Kinetic EMA & Volume with State Engine

Kinetic EMA & Volume with State Engine (EMVOL)

1. Introduction & Concept

The EMVOL indicator converts a dense family of EMA signals and volume flows into a compact “state engine”. Instead of looking at individual EMA lines or simple crossovers, the script treats each EMA as part of a kinetic vector field and classifies the market into interpretable states:

- Trend direction and strength (from a grid of prime‑period EMAs).
- Volume regime (expansion, contraction, climax, dry‑up).
- Order‑flow bias via delta (buy versus sell volume).
- A combined scenario label that summarises how these three layers interact.

The goal is educational: to help traders see that moving averages and volume become more meaningful when observed as a structure, not as isolated lines. EMVOL is therefore designed as a real‑time teaching tool, not as an automatic signal generator.

2. Volume Settings

Group: “Volume Settings”

A. Calculation Method
- Geometry (Source File) – Default mode.
Buy and sell volume are estimated from each candle’s geometry: the close is compared to the high/low range and the bar’s total volume is split proportionally between buyers and sellers. This approximation works on any TradingView plan and does not require lower‑timeframe data.
- Intrabar (Precise) – Reconstructs buy/sell volume using a lower timeframe via requestUpAndDownVolume(). The script asks TradingView for historical intrabar data (e.g., 15‑second bars) and builds buy/sell volume and delta from that stream. This mode can produce a more accurate view of order flow, but coverage is limited by your account’s history limits and the symbol’s available lower‑timeframe data.

B. Intrabar Resolution (If Precise)
- Intrabar Resolution (If Precise) – Selected only when the calculation method is “Intrabar (Precise)”. It defines which lower timeframe (for example 15S, 30S, 1m) is used to compute up/down volume. Smaller intrabar timeframes may give smoother and more granular deltas, but require more historical depth from the platform.

When “Intrabar (Precise)” is active, the dashboard’s extended section shows the resolution and the number of bars for which precise volume has been successfully retrieved, in the format:

- Mode: Intrabar (15S) [N #] – where N is the count of bars with valid high‑resolution volume data.

In Geometry mode this counter simply reflects the processed bars in the current session.

3. Kinetic Vector Settings

Group: “Kinetic Vector”

A. Vector Window
- Vector Window – Controls the temporal smoothing applied to the aggregated vectors (trend, volume, delta, etc.). Internally, each bar’s vector value is averaged with a simple moving window of this length.
- Shorter windows make the state engine more reactive and sensitive to local swings.
- Longer windows make the states more stable and better suited to higher‑timeframe structure.

B. Max Prime Period
- Max Prime Period – Sets the largest prime number used in the EMA grid. The engine builds a family of EMAs on prime lengths (2, 3, 5, 7, …) up to this limit and converts their slopes into angles.
- A higher limit increases the number of long‑horizon EMAs in the grid and makes the vectors sensitive to broader structure.
- A lower limit focuses the analysis on short- and medium‑term behaviour.

C. Price Source
- Price Source – The price series from which the kinetic EMA grid is built (e.g., Close, HLC3, OHLC4). Changing the source modifies the context that the state engine is reading but does not change the core logic.

4. State Engine Settings

Group: “State Engine Settings”

These inputs define how the continuous vectors are translated into discrete states.

A. Trend Thresholds
- Strong Trend Threshold – Value above which the trend vector is treated as “extreme bullish” and below which it is “extreme bearish”.
- Weak Trend Threshold – Inner boundary between neutral and directional conditions.
Roughly:

- |trend| < weak → Neutral trend state.
- weak < |trend| ≤ strong → Bullish/Bearish.
- |trend| > strong → Extreme Bullish/Extreme Bearish.

B. Volume Thresholds
- Volume Climax Threshold – Upper bound at which volume is considered “climax” (unusually expanded participation).
- Volume Expansion Threshold – Boundary for normal expansion versus contraction.
Conceptually:

- Volume above “expansion” indicates increasing activity.
- Volume near or above “climax” marks extreme participation.
- Negative values below the symmetric thresholds map to contraction and extreme dry‑up (liquidity vacuum) states.

C. Delta Thresholds
- Strong Delta Threshold – Cut‑off for extreme buying or selling dominance in delta.
- Weak Delta Threshold – Threshold for mild buy/sell bias versus neutral order flow.

