+ Awesome OscillatorHi again. I have another indicator that I think is pretty neat.
I had the idea of creating an Awesome Oscillator for my Ultimate MA, just to see what kind of signals it might produce. If you're not familiar with my UMA you should go take a look at it, but essentially it is just an average of eight different length MAs, and if you're not familiar with the Awesome Oscillator, it is simply a comparison of the gap between two different moving averages (traditionally a 5 and 34 SMA) plotted as a histogram below the price chart. The two UMAs I was comparing in this version of the AO were the Hull and Simple. It looked okay, but I thought due to the nature of the movements of these MAs, that it was necessary to add something to this indicator in order to validate its creation and make it truly useful
I came to the idea of simply comparing the closing price of the asset on the chart to both the Awesome Oscillator moving averages. What this effectively does is gives you a representation of the moving averages on the chart (assuming you are using those same MAs) as an oscillator below the chart, enabling you to remove the moving averages from your price chart (obviously if you so choose). For me, I like this because fewer things on the chart makes it easier for me to see the price action and structure of the market clearly, or add something like a tWAP or two.
So, like, "how exactly would I use this indicator?"" you're probably asking.
First off: the Awesome Oscillator. By default it is a faintly shaded area, and is the least obvious part of the indicator.
Second: the plotted line. This is what I call the baseline (if you're familiar with NNFX, then you know what this is). It's basically your bias moving average (this means it defines, based on its lookback or length, whether momentum is bullish, bearish or ranging). In the case of the oscillator though, the ZERO line represents the baseline, and the oscillating line represents price in relation to it. If the line is above the zero line then price is above the moving average, and vice versa if it's below. The farther from the center line the baseline price is the greater the volatility,
Third: the histogram. This is the faster moving average, and same rules apply to it as your baseline. You can think of your fast moving average as a trade entry trigger, or an exit. It shows more immediate momentum shifts.
What's interesting about the relationships of all three of these things is that you don't actually NEED all three displayed. Because the Awesome Oscillator is a relation of your two moving averages, and the baseline and histogram are representational of the price relative to those two moving averages, you will notice that when the histogram (fast MA) flips up or down is the same exact time that the baseline price dips into the AO. The AO is effectively a moving average on that. So you can run this with just the AO and Baseline, or just the Baseline and fast MA histogram. To get started, I might recommend keeping your moving averages that you use on the chart just so you can see how this indicator works.
Both the fast MA and Baseline will show nice divergences (divergence indicator is added if you want to use it). And I've added Donchian Channels as upper and lower bounds that act neatly as support or resistance (especially effective if you're using my UMA with Bollinger Bands, or Magic Carpet Bands).
I've also done the usual colored candles thing, which gives you another great reason to get the moving averages off your chart. There are of course alerts for conditions that one might need to be alerted to as well.
Below are some images of different ways you might set these up using the default moving average/baseline settings. In all of these I've left the moving averages on the price chart (with the addition of a 233 SMA) so you can see the relationship between the indicators.
Right here is the indicator set up with just the awesome oscillator and baseline price. Gives a cleaner overall look. You can see that every time the baseline crosses the awesome oscillator is when price crosses the 8 SMA. Candle colors are based on if candle closes above baseline or below.
This is the indicator set up without the awesome oscillator. Here you can see candle closes over the 8 SMA (fast moving average) are shown by the histogram. Candle coloring is still the same as the above image.
This image looks identical to the first, except that the candle coloring is different. This time it is based on the 8 SMA (same as the baseline entering the awesome oscillator).
And the final example image. This one depicts the awesome oscillator and the fast moving average histogram. Candle coloring is based on the awesome oscillator. This can be a great way to visualize momentum because the awesome oscillator is depicting the crossing of the moving averages. A lot of people poo-poo moving average crosses, but I'd say they're wrong. Well, they're right and wrong. Depends on the MAs you're using. The power in moving average crosses is in their ability to show bullish or bearish momentum (or ranging behavior if they continually cross over each other). If you're using slow moving averages, then crosses are often very late (hence so many people who don't know saying, "but moving average crosses are too laggy". Here you might try changing these and having the baseline be faster than the UMA, and actually plot on chart the UMA (or some other moving average). These are just some thoughts.
Anyway, I hope this indicator proves useful to you all. I think for anyone looking to look at price action a bit more, but is used to using moving averages, this could be a really useful indicator. Most oscillating indicators (if not all) are built around moving averages, but they're never explained in such a way as I'm explaining how this one works (I don't think). I think knowing this could help many traders come to a deeper understanding of what the indicator they're using is actually doing.
