Fat Tony's Composite Momentum Histogram (v01)

# Fat Tony's Composite Momentum Histogram

## What It Does

This indicator combines four momentum oscillators into a single composite signal that ranges approximately from -100 to +100. It identifies potential overbought and oversold conditions while weighting signals by volume activity to filter out weak moves.

The histogram shows momentum strength with color-coded bars:
- **Red bars** indicate extreme overbought conditions (above +100)
- **Green bars** indicate extreme oversold conditions (below -100)
- **Blue bars** show positive momentum in normal range
- **Orange bars** show negative momentum in normal range

## Core Components

The indicator blends these four momentum measures:

1. **Williams %R** - Measures where price closed relative to the high-low range
2. **Stochastic %K** - Compares closing price to the recent price range
3. **MACD Histogram** - Shows momentum changes via moving average convergence/divergence
4. **ROC (Rate of Change)** - Measures percentage price change, normalized by volatility

Each component is scaled to a -50 to +50 range, then averaged together. The MACD component uses adaptive scaling based on its historical volatility to remain relevant across different market conditions.

## Volume Weighting

The indicator amplifies signals when volume is elevated and dampens them when volume is low. It uses a logarithmic scaling approach to smooth extreme volume spikes. There's also a minimum volume filter that prevents signals from triggering during very low-volume periods.

## Settings Explained

**Momentum Settings:**
- **Length (14)** - Lookback period for Williams %R and Stochastic calculations
- **MACD Fast/Slow/Signal (12/26/9)** - Standard MACD parameters
- **ROC Length (10)** - Lookback for rate of change calculation
- **MACD StDev Length (200)** - Historical window for normalizing MACD values

**Levels:**
- **Overbought Level (+100)** - Threshold for extreme upside momentum
- **Oversold Level (-100)** - Threshold for extreme downside momentum

**Volume Settings:**
- **Enable Volume Weighting** - Toggle volume amplification on/off
- **Volume Sensitivity (1.5)** - Controls how much volume impacts the signal (higher = stronger impact)
- **Min Avg Volume (50,000)** - Filters out signals when 5-bar average volume is too low

**Components:**
- **Include ROC Component** - Toggle to add/remove ROC from the calculation
- **Enable Trend Filter** - Only allows signals aligned with the 200-period EMA trend
- **Show Component Plots** - Displays individual oscillator values for tuning purposes

## Trading Signals

**Entry Signals:**
- **Long (green triangle)** - Composite crosses above the oversold level with adequate volume
- **Short (red triangle)** - Composite crosses below the overbought level with adequate volume

**Exit Signals (when trend filter enabled):**
- **Long Exit** - Composite crosses below zero from positive territory
- **Short Exit** - Composite crosses above zero from negative territory

The indicator also provides alert conditions for automated notifications on these signal events.