indicator CalibrationIndicator Calibration - Multi-Indicator Consensus System
Overview
Indicator Calibration is a powerful consensus-based trading indicator that leverages the MyIndicatorLibrary (NormalizedIndicators) to combine multiple trend-following indicators into a single, actionable signal. By averaging the normalized outputs of up to 8 different trend indicators, this tool provides traders with a clear consensus view of market direction, reducing noise and false signals inherent in single-indicator approaches.
The indicator outputs a value between -1 (strong bearish) and +1 (strong bullish), with 0 representing a neutral market state. This creates an intuitive, easy-to-read oscillator that synthesizes multiple analytical perspectives into one coherent signal.
🎯 Core Concept
Consensus Trading Philosophy
Rather than relying on a single indicator that may give conflicting or premature signals, Indicator Calibration employs a democratic voting system where multiple indicators contribute their normalized opinion:
Each enabled indicator votes: +1 (bullish), -1 (bearish), or 0 (neutral)
The votes are averaged to create a consensus signal
Strong consensus (closer to ±1) indicates high agreement among indicators
Weak consensus (closer to 0) indicates market indecision or transition
Key Benefits
Reduced False Signals: Multiple indicators must agree before strong signals appear
Noise Filtering: Individual indicator quirks are smoothed out by averaging
Customizable: Enable/disable indicators and adjust parameters to suit your trading style
Universal Application: Works across all timeframes and asset classes
Clear Visualization: Simple line oscillator with clear bull/bear zones
📊 Included Indicators
The system can utilize up to 8 normalized trend-following indicators from the library:
1. BBPct - Bollinger Bands Percent
Parameters: Length (default: 20), Factor (default: 2)
Type: Stationary oscillator
Strength: Mean reversion and volatility detection
2. NorosTrendRibbonEMA
Parameters: Length (default: 20)
Type: Non-stationary trend follower
Strength: Breakout detection with momentum confirmation
3. RSI - Relative Strength Index
Parameters: Length (default: 9), SMA Length (default: 4)
Type: Stationary momentum oscillator
Strength: Overbought/oversold with smoothing
4. Vidya - Variable Index Dynamic Average
Parameters: Length (default: 30), History Length (default: 9)
Type: Adaptive moving average
Strength: Volatility-adjusted trend following
5. HullSuite
Parameters: Length (default: 55), Multiplier (default: 1)
Type: Fast-response moving average
Strength: Low-lag trend identification
6. TrendContinuation
Parameters: MA Length 1 (default: 50), MA Length 2 (default: 25)
Type: Dual HMA system
Strength: Trend quality assessment with neutral states
7. LeonidasTrendFollowingSystem
Parameters: Short Length (default: 21), Key Length (default: 10)
Type: Dual EMA crossover
Strength: Simple, reliable trend tracking
8. TRAMA - Trend Regularity Adaptive Moving Average
Parameters: Length (default: 50)
Type: Adaptive trend follower
Strength: Adjusts to trend stability
⚙️ Input Parameters
Source Settings
Source: Choose your price input (default: close)
Can be modified to: open, high, low, close, hl2, hlc3, ohlc4, hlcc4
Indicator Selection
Each indicator can be enabled or disabled via checkboxes:
use_bbpct: Enable/disable Bollinger Bands Percent
use_noros: Enable/disable Noro's Trend Ribbon
use_rsi: Enable/disable RSI
use_vidya: Enable/disable VIDYA
use_hull: Enable/disable Hull Suite
use_trendcon: Enable/disable Trend Continuation
use_leonidas: Enable/disable Leonidas System
use_trama: Enable/disable TRAMA
Parameter Customization
Each indicator has its own parameter group where you can fine-tune:
val 1: Primary period/length parameter
val 2: Secondary parameter (multiplier, smoothing, etc.)
📈 Signal Interpretation
Output Line (Orange)
The main output oscillates between -1 and +1:
+1.0 to +0.5: Strong bullish consensus (all or most indicators agree on uptrend)
+0.5 to +0.2: Moderate bullish bias (bullish indicators outnumber bearish)
+0.2 to -0.2: Neutral zone (mixed signals or transition phase)
-0.2 to -0.5: Moderate bearish bias (bearish indicators outnumber bullish)
-0.5 to -1.0: Strong bearish consensus (all or most indicators agree on downtrend)
Reference Lines
Green line (+1): Maximum bullish consensus
Red line (-1): Maximum bearish consensus
Gray line (0): Neutral midpoint
💡 Trading Strategies
Strategy 1: Consensus Threshold Trading
Entry Rules:
- Long: Output crosses above +0.5 (strong bullish consensus)
- Short: Output crosses below -0.5 (strong bearish consensus)
Exit Rules:
- Exit Long: Output crosses below 0 (consensus lost)
- Exit Short: Output crosses above 0 (consensus lost)
Strategy 2: Zero-Line Crossover
Entry Rules:
- Long: Output crosses above 0 (bullish shift in consensus)
- Short: Output crosses below 0 (bearish shift in consensus)
Exit Rules:
- Exit on opposite crossover
Strategy 3: Divergence Trading
Look for divergences between:
- Price making higher highs while indicator makes lower highs (bearish divergence)
- Price making lower lows while indicator makes higher lows (bullish divergence)
Strategy 4: Extreme Reading Reversal
Entry Rules:
- Long: Output reaches -0.8 or below (extreme bearish consensus = potential reversal)
- Short: Output reaches +0.8 or above (extreme bullish consensus = potential reversal)
Use with caution - best combined with other reversal signals
🔧 Optimization Tips
For Trending Markets
Enable trend-following indicators: Noro's, VIDYA, Hull Suite, Leonidas
Use higher threshold levels (±0.6) to filter out minor retracements
Increase indicator periods for smoother signals
For Range-Bound Markets
Enable oscillators: BBPct, RSI
Use zero-line crossovers for entries
Decrease indicator periods for faster response
For Volatile Markets
Enable adaptive indicators: VIDYA, TRAMA
Use wider threshold levels to avoid whipsaws
Consider disabling fast indicators that may overreact
Custom Calibration Process
Start with all indicators enabled using default parameters
Backtest on your chosen timeframe and asset
Identify which indicators produce the most false signals
Disable or adjust parameters for problematic indicators
Test different threshold levels for entry/exit
Validate on out-of-sample data
📊 Visual Guide
Color Scheme
Orange Line: Main consensus output
Green Horizontal: Bullish extreme (+1)
Red Horizontal: Bearish extreme (-1)
Gray Horizontal: Neutral zone (0)
Reading the Chart
Line above 0: Net bullish sentiment
Line below 0: Net bearish sentiment
Line near extremes: Strong consensus
Line fluctuating near 0: Indecision or transition
Smooth line movement: Stable consensus
Erratic line movement: Conflicting signals
⚠️ Important Considerations
Lag Characteristics
This is a lagging indicator by design (consensus takes time to form)
Best used for trend confirmation rather than early entry
May miss the first portion of strong moves
Reduces false entries at the cost of delayed entries
Number of Active Indicators
More indicators = smoother but slower signals
Fewer indicators = faster but potentially noisier signals
Minimum recommended: 4 indicators for reliable consensus
Optimal: 6-8 indicators for balanced performance
Market Conditions
Best: Strong trending markets (up or down)
Good: Volatile markets with clear directional moves
Poor: Choppy, sideways markets with no clear trend
Worst: Low-volume, range-bound conditions
Complementary Tools
Consider combining with:
Volume analysis for confirmation
Support/resistance levels for entry/exit points
Market structure analysis (higher timeframe trends)
Risk management tools (ATR-based stops)
🎓 Example Use Cases
