Inversion Fair Value Gap Oscillator | Flux Charts💎 GENERAL OVERVIEW
Introducing the new Inversion Fair Value Gap Oscillator (IFVG Oscillator) indicator! This unique indicator identifies and tracks Inversion Fair Value Gaps (IFVGs) in price action, presenting them in an oscillator format to reveal market momentum based on IFVG strength. It highlights bullish and bearish IFVGs while enabling traders to adjust detection sensitivity and apply volume and ATR-based filters for more precise setups. For more information about the process, check the "📌 HOW DOES IT WORK" section.
Features of the new IFVG Oscillator:
Fully Customizable FVG & IFVG Detection
An Oscillator Approach To IFVGs
Divergence Markers For Potential Reversals
Alerts For Divergence Labels
Customizable Styling
📌 HOW DOES IT WORK?
Fair Value Gaps are price gaps within bars that indicate inefficiencies, often filled as the market retraces. An Inversion Fair Value Gap is created in the opposite direction once a FVG gets invalidated. The IFVG Oscillator scans historical bars to identify these gaps, then filters them based on ATR or volume. Each IFVG is marked as bullish or bearish according to the opposite direction of the original FVG that got invalidated.
An oscillator is calculated using recent IFVGs with this formula :
1. The Oscillator starts as 0.
2. When a new IFVG Appears, it contributes (IFVG Width / ATR) to the oscillator of the corresponding type.
3. Each confirmed bar, the oscillator is recalculated as OSC = OSC * (1 - Decay Coefficient)
The oscillator aggregates and decays past IFVGs, allowing recent IFVG activity to dominate the signal. This approach emphasizes current market momentum, with oscillations moving bullish or bearish based on IFVG intensity. Divergences are marked where IFVG oscillations suggest potential reversals. Bullish Divergence conditions are as follows :
1. The current candlestick low must be the lowest of last 25 bars.
2. Net Oscillator (Shown in gray line by default) must be > 0.
3. The current Bullish IFVG Oscillator value should be no more than 0.1 below the highest value from the last 25 bars.
Traders can use divergence signals to get an idea of potential reversals, and use the Net IFVG Oscillator as a trend following marker.
🚩 UNIQUENESS
The Inversion Fair Value Gap Oscillator stands out by converting IFVG activity into an oscillator format, providing a momentum-based visualization of IFVGs that reveals market sentiment dynamically. Unlike traditional indicators that statically mark IFVG zones, the oscillator decays older IFVGs over time, showing only the most recent, relevant activity. This approach allows for real-time insight into market conditions and potential reversals based on oscillating IFVG strength, making it both intuitive and powerful for momentum trading.
Another unique feature is the combination of customizable ATR and volume filters, letting traders adapt the indicator to match their strategy and market type. You can also set-up alerts for bullish & bearish divergences.
⚙️ SETTINGS
1. General Configuration
Decay Coefficient -> The decay coefficient for oscillators. Increasing this setting will result in oscillators giving the weight to recent IFVGs, while decreasing it will distribute the weight equally to the past and recent IFVGs.
2. Fair Value Gaps
Zone Invalidation -> Select between Wick & Close price for FVG Zone Invalidation.
Zone Filtering -> With "Average Range" selected, algorithm will find FVG zones in comparison with average range of last bars in the chart. With the "Volume Threshold" option, you may select a Volume Threshold % to spot FVGs with a larger total volume than average.
FVG Detection -> With the "Same Type" option, all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). If the "All" option is selected, bar types may vary between Bullish / Bearish.
Detection Sensitivity -> You may select between Low, Normal or High FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivies resulting in spotting bigger FVGs, and higher sensitivies resulting in spotting all sizes of FVGs.
3. Inversion Fair Value Gaps
Zone Invalidation -> Select between Wick & Close price for IFVG Zone Invalidation.
4. Style
Divergence Labels On -> You can switch divergence labels to show up on the chart or the oscillator plot.
Осцилляторы
30 min Aroon Datlı StrategyUse 30 minute with 100 SMA. If it buys above 100 SMA a long trade will be entered. If it sells below 100 SMA short trade will be entered.
