# reading the chart

This guide walks you through how to interpret what you see on the oscillator panel in real time.

## The Panel at a Glance

```
100 ─── [Volatility OB solid line] ──────────────── RED DOTS APPEAR HERE
 80 ─── [Volatility OB] ─────────────────────────────────────────────────
 70 - - [Momentum OB dashed] - - - - - - - - - - - - - - - - - - - - - -
 65 ···· [Chop Zone High dotted] ·······································
 50 ─── [Midline] ─────── Order Flow bars centered here ────────────────
 35 ···· [Chop Zone Low dotted] ········································
 30 - - [Momentum OS dashed] - - - - - - - - - - - - - - - - - - - - - -
 20 ─── [Volatility OS] ──────────────────────────────────────────────
  0 ─── [Volatility OS solid line] ───────────── GREEN DOTS APPEAR HERE
```

## Step-by-Step: Reading a Long Setup

{% stepper %}
{% step %}

#### Check the Expansion Wave (Blue Fill)

Look at the lower half of the panel (0–50). Is there a bright cyan/blue fill growing upward? This represents bullish Expansion Wave activity — price is pushing outside its statistical range with increasing force.

**No fill or a faint fill** = expansion is weak or absent. Without Expansion Wave support, the signal relies on Momentum and Order Flow alone.
{% endstep %}

{% step %}

#### Check the Momentum Line (Purple)

Is the purple line below 30 (Momentum Oversold, shown by the green dashed line), or has it been there recently? Is it now rising? Is it above the yellow Momentum MA?

**Momentum above its MA and rising after touching Oversold** = the core long condition. This is the most important pillar to read.
{% endstep %}

{% step %}

#### Check the Order Flow Bars (Green/Red)

Are the bars green and growing taller than recent bars? Is the color shifting from red to green?

**Growing green Order Flow bars** = buying pressure is building. This confirms the long.
{% endstep %}

{% step %}

#### Check the Volatility Line (Orange)

Is the orange line below 80 (Volatility Overbought)? Is it rising or curling up from near 20 (Volatility Oversold)?

**Orange Volatility line rising from below 20** is the ideal long entry condition. **Orange line at or above 80** = long signal will be blocked by the Volatility gate.
{% endstep %}

{% step %}

#### Confirm the Dot

A green dot at the bottom of the panel means all active filters passed and the Base Min Score was met. This is your entry signal.
{% endstep %}
{% endstepper %}

## Step-by-Step: Reading a Short Setup

Mirror of the above:

1. **Blue fill in the upper half (50–100)** = bearish Expansion Wave building
2. **Purple Momentum line falling from above 70, now below yellow MA** = Momentum rejecting from overbought
3. **Red Order Flow bars growing** = selling pressure building
4. **Orange Volatility line falling from near 80** = Volatility exhaustion and turn
5. **Red dot at the top of the panel** = short entry confirmed

## Common Patterns to Recognize

### The Classic Recovery (Long)

Momentum dips below 30 (Momentum Oversold), bounces, crosses back above the yellow MA. Order Flow bars flip from red to green. Expansion Wave fill is building in the lower half. Volatility line is turning up from below 20.

**Green dot fires.** This is the highest-quality long setup — all four pillars agreeing.

### The Exhaustion Fade (Short)

Momentum spikes above 70 on a surge then immediately begins falling. Order Flow bars flip from green to red. Volatility line is at 80+ and rolling over. Expansion Wave fill is brightening in the upper half.

**Red dot fires.** Classic short after an overextended move.

### The Failed Breakout

Momentum tries to push above 70 but Order Flow doesn't confirm — bars remain thin or turn red even as Momentum rises. The divergence system may detect a bearish Momentum divergence. No long dot fires. The subsequent red dot is often a strong short.

### The Chop Zone Warning

Momentum line is between 35 and 65. Order Flow bars alternate between small green and red with no conviction. No dots are firing.

**This is a ranging environment.** The Chop Zone block is working as intended. Wait for the Momentum line to exit above 65 or below 35 before looking for entries.

## What to Ignore

* Single bars of green/red Order Flow surrounded by opposite-colored bars — these are short-term noise.
* Momentum briefly touching the Oversold/Overbought level in a single bar then snapping back — a single-bar spike without follow-through is not a setup.
* The Volatility line sitting near 80 or 20 for extended periods in a strong trend — this is normal and doesn't mean the trend is over.

## Using With Price Context

The oscillator panel works best when combined with basic price chart context:

* **At key support or resistance levels** — a green dot near a well-known support level carries more weight than one in open air.
* **After a structural break** — the first signal after a significant range breakout or breakdown tends to be a strong follow-through entry.
* **When Order Flow bars and price volume are both confirming** — if Order Flow is green and the price chart's volume bar is also large and green, the conviction is reinforced.


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