Charaf's PSP

Precision Swing Pair (PSP) is a correlation-based swing indicator that identifies divergence moments between two or three related assets (a “triad”). A PSP signal occurs when one asset’s candle closes bullish while another closes bearish — revealing potential swing turning points or short-term inefficiencies between correlated instruments such as indices, commodities, or FX pairs.

What It Does

Detects candle direction mismatches between correlated assets.

Marks PSP signals directly on the chart of your main asset.

Optional filters for volume, ATR, or momentum confirmation.

Helps traders catch early reversals, strength shifts, or pair-trading setups.

Works seamlessly across timeframes and correlated markets.

How It Works

You select a primary symbol (main chart) and secondary (or two others for triad setups).

PSP compares each candle’s close-to-open relationship:

If one asset closes bullish and another closes bearish, a PSP signal triggers.

Repeated divergence clusters often mark exhaustion zones or swing reversals.

Optional volatility or momentum filters help remove noise and refine signals.

Typical Use Cases

Triad trading: e.g., NAS100 / S&P500 / Dow — when one diverges, the weaker or stronger one tends to “catch up.”

Commodity pairs: e.g., Crude Oil / Gasoline / Heating Oil for refining spreads.

FX correlation setups: e.g., EURUSD vs GBPUSD.

Gold pairs: XAUUSD vs XAUEUR or XAUGBP.

How to Use PSP

Add the indicator to your main asset chart.

In the settings, enter the tickers of correlated assets you want to compare.

Adjust detection type (strict opposite closes or soft mismatch tolerance).

Optional: enable filters for ATR, RSI, or momentum.

Look for PSP signals at key structure zones — they often precede reversals or short-term dislocations.

Alerts

PSP Bullish Divergence: Primary bearish, secondary bullish.

PSP Bearish Divergence: Primary bullish, secondary bearish.

Custom alert messages are supported with placeholders for symbol and timeframe.

Recommended Markets

Indices triads (NAS100, SPX, DJ30)

Commodities triads (USOIL, RB1!, HO1!)

Metals triads (XAUUSD, XAUEUR, XAUGBP)

FX pairs (EURUSD, GBPUSD, USDCHF)

Inputs

Secondary symbol

(Optional) Third symbol for triad setups

Detection mode: strict / soft

Use ATR filter (on/off)

Use momentum filter (on/off)

Show markers (color, size, opacity)

Alert mode (on signal / on candle close)

How to Interpret

A PSP signal indicates misalignment — one asset leads, the other lags.

Often, the lagging asset will “catch up” in direction soon after.

Combine PSP signals with support/resistance or structure to identify swing reversals and momentum shifts.

Notes

PSP is not a buy/sell signal on its own — it’s a context tool for reading correlation behavior.

Best used with assets that historically move together (correlation > 0.7).

Test different timeframe alignments for your specific triad.

Example Workflow

Use PSP to identify divergence between NAS100 and SPX.

Confirm with price structure or RSI divergence.

Trade the “catch-up” move on the lagging asset once alignment resumes.

Changelog

v1.0 — Core divergence logic, 2-asset mode

v1.1 — Triad comparison support

v1.2 — Added volatility & momentum filters

v1.3 — Alert system & visual improvements

Tags:
correlation, divergence, indices, pair trading, spread, volatility, price action, structure, PSP, trading tools