MTF TREND/RSIMTF TREND ANALYSIS
JUST A THEORY
USING RSI FROM xdecow as well for just an added confluence
someone wanted to use this so i decided to publish for just open source use not sure how accurate any of this is
Bilateral Stochastic Oscillator XI took the Bilateral Stochastic Oscillator created by alexgrover and merely added more moving average filter options and reduced the standard inputs for shorter term trend analysis.
I also updated the script to version 5.
The filter options are now:
SMA
EMA
RMA
HMA
WMA
VWMA
TMA
LSMA
Cheers.
Heikin Ashi - RSI - SMA +/- Color Timeframe / Symbol- ENThis code includes a simple method to recolor standard Heikin Ashi candlesticks based on RSI or SMA conditions. Different crypto symbols or different timeframes can be selected.
- RSI1 > RSI2 : green: red
- SMA1 > SMA2 : green : red
Enhanced Chaikin Money FlowEnhanced Chaikin Money Flow (CMF) with Normalized Distribution
The Enhanced Chaikin Money Flow (CMF) is a sophisticated version of Marc Chaikin's classic volume-weighted indicator that measures buying and selling pressure. This version incorporates statistical normalization and advanced smoothing techniques to provide more reliable signals.
Key Features
Normalized distribution (z-score) for better historical comparison
Multiple smoothing options (SMA, EMA, WMA, RMA) for noise reduction
Standard deviation bands (1σ and 2σ) to identify extreme readings
Adjustable parameters for customization
Alert system for extreme readings
Interpretation
Values represent standard deviations from the mean
Above 0: Indicates net buying pressure
Below 0: Indicates net selling pressure
Outside ±2σ bands: Suggests extreme market conditions
Crossovers of standard deviation bands may signal potential reversals
Technical Details
The indicator combines volume with price location within a bar to determine buying/selling pressure, then normalizes these values using a rolling z-score calculation. This normalization allows for better historical comparison and more reliable overbought/oversold signals.
Best used in conjunction with price action and other indicators for confirmation of potential market turns or trend strength.
Rikki's DikFat Buy/Sell OscillatorAttached we have a very simple Buy/Sell Oscillator.
This script will color candles red when price is bear trending and green when price is bull trending.
I have taken elements of our CCI color signaler indicator found here: to make this very simple and easy to read candlestick color oscillator for traders both new and seasoned.
The the red candles color red as a result of the fuchsia CCI condition on the previously mentioned indicator.
The green candles color as a result of the black CCI color condition on the previously mentioned script.
The script was modified to run the black CCI condition anywhere the fuchsia condition is not displayed and the colors were changed to red and green for a clean visual representation on the chart.
I have not quite got the wick and border colors correct. For some reason they keep reverting when you click out of the script setting. Will update once complete.
The code and script are public. Enjoy :)
Stormico Screener 40, EMA 80 (Slow Stochastic 8)This screener is a tribute to Alexandre Wolwacz, known as "Stormer," one of the most influential traders in the Brazilian financial market.
Stormer is renowned for his experience and skill in technical analysis, as well as his dedication to teaching trading strategies to traders at all levels. He is particularly known for his focus on strategies with a positive risk-reward ratio and low drawdown, something he conveys to his followers with clarity and practicality.
The screener presented here uses a setup frequently employed by Stormer to capture pullbacks in uptrends, focusing on strategic entries, short stops, and long targets. It utilizes an 8-period Slow Stochastic and an 80-period Exponential Moving Average (EMA) and is suitable for Day Trading, Swing Trading, and Position Trading on weekly charts.
Main Elements of the Setup:
80-Period Exponential Moving Average (EMA): The 80 EMA is used as a trend filter. When the price is above it, we consider an uptrend and look for buying opportunities. When the price is below it, buy trades are avoided, prioritizing trades that follow the upward trend.
Slow Stochastic Oscillator: The 8-period Slow Stochastic is used to capture entry points during pullbacks. In an uptrend, we look for moments when the oscillator reaches oversold levels (below 20), indicating a possible entry at an attractive price while remaining aligned with the main market direction.
Entry and Exit Criteria:
Buy: The entry occurs when the stochastic oscillator is in oversold levels and the price stays above an ascending 80 EMA with a bullish candle or inside bar, or when the stochastic turns upward.
Short Stop: The stop-loss is positioned below a recent support level, limiting risk and minimizing drawdown.
