Top Catcher | QR

Top Catcher | QuantumResearch

The Top Catcher indicator is designed to help traders spot areas where markets may be forming local tops. Instead of relying on simple overbought measures like RSI or Bollinger Bands, it combines percentile-based price extremes with a volatility-adjusted filter. This approach helps highlight situations where price has stretched unusually far and then shows signs of weakness.

🔍 How It Works (Principle)

Percentile Analysis: The script measures whether price has reached an extreme compared to its recent distribution (very high percentile).
Volatility Confirmation: It checks if price fails to sustain above a volatility-adjusted upper boundary.
Signal Generation: Only when both conditions align does the script mark a potential Top with a visual triangle above the bar.
This dual-layer approach aims to reduce false signals often triggered in strong trends by single-metric tools.

🎯 Key Features
Top Signals: Plots a clear triangle above candles when potential exhaustion is detected.
Dynamic Adaptation: Works across different assets and timeframes by adjusting to each market’s own volatility.
Visual Overlay: Signals are plotted directly on the chart for intuitive reading.
Alert Ready: Built-in alerts let traders get notified as soon as a new Top signal is generated.

📈 How To Use
Trend Traders: Use signals to tighten stops or take partial profits in extended runs.
Swing Traders: Watch for reversal setups at local highs.
Multi-Timeframe Approach: Combine higher timeframe signals with intraday charts for confirmation.
The script is not meant to predict exact tops, but rather to provide an early warning of distribution zones where risk increases.

⚠️ Disclaimer
This tool is provided for educational and research purposes only. It is not financial advice. Past performance does not predict or guarantee future results. Always combine this tool with your own analysis and risk management.