This is good for identifying oversold and over bought positions
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.
//@version=2 study("Mikes HHLL Spotter") fastMA = ema(close, 3) slowMA = sma(close, 5) fastMA2 = ema(close, 2) slowMA2 = sma(close, 4) //diff = (fastMA - slowMA) * 80000 diff = (fastMA2 - slowMA2) * 80000 smoother = ema(diff,12) plot(smoother, color=red) //double EMA shit xEMA1 = sma(diff, 12) xEMA2 = sma(xEMA1, 12) xEMA3 = sma(xEMA2, 12) nRes = 3 * xEMA1 - 3 * xEMA2 + xEMA3 //plot(nRes, color=yellow) //buysell = (smoother < -7 ? -10 : smoother > 9 ? 10 : (smoother < 1 and smoother > -1) ? 10 : 0) buy = -30 sell = 30 marketFlat = 0 buysell = (diff < -30 ? buy : diff > 30 ? sell : marketFlat) smoothbuysell = (smoother < -15 ? buy : smoother > 15 ? sell : marketFlat) smootherbuysell = (nRes < -17 ? buy : nRes > 17 ? sell : marketFlat) //plot(buysell, color=green) plot(smoothbuysell, color=aqua) barcolor(smoother < -7 ? red : smoother > 9 ? green : (smoother < 1 and smoother > -1) ? yellow : blue)