Long Target: Once in operation, the goal is to ride the trend with wider targets to maximize gains. The target suggested by Stormer can be set at twice the risk (2x Risk) or the previous high on the chart.
Positive Risk-Reward Ratio and Low Drawdown
With a short stop and a larger profit target, this setup is ideal for capturing entries with a favorable risk-reward ratio, minimizing drawdown and maximizing profit potential in trades that follow the trend.
This screener applies this setup across 40 assets, identifying the best opportunities according to the "Stormer" method. It displays the 8 and 80 EMAs and can be complemented by the Stormico Screener 40, Slow Stochastic (EMA 80).
The setup was also a favorite of his daughter Carol, who contributed greatly to live sessions and classes with Stormer. This screener honors both of them and Alexandre Wolwacz’s methodology, with deep respect for all he has contributed to the market and his students.
Stormico Screener 40, Slow Stochastic (EMA 80)This screener is a tribute to Alexandre Wolwacz, known as "Stormer," one of the most influential traders in the Brazilian financial market.
Stormer is renowned for his experience and skill in technical analysis, as well as his dedication to teaching trading strategies to traders at all levels. He is particularly known for his focus on strategies with a positive risk-reward ratio and low drawdown, something he conveys to his followers with clarity and practicality.
The screener presented here uses a setup frequently employed by Stormer to capture pullbacks in uptrends, focusing on strategic entries, short stops, and long targets. It utilizes an 8-period Slow Stochastic and an 80-period Exponential Moving Average (EMA) and is suitable for Day Trading, Swing Trading, and Position Trading on weekly charts.
Main Elements of the Setup:
80-Period Exponential Moving Average (EMA): The 80 EMA is used as a trend filter. When the price is above it, we consider an uptrend and look for buying opportunities. When the price is below it, buy trades are avoided, prioritizing trades that follow the upward trend.
Slow Stochastic Oscillator: The 8-period Slow Stochastic is used to capture entry points during pullbacks. In an uptrend, we look for moments when the oscillator reaches oversold levels (below 20), indicating a possible entry at an attractive price while remaining aligned with the main market direction.
Entry and Exit Criteria:
Buy: The entry occurs when the stochastic oscillator is in oversold levels and the price stays above an ascending 80 EMA with a bullish candle or inside bar, or when the stochastic turns upward.
Short Stop: The stop-loss is positioned below a recent support level, limiting risk and minimizing drawdown.
Long Target: Once in operation, the goal is to ride the trend with wider targets to maximize gains. The target suggested by Stormer can be set at twice the risk (2x Risk) or the previous high on the chart.
Positive Risk-Reward Ratio and Low Drawdown
With a short stop and a larger profit target, this setup is ideal for capturing entries with a favorable risk-reward ratio, minimizing drawdown and maximizing profit potential in trades that follow the trend.
This screener applies this setup across 40 assets, identifying the best opportunities according to the "Stormer" method. It displays the 8 and 80 EMAs and can be complemented by the Stormico Screener 40, EMA 80 (Slow Stochastic 8).
The setup was also a favorite of his daughter Carol, who contributed greatly to live sessions and classes with Stormer.
This screener honors both of them and Alexandre Wolwacz’s methodology, with deep respect for all he has contributed to the market and his students.
Stochastic RSI V1Stokastik RSI V1 - Kesişim noktaları işaretlendi, aşırı alım ve satım bölgeleri oluşturuldu. Çok ta önemli olmayabilecek değişiklikler işte...
Alex JMA RSX Clone with Price & Divergence [LazyBear]Indicator Description:
RSX Indicator (RSXC_LB): This script is based on a clone of the JMA RSX (Relative Strength Index clone by LazyBear). It is a momentum-based indicator that helps identify overbought and oversold levels, as well as potential trend reversals.
Functional Changes:
Convergence is now marked with a white line on the RSX plot.
Bullish Divergence is marked with a green line, indicating potential upward movement.
Bearish Divergence is marked with a red line, indicating potential downward movement.
The default state is marked with a blue line.
Strong Divergences (both bullish and bearish) are highlighted with triangle markers on the chart.
Updated Features:
The script now visualizes convergence and divergence more clearly using distinct colors:
White: Convergence (indicates potential trend strength).
