appear when short-term momentum breaks above the script’s volatility filter.
Sell signals emerge when momentum descends below the filter’s baseline.

How To Use

Chart Setup

Plot Quantum Edge on standard candle or bar charts to prevent unrealistic results.

Chart Settings

There are no setting in this indicator since it is programmed to work in all kinds of market and in all timeframes. I have personally used it on 2-min charts to weekly charts.

Catching big moves
This indicator tries to catch all the big moves and works of ETFs, commodities ETFs and stocks.

Shortcomings of Quantum Edge
It doesn't work on stocks/ETFs which have low liquidity or are micro caps and which have huge gaps on the upside and downside frequently.


Position Size and Stop loss and Profit Targets:

This indictor (buy/sell alerts ) should be used with proper stop loss and possibly at least 2 different position sizes. Since if you have 2 positions size or 2 halves you can take profit for 1st position size without waiting for a opposite signal to come.

You can also do 3 position sizes with same stop loss while exiting at 2 different profit targets and the last position size will wait for the opposite signal to come.

Labels: Since labels are for information purposes on charts you can change it in settings to not display



Interpreting Signals

• A green triangle/label indicates a potential buy opportunity when the momentum surpasses a key volatility threshold.
  
• A red triangle/label signals a potential sell (or short) setup if momentum falls below a defined threshold.
  

Alerts

Built-in alerts notify you when a new buy or sell signal appears. These alerts can be also sent to your primary and alternative emails. You can also attach the alerts to a webhook.


Best Practices & Warnings


No Future Data Used
All calculations are based on real-time or historical bars. The script does not look into future data.

No Guarantee of Future Performance
Market conditions are unpredictable; performance in the past does not guarantee future success.


Why Closed-Source?
Quantum Edge employs proprietary calculations and techniques to provide unique insights into market momentum. While we offer a clear description of how it works at a conceptual level, we keep the source code private to safeguard our intellectual property.

Usage Reminder

This script is invite-only; only users granted explicit access can apply it to their charts.

Quantum Edge is provided for informational and educational purposes. Always combine it with your own thorough analysis.

Please let me know if you have any questions in comments.