Ratio-Adjusted McClellan Summation Index RASI NASIRatio-Adjusted McClellan Summation Index (RASI NASI)
In Book "The Complete Guide to Market Breadth Indicators" Author Gregory L. Morris states
"It is the author’s opinion that the McClellan indicators, and in particular, the McClellan Summation Index, is the single best breadth indicator available. If you had to pick just one, this would be it."
What It Does: The Ratio-Adjusted McClellan Summation Index (RASI) is a market breadth indicator that tracks the cumulative strength of advancing versus declining issues for a user-selected exchange (NASDAQ, NYSE, or AMEX). Derived from the McClellan Oscillator, it calculates ratio-adjusted net advances, applies 19-day and 39-day EMAs, and sums the oscillator values to produce the RASI. This indicator helps traders assess market health, identify bullish or bearish trends, and detect potential reversals through divergences.
Key features:
Exchange Selection : Choose NASDAQ (USI:ADVN.NQ, USI:DECL.NQ), NYSE (USI:ADVN.NY, USI:DECL.NY), or AMEX (USI:ADVN.AM, USI:DECL.AM) data.
Trend-Based Coloring : RASI line displays user-defined colors (default: black for uptrend, red for downtrend) based on its direction.
Customizable Moving Average: Add a moving average (SMA, EMA, WMA, VWMA, or RMA) with user-defined length and color (default: EMA, 21, green).
Neutral Line at Zero: Marks the neutral level for trend interpretation.
Alerts: Six custom alert conditions for trend changes, MA crosses, and zero-line crosses.
How to Use
Add to Chart: Apply the indicator to any TradingView chart. Ensure access to advancing and declining issues data for the selected exchange.
Select Exchange: Choose NASDAQ, NYSE, or AMEX in the input settings.
Customize Settings: Adjust EMA lengths, RASI colors, MA type, length, and color to match your trading style.
Interpret the Indicator :
RASI Line: Black (default) indicates an uptrend (RASI rising); red indicates a downtrend (RASI falling).
Above Zero: Suggests bullish market breadth (more advancing issues).
Below Zero : Indicates bearish breadth (more declining issues).
MA Crosses: RASI crossing above its MA signals bullish momentum; crossing below signals bearish momentum.
Divergences: Compare RASI with the market index (e.g., NASDAQ Composite) to identify potential reversals.
Large Moves : A +3,600-point move from a low (e.g., -1,550 to +1,950) may signal a significant bull run.
Set Alerts:
Add the indicator to your chart, open the TradingView alert panel, and select from six conditions (see Alerts section).
Configure notifications (e.g., email, webhook, or popup) for each condition.
Settings
Market Selection:
Exchange: Select NASDAQ, NYSE, or AMEX for advancing/declining issues data.
EMA Settings:
19-day EMA Length: Period for the shorter EMA (default: 19).
39-day EMA Length: Period for the longer EMA (default: 39).
RASI Settings:
RASI Uptrend Color: Color for rising RASI (default: black).
RASI Downtrend Color: Color for falling RASI (default: red).
RASI MA Settings:
MA Type: Choose SMA, EMA, WMA, VWMA, or RMA (default: EMA).
MA Length: Set the MA period (default: 21).
MA Color: Color for the MA line (default: green).
Alerts
The indicator uses alertcondition() to create custom alerts. Available conditions:
RASI Trend Up: RASI starts rising (based on RASI > previous RASI, shown as black line).
RASI Trend Down: RASI starts falling (based on RASI ≤ previous RASI, shown as red line).
RASI Above MA: RASI crosses above its moving average.
RASI Below MA: RASI crosses below its moving average.
RASI Bullish: RASI crosses above zero (bullish market breadth).
RASI Bearish: RASI crosses below zero (bearish market breadth).
To set alerts, add the indicator to your chart, open the TradingView alert panel, and select the desired condition.
Notes
Data Requirements: Requires access to advancing/declining issues data (e.g., USI:ADVN.NQ, USI:DECL.NQ for NASDAQ). Some symbols may require a TradingView premium subscription.
Limitations: RASI is a medium- to long-term indicator and may lag in volatile or range-bound markets. Use alongside other technical tools for confirmation.
Data Reliability : Verify the selected exchange’s data accuracy, as inconsistencies can affect results.
Debugging: If no data appears, check symbol validity (e.g., try $ADVN/Q, $DECN/Q for NASDAQ) or contact TradingView support.
Credits
Based on the Ratio-Adjusted McClellan Summation Index methodology by McClellan Financial Publications. No external code was used; the implementation is original, inspired by standard market breadth concepts.
Disclaimer
This indicator is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Conduct your own research and combine with other tools for informed trading decisions.
Search in scripts for "index"
Demand Index (Hybrid Sibbet) by TradeQUODemand Index (Hybrid Sibbet) by TradeQUO \
\Overview\
The Demand Index (DI) was introduced by James Sibbet in the early 1990s to gauge “real” buying versus selling pressure by combining price‐change information with volume intensity. Unlike pure price‐based oscillators (e.g. RSI or MACD), the DI highlights moves backed by above‐average volume—helping traders distinguish genuine demand/supply from false breakouts or low‐liquidity noise.
\Calculation\
\
\ \Step 1: Weighted Price (P)\
For each bar t, compute a weighted price:
```
Pₜ = Hₜ + Lₜ + 2·Cₜ
```
where Hₜ=High, Lₜ=Low, Cₜ=Close of bar t.
Also compute Pₜ₋₁ for the prior bar.
\ \Step 2: Raw Range (R)\
Calculate the two‐bar range:
```
Rₜ = max(Hₜ, Hₜ₋₁) – min(Lₜ, Lₜ₋₁)
```
This Rₜ is used indirectly in the exponential dampener below.
\ \Step 3: Normalize Volume (VolNorm)\
Compute an EMA of volume over n₁ bars (e.g. n₁=13):
```
EMA_Volₜ = EMA(Volume, n₁)ₜ
```
Then
```
VolNormₜ = Volumeₜ / EMA_Volₜ
```
If EMA\_Volₜ ≈ 0, set VolNormₜ to a small default (e.g. 0.0001) to avoid division‐by‐zero.
\ \Step 4: BuyPower vs. SellPower\
Calculate “raw” BuyPowerₜ and SellPowerₜ depending on whether Pₜ > Pₜ₋₁ (bullish) or Pₜ < Pₜ₋₁ (bearish). Use an exponential dampener factor Dₜ to moderate extreme moves when true range is small. Specifically:
• If Pₜ > Pₜ₋₁,
```
BuyPowerₜ = (VolNormₜ) / exp
```
otherwise
```
BuyPowerₜ = VolNormₜ.
```
• If Pₜ < Pₜ₋₁,
```
SellPowerₜ = (VolNormₜ) / exp
```
otherwise
```
SellPowerₜ = VolNormₜ.
```
Here, H₀ and L₀ are the very first bar’s High/Low—used to calibrate the scale of the dampening. If the denominator of the exponential is near zero, substitute a small epsilon (e.g. 1e-10).
\ \Step 5: Smooth Buy/Sell Power\
Apply a short EMA (n₂ bars, typically n₂=2) to each:
```
EMA_Buyₜ = EMA(BuyPower, n₂)ₜ
EMA_Sellₜ = EMA(SellPower, n₂)ₜ
```
\ \Step 6: Raw Demand Index (DI\_raw)\
```
DI_rawₜ = EMA_Buyₜ – EMA_Sellₜ
```
A positive DI\_raw indicates that buying force (normalized by volume) exceeds selling force; a negative value indicates the opposite.
\ \Step 7: Optional EMA Smoothing on DI (DI)\
To reduce choppiness, compute an EMA over DI\_raw (n₃ bars, e.g. n₃ = 1–5):
```
DIₜ = EMA(DI_raw, n₃)ₜ.
```
If n₃ = 1, DI = DI\_raw (no further smoothing).
\
\Interpretation\
\
\ \Crossing Zero Line\
• DI\_raw (or DI) crossing from below to above zero signals that cumulative buying pressure (over the chosen smoothing window) has overcome selling pressure—potential Long signal.
• Crossing from above to below zero signals dominant selling pressure—potential Short signal.
\ \DI\_raw vs. DI (EMA)\
• When DI\_raw > DI (the EMA of DI\_raw), bullish momentum is accelerating.
• When DI\_raw < DI, bullish momentum is weakening (or bearish acceleration).
\ \Divergences\
• If price makes new highs while DI fails to make higher highs (DI\_raw or DI declining), this hints at weakening buying power (“bearish divergence”), possibly preceding a reversal.
• If price makes new lows while DI fails to make lower lows (“bullish divergence”), this may signal waning selling pressure and a potential bounce.
\ \Volume Confirmation\
• A strong price move without a corresponding rise in DI often indicates low‐volume “fake” moves.
