Flow Divergence Column (Dominance vs Pressure)

🔥 Flow Divergence Column (Dominance vs Pressure)

This is not another oscillator.

This is a flow diagnostic tool built to show you when the market is aligned… and when it’s about to shift.

It measures two critical forces inside every candle:
1. Dominance – Who is actually controlling the move?
2. Pressure – Who is pushing right now?

When those two agree, trends expand.
When they disagree, structure weakens.

This indicator isolates that relationship and paints it clearly.

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🧠 High-Level Quant Explanation

Markets move because of participation imbalance.

Every candle contains:
• Close location within the range (who finished stronger)
• Volume participation (how committed they were)

This tool converts those into:

1️⃣ Dominance (±100 Scale)

A normalized measurement of directional control.
• Above zero → buyers control.
• Below zero → sellers control.
• The farther from zero → the stronger the control.

2️⃣ Pressure (0–100 internal)

A strength measurement of current push.
• Buy pressure rising = active demand.
• Sell pressure rising = active supply.

Then it compares the two.

That comparison is the edge.

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🎯 The Logic That Matters

🟢 Green Columns – Flow Aligned Bullish
• Dominance > 0
• Buy Pressure ≥ Sell Pressure

Buyers control AND they’re pushing.

This is expansion mode.

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🔴 Red Columns – Flow Aligned Bearish
• Dominance < 0
• Sell Pressure ≥ Buy Pressure

Sellers control AND they’re pressing.

Trend continuation mode.

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🟠 Orange Columns – Divergence (Warning Zone)

This is where professionals pay attention.

Bearish Divergence
• Dominance > 0 (buyers in control)
• BUT Sell Pressure > Buy Pressure

Translation:
Buyers still control structure…
But sellers are quietly pushing.

This is early warning for:
• Pullback
• Liquidity sweep
• Possible reversal

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Bullish Divergence
• Dominance < 0 (sellers in control)
• BUT Buy Pressure > Sell Pressure

Translation:
Sellers control structure…
But buyers are stepping in.

That’s when bottoms start forming.

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📊 Why This Works

Most traders only look at momentum.

This measures:
• Structural control (Dominance)
• Active aggression (Pressure)

When they align → continuation.
When they conflict → transition.

Markets transition before they reverse.

This tool shows that transition.

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🧠 How To Trade It

This is not a standalone entry tool.
This is a context engine.

Use it for:

• Confirming breakouts
• Avoiding late entries
• Spotting pullbacks early
• Timing reversals
• Identifying trapped traders

If you see:
• Orange after a strong trend → prepare.
• Green after orange → continuation likely.
• Orange at highs/lows → liquidity shift incoming.

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🏦 Institutional Perspective

Markets move in phases:
1. Accumulation
2. Expansion
3. Distribution
4. Reversal

Divergence appears between phases.

This tool highlights those phase transitions using flow mechanics, not lagging indicators.

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🗣 Chart Master Mike Break Down Plain and Simple Real Talk https://www.tradingview.com/x/bTLeLejP/

Let me make it plain.

If the market says it’s bullish…
But sellers are quietly pushing…

That’s tension.

And tension always breaks.

Green means strength.
Red means control.
Orange means pressure building.

This tool tells you when the market is smiling…
And when it’s gritting its teeth.

Trade with the flow.
Respect the warning.
Exploit the transition.

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This is not noise.
This is structure meeting aggression.

And that’s where the money lives.