The Butterfly Elephant Effect

Strategy Overview: The Butterfly Elephant Effect
Concept & Philosophy:

Welcome to "The Butterfly Elephant Effect," a sophisticated multi-indicator strategy that operates on the principle that small, precise technical signals (the Butterfly) can trigger significant market moves (the Elephant Effect). This strategy is designed to identify high-probability reversal points by combining three powerful analytical systems into one cohesive framework. It seeks to catch major trend reversals at key support and resistance levels, using a confluence of volume, momentum, and overbought/oversold oscillators.

Core Components:

The strategy intelligently synthesizes three distinct systems:

Lucky Balls System (Volume & Trend):

Utilizes the Negative Volume Index (NVI) and Positive Volume Index (PVI) to understand smart money activity and trend strength.

Plots these indices on the price chart, scaled to the recent price range for actionable signals.

Generates signals when price interacts with a moving average envelope, identifying potential exhaustion points.

Momentum Confirmation System:

Combines RSI, CCI, and PPO momentum oscillators into a single, refined line.

This "Momentum Composite" line is used to confirm the strength of a reversal signal as it crosses the dynamic envelope bands.

Lucky Table System (Market Breadth & Confluence):

This is the heart of the strategy's filtering mechanism. It runs 36 different oscillator readings across 6 different timeframes for Stochastic, Williams %R, RSI, and MACD.

It counts the number of these oscillators that are in extreme overbought or oversold territory.

A "Lucky Table" signal is generated when the number of matching oscillators exceeds your customizable threshold (e.g., 30 out of 36), indicating a massive, multi-timeframe consensus on market exhaustion.

The Ultimate Signals:

The strategy's most powerful entries are the specially named signals that require a perfect storm of conditions:

🐘 Elephant Long Signal: Triggers when the Momentum System gives a buy, the Lucky Table shows extreme oversold consensus, AND the price is at or below the adjusted lower envelope band. This represents a potential major bullish reversal from a support zone.

🦋 Butterfly Short Signal: Triggers when the Momentum System gives a sell, the Lucky Table shows extreme overbought consensus, AND the price is at or above the adjusted upper envelope band. This represents a potential major bearish reversal from a resistance zone.

Key Features:

Visual Clarity: A rich set of plotshapes (🪜, 🐍, 🐸, ✈️, ⚽) makes it easy to identify the contributing signals from each subsystem on the chart.

Comprehensive Dashboard: A real-time table displays all 36 oscillator values from the Lucky Table, color-coded for quick assessment of market conditions.

Flexible Risk Management: Includes optional Profit Target and Stop Loss based on a percentage of entry price.

Highly Customizable: Every parameter—from lookback lengths and scale factors to the crucial match threshold—can be adjusted to fit your trading style and instrument.

How to Use:

Add the strategy to your chart.

Look for the primary Elephant (🐘) or Butterfly (🦋) signals near the envelope boundaries.

Use the Lucky Table on the top-right to confirm the strength of the oversold/overbought conditions.

Manage your trade using the built-in PT/SL or your own discretion.

Ideal For: Swing traders and position traders looking for high-conviction entries at potential market turning points.

Disclaimer: This is a complex strategy designed for educational and research purposes. Always test and forward-test any strategy in a simulated environment before committing real capital. Past performance is not indicative of future results.

PS Look out for the Frog :-)