Anomaly Rejection Channel [ARC] Pro

Anomaly Rejection Channel [ARC] Pro
📝 Description
The Anomaly Rejection Channel [ARC] Pro is an advanced, multi-dimensional trading indicator designed to identify high-probability reversal zones (liquidity traps) and price anomalies.

Instead of relying on a single metric, ARC Pro combines dynamic volatility channels (VWMA + ATR), volume spread analysis, price action anatomy (wick rejection), and Multi-TimeFrame (MTF) alignment to filter out market noise. It excels at spotting "Bull Traps" and "Bear Traps"—moments where price breaches a key volatility band but fails to sustain momentum due to volume exhaustion or climax, signaling a high likelihood of a reversal.

Whether you are scalping on lower timeframes or swing trading, the built-in presets and adaptive volatility logic dynamically adjust to current market conditions.

⚙️ Settings & Parameters
📊 Channel Settings

Parameter Preset: Quick-select profiles (Conservative, Balanced, Aggressive, Scalping) that automatically adjust the ATR multiplier, wick requirements, and volume thresholds.

VWMA/ATR Period: The lookback period for calculating the baseline Volume-Weighted Moving Average and the Average True Range.

Base ATR Multiplier: Defines the width of the channel. A higher value requires a larger price deviation to trigger a signal.

Adaptive Multiplier (Volatility): When enabled, the indicator automatically narrows the channel during low volatility and widens it during high volatility to prevent false signals.

🎯 Signal Filters

Volume MA Period: The baseline period to determine relative volume strength.

Volume Exhaustion / Climax Ratio: The specific multipliers used to detect abnormal volume behavior (either drying up or spiking) at the channel extremes.

Min Wick % of Range: The minimum required rejection wick size relative to the total candle body (e.g., a value of 0.4 means the rejection wick must be at least 40% of the candle's total range).

Min Absolute Wick Size (points): An optional hard filter to ignore signals if the rejection wick is too small in absolute point value.

📈 Trend Context

Filter Signals by Trend: Blocks signals that go against the directional momentum of the built-in Trend Line.

Trend Line Period: The smoothing period for the internal trend-detection logic.

Allow Counter-Trend Signals: If enabled, the indicator will print signals against the main trend, which is useful for aggressive mean-reversion trading.

✅ Signal Confirmation

Require Next Candle Confirmation: The signal is only validated if the subsequent candle confirms the reversal direction.

Confirmation: Close Inside Channel: Requires the confirming candle to close back inside the ARC bands, validating the "trap".

Signal Delay (bars): Shifts the visual signal X bars forward (useful for aligning alerts with external execution bots).

🌐 Multi-TimeFrame (MTF)

Use Higher TF Confirmation: Syncs your current chart with a higher timeframe to ensure macro-trend alignment.

Higher TimeFrame: Select the MTF resolution (e.g., 240 for 4-Hour).

MTF Mode: Choose how the higher timeframe filters the local chart:

Trend Only: Local signals must align with the MTF trend.

Rejection Only: Local signals require an active rejection/trap on the MTF.

Trend+Rejection: Combines both filters for maximum accuracy.

Strict Mode: Blocks all signals if the MTF status shows a "Conflict".

🎨 Signal Display

Show Signal Strength (Color): Color-codes the TRAP labels based on confluence (Red/Green for strong, Orange/Lime for moderate).

Mode: Trade Breakouts: Reverses the logic to trade momentum breakouts instead of mean-reversion traps.

Alerts: Configure to fire once per bar or on every tick.