Swing Trading
Timeframe: Daily or 4H
Enable: All 8 indicators with default parameters
Entry: Consensus > +0.5 or < -0.5
Hold: Until consensus reverses to opposite extreme
Day Trading
Timeframe: 15m or 1H
Enable: Faster indicators (RSI, BBPct, Noro's, Hull Suite)
Entry: Zero-line crossover with volume confirmation
Exit: Opposite crossover or profit target
Position Trading
Timeframe: Weekly or Daily
Enable: Slower indicators (TRAMA, VIDYA, Trend Continuation)
Entry: Strong consensus (±0.7) with higher timeframe confirmation
Hold: Months until consensus weakens significantly
🔬 Technical Details
Calculation Method
1. Each enabled indicator calculates its normalized signal (-1, 0, or +1)
2. All active signals are stored in an array
3. Array.avg() computes the arithmetic mean
4. Result is plotted as a continuous line
Output Range
Theoretical: -1.0 to +1.0
Practical: Typically ranges between -0.8 to +0.8
Rare: All indicators perfectly aligned at ±1.0
Performance
Lightweight calculation (simple averaging)
No repainting (all indicators are non-repainting)
Compatible with all Pine Script features
Works on all TradingView plans
📋 License
This code is subject to the Mozilla Public License 2.0 at mozilla.org
🚀 Quick Start Guide
Add to Chart: Apply indicator to your chart
Choose Timeframe: Select appropriate timeframe for your trading style
Enable Indicators: Start with all 8 enabled
Observe Behavior: Watch how consensus forms during different market conditions
Calibrate: Adjust parameters and indicator selection based on observations
Backtest: Validate your settings on historical data
Trade: Apply with proper risk management
🎯 Key Takeaways
✅ Consensus beats individual indicators - Multiple perspectives reduce errors
✅ Customizable to your style - Enable/disable and tune to preference
✅ Simple interpretation - One line tells the story
✅ Works across markets - Stocks, crypto, forex, commodities
✅ Reduces emotional trading - Clear, objective signal generation
✅ Professional-grade - Built on proven technical analysis principles
Indicator Calibration transforms complex multi-indicator analysis into a single, actionable signal. By harnessing the collective wisdom of multiple proven trend-following systems, traders gain a powerful edge in identifying high-probability trade setups while filtering out market noise.
오실레이터
MAG8 Breadth RSI This indicator is for my personal monitoring breadth of MAG 8 , including AVGO for use to trade spy/es and qqq/nq.
A green bar over 6 translates to 6 out of the 8 stocks have RSI's<30. Conversely a red indicator at 6 would indicate 6 out of 8 are overbought, RSI >70.
Extreme 6-8 of 8 either overbought (red) or oversold (green)
Moderate 4-5 of 8 either overbought (red) or oversold (green)
No Signal 0-3 of 8 either overbought (red) or oversold (green)
Not trading advice but thought I would share.
Smart RSI Money Flow - Core Bands V1.01SMART RSI – Money Flow Bands (Technical Overview)
1. Background: RSI and Its Behavior on Lower Timeframes
The Relative Strength Index (RSI) originally is a momentum oscillator calculated from average gains and losses over a selected period. In its standard form, RSI is derived solely from price changes; it does not incorporate volume data or order-flow information in its formula.
Because RSI is price-based, its interpretation depends strongly on the timeframe:
• On higher timeframes, each bar aggregates more trading activity, and RSI tends to behave more smoothly.
• On lower timeframes (1-hour down to intraday scalping intervals), price fluctuations are quicker, and RSI becomes more sensitive to short-term noise.
This does not imply that RSI becomes invalid, but that its signals on fast charts can be more reactive and may benefit from additional context such as volume behavior or structural information.
2. Purpose of This Indicator
This indicator extends the classical RSI by adding information that RSI does not include:
• Mapping RSI values into price-based bands instead of the 0–100 oscillator space.
• Retrieving lower timeframe volume data and separating it into buy and sell components.
• Comparing the slope (angle) of price movement with the slope of buy and sell volume.
The goal is to provide a structural interpretation of where price sits relative to RSI conditions and how volume is behaving on a lower timeframe.
3. Technical Differences Compared to Classical RSI
A) Classical RSI
• Input: price only (usually close).
• Output: normalized oscillator between 0 and 100.
• Does not incorporate intra-bar volume distribution.
• Does not separate buy/sell volume.
B) SMART RSI – Money Flow Bands
1) RSI-to-Price Mapping
Converts RSI values into upper/lower price bands using recent price extremes.
2) Lower Timeframe Volume Decomposition
Retrieves LTF data and splits each bar’s volume into buy (close>open) and sell (close
TASC 2025.12 The One Euro Filter█ OVERVIEW
This script implements the One Euro filter, developed by Georges Casiez, Nicolas Roussel, and Daniel Vogel, and adapted by John F. Ehlers in his article "Low-Latency Smoothing" from the December 2025 edition of the TASC Traders' Tips . The original creators gave the filter its name to suggest that it is cheap and efficient, like something one might purchase for a single Euro.
█ CONCEPTS
The One Euro filter is an EMA-based low-pass filter that adapts its smoothing factor (alpha) based on the absolute values of smoothed rates of change in the source series. It was designed to filter noisy, high-frequency signals in real time with low latency. Ehlers simplifies the filter for market analysis by calculating alpha in terms of bar periods rather than time and frequency, because periods are naturally intuitive for a discrete financial time series.
In his article, Ehlers demonstrates how traders can apply the adaptive One Euro filter to a price series for simple low-latency smoothing. Additionally, he explains that traders can use the filter as a smoothed oscillator by applying it to a high-pass filter. In essence, similar to other low-pass filters, traders can apply the One Euro filter to any custom source to derive a smoother signal with reduced noise and low lag.
This script applies the One Euro filter to a specified source series, and it applies the filter to a two-pole high-pass filter or other oscillator, depending on the selected "Osc type" option. By default, it displays the filtered source series on the main chart pane, and it shows the oscillator and its filtered series in a separate pane.
█ INPUTS
Source: The source series for the first filter and the selected oscillator.
Min period: The minimum cutoff period for the smoothing calculation.
Beta: Controls the responsiveness of the filter. The filter adds the product of this value and the smoothed source change to the minimum period to determine the filter's smoothing factor. Larger values cause more significant changes in the maximum cutoff period, resulting in a smoother response.
Osc type: The type of oscillator to calculate for the pane display. By default, the indicator calculates a high-pass filter. If the selected type is "None", the indicator displays the "Source" series and its filtered result in a separate pane rather than showing the filter on the main chart. With this setting, users can pass plotted values from another indicator and view the filtered result in the pane.
Period: The length for the selected oscillator's calculation.
Trade The Matric / MACD-RSI Hybrid Candles**"MACD-RSI Hybrid Candles"** is a **custom TradingView Pine Script (v6)** indicator that **replaces your chart’s default candles** with **dynamically colored, intensity-adjusted candles** based on **combined MACD and RSI signals**.