Confirmationindicator
+ Klinger OscillatorThis is a version of Stephen J. Klinger's, Klinger Oscillator (sometimes called Klinger Volume Oscillator). I've changed virtually nothing about the indicator itself, but added some lookback inputs for the EMAs the oscillator is derived from (traditionally 34 and 55), and added a few other things, as is my wont.
But what is the Klinger Oscillator? Essentially, the calculation looks at the high, low, and close of the current period, and compares that to the previous period's. If it is greater, it adds volume, and if it is less, it subtracts volume. It then takes an EMA of two different lookback periods of that calculation and subtracts one from the other. That's your oscillator. There is then made a signal line of the oscillator that a trader can use, in combination with the zero line, for taking trades. Investopedia has a good article on it, so if you're looking for more specifics, check there.
What I've done is add a selection of different moving averages that you may choose for the signal line. Usually it's a 13 period EMA, and that comes default, but here you could use an ALMA or HMA, or modular filter, etc. Find something that works for your style/algorithm.
Of course there are all the usual additions of mine with the various ways of coloring the indicator and candles, adjustable Donchian Bands, and alerts. A new addition that I've just added to all my indicators (oscillators, anyway) are divergences. This is more or less just a copy and paste of the divergence indicator available in TradingView. In this case you can set it to plot divergences off either the Klinger or the signal line. Depending on which one you choose you may have to adjust pivot lookbacks, and lookback range. I've kept the settings default from the RSI TradingView version.
+ Balance of PowerThe Balance of Power is an indicator that measures the strength of buyers versus that of sellers in the market, and needs to be smoothed by a moving average to be of much practical use (come to think of it, most indicators are smoothed by a moving average; this is why the RSI lookback mostly commonly used is 14, and not 1, but I digress...). I suppose it is possible to use it without smoothing, but that would be very difficult I think.
The oscillator pivots around a center line, and as with most indicators like this, above 0 is generally considered bullish in a bullish trend, and vice versa in a downtrend.
It can be good for spotting divergences (moreso with smaller lookback periods than I like).
To wit, you might be wondering why I have the default lookback period set at such a large number. My only answer I can give is that I prefer it that way.
The indicator is quite choppy, even when smoothed. The long period helps me to make beter sense of the data (smooth it with a Hull or Jurik MA and you get a different story, though).
In my version of this indicator I provide a pretty broad selection of moving averages with which one may choose to smooth out the BOP, as well as an EMA provided to use as a sort of signal line for trade entries and/or exits, taking partial profits, scaling into a position, etc.
I've also added the option for a second BOP, which is on by default. I think you might find the results interesting by pairing differently smoothed BOPs together.
Of course, you don't have to use both. In the case of the default settings you might look at the EMA-BOP crossing the JMA-BOP as an opportunity to look into exiting or entering trades.
Candle coloring is, as usual, included. I'd say I kind of overdid it here, but that seems to be my style. I just couldn't deal with the fact that with the indicator set to cumulative modes there is no zero line, therefor the color of the indicator plot and the candle coloring would not match the color swatches for bullish/bearish colors. So, there are selections for cumulative indicator/candle colors, and standard indicator/candle colors. Donchian Channels obviously doesn't matter because the colors of things are based on the channel only.
I've added Donchian channel bands (which I've begun adding to many of my indicators), and all necessary alerts as well.
The Donchian Channels can be a really effective tool for entering and exiting trades. I haven't mentioned it in my other indicators that have it, so I will here:
The outermost edge of the band is that which references the indicator for where it is plotted, and the inner channel is sort of dragged along, creating the band
It's a simple mathematical calculation that TradingView actually provided themselves in their manual for pinescript.
When the BOP (or any other indicator using this) enters the band and then exits that could be an indication that price may be reversing, this the bands themselves act, or rather, show a current area of support/resistance for the BOP plot.
One thing that I did with it that they did not, is give the user the ability to change the width of the band. It can only go so narrow, obviously, but anywhere from three (quite wide) to eight is probably sufficient.
I've also provided the option of plotting the BOP as a cumulative line (like OBV), making it no longer an indicator which oscillates around a central pivot.
Because the balance of power is plotted as an accumulation, you may actually want to set the lookback to 1 (it works because it's not an oscillator then).
If you wish to smooth the noise, I suspect a low number would be acceptable here, but it's not necessary.
