Filter Signal 5

🧭 Overview
“Filter Signal 5.0” is a professional confirmation and filtering tool designed to validate the true directional bias of any asset.
It combines price structure, volume dynamics, oscillator alignment, and multi-timeframe confirmation to detect high-probability directional setups while blocking false counter-trend signals.
The indicator calculates a directional score (0–4) based on the confluence of several technical conditions and displays both the current trend and the higher-timeframe trend in a compact on-chart dashboard.
⚙️ Core Logic
The indicator integrates four major analytical pillars:
Component Description Purpose
VWMA Trend Compares price to the Volume-Weighted Moving Average (VWMA 20). Detects the base trend (above = bullish, below = bearish).
Volume Flow Evaluates direction (buy/sell) and trend (rising/falling) of volume. Confirms institutional participation.
RSI Extreme Cross RSI crossing its SMA in extreme zones (<27 or >80). Identifies momentum reversals with statistical strength.
Oscillator Concordance Combines 3 signals (Stochastic, Fisher Transform, Williams %R). Measures broad technical consensus.
Each bullish or bearish confirmation adds +1 point to its respective score.
The final output is the comparison between scoreLong and scoreShort.
🧩 Multi-Timeframe Filter (MTF)
A higher-timeframe VWMA (e.g., Weekly or Monthly) is imported through request.security().
If the higher-timeframe trend is UP, bearish scores are suppressed.
If the higher-timeframe trend is DOWN, bullish scores are suppressed.
✅ This ensures entries are only taken in the direction of the dominant market trend.
🎯 Forecast Target System
Each new bar automatically generates a static forecast target (varip) based on the 10-bar average range:
If bullish → target = close + avgRange
If bearish → target = close − avgRange
This level is drawn as a yellow dashed line, providing a short-term statistical price projection.
🧮 Directional Logic Summary
Condition Weight Effect
Price > VWMA +1 Long Trend confirmation
Volume rising in buy candles +1 Long Institutional strength
RSI cross < 27 +1 Long Reversal signal
2 / 3 oscillators in buy mode +1 Long Statistical agreement
Mirror logic applies for short signals.
Final bias is determined by comparing total long vs short scores.
📊 Dashboard Information
Displayed at the bottom-left corner of the chart:
Field Meaning
📊 Trend Now Current directional bias (📈 UP / 📉 DOWN / ➡ NEUTRAL)
🎯 Forecast Target Predicted price level for the current bar
⏱ Filter MTF Higher timeframe used for filtering (e.g., W, 1M)
📐 Trend MTF Trend status of the higher timeframe
The dashboard updates dynamically on each bar close.
⚠️ Alerts
Two automatic alerts are available:
⚠️ Strong Buy: when scoreLong ≥ 3
⚠️ Strong Sell: when scoreShort ≥ 3
These appear only when at least three technical components agree.
📈 How to Use It
Load the indicator on your preferred asset and timeframe (recommended: Daily).
Set the higher timeframe filter (tf_selezione) → use “W” (Weekly) or “1M” (Monthly) for institutional alignment.
Wait for full confirmation:
Trend Now = 📈 UP and Trend MTF = 📈 UP → Long setup confirmed
Trend Now = 📉 DOWN and Trend MTF = 📉 DOWN → Short setup confirmed
Avoid trading when:
Trends are misaligned (different directions).
Score is < 2 / 4 (neutral zone).
🧠 Trading Logic Summary
Scenario Requirements Action
Long Setup Score ≥ 3 and MTF trend = UP Enter or hold long position
Short Setup Score ≥ 3 and MTF trend = DOWN Enter or hold short position
Neutral Mixed signals / MTF mismatch Stay flat – wait for breakout
🧮 Practical Example
When the daily timeframe prints 📈 Trend Now = UP, and the weekly filter shows 📐 Trend MTF = UP, the system has full alignment.
The yellow dashed line projects the short-term target for the move.
If volume direction and oscillators confirm, an alert “⚠️ Strong Buy” is automatically triggered.
✅ Ideal Usage
This indicator is designed to work together with Lanfranco’s other institutional models, such as:
TSI-RSI-ATR Dashboard → internal momentum and volatility,
Institutional Module / Smart Buy-Sell System → predictive divergence and volume compression,
Dynamic Price Targets / Sigma Bands → probabilistic price zones.
The “MTF Filter 4” acts as the final confirmation layer, the traffic-light system:
🟢 Green = confirmed direction,
🔴 Red = blocked signal,
🟠 Orange = neutral wait-state.
⚡ Summary
Type: Multi-factor signal confirmation tool
Core concept: Combine price + volume + oscillators + multi-timeframe filter
Best timeframe: Daily
Typical filter: Weekly or Monthly
Output: Directional bias, short-term forecast, institutional trend alignment