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Advisor CORE + MOMENTUM (Weekly) - ROC/EMA📊 Advisor CORE + Momentum (Weekly) This indicator provides a rule-based portfolio management view, clearly separating long-term structure, risk monitoring, and entry timing, with a logic designed to support position review decisions, not mechanical trading. It answers a single question: Is this asset still justified at its current portfolio weight? 🔹 CORE — Structure & Risk Review The CORE layer evaluates structural trend and long-term cycle, with an explicit review state to detect early deterioration: Weekly price relative to a long-term EMA Long-term Rate of Change (ROC) strength and direction Long-term EMA slope CORE states: BUY / HOLD Structure intact, long-term momentum strong. HOLD Structure still valid, but losing strength or under pressure. REVIEW Price below the long-term EMA and long-term momentum weakening. Signals that the position should be actively reviewed. REDUCE Long-term momentum turned negative, indicating structural deterioration. This allows risk to be addressed before a full trend break occurs. 🔹 MOMENTUM — CANSLIM Timing Discipline The MOMENTUM layer applies strict CANSLIM entry rules, explicitly blocking any buy condition without valid timing: BUY Price above the short-term EMA, short-term EMA above the long-term EMA, long-term EMA rising. HOLD / WAIT Structure intact, but price below the short-term EMA. NO OPERATE Price below the long-term EMA or trend conditions failing. This ensures that structure alone never justifies a buy, enforcing discipline between trend quality and entry timing. 🔗 Combined Use This indicator is designed to be used together with: ROC Triple (13 / 26 / 52) The ROC Triple provides visual momentum context, while the Advisor translates structure and timing into clear, portfolio-oriented guidance. ⚠️ Important Notes This is not a trading system. It does not generate entry or exit signals. It does not define position size or timing. Its purpose is to standardize portfolio review decisions, reduce emotional bias, and maintain discipline across changing market regimes.
Pine Script® indicator
by carlos_naon67
Advisor CORE + MOMENTUM (Weekly) - ROC/EMA📊 Advisor CORE + Momentum (Weekly) This indicator provides a rule-based market diagnosis by clearly separating long-term structure from entry timing, following a CANSLIM-consistent logic. It is designed to answer what is allowed right now, not to generate automatic trade signals. 🔹 CORE — Structural Context The CORE layer evaluates trend and market cycle, independent of entry timing: Weekly price relative to a long-term EMA Long-term Rate of Change (ROC) It identifies whether the asset’s primary structure is intact, weakening, or deteriorating. Typical outputs: CORE: BUY / HOLD → structure and cycle intact CORE: HOLD → structure alive, under pressure CORE: REDUCE → structural deterioration 🔹 MOMENTUM — CANSLIM Timing Logic The MOMENTUM layer applies strict CANSLIM entry rules, clearly separating structure from timing: BUY Price above the short-term EMA Short-term EMA above the long-term EMA Long-term EMA rising HOLD / WAIT Structure intact, but price below the short-term EMA NO OPERATE Price below the long-term EMA or structural conditions failing This ensures that no BUY condition is allowed without valid timing, even if the broader trend remains positive. 🔗 Combined Use This indicator is designed to be used together with: ROC Triple (13 / 26 / 52) The ROC Triple provides visual momentum context, while the Advisor converts structure and timing into clear, rule-based guidance. ⚠️ Important Notes This is not a signal generator. It does not define entries, exits, or position size. Recommendations are contextual, not predictive. The objective is to standardize market reading, avoid mixed signals, and enforce discipline between structure and timing.
