Marks only Overbought and Oversold Based on the TREND.
The Trend dots are calculated exactly like the Slingshot system trend.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
// Created by UCSgears // Version 2 study(title="UCS_Momentum Oscillator", shorttitle="UCS_Osc") // Stochastic Based Relative Oversold and Overbought //Input // Short Stochastic Input length1 = input(8, minval=1, title = "Short %K") sma1 = input(3, minval=1, title="Smooth %K1") // Base Stochastic Input length3 = input(100, minval=1, title = "Base %K") sma3 = input(10, minval=1, title="Smooth %K3") // Stochastic Code k1 = (sma(stoch(close, high, low, length1), sma1)-50) k3 = (sma(stoch(close, high, low, length3), sma3)-50) //Histogram 1 Calc and Plot hist1 = (k1-k3) plot_color1 = hist1 > hist1 and hist1 > 0 ? green : hist1 < hist1 and hist1 > 0 ? blue : hist1 < hist1 and hist1 <= 0 ? red : hist1 > hist1 and hist1 <= 0 ? orange : white plot(hist1, color=plot_color1, style=histogram, linewidth=4, title="Diff") //Horizontal Lines h1=hline(80, "Extreme Up", red, solid, 3) h2=hline(-80, "Extreme Down", green, solid, 3) h3=hline(55, "OverBought", red, dashed, 1) h4=hline(-55, "OverSold", green, dashed, 1) fill(h2,h4, green, 80, "OverSold Zone") fill(h1,h3, red, 80, "OverBought Zone") //Code for Trend Based Zero Line ma1 = ema(close, 13) ma2 = ema(close, 21) ma3 = ema(close, 34) ma = ema(close, 89) range = tr rangema = ema(range, 89) upper = ma + rangema * 0.5 lower = ma - rangema * 0.5 tr_up = ma1 > upper and ma2 > upper and ma3 > upper tr_down = ma1 < lower and ma2 < lower and ma3 < lower scolor = tr_up ? green : tr_down ? red : blue plot(0, color=scolor, style=circles, linewidth=3)
I combine this MO with CM_UCS_Modified SlingShot and it works great in identifying real trend when
MO reach the red / green zone and find that up / down trend usually follows subsequently.
Appreciate your response.