Intraday Toolkit

1. Visual Components of the Indicator
Understanding the visual cues is essential for quick decision-making during fast-moving intraday sessions:

Trend Background: The background color represents the Primary Cycle (80-period) bias. Green indicates a bullish trend (price is above the primary cycle), and red indicates a bearish trend (price is below the primary cycle).

The Three Cycles:

Yellow Line: Short Cycle (20) – Used for momentum triggers.

Orange Line: Mid Cycle (40) – Represents the baseline for volatility envelopes.

Red Line: Primary Cycle (80) – Defines the overall trend direction.

Volatility Envelopes: Two green lines plotted at a distance (1.5x ATR) from the Mid Cycle. These act as exhaustion zones where price is likely to revert or consolidate.

Rule 3 Signals (Purple Circles): These appear when a specific 3-candle momentum breakout occurs.

2. Trading Strategy for 5m & 15m
This toolkit is most effective when you use the 15m chart for trend confirmation and the 5m chart for precise entries.

Long (Buy) Setup
Enter a long position when the following alignment occurs:

Bullish Bias: The background must be Green (Price > Primary Cycle).

Cycle Low: A pivot low must have been detected (the indicator identifies a local bottom).

Momentum Trigger: Price must close above the Yellow Short Cycle line while the previous candle was below it.

Rule 3 Confirmation: If a purple circle appears simultaneously, it confirms strong buying momentum.

Short (Sell) Setup
Enter a short position when the following alignment occurs:

Bearish Bias: The background must be Red (Price < Primary Cycle).

Cycle High: A pivot high must have been detected (the indicator identifies a local top).

Momentum Trigger: Price must close below the Yellow Short Cycle line while the previous candle was above it.

Rule 3 Confirmation: A purple circle above the price confirms a bearish momentum shift.

3. Exit and Take-Profit Logic
The script includes "State Control" to manage your exits effectively:

Targeting the Envelopes: The primary profit target is the Outer Green Envelope. If price touches the upper envelope (for longs) or lower envelope (for shorts), the trend may be exhausted.

Momentum Exit: If price crosses back over the Yellow Short Cycle line in the opposite direction of your trade, the toolkit considers the move over and signals an exit.

4. Specific Tips for Day Trading
Avoid "Counter-Trend" Signals: Do not take Buy signals if the background is Red, or Sell signals if the background is Green. The logic is built to filter these out for better win rates.

The "Rule 3" Advantage: Use the purple circles as a "second chance" entry. If you missed the initial Buy/Sell signal, a Rule 3 circle indicates momentum is still strong in that direction.

Timeframe Synergy: * 15m: Best for seeing the "Big Picture" and avoiding noise.

5m: Best for finding entries with smaller stop-losses near the Yellow Short Cycle line.