Launchpad & Slingshot

Overview and Originality:
This indicator combines two complementary trading concepts—Launchpad (LP) and Slingshot (SS)—into a single, cohesive tool designed to identify potential trend continuations and reversals in trending markets. Launchpads provide context on overall trend alignment via stacked moving averages, acting as a filter for higher-probability setups, while Slingshot pinpoints precise entry timing during short-term pullbacks or bounces within those trends. This synergy reduces false signals by requiring both trend confirmation (LP) and momentum shift (SS), making it more robust than using either in isolation. Unlike simple merges, this script adds original enhancements such as a "curling" filter on the shortest Launchpad MA to ensure directional momentum, separate configurable MAs for bullish/bearish Slingshot thresholds, and combined LP/SS alerts for chained patterns (e.g., LP following SS). These improvements aim to enhance usability for trend-following strategies, particularly in volatile stocks or forex pairs, by providing visual labels, alerts, and multi-timeframe support without overcomplicating the core logic.

Underlying Concepts:

• Launchpad (LP): Based on the idea of moving average "stacking," where shorter-period MAs align above longer ones in uptrends (bullish stack) or below in downtrends (bearish stack). This detects when price is in a strong, aligned trend phase, similar to how Guppy Multiple Moving Averages identify trend strength through ribbon compression/expansion. The script uses up to four customizable MAs (default: 8/21/50/200 EMAs of close), calculating the highest/lowest among included ones as the key crossover level. A signal triggers when the stack forms from a non-stacked state and price crosses the extreme MA, indicating potential trend acceleration.
  
• Slingshot (SS): Draws from Scot1and's bullish pattern, which looks for price to remain below a 4-period EMA of highs for three consecutive bars (signaling a controlled pullback), then close above it (indicating rebound momentum). This script symmetrizes it for bearish cases using a separate 4-period EMA of lows, allowing detection of breakdowns after temporary bounces in downtrends. The separation of bull/bear sources is an original adaptation to better capture market structure asymmetry—highs for resistance in uptrends, lows for support in downtrends—reducing noise compared to a single-source approach.
  

The components work together by allowing users to spot "LP after SS" patterns: a Slingshot pullback/rebound followed by a Launchpad stack crossover, which often signals stronger continuations. This chained logic is grounded in momentum trading principles, where short-term mean reversion (SS) aligns with longer-term trend bias (LP) for improved risk-reward entries.

How It Works: The script calculates signals on each bar as follows:

Launchpad Calculations:

• Build an array of included MAs (users can exclude any via inputs).
  
• Check for stacking: For bull LP, shorter MAs > longer ones; for bear, shorter < longer.
  
• Require a transition from non-stacked to stacked state.
  
• Price must cross above the highest MA (bull) or below the lowest (bear).
  
• Original filter: The shortest MA must be "curling" up (current > previous for bull) or down (current < previous for bear) to confirm recent momentum, preventing signals in counter-trend flattenings.
  

Slingshot Calculations:

• Use separate MAs: Bull SS uses EMA of highs (default); Bear SS uses EMA of lows.
  
• For bull SS: Close below bull MA for the prior N bars (default 3), then close above it.
  
• For bear SS: Close above bear MA for prior N bars, then close below it.
  
• No additional filters like volume or momentum jumps are applied, staying true to the pattern's simplicity.
  

Combined and Additional Signals:

• "LP after SS": Triggers if LP occurs immediately after an SS, highlighting high-conviction setups.
  
• Stack alerts: Pure stack with price above/below extremes, for trend monitoring.
  
• All MAs can use multi-timeframe data via the timeframe input.
  

Alerts are set for each condition, and labels appear on the chart (configurable visibility, size, colors). Labels combine (e.g., "Bull LP & SS") if both trigger simultaneously.

How to Use It: Add the script to your chart via TradingView's indicator menu. Default settings suit daily/intraday charts for trending assets like stocks in bull markets (e.g., tech sector during rallies).

Interpretation:

• Bull SS: Look for labels during uptrends; enter long on close above the blue Bull SS MA line after a 3-bar pullback. Use as a dip-buy signal.
  
• Bear SS: In downtrends, enter short on close below the purple Bear SS MA after a 3-bar bounce.
  
• Bull LP: Confirms trend strength; enter long on crossover if shortest MA is rising (green label).
  
• Bear LP: Short entry on downside crossover with falling shortest MA (red label).
  
• Prioritize "LP after SS" for layered confirmation—e.g., SS rebound leading into LP acceleration.
  
• Monitor stack alerts for overall bias; avoid trading against the stack.
  

Customization:

• Launchpad Group: Adjust lengths/sources/types; exclude MAs for simpler stacks (e.g., just 50/200 for long-term).
  
• Slingshot Group: Change length (4 default), type (EMA), sources (high/low defaults), or preceding bars (3 default).
  
• Display: Toggle labels, set timeframe (e.g., "D" for daily MAs on hourly chart), adjust offset for label positioning.
  
• Test on historical data: Apply to strong trenders like AAPL or BTC; backtest entries with stops below recent lows.
  

For best results, combine with volume confirmation or broader market context—e.g., above 200-day MA for longs. This is not financial advice; always use risk management.