Green: Bullish divergence (possible price increase).
Red: Bearish divergence (possible price decrease).
Blue: Neutral/default state.
Triangle markers indicate strong divergences, making it easier for the user to spot critical moments.
This visual enhancement aims to provide clearer and more intuitive signals for traders using the RSX indicator, helping them identify trend changes and reversals more effectively.
TDM Wavetrend Oscillator [2DimensionalM]Two Dimensional Man Wavetrend Oscillator
Overview: The Two Dimensional Man Wavetrend Oscillator is an advanced trend and momentum analysis tool. This indicator visually highlights the overall trend while capturing minor trend shifts in real-time.
Purpose: Designed to accurately assess trend direction, momentum strength, and potential overbought/oversold conditions, this oscillator also signals changes in market environments and potential reversals.
Applicability: The indicator is versatile and well-suited for various trading strategies, including trend trading, range-bound trading, and scalping, making it an reliable tool for traders seeking precision in different market conditions.
Components:
1. Momentum Cloud: Displayed as a blue/purple cloud oscillating around the zero axis, the Momentum Cloud reflects both trend direction and strength. When above the zero line, it signals a bullish trend, while below indicates a bearish trend. Similar to standard moving average based oscillator logic, and it is sensitive to divergences. Uniquely, this indicator defines overbought and oversold conditions based on momentum and trend, allowing for more effective monitoring of potential reversals in conjunction with divergences.
2. RSI: Equipped with a color-shifting logic, this RSI provides a more accurate reflection of short-term trend dynamics. It also serves as an environmental signal, assessing trend strength and momentum within lower time frames.
3. VWAP Cloud: Displayed as a default black cloud, the VWAP Cloud represents short-term trend direction differently than the Momentum Cloud. Centered around the zero line, its golden and death crosses correspond to bullish and bearish signals respectively. The combination of the VWAP and Momentum Clouds provides a refined assessment of trend accuracy and helps in precision monitoring.
4. Money Flow Star Line: This "cross" line captures the overall trend within a higher time frame relative to the current window. Above the zero line indicates bullish conditions, while below signals bearish. Movement upward signifies bullish momentum, and downward indicates bearish. Together with the RSI line, the Money Flow Star Line completes a multi-dimensional view of trend momentum and direction: the RSI responds faster, while the Money Flow Star Line reflects overarching trend changes.
5. Overbought/Oversold Zones & Environmental Signals: These zones apply to both the Momentum Cloud and RSI, highlighting potential reversals. The color-changing edges of these zones reveal environmental signals: a blue edge at the bottom suggests bullish market sentiment, while a black edge at the top indicates bearish sentiment, guiding trend-following trades.
6. Bull/Bear Dots: Colored dots appearing on the Momentum Cloud reveal trend reversals with high accuracy. Black and red dots only appear in overbought or oversold conditions, while gray and blue dots indicate non-overbought/oversold states. Black and red dots mark local market tops and bottoms, confirming strong sell or buy signals and acting as reliable indicators for potential peaks and troughs.
MACD+RSI+BBDESCRIPTION
The MACD + RSI + Bollinger Bands Indicator is a comprehensive technical analysis tool designed for traders and investors to identify potential market trends and reversals. This script combines three indicators: the Moving Average Convergence Divergence (MACD), the Relative Strength Index (RSI), and Bollinger Bands. Each of these indicators provides unique insights into market behavior.
FEATURES
MACD (Moving Average Convergence Divergence)
The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
The script calculates the MACD line, the signal line, and the histogram, which visually represents the difference between the MACD line and the signal line.
RSI (Relative Strength Index)
The RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify overbought or oversold conditions.
The script allows users to set custom upper and lower thresholds for the RSI, with default values of 70 and 30, respectively.
Bollinger Bands
Bollinger Bands consist of a middle band (EMA) and two outer bands (standard deviations away from the EMA). They help traders identify volatility and potential price reversals.
The script allows users to customize the length of the Bollinger Bands and the multiplier for the standard deviation.
Color-Coding Logic
The histogram color changes based on the following conditions:
Black: If the RSI is above the upper threshold and the closing price is above the upper Bollinger Band, or if the RSI is below the lower threshold and the closing price is below the lower Bollinger Band.