Pine Script® indicator
by carlos_naon67
Advisor CORE + MOMENTUM (Weekly) - ROC/EMA📊 Advisor CORE + Momentum (Weekly) This indicator provides a high-level diagnostic view of an asset by combining trend, momentum, and market cycle into concise, rule-based recommendations. It is designed to answer “what is allowed right now”, not to automate trading decisions. 🔹 CORE (Long-Term Context) The CORE assessment focuses on structural trend and cycle: Weekly price relative to a long-term EMA Long-term Rate of Change (ROC) It helps identify whether the asset is in a healthy long-term phase, a temporary pullback, or a structural deterioration. Typical outputs: CORE: BUY / HOLD CORE: HOLD CORE: REDUCE 🔹 MOMENTUM (Tactical / Growth Context) The Momentum assessment evaluates short- and medium-term price strength: Short- and medium-term ROC alignment Price behavior relative to the long-term trend It is intended to determine whether momentum-based strategies are currently supported, in pause, or not advisable. Typical outputs: MOMENTUM: BUY MOMENTUM: WAIT MOMENTUM: NO OPERATE 🔗 Combined Use This indicator is designed to be used in combination with: ROC Triple (13 / 26 / 52) The ROC Triple indicator provides the visual momentum context, while the Advisor translates that information into structured, high-level guidance. Used together, they offer both: Interpretation (ROC Triple) Decision context (Advisor) ⚠️ Important Notes This is not a signal generator. It does not define position size or timing. Recommendations are contextual, not predictive. The objective is to standardize market reading, reduce emotional bias, and support consistent decision-making across different market regimes.
Pine Script® indicator
by carlos_naon67
ROC Triple (13 / 26 / 52)📊 ROC Triple (13 / 26 / 52) 🇺🇸 English This indicator combines three Rate of Change (ROC) lines to analyze price momentum across three time horizons: short, medium, and long term. ROC 13: short-term momentum (noise, pullbacks, short accelerations). ROC 26: trend impulse. ROC 52: structural cycle and long-term strength. The goal is not to generate automatic buy/sell signals, but to put price action into context, helping to distinguish normal pullbacks, trend pauses, and genuine cycle changes. Key interpretation: ROC 52 > 0 → structural uptrend intact ROC 26 slowing while ROC 52 remains positive → consolidation phase ROC 13 negative with ROC 26 and 52 positive → pullback within trend This is not a predictive indicator or a trading system. It is a diagnostic tool to support better decision-making.
Pine Script® indicator
by carlos_naon67
WTI Scalp Signals @RADUVEGAWTI Scalp Signals Description: Overview This indicator is a specialized mean-reversion tool designed specifically for the high volatility of the Crude Oil (WTI) market. It combines momentum exhaustion (using a fast RSI) with classic Price Action patterns to identify high-probability scalping opportunities. Unlike standard indicators that use generic settings, this script has been tuned to react to the "whipsaw" nature of modern energy markets. Key Features & Logic Optimized RSI Settings: Uses a 9-period RSI (instead of the standard 14) to catch rapid momentum shifts. Asymmetric Levels: Tuned with a Sell Threshold at 65 and a Buy Threshold at 25. This asymmetry reflects the market's tendency to drop sharper than it rises (panic selling vs. accumulation). Pattern Recognition: The script validates RSI signals only when confirmed by specific candlestick patterns: Bullish/Bearish Engulfing Hammer / Shooting Star 2-Bar Reversals Smart Stacking Technology (v1.2): Includes a custom logic to prevent label overlapping. If multiple signals occur on the same bar (e.g., a "Sell" signal + a "Shooting Star"), the labels automatically stack vertically so the chart remains clean and readable. How to Use Timeframe: Best used on lower timeframes (1m, 5m, 15m) for scalping sessions. Sell Signals (Red/Maroon): Look for these during rapid price pumps. The script identifies when price is overextended (RSI > 65) and prints a bearish candle pattern. Buy Signals (Green): Look for these during sharp sell-offs. The script waits for the RSI to dip below 25 and confirms with a bullish reversal pattern. Secondary Patterns: Small labels like "SS" (Shooting Star) or "2Bear" serve as additional confirmation of trend weakness. Settings RSI Length: Default 9 (Adjustable). Overbought/Oversold: Default 65/25 (Adjustable). Pattern Toggles: You can turn on/off specific patterns (Engulfing, Hammers, etc.) to suit your visual preference. Disclaimer This tool is designed to assist in technical analysis and does not constitute financial advice. Always use proper risk management. Author: @RADUVEGA
Pine Script® indicator
by RADUVEGA
Bollinger Bands on the RSIThe indicator uses Bollinger Bands on the RSI. Users can customize the RSI length and the Bollinger Bands length. The Bollinger Bands standard deviation can also be adjusted separately for more flexibility and convenience. In the Settings menu, you can find Trend Confirmation, which can be turned on or off depending on your preference. Trend Confirmation is used to reduce noise on the chart and is calculated using the bar before the trend. How the indicator can be used 1) As an RSI + EMA-style trend tool (trend following) When the Bollinger Bands standard deviation is set low, the bands behave similarly to an EMA, so the indicator can be used in trending markets. 2) For mean reversion When the RSI length is set high and the standard deviation is set high, the indicator can be used in mean-reverting markets. 3) As a regime indicator (to some extent) With the right calibration, it can likely be used as a regime indicator as well. There are many more use cases you can discover. Have fun exploring.
