Stan Weinstein Stage Analysis

// ============================================================
// ARCStage — Stan Weinstein Stage Analysis
// Author: Artha Research Capital (ARC)
// Description: Identifies and color-codes the four stages of
//              Stan Weinstein's Stage Analysis on any timeframe.
//              Designed primarily for Weekly charts.
// ============================================================

//@version=5
indicator(title="Stan Weinstein Stage Analysis", shorttitle="SW Stage", overlay=true, max_lines_count=50, max_labels_count=10)

// ============================================================
// ── SECTION 1: USER INPUTS
// ============================================================

// SMA length — Weinstein uses 30-week SMA (≈ 150 days on daily)
smaLen = input.int(30, title="SMA Length (weeks)", minval=5, maxval=200, group="Core Settings")

// Contraction detection window
contractionLen = input.int(15, title="Contraction Window (bars)", minval=5, maxval=50, group="Contraction Settings")

// Threshold to declare a "strong" Stage 2 (price well above SMA)
strongStage2Pct = input.float(8.0, title="Strong Stage 2 Threshold (%)", minval=1.0, maxval=30.0, step=0.5, group="Core Settings")

// Slope lookback to determine if SMA is rising/falling/flat
slopeLookback = input.int(4, title="SMA Slope Lookback (bars)", minval=1, maxval=20, group="Core Settings")

// Toggles
showBgColor    = input.bool(true,  title="Show Background Colors",     group="Display")
showContLines  = input.bool(true,  title="Show Contraction Lines",     group="Display")
showStageLbl   = input.bool(true,  title="Show Stage Label (Watermark)", group="Display")
showSMA        = input.bool(true,  title="Show 30W SMA Line",          group="Display")

// ============================================================
// ── SECTION 2: 30-WEEK SMA CALCULATION
// ============================================================

// The 30W SMA is the spine of Weinstein's method.
// On a weekly chart with smaLen=30, this is literally the 30-week SMA.
sma30 = ta.sma(close, smaLen)

// Plot SMA — visible, bold line
plot(showSMA ? sma30 : na, title="30W SMA", color=color.new(color.orange, 0), linewidth=2)

// ============================================================
// ── SECTION 3: SMA SLOPE DETECTION
// ============================================================

// Calculate slope as the change in SMA over the lookback period.
// We normalize by the SMA value to get a percentage slope.
smaSlope = (sma30 - sma30[slopeLookback]) / sma30[slopeLookback] * 100

// Thresholds for "rising", "flat", "falling"
slopeRisingThresh  =  0.5   // SMA gaining more than 0.5% over lookback → uptrend
slopeFallingThresh = -0.5   // SMA losing more than 0.5% over lookback → downtrend
// Between -0.5% and +0.5% → flat (Stage 1 or Stage 3)

isSlopeRising  = smaSlope >  slopeRisingThresh
isSlopeFalling = smaSlope <  slopeFallingThresh
isSlopeFlat    = not isSlopeRising and not isSlopeFalling

// ============================================================
// ── SECTION 4: PRICE POSITION RELATIVE TO SMA
// ============================================================

priceAboveSMA = close > sma30
priceBelowSMA = close < sma30

// How far (%) is price from SMA?
distFromSMA = (close - sma30) / sma30 * 100

// ============================================================
// ── SECTION 5: STAGE CLASSIFICATION
// ============================================================

// ── Stage 2: Price above SMA, SMA rising
isStage2 = priceAboveSMA and isSlopeRising

// ── Strong Stage 2: Same as Stage 2 but price well extended above SMA
isStage2Strong = isStage2 and distFromSMA > strongStage2Pct

// ── Stage 4: Price below SMA, SMA falling
isStage4 = priceBelowSMA and isSlopeFalling

// ── Stage 1 (Basing): Price near SMA, SMA flat, no clear up/downtrend
//    Often after Stage 4. Price moves sideways forming a base.
isStage1 = isSlopeFlat and math.abs(distFromSMA) < 10.0