Green (#4caf50): If the RSI is above the upper threshold but the closing price is not above the upper Bollinger Band.
Light Green (#a5d6a7): If the histogram is positive and the RSI is not above the upper threshold.
Red (#f23645): If the RSI is below the lower threshold but the closing price is not below the lower Bollinger Band.
Light Red (#faa1a4): If the histogram is negative and the RSI is not below the lower threshold.
Inputs
Bollinger Bands Settings
Length: The number of periods for the moving average.
Basis MA Type: The type of moving average (SMA, EMA, SMMA, WMA, VWMA).
Source: The price source for the Bollinger Bands calculation.
StdDev: The multiplier for the standard deviation.
RSI Settings
RSI Length: The number of periods for the RSI calculation.
RSI Upper: The upper threshold for the RSI.
RSI Lower: The lower threshold for the RSI.
Source: The price source for the RSI calculation.
MACD Settings
Fast Length: The length for the fast moving average.
Slow Length: The length for the slow moving average.
Signal Smoothing: The length for the signal line smoothing.
Oscillator MA Type: The type of moving average for the MACD calculation.
Signal Line MA Type: The type of moving average for the signal line.
Usage
This indicator is suitable for various trading strategies, including day trading, swing trading, and long-term investing.
Traders can use the MACD histogram to identify potential buy and sell signals, while the RSI can help confirm overbought or oversold conditions.
The Bollinger Bands provide context for price volatility and potential breakout or reversal points.
Example:
From the example, it can clearly see that the Selling Climax and Buying Climax, marked as orange circle when a black histogram occurs.
Conclusion
The MACD + RSI + Bollinger Bands Indicator is a versatile tool that combines multiple technical analysis methods to provide traders with a comprehensive view of market conditions. By utilizing this script, traders can enhance their analysis and improve their decision-making process.
Stablecoin Dominance Oscillator
The SDO is a normalized oscillator that tracks the relationship between stablecoin market capitalization (USDT + USDC + DAI) and total crypto market capitalization. It helps identify periods where stablecoins represent an unusually high or low portion of the total crypto market value.
Key components:
Main Signal (Blue Line):
Shows the normalized deviation of stablecoin dominance from its trend. Higher values indicate higher stablecoin dominance relative to history (which often corresponds with market bottoms/fear), while lower values indicate lower stablecoin dominance (often seen during strong bull markets/greed).
Dynamic Bands (Gray):
These adapt to market volatility, expanding during volatile periods and contracting during stable periods
Generally suggest temporary boundaries for the oscillator
Volatility Reference (Purple Line):
Shows the ratio between short-term and long-term volatility
Higher values indicate more volatile market conditions
Helps contextualize the reliability of the current signal
The indicator uses a 500-period lookback for baseline calculations and a 15-period Hull Moving Average for smoothing, making it responsive while filtering out noise. The final signal is normalized and volatility-adjusted to maintain consistent readings across different market regimes.
Advance RSI Renko CalculationRSI based BUY and SELL on Renko Chart, only works good on renko chart, choose block size wisely for better results.
Custom AO with Open Difference**Custom AO with Open Difference Indicator**
This indicator, *Custom AO with Open Difference*, is designed to help confirm trend direction based on the relationship between the daily open price and recent 4-hour open prices. It calculates the Awesome Oscillator (AO) based on the difference between the daily open price and the average of the previous six 4-hour open prices. This approach provides insight into whether the current open price is significantly diverging from recent short-term opens, which can indicate a trend shift or continuation.
### Technical Analysis and Features
1. **Trend Confirmation**: By comparing the daily open with the mean of six previous 4-hour open prices, this indicator helps identify trends. When the current daily open is below the average of recent opens, the AO value will plot as green, signaling potential upward momentum. Conversely, if the daily open is above the recent average, the histogram will plot red, suggesting possible downward momentum.
2. **Non-Repainting**: Since it relies on completed 4-hour and daily open prices, this indicator does not repaint, ensuring that all values remain fixed after the close of each period. This non-repainting feature makes it suitable for backtesting and reliable for trend confirmation without fear of historical changes.
