This is a very simple idea - an average of and the Oscillator. However it offers plenty of flexibility for tuning to your requirements. You can change the lengths of either indicator and the weighting of each. By default it's set to 50/50 (just change the percent to adjust). There is also an optional which can be used as a signal line.
This idea comes from Greg Morris who likes to use it for trend following. I would buy when the indicator hits the overbought line and sell when it goes below 50.
//Scripted by Blind Freddy //See my blog at http://blindfreddy.postagon.com for learning and picks //Hybrid RSI-Stochastic Indicator v2, with optional smoothing and EMA line study(title="RSI-Stoch Hybrid v2", shorttitle="RSI-Stoch", overlay=false) len = input(14, minval=1, title="RSI Length") lenRSIsmth = input(3,minval=1, title = "RSI Smoothing") lenstoch = input(26, minval=1, title="Stochastic Length") lenStochsmth = input(3,minval=1, title = "Stoch Smoothing") thepercent = input(50, minval=0, maxval = 100, title="Percent RSI") len2 = input(5, minval=1, title="EMA (Signal) Length") thersi= ema(rsi(close,len),lenRSIsmth) thestoch=ema(stoch(close,high,low,lenstoch),lenStochsmth) thehybrid=thersi*thepercent/100 + thestoch*(100-thepercent)/100 theEMA = ema(thehybrid,len2) plot(thehybrid, title="RSI-Stoch Hybrid", style=line, linewidth=2, color=teal) plot(theEMA, title="EMA", style=line, linewidth=2, color=gray) band2 = hline(80, title="Upper Line", linestyle=dashed, linewidth=1) band1 = hline(50, title="Upper Line", linestyle=dashed, linewidth=1) band0 = hline(20, title="Lower Line", linestyle=dashed, linewidth=1) fill(band2, band0, color=blue, transp=90)