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ZenAlgo - Q 🆓

ZenAlgo - Q is an advanced momentum oscillator for TradingView, inspired by QQE methodology and packed with additional visual cues to help you easily spot trend changes, momentum shifts, and divergences.

This guide will help you interpret every visual component, color, and symbol, so you can use the indicator with confidence.

What is ZenAlgo - Q?​

ZenAlgo - Q is an oscillator based on a refined QQE method. It combines two RSI calculations, adaptive bands, and a colored histogram to visualize momentum strength, trend stability, and divergence patterns in price.

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This indicator does not provide direct buy/sell signals, but gives contextual momentum and trend information to support your decision-making.

Visual Components & How To Read Them​

1. Histogram Columns​

  • Main View: Two sets of colored bars oscillate around a central (zero) line.
    • Upper (RSI1): Momentum based on primary RSI calculation.
    • Lower (RSI2): Secondary confirmation of momentum.
  • Color coding:
    • Blue (bullish): Strengthening positive momentum.
    • Purple (bearish): Strengthening negative momentum.
  • Interpretation:
    • Bars shifting from purple to blue = possible bullish trend forming.
    • Bars shifting from blue to purple = possible bearish momentum building.
    • Shrinking bars = waning momentum, possible pause or reversal.
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Tall bars = strong momentum, short bars = weak/no momentum.

2. Bands & Gridlines​

  • Gridlines (horizontal dashed lines): Reference levels from -50 to +50 for easier orientation.
  • Adaptive Bands: The "envelope" (invisible, used internally) expands/contracts with volatility, making momentum extremes obvious.

3. RSI Moving Averages​

  • White Line ⚪: Smoothed RSI (main momentum).
  • Orange Line 🟠: Same RSI, but colored orange when it's falling (vs. previous bar).
  • EMA 100 (dynamic color):
    • Green = EMA 100 rising.
    • Red = EMA 100 falling.

4. Divergence Labels​

Divergences highlight mismatches between price and momentum—often a precursor to reversals.

  • Regular Bullish Divergence
    • Label: R (white letter in a blue box, below the bars)
    • Shows when price makes a lower low but RSI forms a higher low.
  • Hidden Bullish Divergence
    • Label: H (white letter in a blue box, below the bars)
    • Price makes a higher low, RSI a lower low. Trend likely to continue.
  • Regular Bearish Divergence
    • Label: R (white letter in a purple box, above the bars)
    • Price makes a higher high, RSI a lower high.
  • Hidden Bearish Divergence
    • Label: H (white letter in a purple box, above the bars)
    • Price makes a lower high, RSI a higher high.
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Divergence labels add extra confidence when aligned with strong histogram bars or when confirmed by other indicators!

5. Bullish/Bearish Dots & Diamonds​

  • Small blue or purple dots 🔵🟣:
    • Bottom blue dot (diamond/circle): Sustained bullish momentum.
    • Top purple dot (diamond/circle): Sustained bearish momentum.
  • Red and Green dots 🔴🟢 (tiny, on edge of histogram):
    • Red dot (top): RSI drops below its average, while above 50 – a bearish transition.
    • Green dot (bottom): RSI rises above its average, while below 50 – a bullish transition.
  • Diamonds 💎 (bigger, at extremes):
    • Blue diamond (bottom): RSI crosses above EMA 100 – long-term bullish signal.
    • Purple diamond (top): RSI crosses below EMA 100 – long-term bearish signal.
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Dots and diamonds are there for quick visual confirmation—great for scanning the chart at a glance!

6. EMA Filter Context 📈​

  • EMA 13 and EMA 21 (not plotted, but used):
    • If price is above both EMAs → bullish bias for all dots and labels.
    • If below both EMAs → bearish bias.
  • This filter makes the momentum dots more reliable.

How to Use ZenAlgo - Q​

Typical Use Cases​

  • Momentum Tracking: Quickly see if a trend is gaining or losing steam.
  • Divergence Analysis: Early warning for possible reversals or continuation setups.
  • Supplementary Confirmation: Use alongside your main trading system (e.g., volume, price action, moving averages).
  • Market Context: Compare current momentum to historical behavior for better entries/exits.
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Combine divergence signals with strong histogram bars for high-conviction trades!

Legend: Quick Reference​

Symbol/ColorMeaning
Blue barBullish momentum increasing
Purple barBearish momentum increasing
R (below)Regular bullish divergence
H (below)Hidden bullish divergence
R (above)Regular bearish divergence
H (above)Hidden bearish divergence
🔵 Blue dotBullish confirmation (momentum up)
🟣 Purple dotBearish confirmation (momentum down)
🟢 Green dotBullish RSI transition (RSI crossing up its average, <50)
🔴 Red dotBearish RSI transition (RSI crossing down its average, >50)
💎 Blue diamondRSI crosses above EMA 100 (bullish long-term shift)
💎 Purple diamondRSI crosses below EMA 100 (bearish long-term shift)

Tips, Tricks & Warnings​

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Pay extra attention to divergence signals that coincide with strong histogram moves—these often precede the biggest price swings!

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For best results, use ZenAlgo - Q as part of a multi-indicator strategy. Volume, price structure, and higher timeframes can all add valuable context.

warning

Do not use this indicator as your sole decision tool for entries or exits. Always confirm with other analysis, and practice good risk management!

Attribution & Disclaimer​

ZenAlgo - Q is an adaptation of the open-source QQE script by Glaz, with significant enhancements and visual improvements.
This documentation is for educational purposes only and is not financial advice. Always do your own research and use appropriate risk controls.

Get for free​

This indicator is free and open-source. Get it here: ZenAlgo - Q.