Pine Script® indicator
by Zaimop
DOUBLE_MACDDOUBLE MACD is an advanced momentum indicator that combines two MACD calculations to provide a clearer view of market trends and entry points. Instead of relying on a single MACD, it analyzes both fast and slow momentum to improve signal accuracy. With DOUBLE MACD, traders can: Identify overall trend direction Spot strong buy and sell opportunities Filter out false signals Understand market momentum more effectively This indicator is useful for scalping, intraday, and swing trading. When both MACD lines align in the same direction, trade confidence increases and helps traders make better decisions.
Pine Script® indicator
by BazaarMatrix
Price_Deviation Oleg📘 Description This script is an extended and customized version of the original work by the respected author fullmax. I adapted the logic for my own trading needs and added several improvements, including lot‑precision rounding to prevent exchange errors when using webhook automation, as well as additional visualization elements for clarity. 🔧 Key Enhancements Lot precision control (prevents invalid quantity errors on exchanges when using webhooks) Base order labels for easier visual tracking Mini‑table with live position metrics Configurable date‑range window for backtesting Dynamic safety‑order price calculation Trailing take‑profit option Improved visualization of thresholds, MA, and TP levels 🎯 How the Strategy Works The script calculates a moving average and compares the current price deviation against user‑defined thresholds. When the deviation condition is met, the strategy opens a base position and then manages it using safety orders that scale in both volume and distance. After entering a position, the script manages exits using: a fixed take‑profit target or an optional trailing take‑profit plus a breakeven reference line and an auto‑close mechanism when the averaging cycle resets All order quantities are rounded according to the selected lot precision to ensure compatibility with exchange requirements when sending webhook‑based orders. ⚙️ Features Overview Deviation‑based entry logic Safety orders with volume and step scaling Configurable date window for testing Trailing TP with adjustable distance Breakeven visualization Mini‑table showing quantity, USD value, open trades, PnL, and equity Clean and intuitive chart visualization 📝 Disclaimer This script is provided for educational purposes only. It does not constitute financial advice and does not guarantee profits. Always test strategies on historical data before using them in live trading.
Pine Script® strategy
by olegask68
Trade ManagerDescription This script is a trade‑management system designed for both automated and manual trading workflows. It combines VWRSI‑based signals, customizable price levels, safety orders, take‑profit logic, and optional MA‑trend filtering. Key features: Automated entries based on VWRSI Manual LONG/SHORT level entries Priority‑based entry logic (first condition triggers the trade) Safety order scaling (volume and step multipliers) Take‑profit targets for both LONG and SHORT positions Breakeven logic with adjustable thresholds Optional MA‑trend filter Mini‑table showing position metrics Base order labels and lot‑precision control How it works: If multiple entry modes are enabled, the script opens a position based on the first condition reached. After entering a trade, the position can be averaged using safety orders and closed at the configured profit target. Notes: This script is for educational purposes and does not guarantee profits. Always test on historical data and understand the risks before using it in live trading.
Pine Script® strategy
by olegask68
HoneG_CCIv20HoneG_CCIv20 This is a signal tool capable of both counter-trend and trend-following trading. Apply it to 1-minute charts. For trend-following, it features a rapid-fire mode. When conditions align, rapid-fire mode activates, and two indicators signaling the rapid-fire timing will turn ON/OFF in sync with price extension moments. 逆張りも順張りも出来るサインツールです。１分足チャートに適用してください。 順張りには連打モードがあり、条件が揃うと連打モードが発動し、連打タイミングを知らせる二か所の表示が、価格が伸びるタイミングに合わせてON/OFFします。
Pine Script® indicator
by TVYAMA
ZION Momentum Flow [wjdtks255]🚀 ZION Momentum Flow This is a trend-strength oscillator designed to visualize market momentum through a refined RSI logic. It helps traders identify the exact moment when market energy is accelerating or cooling down. Key Features: Visual Momentum: Uses a color-coded histogram to represent trend intensity (Green for Bullish, Red for Bearish). Two-Tone Strength: Darker colors indicate standard movement, while bright neon colors signal high-energy breakouts beyond the threshold. Built-in Alerts: Supports alerts for momentum spikes, allowing you to catch trend starts without staring at the screen.