• Conversely, a modest price move with a large DI spike suggests true institutional participation—often a more reliable breakout.
\
\Usage Notes & Warnings\
\
\ \Never Use DI in Isolation\
It is a \filter\ and \confirmation\ tool—combine with price‐action (trendlines, support/resistance, candlestick patterns) and risk management (stop‐losses) before executing trades.
\ \Parameter Selection\
• \Vol EMA length (n₁)\: Commonly 13–20 bars. Shorter → more responsive to volume spikes, but noisier.
• \Buy/Sell EMA length (n₂)\: Typically 2 bars for fast smoothing.
• \DI smoothing (n₃)\: Usually 1 (no smoothing) or 3–5 for moderate smoothing. Long DI\_EMA (e.g. 20–50) gives a slower signal.
\ \Market Adaptation\
Works well in liquid futures, indices, and heavily traded stocks. In thinly traded or highly erratic markets, adjust n₁ upward (e.g., 20–30) to reduce noise.
---
\In Summary\
The Demand Index (James Sibbet) uses a three‐stage smoothing (volume → Buy/Sell Power → DI) to reveal true demand/supply imbalance. By combining normalized volume with price change, Sibbet’s DI helps traders identify momentum backed by real participation—filtering out “empty” moves and spotting early divergences. Always confirm DI signals with price action and sound risk controls before trading.
COT-Index-NocTradingCOT Index Indicator
The COT Index Indicator is a powerful tool designed to visualize the Commitment of Traders (COT) data and offer insights into market sentiment. The COT Index is a measurement of the relative positioning of commercial traders versus non-commercial and retail traders in the futures market. It is widely used to identify potential market reversals by observing the extremes in trader positioning.
Customizable Timeframe: The indicator allows you to choose a custom time interval (in months) to visualize the COT data, making it flexible to fit different trading styles and strategies.
How to Use:
Visualize Market Sentiment: A COT Index near extremes (close to 0 or 100) can indicate potential turning points in the market, as it reflects extreme positioning of different market participant groups.
Adjust the Time Interval: The ability to adjust the time interval (in months) gives traders the flexibility to analyze the market over different periods, which can be useful in detecting longer-term trends or short-term shifts in sentiment.
Combine with Other Indicators: To enhance your analysis, combine the COT Index with your technical analysis.
This tool can serve as an invaluable addition to your trading strategy, providing a deeper understanding of the market dynamics and the positioning of major market participants.
Adaptive Volume‐Demand‐Index (AVDI)Demand Index (according to James Sibbet) – Short Description
The Demand Index (DI) was developed by James Sibbet to measure real “buying” vs. “selling” strength (Demand vs. Supply) using price and volume data. It is not a standalone trading signal, but rather a filter and trend confirmer that should always be used together with chart structure and additional indicators.
---
\ 1. Calculation Basis\
1. Volume Normalization
$$
\text{normVol}_t
= \frac{\text{Volume}_t}{\mathrm{EMA}(\text{Volume},\,n_{\text{Vol}})_t}
\quad(\text{e.g., }n_{\text{Vol}} = 13)
$$
This smooths out extremely high volume spikes and compares them to the average (≈ 1 means “average volume”).
2. Price Factor
$$
\text{priceFactor}_t
= \frac{\text{Close}_t - \text{Open}_t}{\text{Open}_t}.
$$
Positive values for bullish bars, negative for bearish bars.
3. Component per Bar
$$
\text{component}_t
= \text{normVol}_t \times \text{priceFactor}_t.
$$
If volume is above average (> 1) and the price rises slightly, this yields a noticeably positive value; conversely if the price falls.
4. Raw DI (Rolling Sum)
Over a window of \$w\$ bars (e.g., 20):
$$
\text{RawDI}_t
= \sum_{i=0}^{w-1} \text{component}_{\,t-i}.
$$
Alternatively, recursively for \$t \ge w\$:
$$
\text{RawDI}_t
= \text{RawDI}_{t-1}
+ \text{component}_t
- \text{component}_{\,t-w}.
$$
5. Optional EMA Smoothing
An EMA over RawDI (e.g., \$n\_{\text{DI}} = 50\$) reduces short-term fluctuations and highlights medium-term trends:
$$
\text{EMA\_DI}_t
= \mathrm{EMA}(\text{RawDI},\,n_{\text{DI}})_t.
$$
6.Zero Line
Handy guideline:
RawDI > 0: Accumulated buying power dominates.
RawDI < 0: Accumulated selling power dominates.
2. Interpretation & Application
Crossing Zero
RawDI above zero → Indication of increasing buying pressure (potential long signal).
RawDI below zero → Indication of increasing selling pressure (potential short signal).
Not to be used alone for entry—always confirm with price action.
RawDI vs. EMA_DI
RawDI > EMA\_DI → Acceleration of demand.
RawDI < EMA\_DI → Weakening of demand.
Divergences
Price makes a new high, RawDI does not make a higher high → potential weakness in the uptrend.
Price makes a new low, RawDI does not make a lower low → potential exhaustion of the downtrend.
3. Typical Signals (for Beginners)
\ 1. Long Setup\
RawDI crosses zero from below,
RawDI > EMA\_DI (acceleration),
Price closes above a short-term swing high or resistance.
Stop-Loss: just below the last swing low, Take-Profit/Trailing: on reversal signals or fixed R\:R.
2. Short Setup
RawDI crosses zero from above,
RawDI < EMA\_DI (increased selling pressure),
Price closes below a short-term swing low or support.
Stop-Loss: just above the last swing high.
---
4. Notes and Parameters
Recommended Values (Beginners):
Volume EMA (n₍Vol₎) = 13
RawDI window (w) = 20
EMA over DI (n₍DI₎) = 50 (medium-term) or 1 (no smoothing)
Attention:\
NEVER use in isolation. Always in combination with price action analysis (trendlines, support/resistance, candlestick patterns).
Especially during volatile news phases, RawDI can fluctuate strongly → EMA\_DI helps to avoid false signals.
---
Conclusion The Demand Index by James Sibbet is a powerful filter to assess price movements by their volume backing. It shows whether a rally is truly driven by demand or merely a short-term volume anomaly. In combination with classic chart analysis and risk management, it helps to identify robust entry points and potential trend reversals earlier.
DECODE Global Liquidity IndexDECODE Global Liquidity Index 🌊
The DECODE Global Liquidity Index is a powerful tool designed to track and aggregate global liquidity by combining data from the world's 13 largest economies. It offers a comprehensive view of financial liquidity, providing crucial insights into the underlying currents that can influence asset prices and market trends.
The economies covered are: United States, China, European Union, Japan, India, United Kingdom, Brazil, Canada, Russia, South Korea, Australia, Mexico, and Indonesia. The European Union accounts for major individual economies within the EU like Germany, France, Italy, Spain, Netherlands, Poland, etc.
Key Features:
1. Customizable Liquidity Sources
Include Global M2: You can opt to include the M2 money supply from the 13 listed economies. M2 is a broad measure of money supply that includes cash, checking deposits, savings deposits, money market securities, mutual funds, and other time deposits. (Note: Australia uses M3 as its primary measure, which is included when M2 is selected for Australia).
Include Central Bank Balance Sheets (CBBS): Alternatively, or in addition, you can include the total assets held by the central banks of these economies. Central bank balance sheets expand or contract based on monetary policy operations like quantitative easing (QE) or tightening (QT).
Combined View: If you select both M2 and CBBS, and data is available for both, the indicator will display an average of the two aggregated values. If only one source type is selected, or if data for one type is unavailable despite both being selected, the indicator will display the single available and selected component. This provides flexibility in how you define and analyze global liquidity.
2. Lead/Lag Analysis (Forward Projection):
Lead Offset (Days): This feature allows you to project the liquidity index forward by a specified number of days.
Why it's useful: Global liquidity changes can often be a leading indicator for various asset classes, particularly those sensitive to risk appetite, like Bitcoin or growth stocks. These assets might lag shifts in liquidity. By applying a lead (e.g., 90 days), you can shift the liquidity data forward on your chart to more easily visualize potential correlations and identify if current asset price movements might be responding to past changes in liquidity.
3. Rate of Change (RoC) Oscillator:
Year-over-Year % View: Instead of viewing aggregate liquidity, you can switch to a Year-over-Year (YoY%) Rate of Change (ROC) oscillator.
Why it's useful:
Momentum Identification: The ROC highlights the speed and direction of liquidity changes. Positive values indicate liquidity is increasing compared to a year ago, while negative values show it's decreasing.
Turning Points: Oscillators make it easier to spot potential accelerations, decelerations, or reversals in liquidity trends. A cross above the zero line can signal strengthening liquidity momentum, while a cross below can signal weakening momentum.
Cycle Analysis: It helps in assessing the cyclical nature of liquidity provision and its potential impact on market cycles.
