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Plutus Flow v1.0 Quick Reference

One-page cheat sheet for OBV divergence detection

🎯 The 3 Layers

Layer Display Purpose What to Watch
1. OBV Line Main Line Cumulative Volume Rising = accumulation, Falling = distribution
2. Trend Ribbons Background Color Volume Trend Green = bullish trend, Red = bearish trend
3. Divergence Labels Text Markers Reversal Signals "Bull Div" = bullish reversal, "Bear Div" = bearish reversal

📊 Divergence Types

Type Price Action OBV Action Meaning
🟢 Bull Div Lower lows Higher lows Selling pressure weakening → potential reversal up
🔴 Bear Div Higher highs Lower highs Buying pressure weakening → potential reversal down

⚡ Quick Interpretation Guide

OBV Line Reading

  • OBV rising + Price rising: Healthy uptrend - volume confirms move
  • OBV falling + Price falling: Healthy downtrend - volume confirms move
  • OBV rising + Price falling: BULL DIV - accumulation during decline
  • OBV falling + Price rising: BEAR DIV - distribution during rally

Trend Ribbon Reading

  • Green ribbon: Volume trend bullish - buyers in control
  • Red ribbon: Volume trend bearish - sellers in control
  • Ribbon color change: Volume trend shift - momentum changing

🤝 Best Combinations

With Pentarch

  • Pentarch TD + Bull Div = Early-cycle + volume confirmation
  • Pentarch CAP + Bear Div = Climax exhaustion + volume weakness
  • Pentarch BDN + Bear Div = Decline initiation + distribution confirmation

Example: Pentarch TD at Daily Low + Bull Div = Strong reversal setup

With Janus Atlas

  • Bull Div at Daily/Weekly Low = Reversal signal + level support
  • Bear Div at Daily/Weekly High = Reversal signal + level resistance
  • OBV rising into Janus level = Volume accumulation near support

With Harmonic Oscillator

  • Bull Div + Harmonic STRONG BULL = Divergence + momentum alignment
  • Bear Div + Harmonic STRONG BEAR = Divergence + momentum reversal
  • Green ribbon + BULL signal = Volume trend + momentum confirm

⚙️ Recommended Settings

Smoothing Level 1-2 (Fast Response)

  • More sensitive to changes
  • Divergences detected earlier
  • More noise, more false signals
  • Best for: Scalping, fast timeframes (1m-15m)

Smoothing Level 3 (Balanced - Default) ⭐

  • Good balance of sensitivity vs noise
  • Recommended for most traders
  • Clear divergence signals
  • Best for: Day trading, swing trading (1H-Daily)

Smoothing Level 4-5 (Clean Trends)

  • Very smooth OBV line
  • Fewer divergences, higher quality
  • Less responsive to short-term moves
  • Best for: Position trading, Weekly charts

⚠️ When NOT to Use

❌ Low volume periods (OBV unreliable with thin volume)
❌ First 5-10 minutes of market open (volume settling)
❌ Assets with fake volume (wash trading distorts OBV)
❌ Extreme gaps (OBV calculation affected by gaps)

🔧 Troubleshooting

"OBV line very choppy"
→ Increase smoothing level (try Level 4 or 5)
→ Asset may have erratic volume
→ Use higher timeframe for cleaner signal

"No divergence signals appearing"
→ Divergences are rare (normal)
→ Price and volume are in agreement (healthy trend)
→ Lower smoothing level for earlier detection

"Divergence appeared but no reversal"
→ Divergences show weakness, not guaranteed reversals
→ Combine with Pentarch/Janus for confirmation
→ Wait for trend ribbons to change color

📊 Timeframe Suitability

Timeframe Suitability Notes
1m-5m ⚠️ Noisy Choppy OBV, use Level 1-2 smoothing
15m ✅ Good Day trading, Level 3 smoothing works well
1H ⭐ Best Day/swing trading, clear divergence signals
4H ⭐ Best Swing trading, high-quality divergences
Daily ✅ Excellent Position trading, strongest divergence reliability
Weekly ✅ Excellent Long-term, rare but powerful divergences

🎯 Divergence Success Tips

  1. Divergences are early warnings — Not immediate reversals
  2. Combine with other indicators — Divergence + Pentarch TD = strong setup
  3. Watch the ribbons — Green/red background shows volume trend
  4. OBV trend > Price — Volume leads price, OBV shows smart money
  5. Patience required — Divergences can persist for days/weeks

📖 Key Concepts

OBV (On-Balance Volume): Cumulative volume indicator showing buying vs selling pressure
Divergence: When price and OBV move in opposite directions (early reversal signal)
Trend Ribbons: Background color showing current volume trend direction
Smoothing Levels: 1-5 scale adjusting OBV sensitivity (3 = default)

📞 Need Help?

Full Documentation: Plutus Flow v1.0 Complete Guide
All Cheat Sheets: All Indicators At-A-Glance
Support: support@signalpilot.io

Print this page for quick desk reference | Last Updated: January 2025