// ── Stage 3 (Topping): After a Stage 2 advance, SMA flattens while
//    price oscillates around it. Price may dip below then recover.
//    We detect it as: flat SMA, but price was recently in Stage 2.
//    Heuristic: SMA flat AND price is within 10% band of SMA
//    AND recent history had a significant rally (price well above SMA earlier)
recentHighAboveSMA = ta.highest(close, 20) > sma30 * 1.08
isStage3 = isSlopeFlat and recentHighAboveSMA and math.abs(distFromSMA) < 10.0 and not isStage1

// Refine Stage 1 to avoid overlap with Stage 3:
// Stage 1 is after a downtrend (price was recently below SMA)
recentLowBelowSMA = ta.lowest(close, 20) < sma30 * 0.95
isStage1 := isSlopeFlat and recentLowBelowSMA and math.abs(distFromSMA) < 12.0

// ============================================================
// ── SECTION 6: BACKGROUND COLOR CODING
// ============================================================

// Stage 1 — Gray (Basing / Accumulation)
bgStage1 = color.new(color.gray,   75)

// Stage 2 — Green (Advancing)
bgStage2 = color.new(color.green,  75)

// Stage 2 Strong — Dark Green (Strong Advance, extended)
bgStage2S = color.new(#006400,     65)  // dark green

// Stage 3 — Orange (Topping / Distribution)
bgStage3 = color.new(color.orange, 70)

// Stage 4 — Red (Declining)
bgStage4 = color.new(color.red,    75)

// Select background color based on stage
bgColor = isStage4     ? bgStage4  :
          isStage2Strong ? bgStage2S :
          isStage2     ? bgStage2  :
          isStage3     ? bgStage3  :
          isStage1     ? bgStage1  :
          na

bgcolor(showBgColor ? bgColor : na, title="Stage Background")

// ============================================================
// ── SECTION 7: STAGE LABEL (WATERMARK ON LAST BAR)
// ============================================================

// Build a stage string for the label
stageStr = isStage4      ? "● Stage 4 — Declining"  :
           isStage2Strong ? "● Stage 2 — Strong Advance" :
           isStage2      ? "● Stage 2 — Advancing"  :
           isStage3      ? "● Stage 3 — Topping"    :
           isStage1      ? "● Stage 1 — Basing"     :
           "● Stage — Undefined"

// Label color matching stage
lblColor = isStage4      ? color.red     :
           isStage2Strong ? color.new(#006400, 0) :
           isStage2      ? color.green   :
           isStage3      ? color.orange  :
           isStage1      ? color.gray    :
           color.white

// Only draw label on the most recent bar to act as a dynamic watermark
if showStageLbl and barstate.islast
    label.new(
      x         = bar_index,
      y         = high * 1.01,
      text      = stageStr,
      color     = lblColor,
      textcolor = color.white,
      style     = label.style_label_left,
      size      = size.normal,
      tooltip   = "Stan Weinstein Stage Analysis\nSMA Slope: " + str.tostring(smaSlope, "#.##") + "%\nDist from SMA: " + str.tostring(distFromSMA, "#.##") + "%"
    )

// ============================================================
// ── SECTION 8: CONTRACTION ZONE DETECTION
// ============================================================
// A contraction zone is where the price range (high - low) is
// narrowing over recent bars — indicating compression before
// a potential breakout or breakdown.
//
// We detect it by comparing the current N-bar range to the
// prior N-bar range. If current range < prior range by a
// meaningful margin, we flag it as a contraction.

