There are many indicators of overbought/oversold conditions out there. Some of more common ones are:
- Bollinger Bands %B - Money Flow Index (MFI) - Relative Strength Index (RSI) - Stochastic
This script uses a combination of these 4 oscillators to confirm overbought/oversold and filter the signals of market reverse which could be used for trading binary options. You may select which oscillators you want to apply and of course change the source, the length of the calculations and the overbought/oversold levels. Also the script will draw a combined graph which is the average of the selected oscillators in the options.
Send me your ideas!
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A tweak to default OB/OS levels.
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The 5th oscillator support added: - Chande Momentum Oscillator (CMO) could now be applied.
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Small coding tweaks!
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Added 50-Line which could be useful sometimes.
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Changed the structure of the code a bit and removed "Total Average" graph due to uselessness! From now on, there is a new hybrid graph instead, which represents the OB/OS market exactly.
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Added 0,100-lines to make a better display of Hybrid graph
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- Added support for 3 new oscillators: 6. Commodity Channel Index (CCI) 7. Keltner Channel %K 8. Rate Of Change (ROC)
- Made some changes to default OB/OS levels and colors - Applied some coding tweaks
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Major Update! Manual setting of OB/OS levels removed; Instead, a procedure of automatic levels detection implemented which leads to some advantages: - There is no more need for taking care of setting OB/OS levels manually by the user (specially an amateur one). - The whole process of OB/OS detection could fit any data from any feed automatically. - OB/OS levels could vary dynamically over time.
So it's all about reacting to any changes in market conditions. Good Luck!
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- Optimized OB/OS level calculations - Added labels to show calculated OB/OS levels (for those who wonder what the calculated levels are)
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- Minor tweaks - Changed default options - Added weaker colorized signals which lead to better view and understanding of the chart, trends, divergences and thus more accurate decisions!
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- Small coloring tweaks!
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- Added Multi-Timeframe Capability. Calculations Timeframe could now be changed in options.
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- Fixed higher timeframe levels calculation bug!
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Made level calculations more strict
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- Added support for 2 less common oscillators: 9. Chaikin Money Flow (CMF) 10. Twiggs Money Flow (TMF)
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Fixed a bug related to TMF oversold calculation
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- Fixed a multi-timeframes calculation bug - Increased calculations speed
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- Fixed another problem related to an annoying Pine MTF functions bug!
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- Just made the script more structured by implementing some functions
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- Added support for 2 other oscillators: 11. Disparity Index (DIX) 12. Relative Vigor Index (RVI/RVGI) - Manual setting of OB/OS levels is now possible again. Feel free to set OB/OS levels as you wish or leave the options as they are to make the calculations automatic.
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- Restructured the code - Converted to Pine v5 - Increased overall performance - Made indicator settings more user-friendly - Added alert conditions to the settings - Made levels auto-calculation better - Killed some tiny bugs
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- Fixed calculation errors for some tickers; Now the indicator should work on all charts! - Fixed DIX normalization error - Added auto-level option and made alerts better - Killed some tiny bugs and increased code performance
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- Added symbol selection option; It's now possible to see OB/OS conditions of another ticker on current chart. - Added hybrid OB/OS levels and labels + 4 above-mentioned ones!
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3rd update in one day! - At last, fixed issues regarding "The other time frame and ticker" calculations
@informanerd, you’re very welcome. I was ready to give up trying anymore scripts in this challenging market, then I came across this. Today I tested it and paper traded the entries so far and it sent me buy signals while the ETFs were still down but reversing. At market close I was already in profit while these ETFs were still in the “red”. That’s my kind of indicator, leading, not lagging! This doesn’t seem to use any moving averages. Is that why? Btw I left all settings default and used 30m chart. - alerts on bar close
informanerd
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@cabierman, this adds up 12 other indicators to identify overbought/oversold market and of course not by moving averages. By the way it's a suitable indicator for signal confirmation. Happy to hear you like it.
cabierman
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@informanerd, It's amazing. I may be interested in some custom coding. This is solid work!!!
@cabierman, do you mind sharing your setting? I tried adding this indicator to my set up. It looks awful.
informanerd
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@NativeFlight, I suggest that you start with testing each individual technical to find which ones are best matches for your asset. Also you could set their OB/OS levels manually and check if that's better or not. BTW each OB/OS indicator has its own settings and results, and creating a combination is up to yourself.
mchandl8
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Just put this up but have been back testing and bar replaying, and wow… this looks like a total winner of an indicator
baijun
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Hello, the script is in general great. There are some inconsistencies when using for example 4h chart and unsing 1D with indicator and comparing this in 1D chart with indicator 1D or "same as chart". I tried to fix it but until now failed. br