Pine Script® indicator
by wjdtks255
ZION Trend Strike [wjdtks255]🚀 ZION Trend Strike This is an advanced trend-following signal indicator designed to work in perfect harmony with the ZION Momentum Flow. It filters market noise and provides precise entry/exit points based on momentum synergy. Key Features: Trend Strike Signals: Provides clear BUY/SELL labels when price action aligns with momentum energy. Dynamic Trend Guide: A color-switching EMA line that helps you visualize the current trend direction at a glance. Synergy Optimization: Best used as a set with ZION Momentum Flow to avoid false breakouts. Multilingual Input: Easy-to-use settings menu with both English and Korean labels.
Pine Script® indicator
by wjdtks255
SOPR Candles - Custom Mid-LineSOPR Candle with Customizable Mid-Line On-chain SOPR (Spent Output Ratio) indicator as an oscillator. Customizable centerline and MAs makes signals easy to identify. Features SOPR displayed as a column-style oscillator Customizable SOPR center (middle line) Optional SMA or EMA smoothing Clear green/red coloring How to Use Values above/below center Indicate profit/loss realization Risk Disclaimer This indicator is provided for educational and informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency markets are highly volatile, and trading involves significant risk. Past performance is not indicative of future results. You are solely responsible for your trading decisions and risk management. Always conduct your own research and consider your financial situation before trading.
Pine Script® indicator
by dioxlondon
Weighted CCI Oscillator [SeerQuant]Weighted CCI Oscillator (WCCI) The Weighted CCI Oscillator (WCCI) is an enhanced CCI-style deviation oscillator that builds on the classic Commodity Channel Index framework by introducing adaptive weighting and configurable smoothing. By dynamically scaling deviation based on a selected market “weight” (Volume, Momentum, Volatility, or Reversion Factor), WCCI helps trend strength and regime shifts stand out more clearly, while still retaining the familiar CCI-style structure and ±200 extreme zones. ⚙️ How It Works WCCI starts by calculating a baseline (your chosen moving average type) of the selected CCI source (Typical Price / HLC3, or a custom input source). It then measures how far price deviates from that baseline, and applies an adaptive weight to that deviation based on your selected weighting method. The weighting is normalized for stability so it remains usable across different assets and changing regimes, then clamped to prevent abnormal spikes from distorting the oscillator. The weighted deviation is normalized by a weighted mean absolute deviation term (using the standard CCI constant k), producing a CCI-like oscillator that responds differently depending on the “state” of the market. Trend logic is defined using a neutral zone around the 0 midline: bullish when WCCI holds above (0 + Neutral Zone), bearish when it holds below (0 - Neutral Zone), and neutral while it remains inside that band. A smoothed WCCI line is also provided for cleaner confirmation. ✨ Customizable Settings WCCI is designed to be tuned without overcomplication. You can choose the CCI source mode (Typical Price / HLC3 or Input Source), set the calculation length, and apply smoothing using your preferred moving average type (SMA, EMA, RMA, HMA, DEMA, TEMA, etc.). The weighting method is the key differentiator: Volume weighting emphasizes participation and activity. Momentum weighting emphasizes impulse and directional pressure. Volatility weighting emphasizes expansion/contraction phases. Reversion Factor weighting responds inversely to variance, biasing toward mean-reversion conditions. On the style side, you can select a preset colour scheme (Default/Modern/Cool/Monochrome) or enable custom bull/bear/neutral colours. Candle coloring is optional, and you can choose whether candles follow the raw WCCI or the smoothed WCCI. 🚀 Features and Benefits WCCI provides a CCI-style oscillator that adapts to market conditions instead of treating every regime the same. The weighting engine helps meaningful moves stand out when conditions justify it, while the neutral-zone framework reduces noise and improves readability compared to relying purely on midline flips. With flexible smoothing, clean state transitions, optional candle coloring, and clear ±200 extreme markers, WCCI works well as a trend filter, confirmation layer, or regime signal alongside other systems. 📜 Disclaimer This indicator is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results. Always consult a licensed financial advisor before making trading decisions. Use at your own risk.