This indicator aims to provide a clear, customizable, and insightful measure of global liquidity to aid traders and investors in their market analysis.
Custom USD IndexThis is a modernized, expanded version of the U.S. Dollar Index (DXY), designed to provide a more accurate representation of the dollar’s global strength in today’s diversified economy.
Unlike the traditional DXY, which excludes major players like China and entirely omits real-world stores of value, this custom index (DXY+) includes:
Fiat Currencies (78.3% total weight):
EUR, JPY, GBP, CAD, AUD, CHF, and CNY — equally weighted to reflect the global currency landscape.
Gold (17.5%):
Gold (XAUUSD) is included as a traditional reserve asset and inflation hedge, acknowledging its continued monetary relevance.
Cryptocurrencies (2.8% total weight):
Bitcoin (BTC) and Ethereum (ETH) represent the emerging digital monetary layer.
The index rises when the U.S. dollar strengthens relative to this blended basket, and falls when the dollar weakens against it. This is ideal for traders, economists, and macro analysts seeking a more inclusive and up-to-date measure of dollar performance.
Polarity-VoVix Fusion Index (PVFI) Polarity-VoVix Fusion Index (PVFI) - Order Flow and Volatility Regime Detector
The PVFI is a next-generation indicator that fuses the Order Flow Polarity Index (OFPI) with a proprietary VoVix Volume Delta (VVD) engine. This tool is designed for traders who want to see not just how much volume is trading, but who is in control and how volatility is shifting beneath the surface.
What Makes PVFI Standout from the rest?
- Dual Engine: PVFI combines two advanced signals:
* OFPI: Measures real-time buy/sell pressure using candle body position and volume, then smooths it with a T3 moving average for clarity and responsiveness.
* VVD: Captures the "volatility of volume delta" - a normalized, memory-boosted measure of aggressive buying/selling, with a custom non-linear clamp for organic, non-pegged signals.
- Visual Clarity: Neon-glow OFPI line and shadowed, color-gradient VVD area make regime shifts and momentum instantly visible.
- Adaptive Dashboard: Toggle between a full-featured dashboard (desktop) and a compact info line (mobile) for seamless use on any device.
- Universal: Works on any asset - crypto, stocks, futures, forex - and any timeframe.
- No Chart Clutter: Clean, modern visuals and toggles for a pro look.
Inputs:
OFPI Lookback Length (ofpi_len): Sets the window for order flow pressure calculation. Shorter = more sensitive, longer = smoother. For scalping, try 5-10. For swing trading, 15-30. Crypto often benefits from shorter windows due to volatility.
OFPI T3 Smoothing Length (t3_len): Controls the smoothness of the OFPI line. Lower = more responsive, higher = smoother. Use 3-7 for fast markets, 8-15 for slow or higher timeframes.
OFPI T3 Volume Factor (t3_vf): Adjusts the T3’s sensitivity. Higher = more responsive, lower = more stable. 0.6-0.8 is typical. Raise for more “snappy” signals, lower for less noise.
VVD Delta Lookback (delta_len): Sets the window for VVD’s volume delta calculation. 10-20 for most assets. Shorter for high-volatility, longer for slow markets.
VVD Volatility Normalization Length (vol_norm_len): Normalizes VVD by recent volume. 15-30 is typical. Use higher for assets with wild volume swings.
VVD Momentum Memory (momentum_mem): Adds a “memory” boost to VVD, amplifying persistent buying/selling. 2-5 is common. Lower for choppy markets, higher for trending.
Show Dashboard (showDash): Toggles the full dashboard table (best for desktop). Turn off for a minimalist or mobile setup.
Show Compact Info Line (showInfoLabel): Toggles a single-line info label (best for mobile). Turn on for mobile or minimalist setups.
How PVFI Works:
- OFPI Calculation: Splits each candle’s volume into buy/sell pressure based on where the close is within the range. Aggregates over your chosen lookback, then smooths with a T3 moving average for a neon, lag-minimized signal.
- VVD Calculation: Measures the “aggression” of volume (body-weighted), normalizes by recent volume, and applies a memory boost for persistent trends. Uses a custom tanh clamp for a natural, non-pegged range.
- Visuals: OFPI is plotted as a neon line (with glow). VVD is a color-gradient area with a soft shadow, instantly showing regime shifts.
- Dashboard/Info Line: Desktop: Full dashboard with all key stats, color-coded and branded. Mobile: Compact info line with arrows for quick reads.
How you'll use PVFI:
- Bullish OFPI (Teal Neon, Up Arrow): Buyers are dominating. Look for breakouts, trend continuations, or confirmation with your own system.
- Bearish OFPI (Green Neon, Down Arrow): Sellers are in control. Watch for breakdowns or short setups.
- VVD Positive (Teal Area): Aggressive buying is increasing. Confirm with price action.
- VVD Negative (Purple Area): Aggressive selling is increasing. Use for risk management or short bias.
- Neutral/Flat: Market is balanced or indecisive. Consider waiting for a clear regime shift.
- Dashboard/Info Line: Use the dashboard for full context, or the info line for a quick glance on mobile.
Tips:
- For scalping, use lower lookbacks and smoothing.
- For swing trading, increase lookbacks and smoothing for stability.
- Works on all assets and timeframes - tune to your style.
Why PVFI is Unique:
- Fusion of Order Flow and Volatility: No other indicator combines body-based order flow with a volatility-of-volume delta, both visualized with modern, pro-grade graphics.
- Adaptive, Not Static: PVFI adapts to market regime, not just price movement.
- Mobile-Ready: Dashboard and info line toggles for any device.
- No Chart Clutter: Clean, color-coded, and easy to read.
For Educational Use Only
PVFI is a research and educational tool, not financial advice. Always use proper risk management and combine with your own strategy.
Trade with clarity. Trade with edge.
— Dskyz , for DAFE Trading Systems
(OFPI) Order Flow Polarity Index - Momentum Gauge (DAFE) (OFPI) Order Flow Polarity Index - Momentum Gauge: Decode Market Aggression
The (OFPI) Gauge Bar is your front-row seat to the battle between buyers and sellers. This isn’t just another indicator—it’s a momentum tracker that reveals market aggression through a sleek, centered gauge bar and a smart dashboard. Built for traders who want clarity without clutter, it’s your edge for spotting who’s driving price, bar by bar.
What Makes It Unique?
Order Flow Pressure Index (OFPI): Splits volume into buy vs. sell pressure based on candle body position. It’s not just volume—it’s intent, showing who’s got the upper hand.
T3 Smoothing Magic: Uses a Tilson T3 moving average to keep signals smooth yet responsive. No laggy SMA nonsense here.
Centered Gauge Bar: A 20-segment bar splits bullish (lime) and bearish (red) momentum around a neutral center. Empty segments scream indecision—it’s like a visual heartbeat of the market.
Momentum Shift Alerts: Catches reversals with “Momentum Shift” flags when the OFPI crests, so you’re not caught off guard.
Clean Dashboard: A compact, bottom-left table shows momentum status, the gauge bar, and the OFPI value. Color-coded, transparent, and no chart clutter.
Inputs & Customization
Lookback Length (default 10): Set the window for pressure calculations. Short for scalps, long for trends.
T3 Smoothing Length (default 5): Tune the smoothness. Tight for fast markets, relaxed for chill ones.
T3 Volume Factor (default 0.7): Crank it up for snappy signals or down for silky trends.
Toggle the dashboard for minimalist setups or mobile trading.
How to Use It
Bullish Momentum (Lime, Right-Filled): Buyers are flexing. Look for breakouts or trend continuations. Pair with support levels.
Bearish Momentum (Red, Left-Filled): Sellers are in charge. Scout for breakdowns or shorts. Check resistance zones.
Neutral (Orange, Near Center): Market’s chilling. Avoid big bets—wait for a breakout or play the range.
Momentum Shift: A reversal might be brewing. Confirm with price action before jumping in.
Not a Solo Act: Combine with your strategy—trendlines, RSI, whatever. It’s a momentum lens, not a buy/sell bot.
Why Use the OFPI Gauge?
See the Fight: Most tools just count volume. OFPI shows who’s winning with a visual that slaps.
Works Anywhere: Crypto, stocks, forex, any timeframe. Tune it to your style.
Clean & Pro: No chart spam, just a sharp gauge and a dashboard that delivers.
Unique Edge: No other indicator blends body-based pressure, T3 smoothing, and a centered gauge like this.
The OFPI Gauge catches the market’s pulse so you can trade with confidence. It’s not about predicting the future—it’s about knowing who’s in control right now.
For educational purposes only. Not financial advice. Always use proper risk management.
Use with discipline. Trade your edge.