// Rolling highest high and lowest low over the contraction window
rollingHigh = ta.highest(high, contractionLen)
rollingLow  = ta.lowest(low,   contractionLen)
rollingRange = rollingHigh - rollingLow

// Compare to prior window range
priorHigh  = ta.highest(high, contractionLen)[contractionLen]
priorLow   = ta.lowest(low,   contractionLen)[contractionLen]
priorRange = priorHigh - priorLow

// Contraction detected if current range is tighter than prior range by >15%
isContracting = rollingRange < priorRange * 0.85

// ── Draw blue dotted horizontal lines during contraction zones
// We use a line from current bar back contractionLen bars

// Upper resistance line (at rolling high of contraction window)
var line contractionHigh = na
var line contractionLow  = na

if showContLines
    if isContracting
        // Delete previous lines and redraw dynamically
        line.delete(contractionHigh)
        line.delete(contractionLow)

        contractionHigh := line.new(
          x1    = bar_index - contractionLen,
          y1    = rollingHigh,
          x2    = bar_index,
          y2    = rollingHigh,
          color = color.new(color.blue, 10),
          width = 1,
          style = line.style_dotted
        )

        contractionLow := line.new(
          x1    = bar_index - contractionLen,
          y1    = rollingLow,
          x2    = bar_index,
          y2    = rollingLow,
          color = color.new(color.blue, 10),
          width = 1,
          style = line.style_dotted
        )

// ============================================================
// ── SECTION 9: OPTIONAL — CONTRACTION ZONE SHADING
// ============================================================
// Subtle blue tint on contracting bars
contractionBg = color.new(color.blue, 90)
bgcolor(showContLines and isContracting ? contractionBg : na, title="Contraction Zone")

// ============================================================
// ── SECTION 10: ADDITIONAL PLOTS & INFO TABLE
// ============================================================

// Plot a small triangle marker when price breaks above contraction zone
// (potential Stage 2 breakout signal)
contractionBreakout = isContracting[1] and not isContracting and close > rollingHigh[1] and isStage2
plotshape(
  contractionBreakout,
  title     = "Breakout from Contraction",
  style     = shape.triangleup,
  location  = location.belowbar,
  color     = color.lime,
  size      = size.small,
  text      = "BO"
)

// Plot a small triangle marker for Stage 4 breakdown from contraction
contractionBreakdown = isContracting[1] and not isContracting and close < rollingLow[1] and isStage4
plotshape(
  contractionBreakdown,
  title     = "Breakdown from Contraction",
  style     = shape.triangledown,
  location  = location.abovebar,
  color     = color.red,
  size      = size.small,
  text      = "BD"
)

// ── Info Table (bottom-right corner) — shows current metrics
var table infoTable = table.new(position.bottom_right, 2, 5, bgcolor=color.new(color.black, 60), border_color=color.new(color.white, 50), border_width=1)

if barstate.islast
    table.cell(infoTable, 0, 0, "Metric",        text_color=color.white, text_size=size.small, bgcolor=color.new(color.gray, 40))
    table.cell(infoTable, 1, 0, "Value",          text_color=color.white, text_size=size.small, bgcolor=color.new(color.gray, 40))
    table.cell(infoTable, 0, 1, "Current Stage",  text_color=color.white, text_size=size.small)
    table.cell(infoTable, 1, 1, stageStr,         text_color=lblColor,    text_size=size.small)
    table.cell(infoTable, 0, 2, "30W SMA",        text_color=color.white, text_size=size.small)
    table.cell(infoTable, 1, 2, str.tostring(math.round(sma30, 2)), text_color=color.orange, text_size=size.small)
    table.cell(infoTable, 0, 3, "SMA Slope %",    text_color=color.white, text_size=size.small)
    table.cell(infoTable, 1, 3, str.tostring(smaSlope, "#.##") + "%", text_color=isSlopeRising ? color.green : isSlopeFalling ? color.red : color.gray, text_size=size.small)
    table.cell(infoTable, 0, 4, "Dist from SMA",  text_color=color.white, text_size=size.small)
    table.cell(infoTable, 1, 4, str.tostring(distFromSMA, "#.##") + "%", text_color=distFromSMA > 0 ? color.green : color.red, text_size=size.small)

// ============================================================
// ── END OF SCRIPT
// ── NOTE: For most accurate Stage detection, use Weekly chart
//    with SMA Length = 30. On Daily charts, consider using
//    SMA Length = 150 (approx. 30 weeks × 5 trading days).
// ============================================================