Volume Balance + Stoch + HMA (Transparent Box + Alert)

█ OVERVIEW

Volume Balance + Stoch + HMA (Transparent Box + Alert) is a hybrid market analysis indicator that combines three main components: trend analysis from the Hull Moving Average (HMA), momentum analysis from the Stochastic Oscillator, and cumulative buying and selling pressure analysis from the Volume Balance.

This script calculates historical buying and selling volume over a specified period. It then weights the Stochastic oscillator to reflect momentum consistency before displaying pressure zones as transparent boxes above and below the price, along with an alert system for when market pressure shifts.

The indicator is designed to help users make entry decisions based on direction + force + momentum within a single tool.

█ CONCEPTS

Trend Filter — HMA

HMA is used as a filter for the main market trend, calculated using a formula that reduces lag compared to conventional moving averages. The HMA line changes color according to its slope.

• Green indicates an uptrend.
• Red indicates a downtrend.

The order entry system will only consider directions corresponding to the HMA color.

Pressure Strength — Volume Balance

The script incorporates historical volume based on a specified number of bars, separated into:

• Buy Volume when Close > Open
• Sell Volume when Close < Open

The volume on both sides is then weighted by the Stochastic oscillator to create adjBuy and adjSell values, reflecting momentum-adjusted pressure.

The width of the Buy and Sell zone boxes is calculated based on the ratio of dominant force. This allows for an immediate visual representation of the strength of each side.

Momentum Confirmation — Stochastic

The Stochastic indicator is used to confirm the continuation of market momentum.

• Stochastic is in the high zone, reflecting upward momentum.
• Stochastic is in the low zone, reflecting downward momentum.

Using Stochastic as a weight helps reduce signals caused by temporary volume that do not align with the momentum direction.

█ ENTRY RULES

Enter a Buy position when all of the following conditions occur simultaneously:

• HMA is green.
• The Buy box is wider than the Sell box.
• Stochastic is in the high zone.

Enter a Sell position when all of the following conditions occur simultaneously:

• HMA is red.
• The Sell box is wider than the Buy box.
• Stochastic is in the low zone.

The concept of this entry rule is based on a three-layer confirmation principle: the main trend, market dominance, and momentum support. When all three components are aligned, the entry is successful. The probability of continued movement in that direction increases.

█ TRADE LOGIC STRUCTURE

The system operates under a three-layer confirmation structure:

Layer 1: Trend Direction from HMA
Layer 2: Pressure Dominance from the width of the Volume box
Layer 3: Momentum Bias from the position of the Stochastic

Order entries occur when all three layers signal in the same direction.

█ RISK MANAGEMENT SUGGESTION

To enhance risk management systematically, consider the following approaches:

• Place Stop Loss below the last Buy Zone when holding a Buy position.
• Place Stop Loss above the last Sell Zone when holding a Sell position.
• Use ATR to dynamically determine the Stop Loss distance.

This approach helps manage risk in line with market volatility.

█ ALERT SYSTEM

The script creates alert conditions only when market momentum shifts:

• New BUY Zone
• New SELL Zone

Alerts occur only when buying or selling pressure clearly dominates the other side, reducing redundant signals and highlighting points of market momentum structural change.