Institutional Confluence Mapper [JOAT]

Institutional Confluence Mapper (ICM)

Introduction

The Institutional Confluence Mapper is an open-source multi-factor analysis tool that combines five analytical modules into a unified confluence scoring system. It synthesizes institutional trading concepts including Relative Rotation analysis, Smart Money flow detection, Liquidity zone mapping, Session-based timing, and Volatility regime classification.

Rather than relying on a single indicator, ICM evaluates market conditions through multiple lenses simultaneously, presenting a clear confluence score (0-100%) that reflects the alignment of various market factors.

This script is fully open-source under the Mozilla Public License 2.0.

Originality and Purpose

This indicator is NOT a random mashup of existing indicators. It is an original implementation that creates a unified institutional analysis framework:

• Why Multiple Modules? Most retail traders struggle because they rely on single indicators that provide conflicting signals. Institutional traders evaluate markets through multiple frameworks simultaneously. ICM bridges this gap by providing a unified view of complementary analysis methods.
  
• The Confluence Scoring System: Each module contributes to a weighted confluence score (0-100%). Scores above 65% indicate bullish confluence; below 35% indicates bearish confluence.
  

How Components Work Together:

• RRG (Relative Rotation) determines macro bias - is this asset outperforming or underperforming its benchmark?
  
• Institutional Flow confirms smart money activity - are institutions accumulating or distributing?
  
• Volatility Regime determines strategy selection - trend-follow or mean-revert?
  
• Liquidity Detection identifies key levels - where are the stop hunts happening?
  
• Session Analysis optimizes timing - when should you trade?
  

The Five Core Modules

1. Relative Rotation Momentum Matrix (RRG)
Compares the current symbol against a benchmark (default: SPY) using the JdK RS-Ratio methodology with double-smoothed EMA. Assets rotate through four quadrants:

• LEADING: Outperforming with positive momentum (strongest bullish)
  
• WEAKENING: Outperforming but losing momentum
  
• LAGGING: Underperforming with negative momentum (strongest bearish)
  
• IMPROVING: Underperforming but gaining momentum
  

2. Institutional Flow Analysis
Analyzes volume patterns to detect smart money activity:

• Volume Z-Score measures how unusual current volume is
  
• Buy/Sell pressure estimation based on candle structure
  
• Unusual volume detection highlights institutional activity
  

3. Volatility Regime System
Uses ATR percentile ranking to classify market conditions:

• COMPRESSION: Low volatility (ATR < 20th percentile) - potential breakout
  
• EXPANSION: High volatility (ATR > 80th percentile) - trending
  
• TRENDING_BULL/BEAR: Directional trends based on EMA alignment
  
• RANGING: Sideways consolidation
  

4. Liquidity Detection
Identifies institutional liquidity targets using swing point analysis:

• Swing highs/lows are tracked and displayed as dashed lines
  
• Purple dashed lines mark resistance/sell-side liquidity
  
• Teal dashed lines mark support/buy-side liquidity
  
• Gold diamonds appear when liquidity sweeps are detected (potential reversals)
  

5. Session Momentum Profiler
Tracks trading sessions based on your selected timezone:

• Asian Session: 7PM - 4AM EST
  
• London Session: 3AM - 12PM EST
  
• New York Session: 9:30AM - 4PM EST
  
• London/NY Overlap: 8AM - 12PM EST (peak liquidity)
  

Visual Elements

Main Dashboard (Top-Right):

• BIAS: Overall direction with confluence percentage
  
• RRG: Current quadrant and momentum
  
• FLOW: Smart money bias and volume status
  
• REGIME: Market condition and volatility percentile
  
• SESSION: Active trading session and current time
  
• LIQUIDITY: Active zones and grab signals
  
• SIGNAL: Actionable recommendation
  

Chart Elements:

• Gold Diamond: Liquidity grab (potential reversal point)
  
• Teal Dashed Line: Support / Buy-side liquidity zone
  
• Purple Dashed Line: Resistance / Sell-side liquidity zone
  
• EMA 21/55/200: Trend structure with cloud fill
  
• Volatility Bands: ATR-based channels
  

How to Use

Step 1: Check the BIAS row for overall market direction
Step 2: Check REGIME to understand market conditions
Step 3: Identify key levels using liquidity zones and EMAs
Step 4: Wait for confluence above 65% (bullish) or below 35% (bearish)
Step 5: Look for gold diamond signals at key levels

Best Setups

Bullish: Confluence >65%, RRG in LEADING/IMPROVING, bullish flow, price near teal support zone.

Bearish: Confluence <35%, RRG in LAGGING/WEAKENING, bearish flow, price near purple resistance zone.

Reversal: Gold diamond appears after price sweeps a liquidity zone.

Key Input Parameters

• Benchmark Symbol: Compare against (default: SPY)
  
• RS-Ratio/Momentum Lookback: RRG calculation periods
  
• Volume Analysis Period: Flow detection lookback
  
• Swing Length: Liquidity zone detection
  
• ATR Period/Rank Period: Regime classification
  
• Timezone: Session detection timezone
  

Alerts

• Liquidity Grab Bull: Bullish sweep detected
  
• Liquidity Grab Bear: Bearish sweep detected
  
• High Confluence Bull: Confluence above 70%
  
• High Confluence Bear: Confluence below 30%
  

Best Practices

• Use on 1H, 4H, or Daily timeframes for reliable signals
  
• Combine with price action for confirmation
  
• Respect the regime - don't fight strong trends
  
• Trade during London/NY overlap for best liquidity
  
• Wait for high confluence scores before entering
  
• Always use proper risk management
  

Limitations

• Works best on liquid markets with sufficient volume
  
• Session features optimized for forex/crypto markets
  
• RRG requires a valid benchmark symbol
  
• No indicator predicts the future - use proper risk management
  

Disclaimer

This indicator is for educational and informational purposes only. It is not financial advice. Trading involves substantial risk of loss. Past performance does not guarantee future results.

-Made with passion by officialjackofalltrades