Oh, and lastly (almost forgot, as this was a late addition), I've added options for the BOPs calculated with volume as well. Gives a different bit of a perspective on the market, versus the traditional version which does not include volume. Screenshots below.
The above image is the balance of power calculated with volume. You can see the obvious difference versus the traditional indicator, where price is in a downtrend and you'd want to sell the orange.
Cumulative version. Looks a lot like OBV.
Cumulative version with volume.
+ REX OscillatorSo, what is the REX oscillator, you might be asking yourself.
"The Rex oscillator is an indicator that measures market behavior based on the relationship of the close to the open, high and low values of the same bar. A big difference between the high and close on a bar indicates weakness, and wide disparity between the low and close indicates strength. The difference between open and close also indicates market performance."
The True Value of a Bar (TVB) gives an indication of how healthy the market is. A negative close and a positive TVB (or vice versa) is an indication of the market building strength on the opposing side of the trend. The Rex oscillator is a moving average of the TVB value with the specified period.
I first came across this watching one of many No Nonsense Forex videos. Mostly, from comments I've read, it is used as an exit indicator for people who trade with a system similar or identical to the one VP espouses in his NNFX blog. I think it's perfectly apt to use as an entry indicator as well, or even as both, perhaps, depending on the moving average you chose to apply to the TVB.
There are a few other versions of this on tradingview, but I thought I'd make an updated version. Added Donchian Channels because I like the idea of a dynamic sort of overbought/sold area. I left out the basis because the indicator pivots around a center line, and has a signal line as well. A basis line just seemed like too much, and would likely not be very useful.
The additional usual things that I incorporate into my indicators are included here: optional candle coloring, alerts, and probably a too large selection of moving averages.
Credit to Nemozny for the FRAMA calculation. I may add that to other indicators I have.
+ JMA KDJ with RSI OB/OS SignalsSo, what is the KDJ indicator? If you're familiar with the Stochastic, then you'll know that the two oscillating lines are called the 'K' and 'D' lines. Now you know that this is some sort of implementation of the Stochastic. But, then, what is the J? The 'J' is simply the measure of convergence/divergence of the 'K' and 'D' lines, and the 'J' crossing the 'K' and 'D' lines is representational of the 'K' and 'D' lines themselves crossing. Is this an improvement over simply using the Stochastic as it is? Beats me. I don't use the Stochastic. I stumbled upon the KDJ while surfing around the web, and it sounded cool, so I thought I'd look at it. I do like it a bit more as the 'J' line being far overextended from the other two (usually into overbought/sold territory) does give a clear visual representation of the divergence of the 'K' and 'D' lines, which you might not notice otherwise. So, from that perspective I suppose it is nicer.
But let's get to the good stuff now, shall we? What did I do here?
Well, first thing you're wondering is why there are only two lines when based on my explanation (or your previous experience with the indicator) there should be three. I found this script here on TV, by x4random, who took the 'K' and 'D' lines and made an average of them, so there is only one line instead of the two. So, fewer lines on the indicator, but still the same usefulness. It was in older TV code, so I took it to version4 and cleaned up the code slightly. His indicator included the RSI ob/os plots, and I thought this was neat (even though the RSI being os/ob doesn't tell you much except that the trend is strong, and you should be buying pullback or selling rallies) so I kept them in. His indicator was also the most visually appealing one that I saw on here, so that attracted me too. Credit to x4random for the indicator, though.
Aside from code cleanup and adding the usual bells and whistles (which I will get to) the big thing I did here was change is RMA that he was using for the 'K' and 'D' lines to a Jurik MA's, which smooth a lot of the noise of other moving averages while maintaining responsiveness. This eliminates noise (false signals) while keeping the signals of significance. It took me a while to figure out how to substitute the JMA for the RMA, but thanks to QuantTherapy's "Jurik PPO" indicator I was able to nail down the implementation. One thing you might notice is that there is no input to change signal length. I fiddled with this for a time before sticking to using the period, instead of the signal (thus eliminating the use of the signal input altogether), length to generate the 'K' and 'D' calculations. To make any adjustments other than the period length use the Jurik Power input. You can use the phase input as well, but it has much less of an effect.
Everything else I changed is pretty much cosmetic.
Candle coloring with the option to color candles based on either the 'J' line or the 'KD' line.
color.from_gradients with color inputs to make it beautiful (this is probably my best looking indicator, imo)
plots for when crosses occur (really wish there was a way to plot these over candlesticks! If anyone has any suggestions I'd love to see!)