Combined with the sign of the delta vector, these thresholds classify order flow as:

- Extreme Buy, Buy‑Dominant, Neutral, Sell‑Dominant, Extreme Sell.

D. State Hysteresis Bars
- State Hysteresis Bars – Minimum number of bars for which a new state must persist before the engine commits to the change. This prevents the dashboard from flickering during fast spikes and emphasises persistent market behaviour.
- Smaller values switch states quickly; larger values demand more confirmation.

5. Visual Interface

Group: “Visual Interface”

A. Ribbon Base Color
- Ribbon Base Color – Base hue for the multi‑layer EMA ribbon drawn around price. The script plots a dense grid of hidden EMAs and fills the gaps between them to form a semi‑transparent band. Narrow, overlapping bands hint at compression; wider separation hints at dispersion across EMA horizons.

B. Show Dashboard
- Show Dashboard – Toggles the on‑chart table which summarises the current state engine output. Disable this if you only want to keep the EMA ribbon and volume‑based structure on the price chart.

C. Color Theme
- Color Theme – Switch between a dark and light style for the dashboard background and text colours so that the table matches your chart theme.

D. Table Position
- Table Position – Places the dashboard at any corner or edge of the chart (Top / Middle / Bottom × Left / Centre / Right).

E. Table Size
- Table Size – Changes the dashboard’s text size (Tiny, Small, Normal, Large). Use a larger size on high‑resolution screens or when streaming.

F. Show Extended Info
- Show Extended Info – Adds diagnostic rows under the main state summary:

- Mode / Primes / Vector – Shows the current calculation mode (Geometry / Intrabar), the selected intrabar resolution and coverage in bars ([N #]), how many prime periods are active, and the vector window.
- Values – Displays the current aggregated vectors:
- P: price vector
- V: volume vector
- B: buy‑volume vector
- S: sell‑volume vector
- D: delta vector
Values are bounded between ‑1 and +1.
- Volume Stats – Prints the last bar’s raw buy volume, sell volume and delta as formatted numbers.
- Footer – A final row with the symbol and current time: #SYMBOL | HH:MM.

These extended rows are meant for inspecting how the engine is behaving under the hood while you scroll the chart and compare different assets or timeframes.

6. Language Settings

Group: “Language Settings”

- Select Language – Switches the entire dashboard between English and Turkish.
The underlying calculations and scenario logic are identical; only the labels, titles and comments in the table are translated.


7. Dashboard Structure & Reading Guide

The table summarises the current situation in a few rows:

1. System Header – Shows the script name and the active calculation method (“Geometry” or “Intrabar”).
2. Scenario Title – High‑level description of the current combined scenario (e.g., “Trending Buy Confirmed”, “Sideways Balanced”, “Bull Trap”, “Blow‑Off Top”). The background colour is derived from the scenario family (trending, compression, exhaustion, anomaly, etc.).
3. Bias / Trend Line – States the dominant trend bias derived from the trend vector (Extreme Bullish, Bullish, Neutral, Bearish, Extreme Bearish).
4. Signal / Consideration Line – A short sentence giving qualitative guidance about the current state (for example: continuation risk, exhaustion risk, trap‑like behaviour, or compression). This is deliberately phrased as a consideration, not as a direct trading signal.
5. Trend / Volume / Delta Rows – Three separate rows explain, in plain language, how the trend, volume regime and delta are classified at this bar.
6. Extended Info (optional) – Mode / primes / vector settings, current vector values, and last‑bar volume statistics, as described above.

Together, these rows are meant to be read as a narrative of what price, volume and order‑flow are doing, not as mechanical instructions.

8. State Taxonomy

The state engine organizes market behaviour in three stages.

8.1 Trend States (from the Price Vector)

- Extreme Bullish Trend – The prime‑grid price vector is strongly upward; most EMAs are aligned to the upside.
- Bullish Trend – Upward bias is present, but less extreme.
- Neutral Trend – EMAs are mixed or flat; price is effectively sideways relative to the grid.
- Bearish Trend – Downward bias, with the EMA grid sloping down.
- Extreme Bearish Trend – Strong downside alignment across the grid.

8.2 Volume Regime States (from the Volume Vector)

- Volume Climax (Buy‑Side) – Strong positive volume vector; participation is unusually high in the current direction.
- Volume Expansion – Activity above normal but below the climax threshold.
- Neutral Volume – No major expansion or contraction versus recent history.
- Volume Contraction – Activity is drying up compared with the past.
- Extreme Dry‑Up / Liquidity Vacuum – Very low participation; the market is thin and prone to slippage.

