ChartPattern — how to read it

ChartPattern trades RSI divergences at the day's key levels on 10-minute extended-hours bars: a bullish divergence at the previous day's low or the pre-market low, a bearish one at the previous day's high or the pre-market high. Classic chart patterns are drawn too, for context. It uses the same watchlist and the same 60 days of bars as the RipsterCloud tabs.

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This is a members-only tab. The guide below is free to read; opening the live scanner requires a signed-in paid account.

What is on the chart

• PDH / PDL — the previous day's high and low, pre- and post-market included, each with a zone of 0.15 × the 10-minute ATR either side (green for PDH, red for PDL).
• PMH / PML — the 04:00–09:30 pre-market high and low (aqua), drawn once the pre-market is over. Trades can fire at PDH / PDL and at PMH / PML.
• ORBH / ORBL — the 09:30–09:45 opening range, also context only.
• Premium / Equilibrium / Discount — the dealing range, anchored on the latest confirmed 50-bar swing high and low and stretched by any new extreme. Premium is the top 5% of the range, Discount the bottom 5%, Equilibrium the 5% band around the midpoint.
• Trades — a yellow B or S pill on the bar the trade is entered, with its gray stop / target box. The level it traded off is shown in the table.
• Pattern breakouts — a pink B / S pill (for example S DT) with the pattern's outline (solid gray), swing legs (dashed), and its name, grade and score in gray. Context only, not traded.
• RSI divergences — white rB / rS pills at the divergence low or high, and a white dot on the bar that confirmed each (see below).
• Session VWAP (thin yellow line, on by default, broken between days) — the volume-weighted average price since the day's first bar. SPX has no volume of its own, so its VWAP is weighted by SPY's volume.
• EMA 13 / 48 / 200 for trend context, off by default. The VWAP and EMAs switches above the chart turn each on or off, and your choice is remembered.

When a trade prints

A trade needs an RSI divergence (the white rB / rS described below) at one of the day's levels, in any session, pre-market and after-hours included. Before 9:30 only PDH / PDL can trigger one, since PMH / PML are only set once the pre-market is over:

• Long (yellow B) — an rB whose divergence low sits within half a 10-minute ATR of PDL or PML, and on the bar that confirms the divergence price closes further from that level than on the bar before: it is already moving up and away.
• Short (yellow S) — the mirror: an rS whose divergence high sits within half an ATR of PDH or PMH, with the confirming bar closing further below the level than the bar before.

The yellow pill sits on the confirming bar, where the trade is entered; the table's last-signal column names the level, for example B @ 537.94 PML.

The pattern breakouts (pink)

Patterns come from a port of the Six Pattern Detector v2.4.2 at its default settings, and every breakout it finds is drawn as a pink B / S. They are context: they are not traded and not in the backtest. Ten pattern types are tracked: double top / bottom (DT / DB), compact M / W, multi-touch top / bottom (MT / MB), bull and bear flags (FLAG) and ascending / descending triangles (TRI). A breakout needs a closed bar beyond the pattern with a decisive candle, and the detector grades each one A (80+), B (65+) or C on its 0–100 score.

The signal column

The table's signal column shows a ticker's latest trade (yellow B / S), its latest white rB / rS and its latest pink pattern breakout, each with the number of 10-minute bars since it fired, as long as it is within the last 20 bars. An rB / rS counts from the bar that confirmed it. A blue outline marks one from the last three bars, and the tickers with the freshest signals sort to the top.

The trade plan on each signal

• Entry — the close of the bar that confirms the divergence.
• Stop — a tenth of an ATR past the divergence low (long) or high (short), never closer than half an ATR.
• TP1 / TP2 / TP3 — 1.5, 2.5 and 3 ten-minute ATRs from the entry, drawn as a gray trade box, with a third of the position closed at each. They are fixed distances, not multiples of the risk: closer targets are reached more often, which matters for options. The stop stays where it is after TP1 and TP2 (moving it to the entry cut the result in testing). The box ends where the trade ended: at the stop, at TP3 or at the 16:00 bell (for an after-hours trade, the end of the evening session).

