OPEN-SOURCE SCRIPT
High Probability OS/OB {DCAquant}

DCAquant - High Probability OS/OB
The DCAquant - High Probability OS/OB Pine Script is a sophisticated indicator that provides insights into overbought (OB) and oversold (OS) conditions based on Hull Moving Averages (HMA) and Volume Weighted Moving Averages (VWMA). Here's a detailed breakdown of its functionality:
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THIS INDICATOR IS ONLY WRITTEN FOR BTC, ETH and TOTAL!!!!!!!!!!!!!
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Functionality
The script identifies high-probability OB and OS zones by combining multiple moving averages (MAs).
1. Volume Weighted Moving Average (VWMA)
2. Hull Moving Average with Volume Weight (HMA-VW)
5. Standard Hull Moving Average (HMA)
4. Smoothed HMA-VW
How this works
The Extremes are categorized into 4 levels. The transparency of the background color distinguishes these 4 levels.

Only the MOST extremes are plotted ON THE CHART. Within the indicator, all 4 levels are plotted.

Usage
Disclaimer
This indicator should not be used in isolation. It is recommended to use this as part of a systematic approach, incorporating other tools and analysis methods to confirm signals and make well-informed trading decisions.
The DCAquant - High Probability OS/OB Pine Script is a sophisticated indicator that provides insights into overbought (OB) and oversold (OS) conditions based on Hull Moving Averages (HMA) and Volume Weighted Moving Averages (VWMA). Here's a detailed breakdown of its functionality:
-------------------------------------------------------------------------------------
THIS INDICATOR IS ONLY WRITTEN FOR BTC, ETH and TOTAL!!!!!!!!!!!!!
-------------------------------------------------------------------------------------
Functionality
The script identifies high-probability OB and OS zones by combining multiple moving averages (MAs).
1. Volume Weighted Moving Average (VWMA)
- The VWMA function computes the VWMA over a specified length, incorporating both the price and volume.
2. Hull Moving Average with Volume Weight (HMA-VW)
- The hullma_vw function calculates the HMA using the VWMA. This involves:
- Computing VWMAs over the full length and half-length.
- Using these VWMAs to derive the HMA-VW through a weighted approach.
5. Standard Hull Moving Average (HMA)
- The hull function computes the HMA using the standard weighted moving average (WMA).
4. Smoothed HMA-VW
- This is an Exponential Moving Average (EMA) of the HMA-VW to smooth out short-term fluctuations.
How this works
- First, the distance between the 2 MA's is calculated.
- The distance is scored against the average price of the last 100 days.
- By getting this score we can calculate extremes
The Extremes are categorized into 4 levels. The transparency of the background color distinguishes these 4 levels.
Only the MOST extremes are plotted ON THE CHART. Within the indicator, all 4 levels are plotted.
Usage
- Extreme Buy zone: Consider entering the market when the indicator shows deep negative values (oversold). These are highlighted with a cyan background, with increasing opacity indicating stronger buy signals (Level 4 Zones).
- Extreme Sell Zone: Consider exiting the market when the indicator shows high positive values (overbought). These are highlighted with a magenta background, with increasing opacity indicating stronger sell signals (Level 4 Zones).
Disclaimer
This indicator should not be used in isolation. It is recommended to use this as part of a systematic approach, incorporating other tools and analysis methods to confirm signals and make well-informed trading decisions.
Script de código abierto
Siguiendo fielmente el espíritu de TradingView, el creador de este script lo ha publicado en código abierto, permitiendo que otros traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la publicación de este código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.
Script de código abierto
Siguiendo fielmente el espíritu de TradingView, el creador de este script lo ha publicado en código abierto, permitiendo que otros traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la publicación de este código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.