8.3 Delta Behaviour States (from the Delta Vector)

- Extreme Buy Delta – Buying pressure dominates strongly.
- Buy‑Dominant Delta – Buy volume exceeds sell volume, but not at an extreme.
- Neutral Delta – Buy and sell flows are roughly balanced.
- Sell‑Dominant Delta – Selling pressure dominates.
- Extreme Sell Delta – Aggressive, one‑sided selling.

8.4 Combined Scenario States

EMVOL uses the three base states above to generate a single scenario label. These scenarios are designed to be read as context, not as entry or exit signals.

Trending Scenarios

1. Trending Buy Confirmed
- Bullish or extreme bullish trend, supported by expanding or climax volume and buy‑side delta.
- Educational idea: a healthy uptrend where both participation and order flow agree with the direction.

2. Trending Buy – Weak Volume
- Bullish trend, but volume is neutral, contracting or in dry‑up while delta is still buy‑side.
- Educational idea: price is advancing, yet participation is thinning; trend continuation becomes more fragile.

3. Trending Sell Confirmed
- Bearish or extreme bearish trend, with expanding or climax volume and sell‑side delta.
- Educational idea: strong downtrend with both volume and order‑flow confirmation.

4. Trending Sell – Weak Volume
- Bearish trend, but volume is neutral, contracting or very low while delta remains sell‑side.
- Educational idea: downside continues but with limited participation; vulnerable to short‑covering.

Sideways / Range Scenarios

5. Sideways Balanced
- Neutral trend, neutral delta, neutral volume.
- Classic range environment; low directional edge, suitable for observation and context rather than trend trading.

6. Sideways with Buy Pressure
- Neutral trend, but buy‑side delta is dominant or extreme.
- Range with latent accumulation: price may still appear sideways, but buyers are quietly more active.

7. Sideways with Sell Pressure
- Neutral trend with dominant or extreme sell‑side delta.
- Distribution‑like environment where price chops while sellers are gradually more aggressive.

Exhaustion & Volume Extremes

8. Exhaustion – Buy Risk
- Extreme bullish trend, volume climax and strong buy‑side delta.
- Educational idea: very strong up‑move where both participation and delta are already stretched; risk of exhaustion or blow‑off.

9. Exhaustion – Sell Risk
- Extreme bearish trend, volume dry‑up and strong sell‑side delta.
- Suggests one‑sided selling into increasingly thin liquidity.

10. Volume Climax (Buy)
- Neutral trend, neutral delta, but volume at climax levels.
- Often associated with a “big event” bar where participation spikes without a clear directional commitment.

11. Volume Climax (Sell / Dry‑Up)
- Neutral trend and neutral delta, while the volume vector indicates an extreme dry‑up.
- Highlights a stand‑still episode: very limited interest from both sides, increasing the sensitivity to future impulses.

Divergences

12. Divergence – Bullish Context
- Bullish or extreme bullish trend, but delta has faded back to neutral.
- Price trend continues while order‑flow conviction softens; can precede pauses or complex corrections.

13. Divergence – Bearish Context
- Bearish or extreme bearish trend with a neutral delta.
- Downtrend persists, but selling pressure no longer dominates as clearly.

Consolidation & Compression

14. Consolidation
- Default state when no specific pattern dominates and the market is broadly balanced.
- Educational use: treat this as a “no strong edge” label; focus on structure rather than direction.

15. Breakout Imminent
- Neutral trend with contracting volume.
- Compression phase where energy is building up; often precedes transitions into trending or shock scenarios.

Traps & Hidden Divergences

16. Bull Trap
- Bullish trend, with neutral or contracting volume and sell‑side delta.
- Price appears strong, but order‑flow shifts against it; often seen near fake breakouts or failing rallies.

17. Bear Trap
- Bearish trend, neutral or contracting volume, but buy‑side delta.
- Downtrend “looks” intact, while buyers become more aggressive underneath the surface.

18. Hidden Bullish Divergence
- Bullish trend, contracting volume, but strong buy‑side delta.
- Educational idea: price dips or slows while aggressive buyers step in, often inside an ongoing uptrend.

19. Hidden Bearish Divergence
- Bearish trend, volume expansion and strong sell‑side delta.
- Reinforced downside pressure even if price is temporarily retracing.