— Dskyz , for DAFE Trading Systems
Trend Volatility Index (TVI)Trend Volatility Index (TVI)
A robust nonparametric oscillator for structural trend volatility detection
⸻
What is this?
TVI is a volatility oscillator designed to measure the strength and emergence of price trends using nonparametric statistics.
It calculates a U-statistic based on the Gini mean difference across multiple simple moving averages.
This allows for objective, robust, and unbiased quantification of trend volatility in tick-scale values.
⸻
What can it do?
• Quantify trend strength as a continuous value aligned with tick price scale
• Detect trend breakouts and volatility expansions
• Identify range-bound market states
• Detect early signs of new trends with minimal lag
⸻
What can’t it do?
• Predict future price levels
• Predict trend direction before confirmation
⸻
How it works
TVI computes a nonparametric dispersion metric (Gini mean difference) from multiple SMAs of different lengths.
As this metric shares the same dimension as price ticks, it can be directly interpreted on the chart as a volatility gauge.
The output is plotted using candlestick-style charts to enhance visibility of change rate and trend behavior.
⸻
Disclaimer
TVI does not predict price. It is a structural indicator designed to support discretionary judgment.
Trading carries inherent risk, and this tool does not guarantee profitability. Use at your own discretion.
⸻
Innovation
This indicator introduces a novel approach to trend volatility by applying U-statistics over time series
to produce a nonparametric, unbiased, and robust estimate of structural volatility.
日本語要約
Trend Volatility Index (TVI) は、ノンパラメトリックなU統計量（Gini平均差）を使ってトレンドの強度を客観的に測定することを目的に開発されたボラティリティ・オシレーターです。
ティック単位で連続的に変化し、トレンドのブレイク・レンジ・初動の予兆を定量的に検出します。
未来の価格や方向は予測せず、現在の構造的ばらつきだけをロバストに評価します。
Disparity Index with Volatility ZonesDisparity Index with Volatility Zones
is a momentum oscillator that measures the percentage difference between the current price and its simple moving average (SMA). This allows traders to identify overbought/oversold conditions, assess momentum strength, and detect potential trend reversals or continuations.
🔍 Core Concept:
The Disparity Index (DI) is calculated as:
DI = 100 × (Price − SMA) / SMA
A positive DI indicates the price is trading above its moving average (potential bullish sentiment), while a negative DI suggests the price is below the average (potential bearish sentiment).
This version of the Disparity Index introduces a dual-zone volatility framework, offering deeper insight into the market's current state.
🧠 What Makes This Version Unique?
1. High Volatility Zones
When DI crosses above +1.0% or below –1.0%, it often indicates the start or continuation of a strong trend.
Sustained readings beyond these thresholds typically align with trending phases, offering opportunities for momentum-based entries.
A reversal back within ±1.0% after exceeding these levels can suggest a shift in momentum — similar to how RSI exits the overbought/oversold zones before reversals.
These thresholds act as dynamic markers for breakout confirmation and potential trend exhaustion.
2. Low Volatility Zones
DI values between –0.5% and +0.5% define the low-volatility zone, shaded for visual clarity.
This area typically indicates market indecision, sideways price action, or consolidation.
Trading within this range may favor range-bound or mean-reversion strategies, as trend momentum is likely limited.
The logic is similar to interpreting a flat ADX, tight Bollinger Bands, or contracting Keltner Channels — all suggesting consolidation.
⚙️ Features:
Customizable moving average length and input source
Adjustable thresholds for overbought/oversold and low-volatility zones
Optional visual fill between low-volatility bounds
Clean and minimal chart footprint (non-essential plots hidden by default)
📈 How to Use:
1. Trend Confirmation:
A break above +1.0% can be used as a bullish continuation signal.
A break below –1.0% may confirm bearish strength.
Long periods above/below these thresholds support trend-following entries.
2. Reversal Detection:
If DI returns below +1.0% after exceeding it, bullish momentum may be fading.
If DI rises above –1.0% after falling below, bearish pressure may be weakening.
These shifts resemble overbought/oversold transitions in oscillators like RSI or Stochastic, and can be paired with divergence, volume, or price structure analysis for higher reliability.
3. Sideways Market Detection:
DI values within ±0.5% indicate low volatility or a non-trending environment.
Traders may avoid breakout entries during these periods or apply range-trading tactics instead.
Observing transitions out of the low-volatility zone can help anticipate breakouts.
4. Combine with Other Indicators:
DI signals can be enhanced using tools like MACD, Volume Oscillators, or Moving Averages.
For example, a DI breakout beyond ±1.0% supported by a MACD crossover or volume spike can help validate trend initiation.
This indicator is especially powerful when paired with Bollinger Bands:
A simultaneous price breakout from the Bollinger Band and DI moving beyond ±1.0% can help identify early trend inflection points.
This combination supports entering positions early in a developing trend, improving the efficiency of trend-following strategies and enhancing decision-making precision.
It also helps filter false breakouts when DI fails to confirm the move outside the band.
This indicator is designed for educational and analytical purposes and works across all timeframes and asset classes.
It is particularly useful for traders seeking a clear framework to identify momentum strength, filter sideways markets, and improve entry timing within a larger trading system.
Statistical Reliability Index (SRI)Statistical Reliability Index (SRI)
The Statistical Reliability Index (SRI) is a professional financial analysis tool designed to assess the statistical stability and reliability of market conditions. It combines advanced statistical methods to gauge whether current market trends are statistically consistent or prone to erratic behavior. This allows traders to make more informed decisions when navigating trending and choppy markets.
Key Concepts:
1. Extrapolation of Cumulative Distribution Functions (CDF)
What is CDF?
A Cumulative Distribution Function (CDF) is a statistical tool that models the probability of a random variable falling below a certain value.
How it’s used in SRI:
The SRI utilizes the 95th percentile CDF of recent returns to estimate the likelihood of extreme price movements. This helps identify when a market is experiencing statistically significant changes, crucial for forecasting potential breakouts or breakdowns.
Weight in SRI:
The weight of the CDF extrapolation can be adjusted to emphasize its impact on the overall reliability index, allowing customization based on the trader's preference for tail risk analysis.
2. Bias Factor (BF)
What is the Bias Factor?
The Bias Factor measures the ratio of the current market price to the expected mean price calculated over a defined period. It represents the deviation from the typical price level.
How it’s used in SRI:
A higher bias factor indicates that the current price significantly deviates from the historical average, suggesting a potential mean reversion or trend exhaustion.
Weight in SRI:
Adjusting the Bias Factor weight lets users control how much this deviation influences the SRI, balancing between momentum trading and mean reversion strategies.
3. Coefficient of Variation (CV)
What is CV?
The Coefficient of Variation (CV) is a statistical measure that expresses the ratio of the standard deviation to the mean. It indicates the relative variability of asset returns, helping gauge the risk-to-return consistency.
How it’s used in SRI:
A lower CV indicates more stable and predictable price behavior, while a higher CV signals increased volatility. The SRI incorporates the inverse of the normalized CV to reflect price stability positively.
Weight in SRI:
By adjusting the CV weight, users can prioritize consistent price movements over erratic volatility, aligning the indicator with risk tolerance and strategy preferences.
Interpreting the SRI:
1. SRI Plot:
The SRI plot dynamically changes color to reflect market conditions:
Aqua Line: Indicates uptrend stability, signaling statistically consistent upward movements.
Fuchsia Line: Indicates downtrend stability, where statistically reliable downward movements are present.
The overlay background shifts between colors:
Aqua Background: Signifies statistical stability, where trends are historically consistent.
Fuchsia Background: Indicates statistical instability, often associated with trend uncertainty.
Yellow Background: Marks choppy periods, where statistical data suggests that market conditions are not conducive to reliable trading.
2. SRI Volatility Plot:
Displays the volatility of the SRI itself to detect when the indicator is stable or unstable:
Blue Area Fill: Signifies that the SRI is stable, indicating trending conditions.
Yellow Area Fill: Represents choppy or unstable SRI movements, suggesting sideways or unreliable market conditions.
A Chop Threshold Line (dotted yellow) highlights the maximum acceptable SRI volatility before the market is considered too unpredictable.
3. Stability Assessment:
Stable Trend (No Chop):
The SRI is smooth and consistent, often accompanied by aqua or fuchsia lines.
Volatility remains below the chop threshold, indicating a low-risk, trend-following environment.
Chop Mode:
The SRI becomes erratic, and the volatility plot spikes above the threshold.
Marked by a yellow shaded background, indicating uncertain and non-trending conditions.
[Trend Identification:
Use the color-coded SRI line and background to determine uptrend or downtrend reliability.
Be cautious when the SRI volatility plot shows yellow, as this signals trading conditions may not be reliable.
Practical Use Cases:
Trend Confirmation:
Utilize the SRI plot color and background to confirm whether a detected trend is statistically reliable.
