Hossa Indicator Pure

The Hossa Indicator Pure is a custom technical analysis tool designed to measure market volatility and momentum using normalized Ichimoku-based calculations. It identifies overbought and oversold conditions, providing traders with insights into potential trend reversals or continuation points.

Key Features:
Ichimoku-Based Volatility Analysis:

Calculates volatility using the difference between Tenkan-sen, Kijun-sen, and Senkou Span B.
Incorporates a normalized "Kumo depth" calculation for enhanced volatility insights.
Normalization with Dynamic Bands:

Smooths raw volatility data using a moving average and adjusts it with a standard deviation multiplier.
The normalized indicator is scaled between custom overbought and oversold levels, making it adaptable to different market conditions.
Overbought and Oversold Alerts:

Generates alerts when the indicator crosses into overbought or oversold zones, allowing traders to act promptly.
Dynamic Color-Coded Trend Visualization:

Displays the indicator line in green for upward momentum and red for downward momentum, providing an at-a-glance view of market conditions.
Customizable Inputs:

Tenkan-sen Period: Controls the short-term trend sensitivity.
Kijun-sen Period: Adjusts the medium-term trend.
Senkou Span B Period: Configures the long-term trend baseline.
Smoothing Period: Refines volatility analysis.
Standard Deviation Multiplier: Tailors the sensitivity of the overbought/oversold zones.
Overbought/Oversold Levels: Defines thresholds for signal generation.
How It Works:
Ichimoku Calculations:

Tenkan-sen and Kijun-sen are calculated as averages of the highest high and lowest low over their respective periods.
Future Span A and Future Span B form the basis for volatility depth (Kumo depth).
Volatility Normalization:

The raw Kumo depth is smoothed using a moving average and normalized using statistical bands (average ± standard deviation).
Signal Generation:

Overbought signals are triggered when the normalized indicator exceeds the overbought level.
Oversold signals are generated when the indicator falls below the oversold level.
Visual Representation:

Plots a normalized indicator line with dynamic colors based on momentum.
Includes horizontal dashed lines marking the overbought and oversold thresholds.
Alerts:

Customizable alerts notify traders when overbought or oversold conditions are met.
How to Use:
Set Input Parameters:

Adjust the periods for Tenkan-sen, Kijun-sen, and Senkou Span B to align with your trading style (e.g., shorter periods for scalping, longer for swing trading).
Configure smoothing and standard deviation multiplier to control signal sensitivity.
Monitor Indicator Line:

Look for overbought and oversold conditions based on the defined thresholds.
Use dynamic line colors to identify potential trend reversals (green for bullish, red for bearish).
Alerts:

Set alerts to notify you of overbought/oversold conditions to stay updated without constant chart monitoring.
The Hossa Indicator Pure provides a versatile tool for volatility analysis and momentum detection, suitable for traders seeking precise and customizable insights into market conditions.