I have not back tested this completely. This is recently developed Indicator.
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.
//Short Term Top and Bottom Candle Identifier //Code by UCSgears study("UCS_Top & Bottom Candle", shorttitle = "UCS_T&B", overlay=false) a = input(5, "Percent K Length") b = input(3, "Percent D Length") // Range Calculation ll = lowest (low, a) hh = highest (high, a) diff = hh - ll rdiff = close - (hh+ll)/2 // Nested Moving Average for smoother curves avgrel = ema(ema(rdiff,b),b) avgdiff = ema(ema(diff,b),b) // Momentum mom = ((close - close[b])/close[b])*1000 // SMI calculations SMI = avgdiff != 0 ? (avgrel/(avgdiff/2)*100) : 0 SMIsignal = ema(SMI,b) //All PLOTS plot(mom, title = "Momentum", style = columns, color = yellow) plot(SMI, title = "Stochastic Momentum Index") plot(SMIsignal, color= red, title = "SMI Signal Line") H1 = hline(40, color = red, title = "Over Bought") H2 = hline(-40, color = green, title = "Over Sold") H0 = hline(0, color = blue, title = "Zero Line") fill(H0,H2, color = green, title = "Oversold") fill(H0,H1, color = red, title = "Overbought") //END // Strategy Signals // Buy Setup long = SMI < -35 and mom > 0 and mom < 0 ? lime : na barcolor(long) // Short Setup short = SMI > 35 and mom < 0 and mom > 0 ? red : na barcolor(short)