It’s a **visual fusion** of:
- **MACD Histogram** → Momentum & Trend Strength
- **RSI** → Overbought/Oversold & Trend Confirmation
- **Dynamic Transparency** → Visualizes **signal strength**
The result? **At-a-glance confirmation of bullish/bearish phases** — no need to check subcharts.
---
## OVERVIEW: What This Indicator Does
| Feature | Purpose |
|-------|--------|
| **Replaces price candles** | Entire chart becomes a **live MACD-RSI signal map** |
| **Colors based on dual confirmation** | Only strong when **both** MACD and RSI agree |
| **Transparency = momentum intensity** | Brighter = stronger signal |
| **Labels & Alerts** | Highlights **phase changes** (bullish/bearish shifts) |
---
## USER INPUTS (Customizable)
| Input | Default | Description |
|------|--------|-----------|
| `fastLen` | 12 | MACD Fast EMA |
| `slowLen` | 26 | MACD Slow EMA |
| `signalLen` | 9 | MACD Signal Line |
| `rsiLen` | 14 | RSI Period |
| `showLabels` | true | Show "Bullish Phase" / "Bearish Phase" labels |
> Standard settings — tweak for sensitivity.
---
## CORE CALCULATIONS
### 1. **MACD**
```pinescript
macdLine = ta.ema(close, fastLen) - ta.ema(close, slowLen)
signalLine = ta.ema(macdLine, signalLen)
hist = macdLine - signalLine
```
- `hist > 0` → **Bullish momentum**
- `hist < 0` → **Bearish momentum**
### 2. **RSI**
```pinescript
rsi = ta.rsi(close, rsiLen)
```
- `rsi > 50` → **Bullish bias**
- `rsi < 50` → **Bearish bias**
---
## DUAL CONFIRMATION LOGIC
| Condition | Meaning |
|--------|--------|
| `bullCond = macdBull and rsiBull` | **MACD hist > 0** AND **RSI > 50** → **Confirmed Bullish** |
| `bearCond = macdBear and rsiBear` | **MACD hist < 0** AND **RSI < 50** → **Confirmed Bearish** |
| Otherwise | **Neutral / Conflicted** |
> Only **strong, aligned signals** get bright colors.
---
## DYNAMIC INTENSITY & TRANSPARENCY (Key Feature)
```pinescript
maxHist = ta.highest(math.abs(hist), 100)
intensity = math.abs(hist) / maxHist
transp = 90 - (intensity * 80)
```
### How It Works:
1. Finds **strongest MACD histogram value** in last 100 bars
2. Compares **current histogram** to that peak → `intensity` (0 to 1)
3. **Transparency scales from 90 (faint) → 10 (bright)**
| Intensity | Transparency | Visual Effect |
|---------|--------------|-------------|
| 0% (weak) | 90 | Almost transparent |
| 50% | 50 | Medium |
| 100% | 10 | **Vivid, bold candle** |
> **Brighter candle = stronger momentum relative to recent history**
---
## CANDLE COLOR LOGIC
| Condition | Candle & Wick Color | Transparency |
|--------|---------------------|------------|
| **Confirmed Bullish** (`bullCond`) | **Lime Green** | Dynamic (10–90) |
| **Confirmed Bearish** (`bearCond`) | **Red** | Dynamic (10–90) |
| **Neutral / Conflicted** | **Gray** | Fixed 80 (faint) |
> **Wicks and borders match body** → full candle takeover
---
## VISUAL OUTPUT
### 1. **Custom Candles**
```pinescript
plotcandle(open, high, low, close, color=barColor, wickcolor=barColor, bordercolor=barColor)
```
- **Replaces default chart candles**
- **No original candles visible**
### 2. **Labels (Optional)**
- **"Bullish Phase"** → Green label **below low** when:
- MACD histogram **crosses above zero**
- AND RSI **> 50**
- **"Bearish Phase"** → Red label **above high** when:
- MACD histogram **crosses below zero**
- AND RSI **< 50**
> Up to **500 labels** (`max_labels_count=500`)
---
## ALERTS (Built-In)
| Alert | Trigger |
|------|--------|
| **Bullish MACD-RSI Signal** | `ta.crossover(hist, 0) and rsi > 50` |
| **Bearish MACD-RSI Signal** | `ta.crossunder(hist, 0) and rsi < 50` |
> Message: *"MACD crossed above zero with RSI > 50 — Bullish phase."*
---
## HOW TO READ THE CHART
| Visual | Market State | Interpretation |
|-------|-------------|----------------|
| **Bright Lime Candles** | **Strong Bullish Momentum** | High conviction — trend accelerating |
| **Faint Lime Candles** | **Weak Bullish** | Momentum present but not strong |
| **Bright Red Candles** | **Strong Bearish Momentum** | Downtrend with power |
| **Faint Red Candles** | **Weak Bearish** | Selling pressure, but fading |
| **Gray Candles** | **Conflicted / Choppy** | MACD and RSI disagree — avoid |
| **"Bullish Phase" Label** | **New Uptrend Starting** | Entry signal |
| **"Bearish Phase" Label** | **New Downtrend Starting** | Short signal |
---
## TRADING STRATEGY (Example)
### **Long Entry**
1. Wait for **"Bullish Phase" label**
2. Confirm **bright lime candles** (intensity > 50%)
3. Enter on **pullback to support** or **breakout**
4. **Stop Loss**: Below recent swing low
5. **Take Profit**: Trail with EMA or at resistance
### **Short Entry**
1. Wait for **"Bearish Phase" label**
2. Confirm **bright red candles**
3. Enter on **rally to resistance**
> **Best in trending markets** — avoid choppy ranges.
---
## UNIQUE FEATURES
| Feature | Benefit |
|-------|--------|
| **Dual Confirmation** | Avoids false MACD signals in overbought/oversold zones |
| **Dynamic Transparency** | Shows **relative strength** — not just direction |
| **Full Candle Replacement** | Clean, uncluttered chart |
| **Phase Labels** | Marks **exact trend change points** |
| **Built-in Alerts** | No extra setup needed |
---
## LIMITATIONS
| Issue | Note |
|------|------|
| **Lagging by design** | MACD & RSI are reactive |
| **Repainting?** | **No** — all on close |
| **No volume filter** | Add separately for better accuracy |
| **Labels can clutter** | Toggle off in choppy markets |
| **Intensity uses 100-bar lookback** | May lag in very long trends |
---
## BEST USE CASES
| Market | Timeframe | Style |
|-------|----------|------|
| Stocks, Forex, Crypto | 15m, 1H, 4H | Swing / Trend Following |
| **Avoid**: Sideways markets | Yes | High noise = many gray candles |
---
## COMPARISON TO STANDARD MACD/RSI
| Feature | This Indicator | Standard MACD + RSI |
|-------|----------------|---------------------|
| Visual | **Candles = signal** | Subchart lines |
| Confirmation | Built-in dual logic | Manual |
| Strength | Dynamic brightness | Histogram height |
| Alerts | Phase changes | Need custom |
| Chart Clutter | Low | High (two panels) |
> **This is a "one-panel" momentum dashboard**
---
## SUMMARY: What This Indicator Does
> **"MACD-RSI Hybrid Candles"** turns your **entire price chart into a live momentum heatmap** where:
>
> 1. **Candle color** = **MACD + RSI agreement** (Bullish / Bearish / Neutral)
> 2. **Brightness** = **Momentum strength** vs. recent 100 bars
> 3. **Labels & Alerts** = **Trend phase changes** (zero-line crosses with RSI filter)
>
> It **eliminates subcharts** and gives **instant visual confirmation** of:
> - **Trend direction**
> - **Momentum power**
> - **High-probability entries**
---
**Ideal for traders who want:**
- **No indicator panels**
- **Clear, color-coded signals**
- **Strength at a glance**
- **Automated alerts on trend shifts**
---
**Pro Tip**: Use with **volume** or **support/resistance** for **higher win rate**.
WTC Step Buy Step Edition CbyCarlo📊 WT Cross Modified – Step Buy Step Edition (v4)
WTC_StepBuyStep_Edition is an enhanced, practical, and optimized version of the classic WaveTrend (WT) Cross Indicator.
