OPEN-SOURCE SCRIPT
Updated ROC-Weighted MA Oscillator [SeerQuant]
ROC-Weighted MA Oscillator (ROCWMA)
The ROC-Weighted MA Oscillator (ROCWMA) is a momentum-based indicator which uniquely combines the Rate of Change (ROC) with customizable moving averages, offering a dynamic oscillator for trend analysis. Featuring z-score normalization and weighted MA integration, the ROCWMA delivers actionable trend signals with customizable thresholds.
--------------------------------------------------------------------------------------------------
⚙️ How It Works
1️⃣ Rate of Change (ROC) Normalization
The indicator begins with a normalized ROC calculation over a customizable length, transforming raw momentum data into a dynamic range for enhanced analysis.
2️⃣ Weighted Moving Average (MA)
A custom moving average (MA) is calculated using selectable MA types such as TEMA, SMA, EMA, and more. The normalized ROC is then applied as a weight to derive the ROC-Weighted MA (RWMA), blending trend and momentum data.
3️⃣ Z-Score Oscillator
The RWMA is normalized using z-score calculations, resulting in a smoothed oscillator. This process highlights deviations from the mean, identifying overbought and oversold conditions dynamically.
4️⃣ Threshold Logic
5️⃣ Dynamic Visual Representation
--------------------------------------------------------------------------------------------------
✨ Customizable Settings
ROC Settings
MA Settings
Threshold Settings
Style Settings
--------------------------------------------------------------------------------------------------
🚀 Features and Benefits
--------------------------------------------------------------------------------------------------
📜 Disclaimer
This indicator is for educational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Users should consult a licensed financial advisor before making trading decisions. Use at your own risk.
--------------------------------------------------------------------------------------------------
The ROC-Weighted MA Oscillator (ROCWMA) is a momentum-based indicator which uniquely combines the Rate of Change (ROC) with customizable moving averages, offering a dynamic oscillator for trend analysis. Featuring z-score normalization and weighted MA integration, the ROCWMA delivers actionable trend signals with customizable thresholds.
--------------------------------------------------------------------------------------------------
⚙️ How It Works
1️⃣ Rate of Change (ROC) Normalization
The indicator begins with a normalized ROC calculation over a customizable length, transforming raw momentum data into a dynamic range for enhanced analysis.
2️⃣ Weighted Moving Average (MA)
A custom moving average (MA) is calculated using selectable MA types such as TEMA, SMA, EMA, and more. The normalized ROC is then applied as a weight to derive the ROC-Weighted MA (RWMA), blending trend and momentum data.
3️⃣ Z-Score Oscillator
The RWMA is normalized using z-score calculations, resulting in a smoothed oscillator. This process highlights deviations from the mean, identifying overbought and oversold conditions dynamically.
4️⃣ Threshold Logic
- Bullish (Uptrend): Oscillator exceeds the positive threshold.
- Bearish (Downtrend): Oscillator drops below the negative threshold.
- Neutral: Oscillator remains between thresholds.
5️⃣ Dynamic Visual Representation
- A color-coded histogram reflects trend strength and direction.
- Optional candle coloring visually emphasizes trends on the chart.
- Gradient fills enhance clarity of threshold areas.
--------------------------------------------------------------------------------------------------
✨ Customizable Settings
ROC Settings
- Define the ROC length for momentum calculation.
MA Settings
- Choose from multiple MA types (TEMA, EMA, SMA, etc.).
- Customize the length and data source for MA calculations.
- Adjust the signal length for smoothing.
Threshold Settings
- Set neutral, bullish, and bearish thresholds to match your strategy.
Style Settings
- Toggle candle coloring for visual trend enhancement.
- Select from five unique color schemes to suit your chart style.
--------------------------------------------------------------------------------------------------
🚀 Features and Benefits
- Momentum-Weighted Analysis: Combines ROC with advanced moving averages for precise trend evaluation.
- Dynamic Thresholds: Z-score-based logic adapts to market conditions.
- Visual Clarity: Color-coded histograms, candles, and gradient fills make trend detection intuitive.
- Highly Customizable: Flexible inputs and multiple MA types ensure adaptability to various trading styles.
--------------------------------------------------------------------------------------------------
📜 Disclaimer
This indicator is for educational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Users should consult a licensed financial advisor before making trading decisions. Use at your own risk.
--------------------------------------------------------------------------------------------------
Release Notes
~ Corrected alert condition message. 
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 publication is governed by House rules. You can favorite it to use it on a chart.
Want to use this script on a chart?
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.