I think that's about it. Alerts of course.
Enjoy!
Below is a comparison chart of my JMA implementation to the original RMA script.
You can see how much smoother the JMA version is. Both of these had the default period of 55 set, and the JMA version is using the default settings, while the original version is using a length of 3 for the signal line.
+ Detrended Price OscillatorAccording to TradingView the Detrended Price Oscillator is an oscillator that removes trend from price in order to more clearly show an instrument's cyclical
highs and lows so that an investor or trader may more easily time when to buy or sell the underlying instrument. Accordingly, it is not meant to be used as a way of gauging momentum, however, I find it perfectly suitable for the task (at least when used "un-centered" which is how it comes by default here). If you wish to read up more on the DPO just search for it under indicators. It's built in, so you'll find all the information you need on it there. Or check investopedia.
On to the good stuff. What have I done and how does this work?
As un-centered you can use it just like any other momentum oscillator. Price above the zero line is bullish and below is bearish, generally speaking.
I've added two moving averages that you can turn on or off, and choose amongst various types and lengths. Both of these are colored based on trend.
The DPO is also colored based on trend, with a neutral color based on where the DPO is relative to the primary MA and the zero line.
Candles are colored in the same way that the DPO is.
I've added Bollinger Bands because they could be useful on an indicator like this.
All the alert conditions you could dream of.
With this set to centered you will notice that the DPO is not inline with current price. That is intentional, as it's only designed to look at historical price
data to time highs and lows of price movement. As such, I don't recommend using this when set to centered, at least if you're trading crypto. The price volatility
perhaps makes for inconsistent timing of cyclical highs and lows, or perhaps it's the rather brief amount of time cryptocurrencies have been in existence.
I do not know. Just stick to using it un-centered.
The above image shows the indicator with Bollinger Bands turned on and the MA's turned off. Also, you should note that the candle color and DPO color is based on the primary moving average you are using. If you want consistency, and want to use the Bollinger Bands, then keep your primary moving average set as a 20 SMA, as that is the basis for Bollinger Bands.
Hope this is helpful to you. Definitely pair it with an additional indicator like an RSI, or my +ADP. I like to use something rangebound to compare its signals to.
+ Accumulation/DistributionThis is an updated version (with lots of extras added) of the Accumulation/Distribution indicator coded by @Cl8DH.
You can read about what he says about his indicator, and how to use it, here:
So, from that, what have I done?
I added a moving average (of which there are many types to choose from) so that you can use this as a "two lines cross" indicator, as well as a "mid-line cross" indicator.
I added Bollinger Bands (primarily for when "range" is turned off, but if you want to use the Bands with it in fixed range mode too, that's fine. You do you.).
I added candle coloring for both ways of using this indicator:
In rangebound mode there is overbought and oversold coloring, as well as bullish (ADP above the MA and median) and bearish (ADP below the MA and median), and neutral (ADP is above the MA but below the median, or below the MA and above the median). With range turned off there is no overbought or oversold of course. Above the MA and median is bullish, below both is bearish, and neutral covers that grey area where it's neither one nor the other.
The indicator itself is also colored in the same way the candles are. The MA and BBands are biased colored as well (green/red).
Alerts for pretty much every condition imaginable.
Please note in the image above the indicator is pretty gaudy. I don't use it like that, and you can turn a lot of that stuff off (lines, shading, etc.). That is just the default settings.
Like I said, I think Bollinger Bands make most sense if you have it set to range off, but they could be useful either way. Depends on you, the trader.
The candle color is 100% based on the moving average, so if you are using the BBands, set your MA to the default 20 SMA because that's what BBands use for the basis. If you just turn off the MA, whatever it is set to the indicator will still see that and use it (unless you turn off candle colors) to color the candles.
Above is the same image, but just with range turned off, and the Bollinger Bands turned off.
That's all. Hope you like this! It's becoming a favorite of mine, and a lot of what I've implemented here will be added to my previously released indicators, as well as any new ones.
+ TRSIHello again.
Here I have an improved version of the RSI that is similar to my "+ %B" indicator (that, an improved version of the %B).
This version of the RSI includes candle coloring for bullish or bearish bias (is the RSI above or below its median line?), as well as candle coloring for overbought and oversold areas. Additionally, there is an option for coloring candles based on the RSI crossing up or down its moving average.