Developed for the Step Buy Step project, this tool helps traders identify market momentum shifts, structural price zones, and potential reversal areas with high clarity and precision.
🔍 Concept & Purpose
This indicator builds upon the established WaveTrend / LazyBear logic and extends it with additional structural intelligence.
The goal is to make overbought/oversold phases and trend reversals easier to spot — while also highlighting historically validated price zones where the market has previously reacted strongly.
⚙️ Key Features
1️⃣ WT Cross Signals
WT1 (yellow) and WT2 (purple) visualize market momentum.
A WT1 cross above WT2 while below the Oversold zone (−53) can indicate potential Long opportunities.
A WT1 cross below WT2 while above the Overbought zone (+53) can indicate potential Short opportunities.
Signals only confirm after candle close to prevent repainting.
2️⃣ Dynamic “WT SignalZone” Panel
Displayed in the top-right corner, this panel shows the last three valid price levels derived from WT signals:
🟢 LonLev – Buy support levels from previous WT Long signals
🔴 ShoLev – Sell resistance levels from previous WT Short signals
These zones act as objective support/resistance structures, based on historical momentum turning points — not subjective lines.
3️⃣ Flexible Calculation Modes
Choose how levels are derived from each WT signal:
Pullback 50% → Midpoint of the signal candle (high+low)/2
Close → Close price of the signal candle
Next Open → Open of the following bar (ideal for system testing)
📈 How to Interpret the Indicator
Market Condition WT Event Meaning
WT1 < −53 & CrossUp Long Signal Potential reversal / buy zone
WT1 > +53 & CrossDown Short Signal Potential exhaustion / sell zone
Price revisits LonLev Support Re-entry or bounce zone
Price revisits ShoLev Resistance Profit-taking or short setup zone
This makes the tool highly effective for:
Swing traders
Zone-based trading strategies
Systematic re-entries
Identifying structural turning points
🧠 Advantages
No repainting (signals confirmed only after bar close)
Works on all timeframes (from intraday to weekly)
Clean overview without clutter or excessive chart markers
Excellent as a filter to confirm market context
💬 Best Use Case
Use WTC_StepBuyStep_Edition as a contextual confirmation tool.
It does not replace a full trading system — but it gives you objective, repeatable, and statistically relevant zones where the market has reacted before.
Combine it with price action, volume analysis, or trend tools for even stronger setups.
© Step Buy Step • Step-Buy-Step.com
Educational trading tool intended for market analysis.
Not financial advice.
Baseline Deviation Oscillator [Alpha Extract]A sophisticated normalized oscillator system that measures price deviation from a customizable moving average baseline using ATR-based scaling and dynamic threshold adaptation. Utilizing advanced HL median filtering and multi-timeframe threshold calculations, this indicator delivers institutional-grade overbought/oversold detection with automatic zone adjustment based on recent oscillator extremes. The system's flexible baseline architecture supports six different moving average types while maintaining consistent ATR normalization for reliable signal generation across varying market volatility conditions.
🔶 Advanced Baseline Construction Framework
Implements flexible moving average architecture supporting EMA, RMA, SMA, WMA, HMA, and TEMA calculations with configurable source selection for optimal baseline customization. The system applies HL median filtering to the raw baseline for exceptional smoothing and outlier resistance, creating ultra-stable trend reference levels suitable for precise deviation measurement.
// Flexible Baseline MA System
ma(src, length, type) =>
if type == "EMA"
ta.ema(src, length)
else if type == "TEMA"
ema1 = ta.ema(src, length)
ema2 = ta.ema(ema1, length)
ema3 = ta.ema(ema2, length)
3 * ema1 - 3 * ema2 + ema3
// Baseline with HL Median Smoothing
Baseline_Raw = ma(src, MA_Length, MA_Type)
Baseline = hlMedian(Baseline_Raw, HL_Filter_Length)
🔶 ATR Normalization Engine
Features sophisticated ATR-based scaling methodology that normalizes price deviations relative to current volatility conditions, ensuring consistent oscillator readings across different market regimes. The system calculates ATR bands around the baseline and uses half the band width as the normalization factor for volatility-adjusted deviation measurement.
🔶 Dynamic Threshold Adaptation System
Implements intelligent threshold calculation using rolling window analysis of oscillator extremes with configurable smoothing and expansion parameters. The system identifies peak and trough levels over dynamic windows, applies EMA smoothing, and adds expansion factors to create adaptive overbought/oversold zones that adjust to changing market conditions.
1D
3D
1W
🔶 Multi-Source Configuration Architecture
Provides comprehensive source selection including Close, Open, HL2, HLC3, and OHLC4 options for baseline calculation, enabling traders to optimize oscillator behavior for specific trading styles. The flexible source system allows adaptation to different market characteristics while maintaining consistent ATR normalization methodology.
🔶 Signal Generation Framework
Generates bounce signals when oscillator crosses back through dynamic thresholds and zero-line crossover signals for trend confirmation. The system identifies both standard threshold bounces and extreme zone bounces with distinct alert conditions for comprehensive reversal and continuation pattern detection.
Bull_Bounce = ta.crossover(OSC, -Active_Lower) or
ta.crossover(OSC, -Active_Lower_Extreme)
Bear_Bounce = ta.crossunder(OSC, Active_Upper) or
ta.crossunder(OSC, Active_Upper_Extreme)
// Zero Line Signals
Zero_Cross_Up = ta.crossover(OSC, 0)
Zero_Cross_Down = ta.crossunder(OSC, 0)
🔶 Enhanced Visual Architecture
Provides color-coded oscillator line with bullish/bearish dynamic coloring, signal line overlay for trend confirmation, and optional cloud fills between oscillator and signal. The system includes gradient zone fills for overbought/oversold regions with configurable transparency and threshold level visualization with automatic label generation.
snapshot
🔶 HL Median Filter Integration
Features advanced high-low median filtering identical to DEMA Flow for exceptional baseline smoothing without lag introduction. The system constructs rolling windows of baseline values, performs median extraction for both odd and even window lengths, and eliminates outliers for ultra-clean deviation measurement baseline.
