OPEN-SOURCE SCRIPT
PulseMA Oscillator Normalized v2
█ OVERVIEW
PulseMA Oscillator Normalized v2 is a technical indicator designed for the TradingView platform, assisting traders in identifying potential trend reversal points based on price dynamics derived from moving averages. The indicator is normalized for easier interpretation across various market conditions, and its visual presentation with gradients and signals facilitates quick decision-making.
█ CONCEPTS
The core idea of the indicator is to analyze trend dynamics by calculating an oscillator based on a moving average (EMA), which is then normalized and smoothed. It provides insights into trend strength, overbought/oversold levels, and reversal signals, enhanced by gradient visualizations.
Why use it?
Identifying reversal points: The indicator detects overbought and oversold levels, generating buy/sell signals at their crossovers.
Price dynamics analysis: Based on moving averages, it measures how long the price stays above or below the EMA, incorporating trend slope.
Visual clarity: Gradients, fills, and colored lines enable quick chart analysis.
Flexibility: Configurable parameters, such as moving average lengths or normalization period, allow adaptation to various strategies and markets.
How it works?
Trend detection: Calculates a base exponential moving average (EMA with PulseMA Length) and measures how long the price stays above or below it, multiplied by the slope for the oscillator.
Normalization: The oscillator is normalized based on the minimum and maximum values over a lookback period (default 150 bars), scaling it to a range from -100 to 100: (oscillator - min) / (max - min) * 200 - 100. This ensures values are comparable across different instruments and timeframes.
Smoothing: The main line (PulseMA) is the normalized oscillator (oscillatorNorm). The PulseMA MA line is a smoothed version of PulseMA, calculated using an SMA with the PulseMA MA length. As PulseMA MA is smoothed, it reacts more slowly and can be used as a noise filter.
Signals: Generates buy signals when crossing the oversold level upward and sell signals when crossing the overbought level downward. Signals are stronger when PulseMA MA is in the overbought or oversold zone (exceeding the respective thresholds for PulseMA MA).
Visualization: Draws lines with gradients for PulseMA and PulseMA MA, levels with gradients, gradient fill to the zero line, and signals as triangles.
Alerts: Built-in alerts for buy and sell signals.
Settings and customization
PulseMA Length: Length of the base EMA (default 20).
PulseMA MA: Length of the SMA for smoothing PulseMA MA (default 20).
Normalization Lookback Period: Normalization period (default 150, minimum 10).
Overbought/Oversold Levels: Levels for the main line (default 100/-100) and thresholds for PulseMA MA, indicating zones where PulseMA MA exceeds set values (default 50/-50).
Colors and gradients: Customize colors for lines, gradients, and levels; options to enable/disable gradients and fills.
Visualizations: Show PulseMA MA, gradients for overbought/oversold/zero levels, and fills.
█ OTHER SECTIONS
Usage examples
Trend analysis: Observe PulseMA above 0 for an uptrend or below 0 for a downtrend. Use different values for PulseMA Length and PulseMA MA to gain a clearer trend picture. PulseMA MA, being smoothed, reacts more slowly and can serve as a noise filter to confirm trend direction.
Reversal signals: Look for buy triangles when PulseMA crosses the oversold level, especially when PulseMA MA is in the oversold zone. Similarly, look for sell triangles when crossing the overbought level with PulseMA MA in the overbought zone. Such confirmation increases signal reliability.
Customization: Test different values for PulseMA Length and PulseMA MA on a given instrument and timeframe to minimize false signals and tailor the indicator to market specifics.
Notes for users
Combine with other tools, such as support/resistance levels or other oscillators, for greater accuracy.
Test different settings for PulseMA Length and PulseMA MA on the chosen instrument and timeframe to find optimal values.
PulseMA Oscillator Normalized v2 is a technical indicator designed for the TradingView platform, assisting traders in identifying potential trend reversal points based on price dynamics derived from moving averages. The indicator is normalized for easier interpretation across various market conditions, and its visual presentation with gradients and signals facilitates quick decision-making.
█ CONCEPTS
The core idea of the indicator is to analyze trend dynamics by calculating an oscillator based on a moving average (EMA), which is then normalized and smoothed. It provides insights into trend strength, overbought/oversold levels, and reversal signals, enhanced by gradient visualizations.
Why use it?
Identifying reversal points: The indicator detects overbought and oversold levels, generating buy/sell signals at their crossovers.
Price dynamics analysis: Based on moving averages, it measures how long the price stays above or below the EMA, incorporating trend slope.
Visual clarity: Gradients, fills, and colored lines enable quick chart analysis.
Flexibility: Configurable parameters, such as moving average lengths or normalization period, allow adaptation to various strategies and markets.
How it works?
Trend detection: Calculates a base exponential moving average (EMA with PulseMA Length) and measures how long the price stays above or below it, multiplied by the slope for the oscillator.
Normalization: The oscillator is normalized based on the minimum and maximum values over a lookback period (default 150 bars), scaling it to a range from -100 to 100: (oscillator - min) / (max - min) * 200 - 100. This ensures values are comparable across different instruments and timeframes.
Smoothing: The main line (PulseMA) is the normalized oscillator (oscillatorNorm). The PulseMA MA line is a smoothed version of PulseMA, calculated using an SMA with the PulseMA MA length. As PulseMA MA is smoothed, it reacts more slowly and can be used as a noise filter.
Signals: Generates buy signals when crossing the oversold level upward and sell signals when crossing the overbought level downward. Signals are stronger when PulseMA MA is in the overbought or oversold zone (exceeding the respective thresholds for PulseMA MA).
Visualization: Draws lines with gradients for PulseMA and PulseMA MA, levels with gradients, gradient fill to the zero line, and signals as triangles.
Alerts: Built-in alerts for buy and sell signals.
Settings and customization
PulseMA Length: Length of the base EMA (default 20).
PulseMA MA: Length of the SMA for smoothing PulseMA MA (default 20).
Normalization Lookback Period: Normalization period (default 150, minimum 10).
Overbought/Oversold Levels: Levels for the main line (default 100/-100) and thresholds for PulseMA MA, indicating zones where PulseMA MA exceeds set values (default 50/-50).
Colors and gradients: Customize colors for lines, gradients, and levels; options to enable/disable gradients and fills.
Visualizations: Show PulseMA MA, gradients for overbought/oversold/zero levels, and fills.
█ OTHER SECTIONS
Usage examples
Trend analysis: Observe PulseMA above 0 for an uptrend or below 0 for a downtrend. Use different values for PulseMA Length and PulseMA MA to gain a clearer trend picture. PulseMA MA, being smoothed, reacts more slowly and can serve as a noise filter to confirm trend direction.
Reversal signals: Look for buy triangles when PulseMA crosses the oversold level, especially when PulseMA MA is in the oversold zone. Similarly, look for sell triangles when crossing the overbought level with PulseMA MA in the overbought zone. Such confirmation increases signal reliability.
Customization: Test different values for PulseMA Length and PulseMA MA on a given instrument and timeframe to minimize false signals and tailor the indicator to market specifics.
Notes for users
Combine with other tools, such as support/resistance levels or other oscillators, for greater accuracy.
Test different settings for PulseMA Length and PulseMA MA on the chosen instrument and timeframe to find optimal values.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
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.