So, that takes us on to the moving average. You have a selection of these, namely: SMA, EMA, DEMA, TEMA, HMA, JMA, LSMA, MF, SMA (the default), TMA, VAMA, and WMA. These are all very different, so play around and choose one that fits your trading style, or whatever it is you're looking for (or even turn it off if you like!).
I've added alerts, so you can be alerted based on wherever the RSI goes. Is it oversold? Did it just cross the median? Did it cross up or down its MA?
I hope you enjoy it!
+ True RSIThis is a better, cleaner version (in my opinion) of an part of an indicator I was using that was coded up by cI8DH. I reached out to him about cleaning up the code (things weren't working) for Pinescript v4, but he no longer seems to be active, so I thought I might take it upon myself to at least work out this portion of the indicator.
Much credit goes to him. Below is the indicator that he coded, of which only one part have I made additions to.
So, he calls this the True RSI. I was using it as part of the USI, which I posted above (it's the MA Percent indicator type). To my eyes it's not far different from the standard RSI, so I probably could have just made a version of that, but I like this one, and I was excited to add a few things (like candle coloring, which no longer works with his version!).
So, what's different?
I added two different background fills.
I made the lines types for the extremities and midline more appropriate for the indicator.
I added bullish, bearish, overbought, and oversold candle coloring.
I added a multitude of moving averages as well.
If this looks like my '+ %B' indicator, that is because I basically just moved the MA's and candle coloring code over. One could probably do this with many different indicators.
In the future I will probably add alerts, and maybe MA cross candles as well. Or not. Well, almost certainly alerts. Please enjoy!
+ BB %B: MA selection, bar coloring, multi-timeframe, and alerts+ %B is, at its simplest, the classic Bollinger Bands %B indicator with a few added bells and whistles.
However, the right combination of bells and whistles will often improve and make a more adaptable indicator.
Classically, Bollinger Bands %B is an indicator that measures volatility, and the momentum and strength of a trend, and/or price movements.
It shows "overbought" and "oversold" spots on a chart, and is also useful for identifying divergences between price and trend (similar to RSI).
With + %B I've added the options to select one or two moving averages, candle coloring, and a host of others.
Let's start with the moving averages:
There are options for two: one faster and one slower. Or combine them how you will, or omit one or both of them entirely.
Here you will find options for SMA, EMA (as well as double and triple), Hull MA, Jurik MA, Least Squares MA, Triangular MA, Volatility Adjusted MA, and Weighted MA.
A moving average essentially helps to define trend by smoothing the noise of movements of the underlying asset, or, in this case, the output of the indicator.
All of these MAs available track this in a different way, and it's up to the trader to figure out which makes most sense to him/her.
MA's, in my opinion, improve the basic %B by providing a clearer picture of what the indicator is actually "seeing", and may be useful for providing entries and exits.
Next up is candle coloring:
I've added the option for this indicator to color candles on the chart based on where the %B is in relation to its upper and lower bounds, and median line.
If the %B is above the median but below the upper bound, candles will be green (showing bullish market structure). If %B is below the median but above the lower bound, candles will be red (denoting bearish market structure).
Overbought and oversold candles will also be colored on the chart, so that a quick glance will tell you whether price action is bullish/bearish or "oversold"/"overbought".
I've also added functionality that enables candles to be colored based on if the %B has crossed up or crossed down the primary moving average.
One example as a way to potentially use these features is if the candles are showing oversold coloration followed by the %B crossing up your moving average coloration. You might consider a long there (or exit a short position if you are short).
And the last couple of tweaks:
You may set the timeframe to whatever you wish, so maybe you're trading on the hourly, but you want to know where the %B is on the 4h chart. You can do that.
The background fill for the indicator is split into bullish and bearish halves. Obviously you may turn the background off, or make it all one color as well.
I've also added alerts, so you may set alerts for "overbought" and "oversold" conditions.
You may also set alerts for %B crossing over or under the primary moving average, or for crossing the median line.
All of these things may be turned on and off. You can pretty much customize this to your heart's delight. I see no reason why anyone would use the standard %B after playing with this.
I am no coder. I had this idea in my head, though, and I made it happen through referencing another indicator I was familiar with, and watching tutorials on YouTube.
Credits:
Firstly, thanks to www.tradingview.com for his brilliant, free tutorials on YouTube.
Secondly, thanks to www.tradingview.com for his beautiful SSL Hybrid indicator (and his clean code) from which I obtained the MAs.
Please enjoy this indicator, and I hope that it serves you well. :)