🔶 Comprehensive Alert System
Implements multi-tier alert framework covering bullish bounces from oversold zones, bearish bounces from overbought zones, and zero-line crossovers in both directions. The system provides real-time notifications for critical oscillator events with customizable message templates for automated trading integration.
🔶 Performance Optimization Framework
Utilizes efficient calculation methods with optimized array management for median filtering and minimal computational overhead for real-time oscillator updates. The system includes intelligent null value handling and automatic scale factor protection to prevent division errors during extreme market conditions.
🔶 Why Choose Baseline Deviation Oscillator ?
This indicator delivers sophisticated normalized oscillator analysis through flexible baseline architecture and dynamic threshold adaptation. Unlike traditional oscillators with fixed levels, the BDO automatically adjusts overbought/oversold zones based on recent oscillator behavior while maintaining consistent ATR normalization for reliable cross-market and cross-timeframe comparison. The system's combination of multiple MA type support, HL median filtering, and intelligent zone expansion makes it essential for traders seeking adaptive momentum analysis with reduced false signals and comprehensive reversal detection across cryptocurrency, forex, and equity markets.
Frequency Momentum Oscillator [QuantAlgo]🟢 Overview
The Frequency Momentum Oscillator applies Fourier-based spectral analysis principles to price action to identify regime shifts and directional momentum. It calculates Fourier coefficients for selected harmonic frequencies on detrended price data, then measures the distribution of power across low, mid, and high frequency bands to distinguish between persistent directional trends and transient market noise. This approach provides traders with a quantitative framework for assessing whether current price action represents meaningful momentum or merely random fluctuations, enabling more informed entry and exit decisions across various asset classes and timeframes.
🟢 How It Works
The calculation process removes the dominant trend from price data by subtracting a simple moving average, isolating cyclical components for frequency analysis:
detrendedPrice = close - ta.sma(close , frequencyPeriod)
The detrended price series undergoes frequency decomposition through Fourier coefficient calculation across the first 8 harmonics. For each harmonic frequency, the algorithm computes sine and cosine components across the lookback window, then derives power as the sum of squared coefficients:
for k = 1 to 8
cosSum = 0.0
sinSum = 0.0
for n = 0 to frequencyPeriod - 1
angle = 2 * math.pi * k * n / frequencyPeriod
cosSum := cosSum + detrendedPrice * math.cos(angle)
sinSum := sinSum + detrendedPrice * math.sin(angle)
power = (cosSum * cosSum + sinSum * sinSum) / frequencyPeriod
Power measurements are aggregated into three frequency bands: low frequencies (harmonics 1-2) capturing persistent cycles, mid frequencies (harmonics 3-4), and high frequencies (harmonics 5-8) representing noise. Each band's power normalizes against total spectral power to create percentage distributions:
lowFreqNorm = totalPower > 0 ? (lowFreqPower / totalPower) * 100 : 33.33
highFreqNorm = totalPower > 0 ? (highFreqPower / totalPower) * 100 : 33.33
The normalized frequency components undergo exponential smoothing before calculating spectral balance as the difference between low and high frequency power:
smoothLow = ta.ema(lowFreqNorm, smoothingPeriod)
smoothHigh = ta.ema(highFreqNorm, smoothingPeriod)
spectralBalance = smoothLow - smoothHigh
Spectral balance combines with price momentum through directional multiplication, producing a composite signal that integrates frequency characteristics with price direction:
momentum = ta.change(close , frequencyPeriod/2)
compositeSignal = spectralBalance * math.sign(momentum)
finalSignal = ta.ema(compositeSignal, smoothingPeriod)
The final signal oscillates around zero, with positive values indicating low-frequency dominance coupled with upward momentum (trending up), and negative values indicating either high-frequency dominance (choppy market) or downward momentum (trending down).
🟢 How to Use This Indicator
→ Long/Short Signals: the indicator generates long signals when the smoothed composite signal crosses above zero (indicating low-frequency directional strength dominates) and short signals when it crosses below zero (indicating bearish momentum persistence).
→ Upper and Lower Reference Lines: the +25 and -25 reference lines serve as threshold markers for momentum strength. Readings beyond these levels indicate strong directional conviction, while oscillations between them suggest consolidation or weakening momentum. These references help traders distinguish between strong trending regimes and choppy transitional periods.
→ Preconfigured Presets: three optimized configurations are available with Default (32, 3) offering balanced responsiveness, Fast Response (24, 2) designed for scalping and intraday trading, and Smooth Trend (40, 5) calibrated for swing trading and position trading with enhanced noise filtration.
→ Built-in Alerts: the indicator includes three alert conditions for automated monitoring - Long Signal (momentum shifts bullish), Short Signal (momentum shifts bearish), and Signal Change (any directional transition). These alerts enable traders to receive real-time notifications without continuous chart monitoring.
→ Color Customization: four visual themes (Classic green/red, Aqua blue/orange, Cosmic aqua/purple, Custom) allow chart customization for different display environments and personal preferences.
CandelaCharts - Trend Oscillator 📝 Overview
Trend Oscillator is a simple yet effective trend identification tool that uses the relationship between two exponential moving averages (EMAs) to determine market direction. It calculates the spread between a fast and slow EMA, applies a bias multiplier, and smooths the result to produce a clean oscillator that oscillates above and below a zero line. When the oscillator is above zero, the trend is considered bullish (upward); when below zero, it's bearish (downward). The indicator provides clear visual feedback through color-coded plots and optional price bar coloring, making it easy to identify trend direction at a glance.
📦 Features
This section highlights the core capabilities you'll rely on most.
Dual EMA system — Uses a fast EMA (default 9) and slow EMA (default 21) to capture trend momentum and direction.
Bias multiplier — Applies a small multiplier (default 1.001) to the EMA spread, providing a slight bias that helps filter noise and confirm trend strength.
Smoothed output — Applies an additional EMA smoothing (default 5 periods) to the raw spread, creating a cleaner, less choppy oscillator line.
Zero-line reference — Plots a horizontal zero line that serves as the critical threshold between bullish and bearish conditions.
Color-coded visualization — Automatically colors the oscillator line green/lime when bullish (above zero) and red when bearish (below zero).
Price bar coloring — Optional feature to color price bars based on the current trend direction, providing immediate visual context on the main chart.
Customizable parameters — Adjust EMA lengths, bias multiplier, smoothing period, and colors to match your trading style and timeframe.
⚙️ Settings
Use these controls to fine-tune the oscillator's sensitivity, appearance, and behavior.
Fast EMA Length — Period for the fast exponential moving average (default: 9). Lower values make the indicator more responsive to price changes.
Slow EMA Length — Period for the slow exponential moving average (default: 21). Higher values create a smoother baseline for trend identification.
Bias Multiplier — Multiplier applied to the EMA spread (default: 1.001). Small adjustments can help filter minor whipsaws and confirm trend strength.
Smoothing Length — Period for smoothing the raw spread calculation (default: 5). Higher values create a smoother oscillator line but may lag price action.
Colors — Set the bullish (default: lime) and bearish (default: red) colors for the oscillator line.
Color Price Bars — Toggle to enable/disable coloring of price bars based on the current trend direction.
⚡️ Showcase
Oscillator Line
Bar Coloring
Divergences
📒 Usage
Follow these steps to effectively use Trend Oscillator for trend identification and trading decisions.
