The Fusion Oscillator aggregates several extremely-similar directional oscillators (RSI, MFI, MACD, CCI, TSI, RVI) into one average to visualize indicator agreement. To do this, I normalized several oscillators between [-1,1] to ensure equal weight.
The white line is the directional oscillator. The yellow line (turned off) is the nondirectional oscillator - namely, the ADX and ATR - this determines the buy/sell signals in conjunction with overbought/oversold levels for the directional oscillator.
The overall length is the sensitivity of the oscillator, not the lookback period. The maximum that works on the default settings is 3. Higher means less sensitive and more accurate.
I hope you all find this useful!
Notas de Lançamento
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Added ema into settings
Notas de Lançamento
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Ease-of-use updates and I added alert conditions, for anybody interested in creating webhooks/automating it, or just for general alerts!
Notas de Lançamento
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Removed wavetrend input; didn't improve the indicator, made it slower. Feel free to browse earlier versions for the calculation.
Hi, very nice idea and great work. Was curious does adding more directional inidis make the indicator better/more accrurate or not per se as that might distort the signal? e.g. does it make sense to add Wavetrend as well or any other directional indis as of matter Thx
wbburgin
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@crypto_juju, Wavetrend is definitely possible, I'll look into it. I'll have to check whether it will cause lag in the signal (this is why I added relative volatility, because it signals faster than the rsi) and whether it's correlated to the others as much as they correlate to each other right now. Thanks!
crypto_juju
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@wbburgin, Ok, gotcha. Think you answered my main curiosity which was whether more indis improves the signal. But in reality sounds like that's not strictly the case unless they are correlated to the others and in general do a good job. Wavetrend in that case definitely might end up as more of a lagger to the other ones so feel free to ignore if you don't think it is improving/adding value. Thx!
bzyczek1977
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What would be the best time frame for this indicator in your humble opinion?
wbburgin
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@bzyczek1977, 15 minutes has worked well for me, but honestly it'll depend on the asset.
artemail1983
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Thanks. A very interesting idea
arturrox
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Thanks for posting. Very interesting indicator. Nice work
wbburgin
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@arturrox, Thanks - also, I added the moving average in the most recent update.
arturrox
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@wbburgin, thanks for the update. Much better read now with the EMA!
PaulRacG
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I really did not appreciate the usefulness of this indicator until I changed the Directional Jumper to green, the Nondirectional Average to light red, and the Directional EMA to dark red, and the Zero/mid-line red. Don't take a trade when green is below red. Take a solid long trade when green crosses above the red mid-line and it is also above light red n.d. avg. and the dark red dir EMA. Really solid indicator @wbburgin , thanks!
e.g. does it make sense to add Wavetrend as well or any other directional indis as of matter
Thx