TradeMaster Oscillator

Jul 24, 2023

Trading effectively requires a range of techniques, experience, and expertise. From technical analysis to market fundamentals, traders must navigate multiple factors, including market sentiment and economic conditions. However, traders often find themselves overwhelmed by market noise, making it challenging to filter out distractions and make informed decisions. To address this, we present a powerful indicator package designed to assist traders on their journey to success.

The TradeMaster indicator package encompasses a variety of trading strategies, including the SMC (Supply, Demand, and Price Action) approach, along with many other techniques. By leveraging concepts such as price action trading, support and resistance analysis, supply and demand dynamics, these indicators empower traders to analyze entry and exit positions with precision. Unlike other forms of technical analysis that produce values or plots based on historical price data, Price Action brings you the facts straight from the source - the current price movements.

The indicator package consists of three powerful indicators that can be used individually or together to maximize trading effectiveness.


⭐About the Oscillator Indicator

The Oscillator is an innovative and robust tool that encapsulates the principles of multiple technical analysis methodologies to enrich your trading strategy. By leveraging the combination of our six unique indicators, it can provide a comprehensive and multi-dimensional view of market dynamics.

👉Usage - the general approach:
Utilize the Oscillator Indicator as a confirmational tool. The Oscillator acts as a tool to validate ideas and strategies. By analyzing the oscillator's readings, you gain additional insights into market momentum, overbought or oversold conditions, and potential trend reversals. This confirmation step helps you avoid false signals and make more informed trading choices.



👉 We are focusing on the default setting of the TradeMaster Oscillator, which incorporates the Global RSI* as main oscillator and Local RSI* as confirmational oscillator. This base configuration can be custom-tailored to your preference, leveraging the additional combination of our six unique indicators.

• Understand the difference between Global and Local RSI: The Global RSI represents broad relative strength, while the Local RSI describes the relative strength within wider movements. It's like having both a macro and micro view of relative strength.
  
  
• Identify extreme values in Local RSI: Look for extremes in the Local RSI (overbought/oversold in Stochastic RSI). These often indicate a turning point in the RSI, which naturally reflects in the price. The Local RSI extremes are shown as dots outside the Global RSI bands in a "heatmap" style.
  
  
• Smooth your RSI: You have the option to smooth your RSI with your preferred smoothing method (SMA , SMMA, EMA, DEMA, TEMA, LSMA, HMA, VWMA, WMA) and length.
  Please bear in mind that high smoothing values can make the standard RSI extremes (>70 or <30) suboptimal or even useless. To address this potential problem, Adaptive levels were introduced.
• Adaptive key levels for more relevant extremes: enabling Adaptive levels recalibrates extremes based on the historical RSI turning points (typical median turning points), providing much more relevant reference points for overbought/oversold states in both Global and Local RSI. This function can be used without smoothing but rarely provides significant difference unless you experiment with the length of RSI calculation.
  
  
• Incorporate multiple indicators: besides Global and Local RSI, you can display six different proprietary indicators in the main oscillator theme. By choosing from these, you can apply the confirming condition as well. These include Sentiment (Fear and greed), Momentum, Trend Strength, Volume, and Volatility. These indicators use our TRMA** method to provide a comprehensive overview of market dynamics.
  
  
• Choose your Global RSI display style: the Global RSI can be represented in candle, bar, line or ribbon form. Candles and bars can be useful for detecting rejections of relative strength (wicks), similar to OHLC data. Sometimes there are "hidden rejections" visible in relative strength but not in OHLC data, which naturally presents an advantage.
  
  
• Customize the colors: All colors can be adjusted from the input menu to suit your preferences. This personalization allows you to make the Oscillator clear and intuitive for your individual trading style as possible.
  
  
• Monitor Real-time Indicator values: In the bottom right corner, you can view real-time color-coded indicator values. This feature gives you the ability to quickly assess the market's current conditions without needing to navigate away from the chart.
  
  
• Use multiple indicators in conjunction: while each indicator within the Oscillator provides valuable insights, their true power lies in their combination. Identify alignment among indicators to validate potential trades. For instance, when a bullish sentiment indication aligns with a low volatility reading, it may suggest a favorable buying opportunity.
  
  
• Consider the market context: while the Oscillator provides a robust set of tools, always consider other aspects of the market environment. Use the oscillator in conjunction with other technical, fundamental, or sentiment analysis methods to develop a comprehensive trading strategy.
  

🛑 Remember, the oscillator should be used as a confirmational tool in your overall trading strategy. Make reasonable use of all its features, and always keep risk management principles in mind.

* By default, these are fine-tuned RSI and Stochastic RSI indicators.
**TRMA (Trend Rainbow Moving Averages) is a complex but customizable moving average matrix calculation that is designed to accurately measure market trend direction, strength and shifting.


⭐ Conclusion

We hold the view that the true path to success is the synergy between the trader and the tool, contrary to the common belief that the tool itself is the sole determinant of profitability. The actual scenario is more nuanced than such an oversimplification. Our aim is to offer useful features that meet the needs of the 21st century and that we actually use.

🛑Risk Notice:
Everything provided by trademasterindicator – from scripts, tools, and articles to educational materials – is intended solely for educational and informational purposes. Past performance does not assure future returns.

Jul 28, 2023

Release Notes

v2.0.4 - build 458

• Improved Ribbon Display type visuals.
  
• Default Global and Local RSI length is now 14, in order to align with default values used across the package.
  

Jan 28

Release Notes

v2.0.5
- Runtime optimization, noticeable performance gain