[Viprasol] Equilibrium Confluence EngineOverview
The Viprasol Equilibrium Confluence Engine is an original indicator that requires five independent, well-known trading conditions to agree before it prints a signal: an EMA trend filter, Fibonacci premium/discount location, a market-structure shift (CHoCH), a liquidity sweep, and a Fair Value Gap. Each of these concepts answers a different question about a trade — direction, location, structure, intent, and imbalance — and the engine only confirms when all of the enabled conditions line up on the same side within a configurable window. The on-chart panels (HOW IT WORKS legend, a live confluence checklist, and a strategy summary) make the logic self-explanatory directly on the chart.
It is built for traders who want a single, transparent confluence check instead of running five separate indicators and eyeballing whether they agree.
Why These Components Belong Together (Mashup Justification)
Each layer covers a dimension the others cannot, which is the reason they are combined rather than used alone:
- The EMA trend filter answers "which direction?" but says nothing about where to enter.
- Fibonacci equilibrium answers "is price cheap or expensive within the range?" but not whether momentum agrees.
- Market structure (CHoCH) answers "has the prevailing structure actually shifted?" but a shift alone can be a trap.
- The liquidity sweep answers "did price take liquidity before moving?" — the footprint that often precedes a real move — but needs direction and location to be actionable.
- The Fair Value Gap answers "is there an institutional imbalance for price to react to?" but an FVG in the wrong location or against the trend is low quality.
Used together, a signal only appears when momentum, location, structure, intent, and imbalance all point the same way — the combination is the point, not any single piece.
How It Works
1. EMA Trend Filter:
Two EMAs (default 9 and 15). The trend is bullish when the fast EMA is above the slow EMA and bearish when below. BUY confluence requires bullish trend; SELL requires bearish.
2. Fibonacci Equilibrium (dealing range):
The most recent confirmed swing high and swing low (from pivots of the swing length) define a dealing range. The 0.5 level is equilibrium; 0.236 and 0.786 are also drawn. Below 0.5 is the Discount zone (a relatively cheap "buy area"); above 0.5 is the Premium zone ("sell area"). BUY confluence requires price in discount; SELL requires premium. The range, levels, and zones are shaded and labeled with live prices.
3. Market Structure — CHoCH / BOS:
Swing highs and lows are tracked. When price closes through the prior swing high while structure was not already bullish, a bullish Change of Character (CHoCH) is marked; closing through the prior swing low while not already bearish marks a bearish CHoCH. Continuation breaks in the same direction are labeled BOS. BUY confluence requires a bullish CHoCH within the confluence window; SELL requires a bearish one.
4. Liquidity Sweep:
Sell-side liquidity is considered swept when a bar wicks below a prior swing low but closes back above it (stops taken, price rejected) — a bullish footprint. Buy-side liquidity is swept when a bar wicks above a prior swing high and closes back below — a bearish footprint. BUY confluence requires a recent bullish sweep; SELL a bearish one.
5. Fair Value Gap (FVG):
A bullish FVG is a 3-candle imbalance where the current low is above the high two bars back (low > high ); a bearish FVG is where the current high is below the low two bars back (high < low ). The gap is boxed and tracked. BUY confluence requires price inside a bullish FVG or a recent bullish FVG within the window; SELL the bearish equivalent.
Confluence Engine:
Each condition can be individually included or excluded. CHoCH, sweep, and FVG are event-based, so they remain "active" for a configurable Confluence Window (default 15 bars) using barssince, allowing the five conditions to line up even if they did not occur on the exact same bar. A confirmed BUY fires on the first bar all enabled BUY conditions are simultaneously true (and a SELL for the bear side), gated by a cooldown to prevent repeats. The dashboard shows a live BUY/SELL score out of 5, and the checklist panel shows exactly which conditions are met.
Risk Overlay:
On a confirmed signal, the engine projects Entry (signal close), Stop-Loss (beyond the relevant swing extreme plus an ATR buffer), and Take-Profit (Entry ± risk × Risk:Reward), with colored ENTRY/SL/TP price labels. Only the latest signal's projection is kept.