Pine Script® indicator
by SeerQuant
AURIX SMC AURIX SMC is a professional indicator based on the Smart Money Concept, specifically designed for trading Gold (XAUUSD). Features of the indicator: • BOS (Break of Structure) and CHoCH (Change of Character) • High-precision Buy and Sell signals • Smart trend filtering • No Repaint • Suitable for Prop Firm accounts Recommended Timeframes: M1 – M5 – M15 – M30 Market: XAUUSD (Gold) Note: This is an Invite-Only indicator. To subscribe, contact me.
Pine Script® indicator
by Aurixforou
Supercharged MA Momentum Oscillator (v6,Secondary Levels)Supercharged MA Momentum Oscillator (Dots on Line) Description: The Supercharged MA Momentum Oscillator is a trend and momentum-based tool designed to highlight short-term market momentum relative to a moving average. It provides a visual way to identify potential entry and exit points using a combination of smoothed momentum, ATR-based thresholds, and upper/lower momentum levels. Key Features: Smooth momentum line derived from a moving average slope. Opposite momentum line for contrarian signals. ATR-based thresholds to detect meaningful momentum shifts. Upper and lower momentum levels for stronger confirmation of overbought/oversold conditions. Buy/sell dots plotted on the momentum line to highlight potential trade opportunities. Customizable inputs for moving average length, smoothing, ATR period, and thresholds. How to Use: Momentum Interpretation: Blue Line (Momentum): Represents the primary momentum. Orange Line (Opposite Momentum): Represents the inverse momentum for contrarian observation. Thresholds & Levels: Green/Red Lines (ATR Thresholds): Define minor trigger zones for potential momentum changes. Yellow Dashed Lines (Upper/Lower Levels): Define major momentum levels; stronger signals occur when momentum crosses these. Trade Signals: Buy Signal (Green Dot): Momentum crosses above both the ATR long threshold and the upper momentum level. Sell Signal (Red Dot): Momentum crosses below both the ATR short threshold and the lower momentum level. Dots appear directly on the momentum line to easily visualize trade triggers. Customization: Adjust the MA Length and Smoothing to fit the timeframe and asset volatility. Modify ATR Length and Threshold Factor to fine-tune sensitivity. Change Upper/Lower Momentum Levels to capture stronger or weaker signals. Tips: Best used in combination with trend analysis or other technical indicators for confirmation. Ideal for spotting momentum reversals or identifying potential breakout entries. Works on multiple timeframes — shorter timeframes will show more frequent signals, longer timeframes filter noise. Note: This indicator is for educational and informational purposes. Always use proper risk management and confirm signals with other analysis before executing trades.
Pine Script® indicator
by GiKeba
RSI [Hash Capital Research]RSI is a visually enhanced momentum indicator built on the classic Relative Strength Index. This version expands RSI into a more flexible analytical tool through smoothing options, adaptive zone-based coloring, optional signal line overlays, and divergence detection. It is designed as a context-building indicator, not a standalone entry system. What This Indicator Does This script calculates a smoothed RSI using user-defined parameters and then provides multiple optional enhancements: 1. Adaptive RSI Visualization The core RSI is plotted with: Zone-based color changes (neutral, oversold, overbought) Optional glow effects to emphasize extreme conditions User-defined color intensity and midline visibility The goal is to provide clearer visual segmentation of trend strength and momentum behavior. 2. Custom Smoothing & Signal Line Options The indicator allows: Multi-layer smoothing for RSI stability An optional signal line using the trader’s preferred moving-average method (SMA, EMA, SMMA/RMA, WMA, VWMA) This helps operators examine whether momentum is accelerating or stabilizing relative to its mean. 3. Overbought/Oversold Tools User-defined thresholds determine: Highlighted zones Optional markers for extreme reversals (based on RSI + momentum + velocity criteria) Midline (50) cross highlights for trend-bias transitions These features help contextualize where the RSI sits relative to broader momentum regimes. 