Chop Mode Filtering:
During yellow chop periods, it is advisable to reduce trading activity or adopt range-bound strategies.
Strategy Filter:
Combine the SRI with trend-following indicators (like moving averages) to enhance entry and exit accuracy.
Volatility Monitoring:
Pay attention to the SRI volatility plot, as spikes often precede erratic price movements or trend reversals.
Disclaimer:
The Statistical Reliability Index (SRI) is a technical analysis tool designed to aid in market stability assessment and trend validation. It is not intended as a standalone trading signal generator. While the SRI can help identify statistically reliable trends, it is essential to incorporate additional technical and fundamental analysis to make well-informed trading decisions.
Trading and investing involve substantial risk, and past performance does not guarantee future results. Always use risk management practices and consult with a financial advisor to tailor strategies to your individual risk profile and objectives.
Money Flow Index + VWAP Trend FilterThis indicator combines the volume-weighted momentum analysis of the Money Flow Index (MFI) with the trend-filtering capabilities of the Volume Weighted Average Price (VWAP) to generate reliable buy and sell signals. By requiring MFI overbought/oversold conditions to align with the trend direction relative to VWAP, this indicator reduces false signals, making it ideal for trading on timeframes like 5-minute to 4-hour charts.
How It Works
The indicator uses two technical components to produce signals:
Money Flow Index (MFI) for Momentum Extremes:
The MFI, calculated over a default 14-period length, measures buying and selling pressure using price and volume data. A buy signal is triggered when MFI crosses above the oversold level (default: 20), indicating potential buying pressure, while a sell signal occurs when MFI crosses below the overbought level (default: 80), suggesting selling pressure.
Volume Weighted Average Price (VWAP) for Trend Direction:
The VWAP calculates the average price of an asset, weighted by volume, resetting at the start of each trading session (e.g., daily for stocks). It acts as a dynamic support/resistance level. A bullish trend is confirmed when the price is above the VWAP, and a bearish trend when the price is below the VWAP. This ensures MFI signals are filtered to align with the broader trend direction, plotted as a purple line on the chart.
Signal Generation
Signals are generated using the previous bar’s values to prevent repainting:
Buy Signal: The MFI crosses above the oversold level, and the price is above the VWAP (bullish trend). Displayed as a green upward triangle below the bar.
Sell Signal: The MFI crosses below the overbought level, and the price is below the VWAP (bearish trend). Displayed as a red downward triangle above the bar.
US Growth Momentum Index (UGMI)US Growth Momentum Index (UGMI) is a macroeconomic indicator designed to reflect the current economic health of the United States. The index combines four key economic factors—Industrial Production (INDPRO), Retail Sales (RSAFS), Unemployment Rate (UNRATE), and the 10Y-2Y Yield Curve Spread—and aggregates them into a single line representing overall growth momentum.
The UGMI is based on Z-Score calculations for each of these components, helping to identify whether the U.S. economy is in an expansionary growth phase or a contractionary recession phase.
How to Read the UGMI:
Core Growth Line (Blue): This is the main line representing the aggregated growth momentum. It is calculated using the Z-scores of the key economic indicators.
0 Line: The 0 line represents the neutral zone. If the UGMI is above the 0 line, it suggests that the economy is expanding. Below the 0 line indicates contraction or a potential recession.
Zones Above 1: When the UGMI is above 1, it represents a strong expansionary phase or boom, possibly signaling the top of a bull market or local peak.
Zones Below -1: When the UGMI falls below -1, it indicates a severe recession or significant contraction in the economy.
Color Coding:
Green: When the UGMI is above the 1 line, the background turns green, indicating a strong growth phase.
Red: When the UGMI is below -1, the background turns red, representing a recession or significant economic downturn.
This indicator helps traders and investors to understand whether the economy is growing or contracting, and is especially useful for identifying potential market tops or turning points.
[blackcat] L1 Swing Reversal IndexOVERVIEW
The indicator is crafted to assist traders in identifying potential swing reversal points within various markets 📈✨. This sophisticated tool combines elements from price deviations, smoothed moving averages, and relative strength indices (RSIs) to generate actionable trade signals, making it easier for users to spot lucrative entry/exit opportunities. By visualizing key market conditions through customizable plots and labels, this indicator simplifies complex analyses into straightforward decisions.
Ideal for day traders or swing traders looking to capitalize on short-to-medium-term trends, the offers invaluable insights into market sentiment changes enabling precise timing of trades.
FEATURES
Dynamic Price Deviation Calculation: Computes adaptive price deviations considering both typical prices and volatility metrics.
Smoothed Deviations: Utilizes dual-smoothing techniques ensuring accurate reflection of underlying trends without excessive noise interference.
Enhanced RSI Integration: Includes a modified version of Relative Strength Index providing clearer overbought/oversold conditions.
Visual Signal Representation:
Colored columns indicating bullish/bearish pressure levels directly on the chart.
Dynamic labels marking specific buy/sell conditions enhancing clarity.
Customizable Parameters: Allows tweaking smoothing, volatility, and RSI periods according to user preferences facilitating tailored usage.
Alert Notifications: Supports real-time alerts via TradingView’s integrated system keeping traders informed promptly ✅🔔.
HOW TO USE
Script Setup:
Save the provided code under Indicators > Add Custom Indicator in your TradingView workspace.
Name appropriately and activate across desired charts.
Parameter Adjustments:
Configure Smoothing, Volatility, and RSI periods based on preferred trading styles or asset characteristics:
Shorter durations suit fast-paced environments while longer ones align better with slower-moving assets.
Experiment iteratively optimizing settings maximizing accuracy for specific needs.
Interpreting Plots/Labels:
Observe colored columns representing current market sentiment:
Green columns signify bullish momentum suggesting possible buying opportunities.
Red columns indicate bearish tendencies hinting at selling chances.
Note dynamic "BUY" & "SELL" labels triggered under predefined criteria guiding timely actions.
Incorporating Signals:
Integrate these generated cues within broader strategies leveraging support/resistance lines, volume data, etc., ensuring robust validation before executing trades.
Cross-reference alongside other complementary tools (e.g., MACD, Bollinger Bands) for added confirmation bolstering decision-making confidence.
Setting Up Alerts:
Enable alert notifications corresponding to crucial conditions ensuring timely updates via TradingView’s notification infrastructure.
Fine-tune alert messages reflecting personal requirements maintaining seamless workflow integration.
Testing & Validation:
Conduct thorough backtesting employing historical datasets verifying effectiveness amidst varying market scenarios.
Continuously refine parameter configurations enhancing overall performance mitigating false positives/negatives.
EXAMPLE SCENARIOS
Short-Term Trades: Capitalize on fleeting reversals by focusing primarily on shorter-period RSIs combined with swift price deviation movements.
Swing Strategies: Utilize medium-range settings identifying intermediate trend shifts maximizing profit potentials while minimizing risks.
LIMITATIONS
Accuracy relies heavily upon correctly configured inputs; hence regular re-evaluation aligning evolving dynamics proves imperative.
Excessive dependence solely on this metric might lead to missed opportunities during sideways/choppy phases necessitating additional confirmatory indicators.
Always complement outputs with fundamental analyses securing comprehensive perspectives effectively managing associated risks.
NOTES
Educational Insights: Gain deeper understanding exploring underlying principles behind price deviations and their role in technical analysis fostering better comprehension.
Risk Management Protocols: Employ strict risk management practices encompassing stop-loss/profit targets preserving capital integrity amid unpredictable market fluctuations.
Continuous Learning: Stay abreast exploring emerging financial landscapes incorporating innovative methodologies augmenting script utility and relevance.
THANKS
Thanks go out to everyone contributing towards refining and improving this script. Your valuable feedback fuels ongoing enhancements propelling superior trading experiences!
Relative Strength Index with Percentile📈 Relative Strength Index with Percentile Rank (RSI + Percentile)
This advanced RSI indicator adds a powerful percentile ranking system to the classic Relative Strength Index, providing deeper insight into current RSI values relative to recent history.
🔍 Key Features:
Standard RSI Calculation: Identifies overbought/oversold levels using a customizable period.
RSI Percentile (0–100%): Calculates where the current RSI value stands within a user-defined lookback period.
Dynamic Background Coloring:
🟩 Green when RSI percentile is above 80% (strong relative strength)
🟥 Red when RSI percentile is below 20% (strong relative weakness)
Optional Divergence Detection: Spot classic bullish and bearish divergences between price and RSI.
Smoothing Options: Apply various moving averages (SMA, EMA, RMA, etc.) to the RSI, with optional Bollinger Bands.
Flexible Settings: Full control over lookback periods, smoothing type, and band sensitivity.
🧠 Why Use RSI Percentile?
Traditional RSI values can become less informative during trending markets. By ranking the RSI as a percentile, you gain contextual insight into whether the current strength is unusually high or low compared to recent history, rather than just a fixed 70/30 threshold.