1) Select your timeframe — The indicator works across all timeframes, but higher timeframes (daily, weekly, monthly) typically provide more reliable trend signals with less noise. Lower timeframes (1m, 5m, 15m) may produce more frequent but potentially less reliable signals. Consider your trading style: swing traders benefit from daily/weekly charts, while day traders can use 15m/1h timeframes. Always align the indicator's sensitivity with your timeframe choice.
2) Adjust EMA lengths — The default 9/21 combination works well for most cases. For faster signals, try 5/13; for slower, more conservative signals, try 12/26 or 20/50. Match the lengths to your trading style and timeframe.
3) Interpret the zero line — When the oscillator is above zero (green/lime), the trend is bullish. When below zero (red), the trend is bearish. The further from zero, the stronger the trend.
4) Watch for crossovers — Trend changes occur when the oscillator crosses the zero line. A cross from below to above indicates a shift to bullish; from above to below indicates a shift to bearish.
5) Identify divergences — Divergences can signal potential trend reversals. Bullish divergence : price makes lower lows while the oscillator makes higher lows (suggests weakening bearish momentum). Bearish divergence : price makes higher highs while the oscillator makes lower highs (suggests weakening bullish momentum). Divergences are most reliable when they occur near extreme levels and should be confirmed with price action before taking trades.
6) Use smoothing wisely — The smoothing parameter helps reduce noise but adds lag. Lower smoothing (3-5) is more responsive; higher smoothing (7-10) is more stable but slower to react.
7) Combine with price action — Use the oscillator to confirm trend direction, then look for entry opportunities when price pulls back in the direction of the trend. The optional price bar coloring helps visualize trend alignment on the main chart.
8) Filter with bias multiplier — The bias multiplier can help reduce false signals. Experiment with values between 1.000 and 1.005 to find the sweet spot for your instrument and timeframe.
🚨 Alerts
There are no built-in alerts in this version.
⚠️ Disclaimer
Trading involves significant risk, and many participants may incur losses. The content on this site is not intended as financial advice and should not be interpreted as such. Decisions to buy, sell, hold, or trade securities, commodities, or other financial instruments carry inherent risks and are best made with guidance from qualified financial professionals. Past performance is not indicative of future results.
Average True Range with MAKey features
ATR calculation: true range (ta.tr(true)) is smoothed using a selectable method to produce the ATR.
ATR smoothing options: RMA, SMA, EMA, or WMA for the ATR calculation.
MA-on-ATR: a separate moving average computed on the ATR values with its own length and smoothing method.
Display controls: toggles to show/hide the ATR and the ATR MA independently.
Appearance controls: separate color inputs for the ATR and the ATR MA, and a thicker line for the MA (linewidth=2).
Inputs
ATR Length (default 14): length used to smooth true range into the ATR.
ATR Smoothing (default RMA): smoothing method applied to the true range to form ATR.
MA Length (on ATR) (default 14): length for the moving average applied to the ATR series.
MA Smoothing (default SMA): smoothing method used for the MA applied to ATR.
Show ATR / Show ATR MA: booleans to toggle visibility.
ATR Color / ATR MA Color: choose plot colors.
How to interpret
ATR line: shows current volatility (average true range). Rising ATR indicates increasing volatility; falling ATR indicates decreasing volatility.
ATR MA line: smooths the ATR to reveal trend direction and reduce noise.
Use crossovers: ATR crossing above its MA may signal volatility is picking up; ATR crossing below its MA suggests volatility is subsiding.
Combine with price action or other indicators (e.g., breakout systems, position sizing rules) to make decisions based on volatility regime.
hell 1good for finding tops and bottoms in a trend .set to log scale and strech it like it looks in the chart
Stoch Cross OB/OS Signals CleanStoch Cross OB/OS Signals
Displays fast (%K) and slow (%D) Stochastic lines with visual signals for overbought and oversold conditions. Alerts when the fast line crosses the slow line in OB/OS zones using customizable symbols. Ideal for spotting short-term reversals and timing entries/exits. Features adjustable periods, OB/OS levels, and symbol sizes for clear chart visualization.
Multitimeframe Stochastic RSIIndicator is Combining 4 different timeframe Stochastic RSI and show buy signal when all of them are oversold and sell signal when all of them are overbought.
Default settings are set up for 15 minute timeframe:
K1 - 15M (period = 14)
K2 - 30M (period = 28)
K3 - 1H (period = 56)
K4 - 2H (period = 112)
It indicates top and bottoms of given period.
Its good to use as a confirmation indicator.
Feel free to comment and use it.
Greetings!
SP - MACD with DivergenceIdentifies Bullish and Bearish Divergences on any time frame.
Using with a combination of candlestick and a trend bias based on long term trend of the underlying can pic reversals quiet effectively.
Market Extreme Zones IndexThe Market Extreme Zones Index is a new mean reversion (valuation) tool focused on catching long term oversold/overbought zones. Combining an enhanced RSI with a smoothed Z-score this indicator allows traders to find oppurtunities during highly oversold/overbought zones.
I will separate the explanation into the following parts:
1. How does it work?
2. Methodologies & Concepts
3. Use cases
How does it work?
The indicator attempts to catch highly unprobable events in either direction to capture reversal points over the long term. This is done by calculating the Z-Score of an enhanced RSI.
First we need to calculate the Enhanced RSI:
For this we need to calculate 2 additional lengths:
Length1 = user defined length
Length2 = Length1/2
Length3 = √Length
Now we need to calculate 3 different RSIs:
1st RSI => uses classic user defined source and classic user defined length.
2nd RSI => uses classic user defined source and Length 2.
3rd RSI => uses RSI 2 as source and Length 2
Now calculate the divergence:
RSI_base => 2nd RSI * 3 - 1st RSI - 3rd RSI
After this we need to calculate the median of the RSI_base over √Length and make a divergence of these 2:
RSI => RSI_base*2 - median
All that remains now is the Z-score calculations:
We need:
Average RSI value
Standard Deviation = a measure of how dispersed or spread out a set of data values are from their average
Z-score = (Current Value - Average Value) / Standard Deviation
After this we just smooth the Z-score with a Weighted Moving average with √Length
Methodology & Concepts
Mean Reversion Methodology:
The methodology behind mean reversion is the theory that asset prices will eventually return to their long-term average after deviating significantly, driven by the belief that extreme moves are temporary.
Z-Score Methodology:
A Z-score, or standard score, is a statistical measure that indicates how many standard deviations a data point is from the mean of a dataset. A positive z-score means the value is above the mean, a negative score means it's below, and a score of zero means the value is equal to the mean.
You might already be able to see where I am going with this:
Z-Score could be used for the extreme moves to capture reversal points.
By applying it to the RSI rather than the Price, we get a more accurate measurement that allow us to get a banger indicator.
Use Cases
Capturing reversal points
Trend Direction
- while the main use it for mean reversion, the values can indicate whether we are in an uptrend or a downtrend.
Advantages:
Visualization:
The indicator has many plots to ensure users can easily see what the indicator signals, such as highlighting extreme conditions with background colors.
Versatility:
This indicator works across multiple assets, including the S&P500 and more, so it is not only for crypto.
Final note:
No indicator alone is perfect.
Backtests are not indicative of future performance.
Hope you enjoy Gs!
Good luck!
