[blackcat] L1 Enhanced Awesome Oscillator

2021년 3월 19일

Level: 1

Background

The awesome oscillator is just that, an oscillator by Bill Williams. In contrast to the slow stochastics, which ranges from +100 to -100, the fantastic oscillator is limitless. On the surface, one might think that the fantastic oscillator is made up of a complicated algorithm developed by a Whiz Kid from M.I.T. You will be surprised to learn that the indicator is a basic calculation of two simple moving averages. I made some improvements on it by introducing some novel moving average functions and choppiness index as L1 Enhanced Awesome Oscillator.

Function

Yellow bars for bull and fuchsia bars for bear with candles. Buying and selling signal is provided. Divergence signal is provided. Choppiness index is used as a green background color, which indicates trends when it under green color. The choppiness index is used to filter out entry signals.

Key Signal

yellow candle --> bull
fuchsia candle --> bear
yellow DIV label --> bottom divergence
fuchsia DIV label --> top divergence
red SELL label --> short entry
green BUY label --> long entry



Remarks

Feedbacks are appreciated.


Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

2022년 6월 2일

릴리즈 노트

Add alerts as requested by @jimmylegs

4월 18일

릴리즈 노트

OVERVIEW
The [blackcat] L1 Enhanced Awesome Oscillator is a comprehensive technical analysis tool that combines the classic Awesome Oscillator with advanced features to provide more reliable trading signals. 📈

FEATURES

• Enhanced Awesome Oscillator calculation with multiple smoothing levels
• Built-in Choppiness Index for trend strength validation
• Smart signal filtering using multiple timeframes
• Visual alerts with customizable colors and labels
• Automatic alert generation for buy/sell signals

HOW TO USE

Add the indicator to your chart

Adjust parameters:
• Length: Controls the Choppiness Index period
• Threshold: Sets the sensitivity level for trend detection

Monitor the following visual cues:
• Yellow bars indicate upward momentum
• Fuchsia bars indicate downward momentum
• Green background suggests bullish conditions
• Red background suggests bearish conditions

SIGNAL INTERPRETATION

• BUY Signal: Appears when:

BBD crosses above zero
Trend is confirmed by Choppiness Index
Multiple timeframe alignment occurs
• SELL Signal: Appears when:

BBD crosses below zero
Trend is confirmed by Choppiness Index
Multiple timeframe alignment occurs
LIMITATIONS

• Works best in trending markets
• May produce false signals during choppy market conditions
• Requires proper parameter tuning for optimal results

NOTES

• The indicator uses hlc3 as the source price
• Default settings are optimized for most market conditions
• Backtesting recommended before live trading