Directional Movement Index (DMI) + AlertsThis is a Study with associated visual indicators and Bullish/Bearish Alerts for Directional Movement (DMI). It consists of an Average Directional Index (ADX), Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI).
Published by J. Welles Wilder in 1978 for use with currencies and commodities which are typically more volatile than stocks and have stronger trends.
Development Notes
---------------------------
This indicator, and most of the descriptions below, were derived largely from the TradingView reference manual. Feedback and suggestions for improvement are more than welcome, as well are recommended Input settings and best practices for use.
tradingview.com/chart/?solution=43000502250
Strategy Description
---------------------------
ADX defines whether or not there is a trend present; +DI and -DI compliment the ADX by taking direction into account. An ADX above 25 indicates a strong trend, and a Bullish alert is subsequently triggered when +DI is above -DI and a Bearish alert when -DI is above +DI.
Note that the Bullish or Bearish crossover alert will only trigger if ADX is simultaneously above 25 during the crossover event. If ADX later rises to 25 and +DI is still greater than -DI, or -DI greater than +DI, then a delayed alert will not trigger by design.
Basic Use
---------------------------
Acceptable DMI values are up to the trader's interpretation and may change depending on the financial instrument being examined. Recommend not changing any default values without being first familiar with their purpose and impact on the indicator at large.
Confidence in price action and trend is higher when two or more indicators are in agreement -- therefore we recommend not using this indicator by itself to determine entry or exit trade opportunities.
Recommend also choosing 'Once Per Bar Close' when creating alerts.
Inputs
---------------------------
ADX Smoothing - the time period to be used in calculating the ADX which has a smoothing component (14 is the Default).
DI Length - the time period to be used in calculating the DI (14 is the Default).
Key Level - any trade with the ADX above the key level is a strong indicator that it is trending (23 to 25 is the suggested setting).
Sensitivity - an incremental variable to test whether the past n candles are in the same bullish or bearish state before triggering a delayed crossover alert (3 is the Default). Filter out some noise and reduces active alerts.
Show ADX Option - two visual styles are provided for user preference, a visible ADX line or a background overlay (green or red when ADX is above the key level, for bullish or bearish, and gray when below).
Color Candles - an option to transpose the bullish and bearish crossovers to the main candle bars. Can be turned off in the Style Tab by deselecting 'Bar Colors'. Dark blue is bullish, dark purple is bearish, and the black inner color is neutral. Note that the outer red and green border will still be distinguished by whether each individual candle is bearish or bullish during the specified timeframe.
Indicator Visuals
---------------------------
Bullish or Bearish plot based on DMI strategy (ADX and +/-DI values).
Visual cues are intended to improve analysis and decrease interpretation time during trading, as well as to aid in understanding the purpose of this study and how its inclusion can benefit a comprehensive trading strategy.
Trend Strength
---------------------------
To analyze trend strength, the focus should be on the ADX line and not the +DI or -DI lines. An ADX reading above 25 indicates a strong trend, while a reading below 20 indicates a weak or non-existent trend. A reading between those two values would be considered indeterminable. Though what is truly a strong trend or a weak trend depends on the financial instrument being examined; historical analysis can assist in determining appropriate values.
Bullish DI Cross
---------------------------
1. ADX must be over 25 (strong trend) (value is determined by the trader)
2. +DI cross above -DI
3. Set Stop Loss at the current day's low (any +DI cross-backs below -DI should be ignored)
4. Set trailing stop if ADX strengthens (i.e., signal rises)
Bearish DI Cross
---------------------------
1. ADX must be over 25 (strong trend) (value is determined by the trader)
2. -DI cross above +DI
3. Set Stop Loss at the current day's high (any -DI cross-backs below +DI should be ignored)
4. Set trailing stop if ADX strengthens (i.e., signal rises)
Disclaimer
---------------------------
This post and the script are not intended to provide any financial advice. Trade at your own risk.
No known repainting.
Version 1.1
-------------------------
- Added multi-timeframe resolution using PineCoders secure security function to eliminate repainting.
- Cleaned up option for selecting ADX view; and added a colored line as a choice, based on same bullish, bearish, or neutral colors as the background.
- Added exit crossover indicator to aid in an overall strategy development. This ability pairs better with my CHOP Zone Entry Strategy which relies on DMI Exits. Note that exit conditions don't employ the sensitivity variable. Green labels are for Bullish exits and red are for Bearish.
-- Exit condition is triggered if in an active Bullish or Bearish position and ADX drops below 25, Or if either the -DI crosses above +DI (for previously Bullish) or +DI crosses above -DI (for previously Bearish).
- Added reverse position determination. Triggers when a Bullish entry occurs on the same candle as a Bearish exit, or vice versa. Green labels are for Bullish reverses and red are for Bearish.
- Added selectable option to choose visible labels -- Bearish, Bullish, Both, Exits, Reverses, or All.
-- Note that a reverse label will only show if the opposing entry and exit labels are set to show, otherwise the reverse will revert to the appropriate entry or exit on the chart.
- Added alerts to account for new conditions.
-- Note that alerts for crossovers, exits, and reverses will only be triggered if the associated labels are selected to be shown (i.e., what you choose to see on the chart is what you will be alerted to).
Version 1.2
-------------------------
- Changed exit condition to be decided on by whether ADX is below 25 and on a +/-DI crossover. Versus being either or. The previous version had too many false triggers. This variety can now show multiple Bullish or Bearish alerts before an Exit condition too. I'm tempted to simply make this condition based on ADX, and not DI … thoughts? See lines 138 and 139.
- Updated the Background view to have deeper shades of colors dependent upon the ADX trend strength.
- Added an Oscillator view for the ADX and momentum computations to color the histogram by trend. DI lines are hidden.
-- If ADX is Bullish, then the oscillator is colored light green in an uptrend and dark green in a downtrend; if Bearish, then its light red in an uptrend and dark redin a downtrend; if adx is below key level, then it is light gray in a downtrend and dark grey in the uptrend.
- Added option to Hide ADX in case only the Directional lines are desired. This could be useful if you would like to have the ADX oscillator in one panel and +/-DI crossovers in another.
- Added a Columnar view for the ADX. DI lines are hidden. This view is really simple and compact, with the trend strength still easily understood. Colors are the same as for the oscillator -- the deeper the shade of green or red, then the higher the ADX trend strength level.
- Added a Trend Strength label.
ADX Trend Strength Trade (Y/N) Setup Types
0 to 10 = Barely Breathing N N/A
10 to 20 = Weak Trend Y Range/Pre-Breakout
20 to 30 = Potentially Starting to Trend Y Early Stage Trend
30 to 50 = Strong Trend Y Ride the Wave
50 to 75 = Very Strong Trend N Exhaustion
75 to 100 = Extremely Strong Trend N N/A
Version 1.3
-------------------------
Updated to Pine Script v5 to resolve errors from the deprecated v4 version.
This is a reissue of a previously published script that was hidden due to a v4 compatibility issue.
'https://www.tradingview.com/script/9OoEHrv5-Directional-Movement-Index-DMI-Alerts/'
M2 Global Liquidity Index [Custom Offsets]M2 Global Liquidity Index
Plots the global M2 money supply alongside price, with two user-configurable forward shifts to help you anticipate macro-driven moves in BTC (or any asset).
Key Features
Current M2 Index (no offset)
Offset A — shift M2 forward by N days (default 78)
Offset B — shift M2 forward by M days (default 109)
Extended Currencies toggle adds 9 additional central banks (CHF, CAD, INR, RUB, BRL, KRW, MXN, ZAR)
All lines share the left-hand axis and scale to trillions
Inputs
Offset A (days): integer ≥ 0 (default 78)
Offset B (days): integer ≥ 0 (default 109)
Include extended currencies?: on/off
How to Use
Add the indicator to any chart (overlay mode).
In Settings → Inputs, enter your desired lead times for Offset A and Offset B.
Toggle extended currencies if you need a broader “global liquidity” view.
Watch how price action (e.g. BTC) tracks the shifted M2 lines to spot potential turning points.
Why It Matters
Changes in money supply often lead risk assets by several weeks to months. This tool makes it easy to visualize and test those correlations directly on your favorite timeframe.
Altseason Index | AlchimistOfCrypto
🌈 Altseason Index | AlchimistOfCrypto – Revealing Bitcoin-Altcoin Dominance Cycles 🌈
"The Altseason Index, engineered through advanced mathematical methodology, visualizes the probabilistic distribution of capital flows between Bitcoin and altcoins within a multi-cycle paradigm. This indicator employs statistical normalization principles where ratio coefficients create mathematical boundaries that define dominance transitions between cryptographic asset classes. Our implementation features algorithmically enhanced rainbow visualization derived from extensive market cycle analysis, creating a dynamic representation of value flow with adaptive color gradients that highlight critical phase transitions in the cyclical evolution of the crypto market."
