JOAT Pressure Composite [JOAT]JOAT Pressure Composite
Introduction
JOAT Pressure Composite is an open-source accumulation-distribution and participation oscillator built to measure whether buying or selling pressure is strengthening, weakening, rotating, or diverging from price.
It is designed to expose internal sponsorship behind price movement rather than price movement alone.
The script combines weighted close-location flow, relative-volume sponsorship, volume sigma, effort, efficiency, momentum bias, VWAP bias, and confirmed higher-timeframe context into one composite pressure model.
The problem it solves is hidden participation.
Price can rise on weak effort.
Price can fall on poor sponsorship.
Price can continue moving while internal pressure deteriorates.
Pressure Composite tries to expose those changes earlier by measuring how much of the move is actually being sponsored by participation.
The oscillator pane carries the composite, signal line, envelope, flow ribbon, and extreme states.
At the same time, the indicator projects tailored information onto the main chart.
Price divergence is labeled clearly.
Expansion and absorption states are labeled directly on candles.
Anchored VWAP and trend context are overlaid on price so the oscillator and chart remain connected.
Core Concepts
1. Weighted Pressure Engine
The base flow uses close-location value and weighted volume.
closeLocationValue = (2.0 * close - low - high) / barRange
weightedVolume = volume * sponsorshipFactor
2. Pressure Z-Score
The raw pressure series is normalized with a Z-score.
3. Sigma and Effort Layers
Volume sigma and effort help distinguish aggressive participation from ordinary rotation.
4. Efficiency Bias
The script measures whether price is moving efficiently over the selected lookback.
5. VWAP Bias
Distance from anchored VWAP is normalized in ATR terms.
6. Confirmed Divergence Logic
Pivot-based divergence compares oscillator highs and lows to price highs and lows.
7. Expansion and Absorption Labels
The chart prints Bid Expansion, Offer Expansion, Bull Absorption, and Bear Absorption labels directly on price.
8. Confirmed Higher-Timeframe Context
The script pulls confirmed HTF composite states only.
Features
Composite pressure model: blends pressure, effort, sigma, efficiency, and VWAP bias
Flow ribbon: shows whether pressure is widening or fading
Envelope and extreme states: separates normal expansion from aggressive pressure
Confirmed divergence detection: compares oscillator pivots to price pivots
Clear divergence labeling: bullish and bearish pressure divergence is labeled directly on price
Expansion / absorption labels: market states are marked on actual candles
Anchored VWAP context: projected onto the chart for alignment
Fast / slow trend context: price-side guides remain visible while using the oscillator
Confirmed HTF states: non-repainting higher-timeframe pressure context
No dashboard: information is pushed into the chart and oscillator instead of a table
Input Parameters
Composite Engine:
Smoothing Type
Flow Smoothing
Normalization Length
Relative Volume Baseline
Relative Volume Boost
Volume Sigma Length
Effort Smoothing
Efficiency Length
Signal Length
Envelope Length
Envelope Multiplier
Extreme Multiplier
Pivot Length
Divergence Scan
ATR Length
Qualification / Display:
Use Trend Gate
Trend Fast EMA
Trend Slow EMA
Use VWAP Gate
Minimum Spread
Show Histogram
Show Signal Line
Show Envelope
Show Flow Ribbon
Show Divergence
Tint Price Bars
Shade Momentum States
Show Price Context
Show Price Event Labels
How to Use This Indicator
Step 1: Read the composite vs signal relationship to judge widening or fading pressure.
Step 2: Check whether the state is expansion or absorption.
Step 3: Watch labeled divergences closely, especially after extension.
Step 4: Use anchored VWAP and trend overlays to connect the oscillator back to price structure.
Step 5: Use confirmed HTF context as a quality filter rather than a prediction tool.
Indicator Limitations
Divergences can persist before price responds
Confirmed higher-timeframe context intentionally lags unfinished HTF candles
Low-volume environments can flatten the composite even while price drifts
Pressure quality does not guarantee immediate reversal or continuation
Originality Statement
This script is original in how it integrates weighted close-location flow, RVOL sponsorship, sigma, effort, efficiency, VWAP distance, confirmed HTF context, and direct price-chart state labeling into one coherent participation framework.
The components are combined because they all address one question:
how much real sponsorship exists behind current price movement.
Disclaimer
This indicator is provided for educational and informational purposes only.
It is not financial advice.
Pressure readings and divergences do not guarantee reversal or continuation.
Use the script as context and confirmation, not as a promise of outcome.
Best Use Cases
Measuring whether price movement is being sponsored by real participation
Spotting divergence between price and internal pressure
Reading expansion versus absorption conditions
Combining participation context with VWAP and trend structure
Interpretation Notes
The strongest bullish pressure states usually include positive pressure, supportive spread, constructive effort, and favorable price context above value.
The strongest bearish pressure states are the mirror image.
Divergences are most useful when they appear after extension or at major contextual levels.
Absorption labels should be treated as warnings that apparent directional continuation may be losing quality.
Publication Notes
This script is intended to be published with a clean chart where the oscillator, labeled divergence, and at least one price-context label are clearly visible.
Because there is no dashboard, the publication image should make the chart-side annotations easy to read.
Keep the chart clean so the viewer can immediately understand that the script links oscillator behavior back to price.
-Made with passion by jackofalltrades\
Indicador Pine Script®






















