Before I get into explaining how its used. I want to say all the indicators are open and none privately owned or at least owned by indivduals who brought them to trading view. Any due permission is granted at my disclocsure. I also want to say this is not your typical mashup of indicators as the is a very clear way to view and use this specifically. Also I want to say original tools from their original scripts are also improved. For example the being used we have added the and moving average basis option which it did not have before. And now everything has clear divergences and some other minor changers. but here are the rules and examples.
THE BOSCILLATOR - A MULTI-LEVEL CONFLUENCE/CONFIRMATION FILTER VISUALIZATION
(Main oscillator - firefly)
(background wave thing - )
(the red vertical up and down line with red and green dots - )
(the blue, yellow and red dots - warning dots)
WHO IS THIS INDICATOR FOR? - This indicator itself is not meant to be a signal giver to buy or sell right now even though it could be and some of the original scripts are used as such. This indicator is actually meant to be a VISUAL CONFIRMATION & FILTER for trades taken in other methods outside of this indicator. What are some of those methods that may benefit from having this? traders, FIB traders, traders, Moving average traders.. just to name a few. This indicator itself is meant to in a quick glance allow the trade to see the condition of many different elements outside of the main price and chart, and determine if that trade looks like it has too much risk, or if that trade looks suitable. It also provides a series of confirmations that could be used for adding to a position at different levels at the trade's discretion.
OPTIMAL CONDITIONS FOR CONSIDERING A SHORT = The is orange/red + the is at the TOP + the Firefly is above the midline. The warning dots are being printed at the top. There is regular or hidden divergence present.
OPTIMAL CONDITIONS FOR CONSIDERING A LONG = The is light/dark green + the is at the BOTTOM + the Firefly is below the midline. The warning dots are being printed at the bottom. There is regular or hidden present.
Triggers for scaling/adding into your position = Keeping in mind that this oscillator on its own is not meant to be the sole reason for taking a trade, here are some triggers you will see for getting into position (preferably with the optimal conditions being met) The firefly flips from a green line into a red slide and vise versa. The firefly crosses the midline up or down. The begins going up/down and triggers a green or red dot while crossing one of the levels at 20 or 80. The warning dots being made begin to be printed lower/higher than the dot before last. The shift from one color to the next in the favored direction of the trade you wish to make.
Signs for taking profit and protecting your trade = The Dots begin to print, the changes colors at the top or bottom. the arrived are the top.
FILTER SITUATIONS TO AVOID TRADES = Wise to not take a trade if the and the firefly do not agree. For example - if the is showing green yet the firefly is still red may be an indication that it is getting a bit late for you to enter the trade. Same with opposing divergences and warning dots contradicting the trade you are looking at. The being already on the bottom or top may be a small indication that trade may already have been a little too ripe, but on its own is not always the case.
When selecting the settings and moving average you are going to want it to be in favor of what you are trying to accomplish.IF you are one low time frames and trying to swing or scalp trade... chances are you want a reactive MA setting that iss responsive. Iwould recommend the HULL, , . For the Higher time frame the or the T3 WDma can be wuite patient and helpful for a constant reminder of caution
Some notes - for the swing and scalp trading... in my experience the moving average basis sees more responsive changes with the , , HULL settings. for entering a trade, at least a couple of your triggers being present increases the success rate by a lot.
This chart illustrates the usefullness of having a Zero lag function for the firefly. The firefly should not be taken for signals or trades itself. However it is the most precise finder of divergences within the system. It is aways good to flip on and off zero lag just to take a quick look for divergences you might have mixed.
In this chart illustrates the general visual look and order of events to guide you along your way. Starts with the turning green or red or orange which is potentially time to get out of your current trade. Then it switched colors when reversal begins and that is when you want to at the same time see the , the firefly, and lower caution dots coming in around the same area (highlighted in blue squares). Now near the end you see a red box. This is a filter aspect. The is green, yet the others are saying down/short. This does not mean it must be a long, however it is great warning to maybe avoid getting to for the downside in that time. You want the and line up with the others and it should be visually apparent that they all want to go the same way.
Here is a list of some key elements (before changes this script made) of parts this oscillator includes. My original publication of my oscillation setup was blocked by the mods here.. this one however includes a large variety of items that have been altered from their original formats and a well-explained trading system to use it with.
PercentileRank Mkt Tops & Bottoms (@PuppyTherapy)
Divergence Indicator (any oscillator)
Also the PPO appearance has been updated to smooth the appearance out a bit more. . and to reveal caution dots and divergences the background colors could be altered.
The god-mode has been adjusted to a version that now features the ability to switch between the sensitive low time frame scalping settings dots as well as the original god-mode settings which are better for strong top/ bottoms warnings or alerts.
Credit to @BenchMark for revising the original script oscillator to ad and improve with these options
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.