4. Divergence Detection (Optional) When enabled, the script scans for regular bullish and bearish divergences using pivot-based structure. It compares: Price making lower lows vs RSI making higher lows (bullish) Price making higher highs vs RSI making lower highs (bearish) Detected divergences are plotted on the RSI panel with visual labels. This detection uses pivot lookbacks and range limits defined by the user. 5. Alerts The indicator provides optional alerts for: Extreme reversals Overbought/oversold momentum shifts Midline (50) crossovers Bullish / bearish divergences Alerts are intended for monitoring, not for automated execution. How to Use It This RSI modification is intended to support broader analysis workflows, including: Identifying regime shifts using midline crosses Monitoring momentum structure across trend phases Highlighting oversold or overbought clustering Adding a visual signal line to interpret momentum smoothing Spotting divergence between price and RSI As with all indicators, this tool should be used as one component of a complete analysis framework. What Makes This Version Distinct This script maintains the core behavior of RSI but introduces: A multi-layer smoothing system Adaptive colors calibrated to oversold/neutral/overbought zones Optional glow visualizations A modular signal-line engine with multiple MA types Configurable divergence detection with visual labels Multiple marker placement modes for extreme conditions These features expand RSI’s readability while keeping its underlying logic transparent and consistent with common operator workflows. Important Notes This is an indicator, not a strategy. It does not execute trades or calculate performance metrics. The visual enhancements are designed to improve clarity, not to generate automated “buy” or “sell” systems. Divergence detection is optional because divergence is inherently contextual and may not apply equally across all markets or timeframes.
Pine Script® indicator
by Hash_Capital
2
Smart Fear & Greed Index [MarkitTick]💡 This comprehensive technical tool is designed to quantify market sentiment on an asset-specific basis, translating complex price action into a singular, normalized gauge of "Fear" and "Greed." While traditional Fear & Greed indices rely on macro-economic data (like put/call ratios or junk bond demand) generally applied to the broad S&P 500, this script calculates a localized index for the specific chart you are viewing. It synthesizes Momentum, Volatility, Volume, and Price Positioning into a bounded 0-100 oscillator, aiming to identify psychological extremes where market reversals are statistically more likely to occur. ✨ Originality and Utility ● Asset-Specific Sentiment Analysis Most sentiment tools are external to the chart (e.g., news sentiment or broad market indices). The Smart Fear & Greed Index is unique because it internalizes this logic, creating a bespoke psychological profile for any ticker—whether it is Crypto, Forex, or Stocks. It allows traders to see if *this specific asset* is overheated (Greed) or oversold (Fear) relative to its own recent history. ● The "Buy the Fear, Sell the Greed" Logic The script employs a contrarian color-coding philosophy aligned with the famous investment adage: "Be fearful when others are greedy, and greedy when others are fearful." When the indicator shows Fear (Low values), it colors the zone Green, signaling a potential buying opportunity (discount). When the indicator shows Greed (High values), it colors the zone Red, signaling potential downside risk (premium). ● Integrated Divergence Detection Unlike standard oscillators that leave interpretation entirely to the user, this tool includes an automated divergence engine. It detects discrepancies between the sentiment index and price action, plotting lines and labels to highlight potential exhaustion points before they become obvious on the price chart. 🔬 Methodology and Concepts The calculation is driven by a custom User-Defined Type (UDT) called QuantEngine , which aggregates four distinct technical "pillars" to form the final Composite Index. • Pillar 1: Momentum (RSI) The engine utilizes the Relative Strength Index to measure the velocity and magnitude of directional price movements. High momentum contributes to the "Greed" score, while collapsing momentum contributes to "Fear." • Pillar 2: Volatility (Inverted Normalized ATR) This component interprets volatility through a psychological lens. Low Volatility is interpreted as complacency or "Greed" (steady uptrends often have low vol). High Volatility is interpreted as "Fear" (panic selling and erratic ranges often spike volatility). The script normalizes the Average True Range (ATR) and inverts it so that stability adds to the score, and instability subtracts from it. • Pillar 3: Volume Strength Volume is analyzed relative to its moving average. However, raw volume isn't enough; the engine applies directional logic. High relative volume on an Up-Close adds to the Greed score. High relative volume on a Down-Close subtracts, adding to the Fear score. • Pillar 4: Price Position (Stochastic) This calculates where the current close sits relative to the recent High-Low range. Closing near the highs indicates confidence (Greed), while closing near the lows indicates pessimism (Fear). • The Composite & Smoothing These four metrics are averaged to create a raw composite, which is then smoothed via an Exponential Moving Average (EMA) to filter out noise and produce the final, readable "Smart Fear & Greed" line. 