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.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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)