Key Features
- Five-factor confluence: EMA trend, Fib equilibrium, CHoCH structure, liquidity sweep, FVG
- Each factor independently toggleable in/out of the confluence
- Configurable confluence window so event-based factors can align
- Live BUY/SELL confluence score (x/5) and a tick/cross checklist panel
- Auto dealing range with 0 / 0.236 / 0.5 / 0.786 / 1 levels and shaded premium/discount zones
- CHoCH / BOS and liquidity-sweep labels
- FVG zone boxes that track until filled
- Entry/SL/TP risk overlay with price labels
- On-chart HOW IT WORKS legend and STRATEGY SUMMARY footer
- Signal cooldown to prevent clustering
- Seven alert conditions with dynamic {{ticker}}/{{close}}/{{interval}} messages
How to Use
Getting Started:
1. Add to a standard candlestick chart (not Heikin Ashi).
2. Read the HOW IT WORKS panel (left) and the live confluence checklist (right).
3. A BUY/SELL label prints only when every enabled condition is aligned; Entry/SL/TP project from it.
Tuning Confluence:
- For more signals, turn off one or two of the stricter conditions (e.g. FVG) or widen the Confluence Window.
- For higher conviction, keep all five on and shorten the window so conditions must be tightly clustered.
Recommended Starting Points:
- Intraday (5m-15m): Swing Length 10-12, Confluence Window 12-15, Cooldown 8
- Swing (1H-4H): Swing Length 15-20, Confluence Window 20, Cooldown 12
- Looser entries: disable FVG and/or Liquidity, keep Trend + Equilibrium + CHoCH
These are starting points only — every market and timeframe behaves differently. Backtest and adjust before trading live.
Settings
1 EMA Trend Filter: fast EMA, slow EMA, include-in-confluence toggle.
2 Fibonacci Equilibrium: swing pivot length, use discount/premium toggle, show range & levels, shade zones.
3 Market Structure: use CHoCH toggle, show CHoCH/BOS labels.
4 Liquidity Sweep: use sweep toggle, show sweep labels.
5 Fair Value Gap: use FVG toggle, show FVG zones.
Confluence Engine: confluence window (bars), signal cooldown.
Risk Overlay: show Entry/SL/TP, show price labels, ATR period, SL ATR buffer, Risk:Reward.
Visuals: show EMA lines, bull/bear colors.
On-Chart Panels: toggles for HOW IT WORKS, confluence checklist, strategy summary.
Dashboard: live dashboard toggle and position.
Alerts
1. Confirmed BUY — all enabled bullish conditions aligned
2. Confirmed SELL — all enabled bearish conditions aligned
3. Any Signal — either direction confirmed
4. Bullish CHoCH — a bullish change of character occurred
5. Bearish CHoCH — a bearish change of character occurred
6. Bullish Liquidity Sweep — sell-side liquidity was swept
7. Bearish Liquidity Sweep — buy-side liquidity was swept
All alerts include {{ticker}}, {{close}}, and {{interval}} for dynamic notification messages.
Limitations & Disclaimer
- Swing-based features (range, structure, liquidity) depend on confirmed pivots, which lag by the swing length; very recent swings are not yet confirmed.
- The dealing range uses the latest confirmed swing high and low; in strong one-directional moves the range can become stale until a new swing forms.
- CHoCH detection here uses closing breaks of the last swing; it is a practical approximation of the structure concept, not a full multi-leg structure model.
- FVG detection is the standard 3-candle definition and tracks only the most recent gap per direction for confluence.
- The confluence window means conditions need not occur on the same bar; widening it loosens signal quality, narrowing it tightens it — there is no single correct value.
- Entry/SL/TP lines are visual references only and do not place or manage trades.
- Past performance does not guarantee future results. This indicator is for educational and analytical purposes only and is not financial advice. Always use proper risk management and test on historical data before trading live.
Credits & Attribution
This is an original Viprasol indicator. It is built on standard, public-domain trading concepts — exponential moving averages, Fibonacci retracement / premium-discount equilibrium, market-structure Change of Character and Break of Structure, liquidity sweeps, and Fair Value Gaps (widely used ICT / Smart Money concepts) — implemented from scratch and combined into a single multi-factor confluence engine with a scoring system, configurable confluence window, risk overlay, and self-explaining on-chart panels. No third-party source code was reused.
Published open-source per TradingView House Rules.
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