3. **AO Mean Calculation**: The indicator calculates the average of six previous 4-hour open prices, providing a smoothed value to reduce short-term noise. This helps in identifying meaningful deviations, making the AO values a more stable basis for trend determination than using just the latest 4-hour or daily open.
4. **Histogram for Visual Clarity**: The indicator is displayed as a histogram, making it easy to identify trend changes visually. If the AO bar turns green, it’s a signal that the 4-hour average is below the daily open, suggesting an uptrend or bullish momentum. Red bars indicate that the daily open is above the recent 4-hour averages, potentially signaling a downtrend or bearish momentum.
### Practical Application
The *Custom AO with Open Difference* is a versatile tool for confirming the open price trend without needing complex oscillators or lagging indicators. Traders can use this tool to gauge the market sentiment by observing open price variations and use it as a foundation for decision-making in both short-term and daily timeframes. Its non-repainting nature adds reliability for traders using this indicator as part of a broader trading strategy.
Multi VWAPs (Daily Weekly Monthly Yearly)This indicator calculates VWAP for daily, weekly, monthly, and yearly timeframes, which can be toggled on/off in the settings.
Each VWAP (Daily, Weekly, Monthly, and Yearly) is plotted with a different color for easy distinction:
Daily VWAP: Blue
Weekly VWAP: Green
Monthly VWAP: Purple
Yearly VWAP: Red
ATAMOKU - Ichimoku-Based Independent Scoring System
Name Origin of ATAMOKU:
The name ATAMOKU combines "Ata" (which means "I existed" in Japanese and "ancestor or father" in Turkish, which is also my name) and "Moku," meaning "cloud" in Japanese. This name reflects a unique scoring system based on Ichimoku principles, designed to help traders analyze trends and identify entry and exit points more accurately.
Scoring System Overview:
ATAMOKU leverages key Ichimoku values, including the Conversion Line, Base Line, and Leading Spans A and B. By applying mathematical functions and formulas, these values are used to generate a comprehensive score that indicates market strength and trend direction. This scoring system works independently of the price position relative to the Ichimoku cloud, allowing traders to identify potential entry and exit points in any time frame.
Signal and Smoothing Lines:
The script includes signal and smoothed lines that display signals continuously and can be customized with different smoothing techniques such as SMA, EMA, and WMA. These lines visually highlight entry and exit points, adapting to the trader's individual strategy.
Settings and Customization:
ATAMOKU offers several customization options to suit various trading preferences:
Scoring Method:
The scoring system uses hierarchical comparisons of Ichimoku values, with configurable weights for each comparison.
Smoothing Techniques:
Users can choose from several smoothing methods (SMA, EMA, WMA) to adjust signal sensitivity, allowing traders to fine-tune the display according to their preferred trading style.
Period Adjustments:
Options for adjusting the period of the scoring and smoothing calculations are provided to accommodate different time frames and trading strategies.
Display and Visualization:
ATAMOKU presents the data using a histogram and line chart format, enabling traders to observe trends and potential entry and exit points quickly and clearly.
Key Features:
Flexibility Across Time Frames, usable on any time frame without restriction.
Independent Cloud Position Scoring, Generates signals and identifies entry and exit points independently of the price position relative to the cloud.
Multi-Dimensional Analysis, Analyzes various Ichimoku data points and uses mathematical functions to offer traders a comprehensive market view.
Support and Contact:
For further information, customization questions, or support, please feel free to reach out via Private Message on TradingView. If you have a Premium account, additional contact details can also be included in the Signature field below.
Probabilistic Trend Oscillator** MACD PLOTS ARE NOT PART OF THE INDICATOR IT IS FOR COMPARSION**
The "Probabilistic Trend Oscillator" is a technical indicator designed to measure trend strength and direction by analyzing price behavior relative to a moving average over both long-term and short-term periods. This indicator incorporates several innovative features, including probabilistic trend detection, enhanced strength scaling, and percentile-based thresholds for identifying potential trend reversals.
Key Components
Inputs:
The indicator allows users to customize several key parameters:
EMA Length defines the period for the Exponential Moving Average (EMA), which serves as a baseline to classify trend direction.
Long and Short Term Lengths provide customizable periods for analyzing trend strength over different timeframes.
Signal Line Length is used to smooth the trend strength data, helping users spot more reliable trend signals.