White rB / rS — RSI divergence

The white rB and rS pills are the [EO SPX] RSI Divergence Signals, on the same 10-minute bars, with one change: an RSI low or high is confirmed by 3 bars after it instead of the indicator's 5, so a signal is known 20 minutes sooner. Over the 60-day backtest that earlier entry also helped: entering at the confirming bar with a stop just past the divergence low / high, the 3-bar version averaged about +0.10R per trade against about +0.01R for 5 bars, with the same number of signals. To match it in TradingView, set lookbackRight = 3 in the indicator.

• rB — a regular bullish divergence: price makes a lower low while RSI(14) makes a higher low, the two RSI lows 5 to 60 bars apart, with RSI having dipped to 33 or lower within the last 60 bars.
• rS — the mirror: a higher high in price, a lower high in RSI, with RSI having reached 60 or higher within the last 60 bars.
• Both need VIX at or below 20 on the bar that confirms them. The indicator's gamma gate only blocks once a net GEX value is entered, and its higher-timeframe gate is off by default, so neither is applied here.

Like the indicator, each pill is drawn back at the divergence low or high. An RSI low or high is only confirmed three bars later, so each pill appeared on the chart about 30 minutes after the bar it sits on. A small white dot under (rB) or over (rS) a later candle marks the bar where the divergence was confirmed, the point where it could actually have been acted on. On their own the rB / rS are context; the ones at a level that meet the rule above become the yellow trades.

The CB RSI Laguerre understudy

The pane under the chart is the CB RSI Laguerre MTF [6.2] at its default settings, on the same 10-minute bars. It is there for context: it does not change when a B or S prints.

• The line — an RSI from 0 to 1 built from four Laguerre filters (gamma 0.5) on a hybrid, Heikin-Ashi-style close. It reacts faster than a normal RSI. It turns green when it crosses up through 0.2 or 0.8 and stays green until it crosses back down through 0.8 or falls under 0.2; otherwise it is red.
• Clouds — green above the 0.8 overbought line, red below the 0.2 oversold line.
• Entry bubble — the latest long (the line crossing up through 0.2, or through 0.8 from a red state) or short (crossing down through 0.8, or through 0.2 from a green state), at that bar's close. Only closed bars can signal.
• Target bubble — the entry plus or minus 3 × the 14-bar average bar range, with the distance still needed. It turns green once the target has been reached.

The backtest

Every trade over roughly the last 60 days is replayed as a day trade, exactly as on the Ripster MTF Breakout tab: walked bar by bar until it is stopped, reaches TP3, or the 16:00 bell (the end of the evening for an after-hours trade); a bar that touches both the stop and a target counts as the stop. The pane shows how often each target was reached and the average result per trade in R for the whole position: each third banked at its target, whatever is left closed at the stop (−1R) or at the bell. It is split by level (PDH / PDL and PMH / PML), by side and by time of day.

When the rule was chosen, it had produced about 120 trades over 60 days across the watchlist, averaging about +0.13R per trade gross of costs and positive in both halves of the period. With the three targets at 1.5 / 2.5 / 3 ATR, TP1 was reached by about 54% of trades, TP2 by 37% and TP3 by 29%, for about +0.14R per trade. That is a modest edge on a small sample and one market regime; the live record in the pane is the one to watch.

Related: EMACloud trades the same PDH / PDL levels with an EMA trend filter, and Trendline shows premium / discount zones on pivot trendline breaks. See every scanner on the Help hub.

Educational content only — nothing on this page is financial advice or a recommendation to buy or sell any security. Signals are rule-based analytics; backtested and historical results do not guarantee future performance. Markets involve risk. © SPX Lens · About · Help & FAQ