📊 Professional Trading Application
The Altseason Index transcends traditional sentiment models with a sophisticated multi-band illumination system that reveals the underlying structure of crypto sector rotation. Scientifically calibrated across different ratios (TOTAL2/BTC, OTHERS/BTC) and featuring seamless daily visualization, it enables investors to perceive capital transitions between Bitcoin and altcoins with unprecedented clarity.
- Visual Theming 🎨
Scientifically designed rainbow gradient optimized for market cycle recognition:
- Green-Blue: Altcoin accumulation zones with highest capital flow potential
- Neutral White: Market equilibrium zone representing balanced capital distribution
- Yellow-Red: Bitcoin dominance regions indicating defensive capital positioning
- Gradient Transitions: Mathematical inflection points for strategic reallocation
- Market Phase Detection 🔍
- Precise zone boundaries demarcating critical sentiment shifts in the crypto ecosystem
- Daily timeframe calculation ensuring consistent signal reliability
- Multiple ratio analysis revealing the probabilistic nature of market capital flows
🚀 How to Use
1. Identify Market Phase ⏰: Locate the current index relative to colored zones
2. Understand Capital Flow 🎚️: Monitor transitions between Bitcoin and altcoin dominance
3. Assess Mathematical Value 🌈: Determine optimal allocation based on zone location
4. Adjust Investment Strategy 🔎: Modulate position sizing based on dominance assessment
5. Prepare for Rotation ✅: Anticipate capital shifts when approaching extreme zones
6. Invest with Precision 🛡️: Accumulate altcoins in lower zones, reduce in upper zones
7. Manage Risk Dynamically 🔐: Scale portfolio allocations based on index positioning
RSI Full Forecast [Titans_Invest]RSI Full Forecast
Get ready to experience the ultimate evolution of RSI-based indicators – the RSI Full Forecast, a boosted and even smarter version of the already powerful: RSI Forecast
Now featuring over 40 additional entry conditions (forecasts), this indicator redefines the way you view the market.
AI-Powered RSI Forecasting:
Using advanced linear regression with the least squares method – a solid foundation for machine learning - the RSI Full Forecast enables you to predict future RSI behavior with impressive accuracy.
But that’s not all: this new version also lets you monitor future crossovers between the RSI and the MA RSI, delivering early and strategic signals that go far beyond traditional analysis.
You’ll be able to monitor future crossovers up to 20 bars ahead, giving you an even broader and more precise view of market movements.
See the Future, Now:
• Track upcoming RSI & RSI MA crossovers in advance.
• Identify potential reversal zones before price reacts.
• Uncover statistical behavior patterns that would normally go unnoticed.
40+ Intelligent Conditions:
The new layer of conditions is designed to detect multiple high-probability scenarios based on historical patterns and predictive modeling. Each additional forecast is a window into the price's future, powered by robust mathematics and advanced algorithmic logic.
Full Customization:
All parameters can be tailored to fit your strategy – from smoothing periods to prediction sensitivity. You have complete control to turn raw data into smart decisions.
Innovative, Accurate, Unique:
This isn’t just an upgrade. It’s a quantum leap in technical analysis.
RSI Full Forecast is the first of its kind: an indicator that blends statistical analysis, machine learning, and visual design to create a true real-time predictive system.
⯁ SCIENTIFIC BASIS LINEAR REGRESSION
Linear Regression is a fundamental method of statistics and machine learning, used to model the relationship between a dependent variable y and one or more independent variables 𝑥.
The general formula for a simple linear regression is given by:
y = β₀ + β₁x + ε
β₁ = Σ((xᵢ - x̄)(yᵢ - ȳ)) / Σ((xᵢ - x̄)²)
β₀ = ȳ - β₁x̄
Where:
y = is the predicted variable (e.g. future value of RSI)
x = is the explanatory variable (e.g. time or bar index)
β0 = is the intercept (value of 𝑦 when 𝑥 = 0)
𝛽1 = is the slope of the line (rate of change)
ε = is the random error term
The goal is to estimate the coefficients 𝛽0 and 𝛽1 so as to minimize the sum of the squared errors — the so-called Random Error Method Least Squares.
⯁ LEAST SQUARES ESTIMATION
To minimize the error between predicted and observed values, we use the following formulas:
β₁ = /
β₀ = ȳ - β₁x̄
Where:
∑ = sum
x̄ = mean of x
ȳ = mean of y
x_i, y_i = individual values of the variables.
Where:
x_i and y_i are the means of the independent and dependent variables, respectively.
i ranges from 1 to n, the number of observations.
These equations guarantee the best linear unbiased estimator, according to the Gauss-Markov theorem, assuming homoscedasticity and linearity.
⯁ LINEAR REGRESSION IN MACHINE LEARNING
Linear regression is one of the cornerstones of supervised learning. Its simplicity and ability to generate accurate quantitative predictions make it essential in AI systems, predictive algorithms, time series analysis, and automated trading strategies.
By applying this model to the RSI, you are literally putting artificial intelligence at the heart of a classic indicator, bringing a new dimension to technical analysis.
⯁ VISUAL INTERPRETATION
Imagine an RSI time series like this:
Time →
RSI →
The regression line will smooth these values and extend them n periods into the future, creating a predicted trajectory based on the historical moment. This line becomes the predicted RSI, which can be crossed with the actual RSI to generate more intelligent signals.
⯁ SUMMARY OF SCIENTIFIC CONCEPTS USED
Linear Regression Models the relationship between variables using a straight line.
Least Squares Minimizes the sum of squared errors between prediction and reality.
Time Series Forecasting Estimates future values based on historical data.
Supervised Learning Trains models to predict outputs from known inputs.
Statistical Smoothing Reduces noise and reveals underlying trends.
⯁ WHY THIS INDICATOR IS REVOLUTIONARY
Scientifically-based: Based on statistical theory and mathematical inference.
Unprecedented: First public RSI with least squares predictive modeling.
Intelligent: Built with machine learning logic.
Practical: Generates forward-thinking signals.
Customizable: Flexible for any trading strategy.
⯁ CONCLUSION
By combining RSI with linear regression, this indicator allows a trader to predict market momentum, not just follow it.
RSI Full Forecast is not just an indicator — it is a scientific breakthrough in technical analysis technology.
⯁ Example of simple linear regression, which has one independent variable:
⯁ In linear regression, observations ( red ) are considered to be the result of random deviations ( green ) from an underlying relationship ( blue ) between a dependent variable ( y ) and an independent variable ( x ).
⯁ Visualizing heteroscedasticity in a scatterplot against 100 random fitted values using Matlab:
⯁ The data sets in the Anscombe's quartet are designed to have approximately the same linear regression line (as well as nearly identical means, standard deviations, and correlations) but are graphically very different. This illustrates the pitfalls of relying solely on a fitted model to understand the relationship between variables.
⯁ The result of fitting a set of data points with a quadratic function:
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🔮 Linear Regression: PineScript Technical Parameters 🔮
_________________________________________________
Forecast Types:
• Flat: Assumes prices will remain the same.
• Linreg: Makes a 'Linear Regression' forecast for n periods.
Technical Information:
ta.linreg (built-in function)
Linear regression curve. A line that best fits the specified prices over a user-defined time period. It is calculated using the least squares method. The result of this function is calculated using the formula: linreg = intercept + slope * (length - 1 - offset), where intercept and slope are the values calculated using the least squares method on the source series.
Syntax:
• Function: ta.linreg()
Parameters:
• source: Source price series.
• length: Number of bars (period).
• offset: Offset.
• return: Linear regression curve.
This function has been cleverly applied to the RSI, making it capable of projecting future values based on past statistical trends.
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⯁ WHAT IS THE RSI❓
The Relative Strength Index (RSI) is a technical analysis indicator developed by J. Welles Wilder. It measures the magnitude of recent price movements to evaluate overbought or oversold conditions in a market. The RSI is an oscillator that ranges from 0 to 100 and is commonly used to identify potential reversal points, as well as the strength of a trend.
⯁ HOW TO USE THE RSI❓
The RSI is calculated based on average gains and losses over a specified period (usually 14 periods). It is plotted on a scale from 0 to 100 and includes three main zones:
• Overbought: When the RSI is above 70, indicating that the asset may be overbought.
• Oversold: When the RSI is below 30, indicating that the asset may be oversold.
• Neutral Zone: Between 30 and 70, where there is no clear signal of overbought or oversold conditions.
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⯁ ENTRY CONDITIONS
The conditions below are fully flexible and allow for complete customization of the signal.
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🔹 CONDITIONS TO BUY 📈
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• Signal Validity: The signal will remain valid for X bars .
• Signal Sequence: Configurable as AND or OR .