🎨 Visual Guide ● The Oscillator Line This is the primary fluctuating line that moves between 0 and 100. Values > 50 suggest positive sentiment. Values < 50 suggest negative sentiment. ● Color-Coded Zones The plot changes color dynamically to reflect the psychological state: Red (70-100): Extreme Greed. The market may be irrationally exuberant. Orange (60-70): Greed. Strong bullish conviction. Yellow (40-60): Neutral. Indecisive or transitionary market. Light Green (30-40): Fear. Sentiment is turning bearish. Bright Green (0-30): Extreme Fear. Panic selling, often a precursor to a value bounce. ● Background Highlights A semi-transparent Red Background appears when the index breaches 75, warning of a potential "Top." A semi-transparent Green Background appears when the index drops below 25, highlighting a potential "Bottom." ● Divergence Elements Red Lines/Labels ("Bear"): Bearish Divergence. Price makes a Higher High, but the Index makes a Lower High. This suggests momentum is waning despite rising prices. Green Lines/Labels ("Bull"): Bullish Divergence. Price makes a Lower Low, but the Index makes a Higher Low. This suggests selling pressure is drying up. 📖 How to Use • Identifying Reversals Wait for the oscillator to enter "Extreme" zones. Do not trade immediately upon entry; wait for the line to exit the extreme zone to confirm the reversal. For example, if the line hits 80 (Red) and then crosses back down below 70, it signals that Greed is fading. • Trend Continuation In a strong trend, the indicator may hover in the Greed (Orange) or Fear (Light Green) zones for extended periods. In these cases, use the Neutral (Yellow) zone crosses as re-entry signals in the direction of the trend. • Divergence Confirmation Use the automated divergence lines as high-conviction triggers. If the background turns Green (Extreme Fear) AND a Bullish Divergence label appears, it provides a stronger technical case for a long position than the zone alone. ⚙️ Inputs and Settings ● Calculation Settings Global Lookback Period (Default: 21): The core lookback window for RSI, ATR, Volume, and Stochastic calculations. Increasing this makes the index slower and less reactive; decreasing it makes it faster. Smoothing Length (Default: 5): Determines how smooth the final line is. Higher numbers reduce "whipsaws" but add lag. Color Main Chart Candles : Colors the chart bars based on Fear/Greed sentiment. ● Divergence Settings Divergence Lookback (Default: 5): Determines the pivot strength required to register a high or low for divergence checks. Show Divergence Lines/Labels: Toggles to hide visual clutter if you only want to see the oscillator. 🔍 Deconstruction of the Underlying Scientific and Academic Framework ● Normalization Theory The core scientific principle here is Min-Max Normalization. The script takes heterogeneous data types—Price (Dollars/Cents), Volume (Shares/Contracts), and Volatility (Points)—and standardizes them into a unit-less distribution between 0 and 100. This allows for the summation of disparate market forces into a single vector. ● Mean Reversion and Oscillator Bounds The indicator relies on the statistical concept of Mean Reversion. Markets, like elastic bands, can only stretch so far from their average valuation (represented by the 50 line) before snapping back. The "Extreme" zones (Upper and Lower deciles) represent areas of statistical improbability where the likelihood of a continuation decreases and the likelihood of a reversion increases. ● Divergence and Momentum Theory The divergence logic is grounded in the principle that momentum precedes price. Mathematically, price is the integral of velocity. When the derivative (momentum/sentiment) approaches zero or reverses while the function (price) continues, it signals a non-sustainable anomaly in the data series, often resolved by a price correction. ⚠️ Disclaimer All provided scripts and indicators are strictly for educational exploration and must not be interpreted as financial advice or a recommendation to execute trades. I expressly disclaim all liability for any financial losses or damages that may result, directly or indirectly, from the reliance on or application of these tools. Market participation carries inherent risk where past performance never guarantees future returns, leaving all investment decisions and due diligence solely at your own discretion.
Pine Script® indicator
by MarkitTick
2