Jump Fade Script

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-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW Jump Fade v1.0.0
--
-- A jump is one candle whose log return is an extreme outlier against the last
-- 120 one-minute returns. The script marks the first candle that reaches 3
-- standard deviations of that jump measure and expects a short snap back.
-- It is built for 1-minute candles with a 1-minute expiry.
--
-- HIGHER: the jump z-score falls to or below -3 and the previous z-score was
--         above -3 (a fast drop that is fading).
-- LOWER:  the jump z-score rises to or above +3 and the previous z-score was
--         below +3 (a fast rise that is fading).
--
-- The internal long test used this script only between 18:00 and 21:00 UTC and
-- skipped signals whose candle closed at :15. The script has no clock, so it
-- still marks outside that session; you must choose when you use it.
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW Jump Fade",
    short_name = "IQOW JUMPFADE",
    overlay = true
}

input_group {
    "1. Jump measure",
    return_period = input (120, "Return deviation period", input.integer, 10, 500),
    jump_threshold = input (3, "Standard deviations of the jump", input.double, 1, 8, 0.1, false)
}

input_group {
    "2. Supertrend filter",
    supertrend_filter_enabled = input { default = true, name = "Use the Supertrend filter", type = input.boolean },
    supertrend_must_disagree = input { default = true, name = "Require Supertrend to disagree", type = input.boolean },
    supertrend_atr_period = input (10, "Supertrend ATR period", input.integer, 1, 100),
    supertrend_multiplier = input (3, "Supertrend ATR multiplier", input.double, 0.5, 10, 0.1, false)
}

input_group {
    "Display and advice",
    filter_lines_visible = input { default = true, type = input.plot_visibility },
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    supertrend_up_color = input { default = "#25E154", type = input.color },
    supertrend_down_color = input { default = "#FF6C58", type = input.color },
    line_width = input { default = 1, type = input.line_width },
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

-- One-candle log return and its trailing deviation. Population deviation is
-- the sample form scaled by sqrt ((n - 1) / n), which is what the research used.
log_return = change (log (close))
return_deviation = stdev (log_return, return_period) * math.sqrt ((return_period - 1) / return_period)
return_deviation_previous = return_deviation [1]
jump_z = log_return / max (return_deviation_previous, 1e-10)

-- Supertrend, same recursion as the official library indicator.
band_offset = rma (tr, supertrend_atr_period) * supertrend_multiplier
raw_up = hl2 - band_offset
raw_down = hl2 + band_offset
trail_up = iff (not na (trail_up) and close [1] > trail_up [1], max (raw_up, trail_up [1]), raw_up)
trail_down = iff (not na (trail_down) and close [1] < trail_down [1], min (raw_down, trail_down [1]), raw_down)
trend_is_up = iff (close > trail_down [1], true, iff (close < trail_up [1], false, nz (trend_is_up [1], true)))

-- Current-bar scalars for the Lua rule logic.
local z_now = get_value (jump_z, nil)
local z_previous = get_value (jump_z [1], nil)
local deviation_now = get_value (return_deviation_previous, nil)
local trend_now = get_value (trend_is_up, nil)
local trend_before = get_value (trend_is_up [1], nil)
local trail_before = get_value (trail_up [1], nil)

local trend_ready = (not supertrend_filter_enabled) or (trend_now ~= nil and trend_before ~= nil and trail_before ~= nil)
local data_is_ready =
    z_now ~= nil and
    z_previous ~= nil and
    deviation_now ~= nil and deviation_now > 0 and
    trend_ready

-- First candle that crosses the outer jump level.
local higher_event = data_is_ready and z_previous > -jump_threshold and z_now <= -jump_threshold
local lower_event = data_is_ready and z_previous < jump_threshold and z_now >= jump_threshold

-- Optional Supertrend filter: agree with the fade, or (by default) disagree with it.
local higher_trend_allows =
    (not supertrend_filter_enabled) or
    (supertrend_must_disagree and not trend_now) or
    ((not supertrend_must_disagree) and trend_now)
local lower_trend_allows =
    (not supertrend_filter_enabled) or
    (supertrend_must_disagree and trend_now) or
    ((not supertrend_must_disagree) and not trend_now)

higher_setup = conditional (higher_event and higher_trend_allows)
lower_setup = conditional (lower_event and lower_trend_allows)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

if filter_lines_visible and supertrend_filter_enabled then
    plot (iff (trend_is_up, trail_up, trail_down), "Supertrend", get_value (trend_is_up, true) and supertrend_up_color or supertrend_down_color, line_width)
end

if signals_visible then
    plot_shape (
        confirmed_higher,
        "JUMP HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.belowbar,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "JUMP LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.abovebar,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end