OPEN-SOURCE SCRIPT
High Probability OS/OB {DCAquant}

DCAquant - High Probability OS/OB
The DCAquant - High Probability OS/OB Pine Script is a sophisticated indicator that provides insights into overbought (OB) and oversold (OS) conditions based on Hull Moving Averages (HMA) and Volume Weighted Moving Averages (VWMA). Here's a detailed breakdown of its functionality:
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THIS INDICATOR IS ONLY WRITTEN FOR BTC, ETH and TOTAL!!!!!!!!!!!!!
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Functionality
The script identifies high-probability OB and OS zones by combining multiple moving averages (MAs).
1. Volume Weighted Moving Average (VWMA)
2. Hull Moving Average with Volume Weight (HMA-VW)
5. Standard Hull Moving Average (HMA)
4. Smoothed HMA-VW
How this works
The Extremes are categorized into 4 levels. The transparency of the background color distinguishes these 4 levels.

Only the MOST extremes are plotted ON THE CHART. Within the indicator, all 4 levels are plotted.

Usage
Disclaimer
This indicator should not be used in isolation. It is recommended to use this as part of a systematic approach, incorporating other tools and analysis methods to confirm signals and make well-informed trading decisions.
The DCAquant - High Probability OS/OB Pine Script is a sophisticated indicator that provides insights into overbought (OB) and oversold (OS) conditions based on Hull Moving Averages (HMA) and Volume Weighted Moving Averages (VWMA). Here's a detailed breakdown of its functionality:
-------------------------------------------------------------------------------------
THIS INDICATOR IS ONLY WRITTEN FOR BTC, ETH and TOTAL!!!!!!!!!!!!!
-------------------------------------------------------------------------------------
Functionality
The script identifies high-probability OB and OS zones by combining multiple moving averages (MAs).
1. Volume Weighted Moving Average (VWMA)
- The VWMA function computes the VWMA over a specified length, incorporating both the price and volume.
2. Hull Moving Average with Volume Weight (HMA-VW)
- The hullma_vw function calculates the HMA using the VWMA. This involves:
- Computing VWMAs over the full length and half-length.
- Using these VWMAs to derive the HMA-VW through a weighted approach.
5. Standard Hull Moving Average (HMA)
- The hull function computes the HMA using the standard weighted moving average (WMA).
4. Smoothed HMA-VW
- This is an Exponential Moving Average (EMA) of the HMA-VW to smooth out short-term fluctuations.
How this works
- First, the distance between the 2 MA's is calculated.
- The distance is scored against the average price of the last 100 days.
- By getting this score we can calculate extremes
The Extremes are categorized into 4 levels. The transparency of the background color distinguishes these 4 levels.
Only the MOST extremes are plotted ON THE CHART. Within the indicator, all 4 levels are plotted.
Usage
- Extreme Buy zone: Consider entering the market when the indicator shows deep negative values (oversold). These are highlighted with a cyan background, with increasing opacity indicating stronger buy signals (Level 4 Zones).
- Extreme Sell Zone: Consider exiting the market when the indicator shows high positive values (overbought). These are highlighted with a magenta background, with increasing opacity indicating stronger sell signals (Level 4 Zones).
Disclaimer
This indicator should not be used in isolation. It is recommended to use this as part of a systematic approach, incorporating other tools and analysis methods to confirm signals and make well-informed trading decisions.
오픈 소스 스크립트
진정한 트레이딩뷰 정신에 따라 이 스크립트 작성자는 트레이더가 기능을 검토하고 검증할 수 있도록 오픈소스로 공개했습니다. 작성자에게 찬사를 보냅니다! 무료로 사용할 수 있지만 코드를 다시 게시할 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.
오픈 소스 스크립트
진정한 트레이딩뷰 정신에 따라 이 스크립트 작성자는 트레이더가 기능을 검토하고 검증할 수 있도록 오픈소스로 공개했습니다. 작성자에게 찬사를 보냅니다! 무료로 사용할 수 있지만 코드를 다시 게시할 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.