Range Oascilator + LessDivergences + MACD+StochRSIRange Oscillator + EMA Filter
Calculates a custom oscillator based on the highest high and lowest low over a chosen period.
Generates BUY signals when the oscillator crosses up from the oversold zone and price is above the EMA.
Generates SELL signals when the oscillator crosses down from the overbought zone and price is below the EMA.
MACD (3‑10‑16 EMA Settings)
Uses fast EMA = 3, slow EMA = 10, signal EMA = 16.
Detects bullish and bearish crossovers.
These crossovers only trigger a single unified buy/sell signal if they coincide with Stochastic RSI being in oversold (for buy) or overbought (for sell) zones.
Stochastic RSI
Standard calculation with %K and %D smoothing.
Defines oversold (<20) and overbought (>80) zones.
Used both for divergence detection and as a filter for MACD signals.
Divergence Detection
RSI Divergence: Price makes a lower low but RSI makes a higher low (bullish), or price makes a higher high but RSI makes a lower high (bearish).
MACD Histogram Divergence: Price makes a lower low but MACD histogram makes a higher low (bullish), or price makes a higher high but MACD histogram makes a lower high (bearish).
Stochastic RSI Divergence: Similar logic applied to %K line.
Divergences are flagged only once per pivot to avoid repetitive signals.
Visuals
EMA plotted on chart.
BUY/SELL signals shown as triangles above/below bars.
Divergences shown as labels (e.g., “RSI BullDiv”, “MACD BearDiv”).
Unified MACD+Stoch RSI signals shown in distinct colors (lime for buy, orange for sell).
Swing Trade BUY/SELL + SCORING +COLOUR FIXBUY/SELL labels now appear with a score (1–3) next to them.
Color coding visually distinguishes signal strength:
BUY → 1 yellow, 2 light green, 3 dark green
SELL → 1 orange, 2 red, 3 burgundy
This allows you to instantly see the signal strength both numerically and visually.
Swing Trade AL/SAT + Güç Derecesi_huğurlu
Weak signal → MACD crossover only.
Moderate signal → MACD crossover + RSI confirmation.
Strong signal → MACD crossover + RSI + Stoch RSI confirmation.
BUY/SELL labels appear on the chart in different colors and sizes.
This way, you can instantly see which signal is more reliable.
Zayıf sinyal → sadece MACD kesişim var
Orta sinyal → MACD kesişim + RSI teyidi.
Güçlü sinyal → MACD kesişim + RSI + Stoch RSI teyidi.
Stochastic RSI - WT Confluence Signal Detectors (TraderDemircan)Description
What This Indicator Does:
This indicator combines two powerful momentum oscillators—WaveTrend and Stochastic RSI—to identify high-probability trading signals through confluence. Instead of relying on a single indicator that may generate false signals, this tool only triggers buy/sell alerts when both oscillators simultaneously confirm extreme market conditions and trend reversals. This confluence approach significantly reduces noise and helps traders focus on the most reliable setups.
Key Features:
Dual-Oscillator Confluence: Generates signals only when both WaveTrend crossovers and Stochastic RSI extreme levels align
Normalized Scale Display: Both oscillators are plotted on a unified -100 to +100 scale for easy visual comparison
Visual Signal Confirmation: Clear intersection points marked with colored circles, plus optional candle coloring at crossover moments
Customizable Thresholds: Adjust overbought/oversold levels for both oscillators to match your trading style and asset volatility
Clean Visual Presentation: Optional area fill showing WaveTrend momentum difference, making divergences easier to spot
How It Works:
The indicator operates on a confluence principle where multiple conditions must align:
For BUY Signals (Green):
WaveTrend 1 crosses above WaveTrend 2 (bullish crossover)
WaveTrend is in oversold territory (below -53 or -60)
Stochastic RSI K-line is below 20 (oversold)
For SELL Signals (Red):
WaveTrend 1 crosses below WaveTrend 2 (bearish crossover)
WaveTrend is in overbought territory (above 53 or 60)
Stochastic RSI K-line is above 80 (overbought)
WaveTrend Component:
Uses the hlc3 price (average of high, low, close) to calculate a channel index that identifies market momentum waves. The two WaveTrend lines (WT1 and WT2) act similarly to MACD, where crossovers indicate momentum shifts. The oscillator ranges from approximately -100 to +100, with extreme values suggesting potential reversals.
Stochastic RSI Component:
Applies stochastic calculations to RSI values rather than raw price, creating a more sensitive momentum indicator. Values above 80 indicate overbought conditions (potential selling opportunity), while values below 20 indicate oversold conditions (potential buying opportunity). The indicator includes both K-line (faster) and D-line (slower, smoothed) for additional confirmation.
Normalization Technology:
To enable direct visual comparison, the Stochastic RSI (normally 0-100 scale) is normalized to match WaveTrend's -100 to +100 scale. This allows traders to see both oscillators' movements in relation to the same reference levels, making divergences and convergences more apparent.
How to Use:
For Trend Traders:
Wait for confluence signals in the direction of the larger trend
Use buy signals in uptrends as entry points during pullbacks
Use sell signals in downtrends as entry points during bounces
For Reversal Traders:
Focus on confluence signals at major support/resistance levels
Look for divergences between price and oscillators before confluence signals
Consider stronger signals when both oscillators reach extreme levels (WT beyond ±60, Stoch beyond 20/80)
For Scalpers:
Lower the WaveTrend Channel Length (default 10) to 5-7 for more frequent signals
Tighten overbought/oversold thresholds slightly (e.g., WT: ±50, Stoch: 30/70)
Use on lower timeframes (5m, 15m) with strict stop losses
Settings Guide:
WaveTrend Parameters:
Channel Length (10): Controls sensitivity. Lower = more signals but more noise. Higher = fewer but more reliable signals
Average Length (21): Smoothing period for WT2. Higher values reduce whipsaws
Overbought Levels (60/53): Two-tier system. Breaching 60 indicates strong overbought, 53 is moderate
Oversold Levels (-60/-53): Mirror of overbought levels for downside extremes
Stochastic RSI Parameters:
K-Smooth (3): Smoothing for the K-line. Higher = smoother but delayed
D-Smooth (3): Additional smoothing for the D-line signal
RSI Period (14): Standard RSI calculation period
Stoch Period (14): Stochastic calculation lookback
Oversold (20) / Overbought (80): Classic thresholds for extreme conditions
Visual Options:
Show WT Difference Area: Displays the momentum difference between WT1 and WT2 as a blue shaded area
Show WT Intersection Points: Marks crossover points with colored circles (red for bearish, green for bullish)
Color Candles at Intersection: Changes candle colors at crossover moments (blue for bearish, yellow for bullish)
Show Stoch Over Signals: Displays when Stochastic RSI breaches extreme levels
What Makes This Original:
While WaveTrend and Stochastic RSI are established indicators, this script's originality lies in:
Confluence Logic: The specific combination requiring simultaneous confirmation from both oscillators in extreme zones, not just simple crossovers
Normalization Approach: Displaying both oscillators on the same -100 to +100 scale for direct visual comparison, which is not standard
Multi-Tier Overbought/Oversold: Using two levels (60/53) instead of one, allowing for nuanced signal strength assessment
Integrated Visual System: Combining area fills, intersection markers, and candle coloring in a coordinated display that shows momentum flow at a glance
Important Considerations:
This is a momentum-based oscillator system, which performs best in ranging or trending markets with clear swings
In strong trending markets, the oscillator may remain in extreme zones for extended periods (remain overbought during strong uptrends, oversold during strong downtrends)
Confluence signals are intentionally rare to maintain quality—expect fewer signals than with single-indicator systems
Always combine with price action analysis, support/resistance levels, and proper risk management
Not recommended for extremely low volatility or thin markets where oscillators may produce erratic readings
Best Timeframes:
Intraday: 15m, 1H (with tighter parameters)
Swing Trading: 4H, Daily (with default parameters)
Position Trading: Daily, Weekly (with extended Channel Length 15-20)
Typical Use Cases:
Identifying exhaustion points in trending markets
Timing entries during pullbacks in established trends
Spotting potential reversal zones at key price levels
Filtering out weak momentum signals during consolidation
DAO - Demand Advanced Oscillator# DAO - Demand Advanced Oscillator
## 📊 Overview
DAO (Demand Advanced Oscillator) is a powerful momentum oscillator that measures buying and selling pressure by analyzing consecutive high-low relationships. It helps identify market extremes, divergences, and potential trend reversals.