Extreme Value Lookback Length controls how far back to look when calculating percentile thresholds, which are used to identify overbought and oversold zones.
Trend Classification:
The indicator categorizes price behavior into four conditions:
Green: Price closes above the open and is also above the EMA, suggesting a strong upward trend.
Red: Price closes below the open but is above the EMA, indicating weaker upward pressure.
Green1: Price closes above the open but remains below the EMA, representing weak upward movement.
Red1: Price closes below the open and the EMA, signaling a strong downward trend.
Trend Strength Calculation:
The script calculates long-term and short-term trend values based on the frequency of these trend conditions, normalizing them to create probabilistic scores.
It then measures the difference between the short-term and long-term trend values, creating a metric that reflects the intensity of the current trend. This comparison provides insight into whether the trend is strengthening or weakening.
Enhanced Trend Strength:
To emphasize significant movements, the trend strength metric is scaled by the average absolute price change (distance between close and open prices). This creates an "enhanced trend strength" value that highlights periods with high momentum.
Users can toggle between two variations of trend strength:
Absolute Trend Strength is a straightforward measure of the trend's force.
Relative Trend Strength accounts for deviations between short term and long term values, focusing on how current price action differs from a long term behavior.
Percentile-Based Thresholds:
The indicator calculates percentile thresholds over the specified lookback period to mark extreme values:
The 97th and 3rd percentiles act as overbought and oversold zones, respectively, indicating potential reversal points.
Intermediate levels (75th and 25th percentiles) are added to give additional context for overbought or oversold conditions, creating a probabilistic range.
Visualization:
The selected trend strength value (either absolute or relative) is plotted in orange.
Overbought (green) and oversold (red) percentiles are marked with dashed lines and filled in blue, highlighting potential reversal zones.
The signal line—a smoothed EMA of the trend strength—is plotted in white, helping users to confirm trend changes.
A gray horizontal line at zero acts as a baseline, further clarifying the strength of upward vs. downward trends.
Summary
This indicator provides a flexible, probabilistic approach to trend detection, allowing users to monitor trend strength with customizable thresholds and lookback periods. By combining percentile-based thresholds with enhanced trend strength scaling, it offers insights into market reversals and momentum shifts, making it a valuable tool for both trend-following and counter-trend trading strategies.
Depth Trend Indicator - RSIDepth Trend Indicator - RSI
This indicator is designed to identify trends and gauge pullback strength by combining the power of RSI and moving averages with a depth-weighted calculation. The script was created by me, Nathan Farmer and is based on a multi-step process to determine trend strength and direction, adjusted by a "depth" factor for more accurate signal analysis.
How It Works
Trend Definition Using RSI: The RSI Moving Average ( rsiMa ) is calculated to assess the current trend, using customizable parameters for the RSI Period and MA Period .
Trends are defined as follows:
Uptrend : RSI MA > Critical RSI Value
Downtrend : RSI MA < Critical RSI Value
Pullback Depth Calculation: To measure pullback strength relative to the current trend, the indicator calculates a Depth Percentage . This is defined as the portion of the gap between the moving average and the price covered by a pullback.
Depth-Weighted RSI Calculation: The Depth Percentage is then applied as a weighting factor on the RSI Moving Average , giving us a Weighted RSI line that adjusts to the depth of pullbacks. This line is rather noisy, and as such we take a moving average to smooth out some of the noise.
Key Parameters
RSI Period : The period for RSI calculation.
MA Period : The moving average period applied to RSI.
Price MA Period : Determines the SMA period for price, used to calculate pullback depth.
Smoothing Length : Length of smoothing applied to the weighted RSI, creating a more stable signal.
RSI Critical Value : The critical value (level) used in determining whether we're in an uptrend or a downtrend.
Depth Critical Value : The critical value (level) used in determining whether or not the depth weighted value confirms the state of a trend.
Notes:
As always, backtest this indicator and modify the parameters as needed for your specific asset, over your specific timeframe. I chose these defaults as they worked well on the assets I look at, but it is likely you tend to look at a different group of assets over a different timeframe than what I do.
Large pullbacks can create large downward spikes in the weighted line. This isn't graphically pleasing, but I have tested it with various methods of normalization and smoothing and found the simple smoothing used in the indicator to be best despite this.
