UCS_Momentum Oscillator

I am not sure if someone else has already thought about it. But this is something I use to measure the meaningful oversold and overbought level, provided the stock is in a trend. I will add a Trend Indicator along with this in the next version.

I have added RSI , ROC , Stoch to compare. From the code below, i am using Stochastic , but the idea is same, if you use RSI . Experiment with your own comfortable time frames.

This is not a holy grail, The oversold and overbought in a trend transition period could be misleading. But over all, Its a good measure to trade overbought and oversold region

List of All my Indicators - https://www.tradingview.com/p/stocks/?so...
Open-source script

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.

Want to use this script on a chart?
study(title="UCS_Momentum Oscillator", shorttitle="UCS_Osc")

//length = input(14, minval=1)
length1 = input(10, minval=1, title = "Short %K")
length3 = input(100, minval=1, title = "Base %K")
sma1 = input(3, minval=1, title="Smooth %K1")
sma3 = input(10, minval=1, title="Smooth %K3")
smoothD = input(5, minval=1, title="SmoothD")
//k = sma(stoch(close, high, low, length), smoothK)
k1 = (sma(stoch(close, high, low, length1), sma1)-50)*2
k3 = (sma(stoch(close, high, low, length3), sma3)-50)*2
//Histogram 1 Calc and Plot
hist1 = (k1-k3)/2
plot_color1 = hist1 > hist1[1] and hist1 > 0 ? green : hist1 < hist1[1] and hist1 > 0 ? blue : hist1 < hist1[1] and hist1 <= 0 ? red : hist1 > hist1[1] and hist1 <= 0 ? orange : white
plot(hist1, color=plot_color1, style=line, linewidth=4, title="Diff")
//Histogram 2 Calc and Plot
//Horizontal Lines
h0=hline(0, 'Center', linestyle=solid, linewidth=2, color=gray)
h3=hline(50, "OverBought", red, dashed, 1)
h4=hline(-50, "OverSold", green, dashed, 1)