**Values range from 0 to 1:**
- **Above 0.70** = Overbought (potential reversal down)
- **Below 0.30** = Oversold (potential reversal up)
- **0.30 - 0.70** = Neutral zone
---
## ✨ Key Features
✅ **Automatic Divergence Detection**
- Bullish divergences (price lower low + DAO higher low)
- Bearish divergences (price higher high + DAO lower high)
- Visual lines connecting divergence points
✅ **Multi-Timeframe Analysis**
- View higher timeframe DAO on current chart
- Perfect for trend alignment strategies
✅ **Signal Line (EMA)**
- Customizable EMA for trend confirmation
- Crossover signals for momentum shifts
✅ **Real-Time Statistics Dashboard**
- Current DAO value
- Market status (Overbought/Oversold/Neutral)
- Trend direction indicator
✅ **Complete Alert System**
- Overbought/Oversold signals
- Bullish/Bearish divergences
- Signal line crosses
- Level crosses
✅ **Fully Customizable**
- Adjustable periods and levels
- Customizable colors and zones
- Toggle features on/off
---
## 📈 Trading Signals
### 1. Divergences (Most Powerful)
**Bullish Divergence:**
- Price makes lower low
- DAO makes higher low
- Signal: Strong reversal up likely
**Bearish Divergence:**
- Price makes higher high
- DAO makes lower high
- Signal: Strong reversal down likely
### 2. Overbought/Oversold
**Overbought (>0.70):**
- Market may be overextended
- Consider taking profits or looking for shorts
- Can remain overbought in strong trends
**Oversold (<0.30):**
- Market may be oversold
- Consider buying opportunities
- Can remain oversold in strong downtrends
### 3. Signal Line Crossovers
**Bullish Cross:**
- DAO crosses above signal line
- Momentum turning positive
**Bearish Cross:**
- DAO crosses below signal line
- Momentum turning negative
### 4. Level Crosses
**Cross Above 0.30:** Exiting oversold zone (potential uptrend)
**Cross Below 0.70:** Exiting overbought zone (potential downtrend)
---
## ⚙️ Default Settings
📊 Oscillator Period: 14
Number of bars for calculation
📈 Signal Line Period: 9
EMA period for signal line
🔴 Overbought Level: 0.70
Upper threshold
🟢 Oversold Level: 0.30
Lower threshold
🎯 Divergence Detection: ON
Auto divergence identification
⏰ Multi-Timeframe: OFF
Higher TF overlay (optional)
All parameters are fully customizable!
---
## 🔔 Alerts
Six pre-configured alerts available:
1. DAO Overbought
2. DAO Oversold
3. DAO Bullish Divergence
4. DAO Bearish Divergence
5. DAO Signal Cross Up
6. DAO Signal Cross Down
**Setup:** Right-click indicator → Add Alert → Choose condition
---
## 💡 How to Use
### Best Practices:
✅ Focus on divergences (strongest signals)
✅ Combine with support/resistance levels
✅ Use multiple timeframes for confirmation
✅ Wait for price action confirmation
✅ Practice proper risk management
### Avoid:
❌ Trading on indicator alone
❌ Fighting strong trends
❌ Ignoring market context
❌ Overtrading
### Recommended Settings by Trading Style:
**Day Trading:** Period 7-10, All alerts ON
**Swing Trading:** Period 14-21, Divergence alerts
**Scalping:** Period 5-7, Signal crosses
**Position Trading:** Period 21-30, Weekly/Daily TF
---
## 🌍 Markets & Timeframes
**Works on all markets:**
- Forex (all pairs)
- Stocks (all exchanges)
- Cryptocurrencies
- Commodities
- Indices
- Futures
**Works on all timeframes:** 1m to Monthly
---
## 📊 How It Works
DAO calculates the ratio of buying pressure to total market pressure:
1. **Calculate Buying Pressure (DemandMax):**
- If current high > previous high: DemandMax = difference
- Otherwise: DemandMax = 0
2. **Calculate Selling Pressure (DemandMin):**
- If previous low > current low: DemandMin = difference
- Otherwise: DemandMin = 0
3. **Apply Smoothing:**
- Calculate SMA of DemandMax over N periods
- Calculate SMA of DemandMin over N periods
4. **Final Formula:**
```
DAO = SMA(DemandMax) / (SMA(DemandMax) + SMA(DemandMin))
```
This produces a normalized value (0-1) representing market demand strength.
---
## 🎯 Trading Strategies
### Strategy 1: Divergence Trading
- Wait for divergence label
- Confirm at support/resistance
- Enter on confirming candle
- Stop loss beyond recent swing
- Target: opposite level or 0.50
### Strategy 2: Overbought/Oversold
- Best for ranging markets
- Wait for extreme readings
- Enter on reversal from extremes
- Target: middle line (0.50)
### Strategy 3: Trend Following
- Identify trend direction first
- Use DAO to time entries in trend direction only
- Enter on pullbacks to oversold (uptrend) or overbought (downtrend)
- Trade with the trend
### Strategy 4: Multi-Timeframe
- Enable MTF feature
- Trade only when both timeframes align
- Higher TF = trend direction
- Lower TF = precise entry
---
## 📂 Category
**Primary:** Oscillators
**Secondary:** Statistics, Volatility, Momentum
---
## 🏷️ Tags
dao, oscillator, momentum, overbought-oversold, divergence, reversal, demand-indicator, price-exhaustion, statistics, volatility, forex, stocks, crypto, multi-timeframe, technical-analysis
---
## ⚠️ Disclaimer
**This indicator is for educational purposes only.** It does not constitute financial advice. Trading involves substantial risk of loss. Always conduct your own research, use proper risk management, and consult with financial professionals before making trading decisions. Past performance does not guarantee future results.
---
## 📄 License
Open source - Free to use for personal trading, modify as needed, and share with attribution.
---
**Version:** 1.0
**Status:** Production Ready ✅
**Pine Script:** v5
**Trademark-Free:** 100% Safe to Publish
---
*Made with 💙 for traders worldwide*
