## Step 1: Add the Indicator 1. Open any chart on TradingView 2. Click "Indicators" (top toolbar) or press / 3. Search: **Goldilocks and the Three Bears** 4. Click the result by **Algoat_Alpha** 5. The indicator loads with default settings and a dashboard in the top-right corner ## Step 2: Understand the Dashboard The dashboard shows three rows: | Row | Label | Bullish When | Bearish When | |---|---|---|---| | Papa | 🐂 or 🐻 | Price > MA | Price < MA | | Mama | 🐂 or 🐻 | RSI > 50 | RSI < 50 | | Baby | 🐂 or 🐻 | MACD > Signal | MACD < Signal | When all three show 🐂 → **Goldilocks Zone (Bullish)** When all three show 🐻 → **Goldilocks Zone (Bearish)** A signal label prints on the chart only at the exact bar where the third layer joins the other two. ## Step 3: Recommended Settings by Timeframe ### Daily Charts (Swing Trading) | Setting | Value | Why | |---|---|---| | MA Type | SMA | Smoother, fewer false crosses | | MA Length | 20 | Standard institutional lookback | | RSI Length | 14 | Default, well-tested | | RSI Threshold | 50 | Standard midline | | MACD | 12 / 26 / 9 | Classic settings | ### 4H Charts (Active Trading) | Setting | Value | Why | |---|---|---| | MA Type | EMA | Faster reaction to 4H moves | | MA Length | 20 | Keeps up with intraday trend | | RSI Length | 14 | No change needed | | RSI Threshold | 55 | Slightly higher bar for momentum | | MACD | 12 / 26 / 9 | Still works at 4H | ### Weekly Charts (Position Trading) | Setting | Value | Why | |---|---|---| | MA Type | SMA | Weekly needs smooth structure | | MA Length | 10 | 10 weeks ≈ 50 daily | | RSI Length | 14 | Standard | | RSI Threshold | 50 | Standard | | MACD | 12 / 26 / 9 | Classic | ## Step 4: Set Up Pine Screener 1. Open TradingView's **Stock Screener** (bottom panel) 2. Click the **Pine Screener** tab 3. Select "Goldilocks and the Three Bears" from the indicator dropdown 4. Set your timeframe (Daily recommended) 5. Add filter: **Bull Count = 2** → this finds tickers one layer away from full bullish confluence 6. Add filter: **Bull Count = 3** → this shows active full confluence signals 7. Save the screener as a preset **Pro tip:** Run Bull Count = 2 scans at the end of each trading day to build tomorrow's watchlist. ## Step 5: Configure Alerts 1. Right-click the indicator name on your chart → "Add Alert" 2. Choose from three alert types: - **3 Bulls Aligned** — fires on bullish confluence - **3 Bears Aligned** — fires on bearish confluence - **Full Confluence (Any)** — fires on both 3. Alert messages include: ticker, timeframe, price, and the state of all three layers 4. For Discord webhooks: the alert JSON is pre-formatted — paste your webhook URL and it works out of the box ## Step 6: Reading Signals in Context A Goldilocks signal tells you: trend, momentum, and direction all agree RIGHT NOW. It doesn't tell you: - Where to set your stop loss (use ATR or structure) - When to take profit (use R:R targets or trailing stops) - Whether the broader market supports the trade (check the index) Use Goldilocks as your **entry filter**, not your complete system. Pair it with: - Support/resistance levels for stop placement - Risk:reward targets (minimum 2R recommended) - A broader market check (is SPY/QQQ trending the same direction?) ## Troubleshooting **"I'm not seeing any signals"** → This is by design. Three-layer confluence is selective. On a daily chart, expect a few signals per month per ticker, not per day. If you need more signals, lower the MA length or RSI threshold. **"Signals appear late"** → The MA layer is inherently lagging. That's the tradeoff for trend confirmation. Try switching to EMA or reducing MA length for faster response. **"Dashboard shows 2/3 for a long time but never hits 3/3"** → This happens in transitional markets. The 2/3 state IS useful information — it tells you the market is almost aligned but not quite. Don't force trades when conditions aren't met. **"Can I use this on 1-minute charts?"** → You can, but results will be noisy. The indicator is optimized for 4H+ timeframes where trends have structural meaning.

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Goldilocks Setup Guide — Three-Layer Confluence Trading on TradingView

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