PROTECTED SOURCE SCRIPT
overbought & oversold
Overbought & Oversold
📘 OB/OS Candle Color – Confluence + Volume (v6)
This indicator colors candles based on the confluence of overbought (green) and oversold (red) conditions, combining technical signals from price and volume to provide reliable, uncluttered visual readings.
🔹 What It Measures
RSI → classic strength/weakness extremes.
Stochastic %K → short-term oscillations.
Bollinger %B + Price Z-Score → statistical deviations from the mean.
MFI, CMF, Volume Z-Score, OBV Z-Score → intensity and direction of capital flow.
🔹 How It Works
Each metric produces an overbought or oversold signal.
The indicator counts how many conditions are simultaneously true.
If the count exceeds the user-defined threshold (Min Conditions), the candle is colored:
Green → Overbought
Red → Oversold
An optional EMA-based trend filter avoids counter-trend signals.
🔹 Why It’s Useful
A single RSI or isolated volume spike can be misleading.
This tool filters market noise by combining eight independent signals, giving a much stronger confirmation of market extremes.
🔹 Recommended Timeframes
Optimized for 15m, 30m, 1h, 4h, and 1D charts.
Adjust Min Conditions depending on timeframe:
15–30m → 4–5
1h → 3–4
4h–1D → 3
🔹 Usage Tips
In trend-following strategies → keep the EMA filter ON.
In mean-reversion setups → turn the filter OFF to catch short-term reversals.
Give more weight to signals with extreme volume spikes and price beyond Bollinger Bands.
This is not an automatic trading system, but a visual trigger to help identify overextended zones and improve entry/exit timing.
📘 OB/OS Candle Color – Confluence + Volume (v6)
This indicator colors candles based on the confluence of overbought (green) and oversold (red) conditions, combining technical signals from price and volume to provide reliable, uncluttered visual readings.
🔹 What It Measures
RSI → classic strength/weakness extremes.
Stochastic %K → short-term oscillations.
Bollinger %B + Price Z-Score → statistical deviations from the mean.
MFI, CMF, Volume Z-Score, OBV Z-Score → intensity and direction of capital flow.
🔹 How It Works
Each metric produces an overbought or oversold signal.
The indicator counts how many conditions are simultaneously true.
If the count exceeds the user-defined threshold (Min Conditions), the candle is colored:
Green → Overbought
Red → Oversold
An optional EMA-based trend filter avoids counter-trend signals.
🔹 Why It’s Useful
A single RSI or isolated volume spike can be misleading.
This tool filters market noise by combining eight independent signals, giving a much stronger confirmation of market extremes.
🔹 Recommended Timeframes
Optimized for 15m, 30m, 1h, 4h, and 1D charts.
Adjust Min Conditions depending on timeframe:
15–30m → 4–5
1h → 3–4
4h–1D → 3
🔹 Usage Tips
In trend-following strategies → keep the EMA filter ON.
In mean-reversion setups → turn the filter OFF to catch short-term reversals.
Give more weight to signals with extreme volume spikes and price beyond Bollinger Bands.
This is not an automatic trading system, but a visual trigger to help identify overextended zones and improve entry/exit timing.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
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.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
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.