What is PSP?
In AKQX, a PSP is a divergence between two correlated pairs where their candles for the same period close in opposite directions.
What does PSP mean in practice?
Take two pairs that usually move together. If, over the same candle period, one closes up and the other closes down, the divergence marks that candle as a PSP. The detector flags it on the timeframe you choose.
Entry logic can then wait for a body-close breakout of the PSP candle's high or low on a faster timeframe. The marked candle expires after a configurable number of bars, so a setup that is not taken does not wait forever to be right.
A worked example
Illustrative only: on a 30-minute candle, pair A closes up and correlated pair B closes down. That candle is marked, and an entry is considered only if a 3-minute candle closes beyond its high or low before it expires.
How to read or test it
Start by looking at how often a PSP actually forms on the pair and timeframe you are studying, since a signal that appears twice a year cannot support a strategy. Then test the follow-up rule, the breakout of the marked candle's high or low, with a few different expiry lengths and see how sensitive the result is. As with any pair-based signal, confirm the two instruments really are correlated.
How AKQX handles PSP
AKQX detects PSP divergences and PSP-candle breakouts in its Smart Strategy Builder. This is AKQX's own working definition, not a universal standard.
See ICT and SMC algo builder for the feature page.
A common mistake
Using the term as if it meant the same thing in every source. Confirm the definition before comparing results.
Educational only. This entry explains a term. It is not investment advice and does not recommend any trade, setting or strategy, and example numbers are illustrative, not results.
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