Reversal & Transition Patterns

20. Reversal to Bearish
- Neutral trend, volume climax and strong sell‑side delta.
- Suggests that heavy selling appears at the top of a move, turning a previously neutral or rising context into potential downside.

21. Reversal to Bullish
- Neutral trend, extreme volume dry‑up and strong buy‑side delta.
- Often associated with selling exhaustion where buyers start to take control.

22. Indecision Spike
- Neutral trend with extreme volume (climax or dry‑up) but neutral delta.
- Crowd participation changes sharply while order‑flow remains undecided; treat as an informational spike rather than a direction.

Extended Compression & Acceleration

23. Coiling Phase
- Neutral trend, contracting volume, and delta that is neutral or only mildly one‑sided.
- Extended compression where price, volume and delta all contract into a tightly coiled range, often preceding a strong move.

24. Bullish Acceleration
- Bullish trend with volume expansion and strong buy‑side delta.
- Uptrend not only continues but gains kinetic strength; educationally, this illustrates how trend, volume and delta align in the strongest phases of a move.

25. Bearish Acceleration
- Bearish trend with volume expansion and strong sell‑side delta.
- Mirror image of Bullish Acceleration on the downside.

Trend Exhaustion & Climax Reversal

26. Bull Exhaustion
- Bullish or extreme bullish trend, with contraction or dry‑up in volume and buy‑side or neutral delta.
- The move has already travelled far; participation fades while price is still elevated.

27. Bear Exhaustion
- Bearish or extreme bearish trend, with volume climax or contraction and sell‑side or neutral delta.
- Down‑move may be approaching a point where additional selling pressure has diminishing impact.

28. Blow‑Off Top
- Extreme bullish trend, volume climax and extreme buy delta all at once.
- Classic blow‑off behaviour: price, volume and order‑flow are simultaneously stretched in the same direction.

29. Selling Climax Reversal
- Extreme bearish trend with extreme volume dry‑up and extreme sell‑side delta.
- Marks a very aggressive capitulation phase that can precede major rebounds.

Advanced VSA / Anomaly Scenarios

30. Absorption
- Typically neutral trend with expanding or climax volume and extreme delta (either buy or sell).
- Educational focus: large participants are aggressively absorbing liquidity from the opposite side, while price remains relatively contained.

31. Distribution
- Scenario where volume remains elevated while directional conviction weakens and the trend slows.
- Represents potential “selling into strength” or “buying into weakness”, depending on the active side.

32. Liquidity Vacuum
- Combination of thin liquidity (extreme dry‑up) with a directional trend or strong delta.
- Highlights environments where even small orders can move price disproportionately.

33. Anomaly / Shock Event
- Triggered when the vector z‑scores detect rare combinations of price, volume and delta behaviour that deviate from their own historical distribution.
- Intended as a warning label for unusual events rather than a specific tradeable pattern.

9. Educational Usage Notes

- EMVOL does not produce mechanical “buy” or “sell” commands. Instead, it classes each bar into an interpretable state so that traders can study how trends, volume and order‑flow interact over time.
- A common exercise is to overlay your usual EMA crossovers, support/resistance or price patterns and observe which EMVOL scenarios appear around entries, exits, traps and climaxes.
- Because the vectors are normalized (bounded between ‑1 and +1) and then discretized, the same conceptual states can be compared across different symbols and timeframes.

10. Disclaimer & Educational Purpose

This indicator is provided strictly as an educational and analytical tool. Its purpose is to help visualise how price, volume and order‑flow interact; it is not designed to function as a stand‑alone trading system.

Please note:

1. No Automated Strategy – The script does not implement a complete trading strategy. Scenario labels and dashboard messages are descriptive and should not be followed as unconditional entry or exit signals.
2. No Financial Advice – All information produced by this indicator is general market analysis. It must not be interpreted as investment, financial or trading advice, or as a recommendation to buy or sell any instrument.
3. Risk Warning – Trading and investing involve substantial risk, including the risk of loss. Always perform your own analysis, use appropriate position sizing and risk management, and consult a qualified professional if needed. You are solely responsible for any decisions made using this tool.
4. Data Precision & Platform Limits – The “Intrabar (Precise)” mode depends on the availability of high‑resolution historical data at the chosen intrabar timeframe. If your TradingView plan or the symbol’s history does not provide sufficient depth, this mode may only partially cover the visible chart. In such cases, consider switching to “Geometry (Source File)” for a fully populated view.