Lethe Effect indicator

[Adeodatus]

Inspired by the Greek River Lethe along the banks of forgetfulness and obscurity, price impulses gently fade, restoring balance and harmony like equilibrium. A toggled buy (Y/N) indicator using shaded areas divergence engines enhance leading strategies.

#===========================================
# LETHE EFFECT — HARMONY OSCILLATOR v2.02
# ATR-Normalized • Divergence Engine • Strategy Mode
# Adeodatus/cbt / 31/12/25
#===========================================

declare lower;

#------------------------- INPUTS -------------------------
input length             = 14;
input decay_factor       = 0.85;
input overBought         = 70;
input overSold           = 30;
input midLevel           = 50;
input enableStrategy     = no;
input divergenceLookback = 5;

#-------------------- MOMENTUM + FADE ---------------------
def momentum = close - close[length];

rec faded = if BarNumber() == 1
            then momentum
            else faded[1] * decay_factor + momentum * (1 - decay_factor);

#----------------------- NORMALIZATION ---------------------
def ATRnorm = Max(ATR(length), AbsValue(momentum));
def LetheValue = if ATRnorm != 0
                 then (faded / ATRnorm * 50) + 50
                 else 50;

#------------------------- PLOTS ---------------------------
plot Lethe = LetheValue;
Lethe.SetDefaultColor(Color.CYAN);
Lethe.SetLineWeight(3);

plot MidLine = midLevel;
MidLine.SetDefaultColor(Color.WHITE);
MidLine.SetStyle(Curve.LONG_DASH);

plot OB = overBought;
OB.SetDefaultColor(Color.RED);
OB.SetStyle(Curve.SHORT_DASH);

plot OS = overSold;
OS.SetDefaultColor(Color.PLUM);
OS.SetStyle(Curve.SHORT_DASH);

# Correct cloud ordering
AddCloud(OB, Lethe, Color.DARK_RED, Color.DARK_RED);
AddCloud(Lethe, OS, Color.DARK_GRAY, Color.DARK_GRAY);

#----------------------- SIGNALS ---------------------------
def buySignal  = Crosses(Lethe, OS, CrossingDirection.ABOVE);
def sellSignal = Crosses(Lethe, OB, CrossingDirection.BELOW);

plot BuyArrow = if buySignal then OS else Double.NaN;
BuyArrow.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
BuyArrow.SetDefaultColor(Color.GREEN);
BuyArrow.SetLineWeight(4);

plot SellArrow = if sellSignal then OB else Double.NaN;
SellArrow.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);
SellArrow.SetDefaultColor(Color.RED);
SellArrow.SetLineWeight(4);

#------------------- DIVERGENCE ENGINE ---------------------
def priceLow  = low == Lowest(low, divergenceLookback);
def letheLow  = Lethe == Lowest(Lethe, divergenceLookback);
def priceHigh = high == Highest(high, divergenceLookback);
def letheHigh = Lethe == Highest(Lethe, divergenceLookback);

def isBullDiv = priceLow and !letheLow;     # bullish divergence
def isBearDiv = priceHigh and !letheHigh;   # bearish divergence

plot BullDivMark = if isBullDiv then Lethe else Double.NaN;
BullDivMark.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
BullDivMark.SetDefaultColor(Color.GREEN);

plot BearDivMark = if isBearDiv then Lethe else Double.NaN;
BearDivMark.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);
BearDivMark.SetDefaultColor(Color.RED);

#------------------------- LABELS ---------------------------
AddLabel(
    yes,
    "Lethe Harmony: " + Round(Lethe, 1),
    if Lethe > OB then Color.RED
    else if Lethe < OS then Color.PLUM
    else if AbsValue(Lethe - midLevel) < 5 then Color.WHITE
    else Color.GRAY
);

 

[Adeodatus]

So the river can run dry, but could not get the desired split to the two streams, it just wanted to dominate when the lower chart plugged upper. Rewrite result, Price Chart Dots!! Keeping with the same type Lethe System - momentum decay, absolute value, fade and crossover.


Upper chart version

#====================================================
# Lethe Effect – Upper-Only Micro Signal
# No lower pane. No scale wars. No visual noise.
#====================================================

declare upper;

input length = 14;
input decay_factor = 0.85;
input overSoldLevel = 30;
input overBoughtLevel = 70;

#------------------------------
# Core Math
#------------------------------
def momentum = close - close[length];

rec fadedMomentum =
if IsNaN(fadedMomentum[1]) then momentum
else fadedMomentum[1] * decay_factor
+ momentum * (1 - decay_factor);

def maxAbs = Highest(AbsValue(momentum), length);

def letheValue =
if maxAbs != 0
then (fadedMomentum / maxAbs * 50) + 50
else 50;

#------------------------------
# Micro Price Signals ONLY
#------------------------------
plot HarmonyBuy =
if letheValue crosses above overSoldLevel
then low
else Double.NaN;

HarmonyBuy.SetPaintingStrategy(PaintingStrategy.POINTS);
HarmonyBuy.SetDefaultColor(Color.GREEN);
HarmonyBuy.SetLineWeight(2);

plot HarmonySell =
if letheValue crosses below overBoughtLevel
then high
else Double.NaN;

HarmonySell.SetPaintingStrategy(PaintingStrategy.POINTS);
HarmonySell.SetDefaultColor(Color.RED);
HarmonySell.SetLineWeight(2);