📈 RSI Conditions:
🔹 RSI > Upper
🔹 RSI < Upper
🔹 RSI > Lower
🔹 RSI < Lower
🔹 RSI > Middle
🔹 RSI < Middle
🔹 RSI > MA
🔹 RSI < MA
📈 MA Conditions:
🔹 MA > Upper
🔹 MA < Upper
🔹 MA > Lower
🔹 MA < Lower
📈 Crossovers:
🔹 RSI (Crossover) Upper
🔹 RSI (Crossunder) Upper
🔹 RSI (Crossover) Lower
🔹 RSI (Crossunder) Lower
🔹 RSI (Crossover) Middle
🔹 RSI (Crossunder) Middle
🔹 RSI (Crossover) MA
🔹 RSI (Crossunder) MA
🔹 MA (Crossover) Upper
🔹 MA (Crossunder) Upper
🔹 MA (Crossover) Lower
🔹 MA (Crossunder) Lower
📈 RSI Divergences:
🔹 RSI Divergence Bull
🔹 RSI Divergence Bear
📈 RSI Forecast:
🔹 RSI (Crossover) MA Forecast
🔹 RSI (Crossunder) MA Forecast
🔹 RSI Forecast 1 > MA Forecast 1
🔹 RSI Forecast 1 < MA Forecast 1
🔹 RSI Forecast 2 > MA Forecast 2
🔹 RSI Forecast 2 < MA Forecast 2
🔹 RSI Forecast 3 > MA Forecast 3
🔹 RSI Forecast 3 < MA Forecast 3
🔹 RSI Forecast 4 > MA Forecast 4
🔹 RSI Forecast 4 < MA Forecast 4
🔹 RSI Forecast 5 > MA Forecast 5
🔹 RSI Forecast 5 < MA Forecast 5
🔹 RSI Forecast 6 > MA Forecast 6
🔹 RSI Forecast 6 < MA Forecast 6
🔹 RSI Forecast 7 > MA Forecast 7
🔹 RSI Forecast 7 < MA Forecast 7
🔹 RSI Forecast 8 > MA Forecast 8
🔹 RSI Forecast 8 < MA Forecast 8
🔹 RSI Forecast 9 > MA Forecast 9
🔹 RSI Forecast 9 < MA Forecast 9
🔹 RSI Forecast 10 > MA Forecast 10
🔹 RSI Forecast 10 < MA Forecast 10
🔹 RSI Forecast 11 > MA Forecast 11
🔹 RSI Forecast 11 < MA Forecast 11
🔹 RSI Forecast 12 > MA Forecast 12
🔹 RSI Forecast 12 < MA Forecast 12
🔹 RSI Forecast 13 > MA Forecast 13
🔹 RSI Forecast 13 < MA Forecast 13
🔹 RSI Forecast 14 > MA Forecast 14
🔹 RSI Forecast 14 < MA Forecast 14
🔹 RSI Forecast 15 > MA Forecast 15
🔹 RSI Forecast 15 < MA Forecast 15
🔹 RSI Forecast 16 > MA Forecast 16
🔹 RSI Forecast 16 < MA Forecast 16
🔹 RSI Forecast 17 > MA Forecast 17
🔹 RSI Forecast 17 < MA Forecast 17
🔹 RSI Forecast 18 > MA Forecast 18
🔹 RSI Forecast 18 < MA Forecast 18
🔹 RSI Forecast 19 > MA Forecast 19
🔹 RSI Forecast 19 < MA Forecast 19
🔹 RSI Forecast 20 > MA Forecast 20
🔹 RSI Forecast 20 < MA Forecast 20
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🔸 CONDITIONS TO SELL 📉
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• Signal Validity: The signal will remain valid for X bars .
• Signal Sequence: Configurable as AND or OR .
📉 RSI Conditions:
🔸 RSI > Upper
🔸 RSI < Upper
🔸 RSI > Lower
🔸 RSI < Lower
🔸 RSI > Middle
🔸 RSI < Middle
🔸 RSI > MA
🔸 RSI < MA
📉 MA Conditions:
🔸 MA > Upper
🔸 MA < Upper
🔸 MA > Lower
🔸 MA < Lower
📉 Crossovers:
🔸 RSI (Crossover) Upper
🔸 RSI (Crossunder) Upper
🔸 RSI (Crossover) Lower
🔸 RSI (Crossunder) Lower
🔸 RSI (Crossover) Middle
🔸 RSI (Crossunder) Middle
🔸 RSI (Crossover) MA
🔸 RSI (Crossunder) MA
🔸 MA (Crossover) Upper
🔸 MA (Crossunder) Upper
🔸 MA (Crossover) Lower
🔸 MA (Crossunder) Lower
📉 RSI Divergences:
🔸 RSI Divergence Bull
🔸 RSI Divergence Bear
📉 RSI Forecast:
🔸 RSI (Crossover) MA Forecast
🔸 RSI (Crossunder) MA Forecast
🔸 RSI Forecast 1 > MA Forecast 1
🔸 RSI Forecast 1 < MA Forecast 1
🔸 RSI Forecast 2 > MA Forecast 2
🔸 RSI Forecast 2 < MA Forecast 2
🔸 RSI Forecast 3 > MA Forecast 3
🔸 RSI Forecast 3 < MA Forecast 3
🔸 RSI Forecast 4 > MA Forecast 4
🔸 RSI Forecast 4 < MA Forecast 4
🔸 RSI Forecast 5 > MA Forecast 5
🔸 RSI Forecast 5 < MA Forecast 5
🔸 RSI Forecast 6 > MA Forecast 6
🔸 RSI Forecast 6 < MA Forecast 6
🔸 RSI Forecast 7 > MA Forecast 7
🔸 RSI Forecast 7 < MA Forecast 7
🔸 RSI Forecast 8 > MA Forecast 8
🔸 RSI Forecast 8 < MA Forecast 8
🔸 RSI Forecast 9 > MA Forecast 9
🔸 RSI Forecast 9 < MA Forecast 9
🔸 RSI Forecast 10 > MA Forecast 10
🔸 RSI Forecast 10 < MA Forecast 10
🔸 RSI Forecast 11 > MA Forecast 11
🔸 RSI Forecast 11 < MA Forecast 11
🔸 RSI Forecast 12 > MA Forecast 12
🔸 RSI Forecast 12 < MA Forecast 12
🔸 RSI Forecast 13 > MA Forecast 13
🔸 RSI Forecast 13 < MA Forecast 13
🔸 RSI Forecast 14 > MA Forecast 14
🔸 RSI Forecast 14 < MA Forecast 14
🔸 RSI Forecast 15 > MA Forecast 15
🔸 RSI Forecast 15 < MA Forecast 15
🔸 RSI Forecast 16 > MA Forecast 16
🔸 RSI Forecast 16 < MA Forecast 16
🔸 RSI Forecast 17 > MA Forecast 17
🔸 RSI Forecast 17 < MA Forecast 17
🔸 RSI Forecast 18 > MA Forecast 18
🔸 RSI Forecast 18 < MA Forecast 18
🔸 RSI Forecast 19 > MA Forecast 19
🔸 RSI Forecast 19 < MA Forecast 19
🔸 RSI Forecast 20 > MA Forecast 20
🔸 RSI Forecast 20 < MA Forecast 20
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🤖 AUTOMATION 🤖
• You can automate the BUY and SELL signals of this indicator.
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⯁ UNIQUE FEATURES
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Linear Regression: (Forecast)
Signal Validity: The signal will remain valid for X bars
Signal Sequence: Configurable as AND/OR
Condition Table: BUY/SELL
Condition Labels: BUY/SELL
Plot Labels in the Graph Above: BUY/SELL
Automate and Monitor Signals/Alerts: BUY/SELL
Linear Regression (Forecast)
Signal Validity: The signal will remain valid for X bars
Signal Sequence: Configurable as AND/OR
Condition Table: BUY/SELL
Condition Labels: BUY/SELL
Plot Labels in the Graph Above: BUY/SELL
Automate and Monitor Signals/Alerts: BUY/SELL
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📜 SCRIPT : RSI Full Forecast
🎴 Art by : @Titans_Invest & @DiFlip
👨💻 Dev by : @Titans_Invest & @DiFlip
🎑 Titans Invest — The Wizards Without Gloves 🧤
✨ Enjoy!
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o Mission 🗺
• Inspire Traders to manifest Magic in the Market.
o Vision 𐓏
• To elevate collective Energy 𐓷𐓏
Renko Compression Index (RCI)Renko Compression Index
The Renko Compression Index (RCI) is a unique market structure indicator designed to detect price compression zones on Renko-based charts. It measures the frequency of directional changes in Renko bricks over a specific period, identifying moments of trend indecision or consolidation that may precede major breakouts.
Multi Timeframe Altered Money Flow Index by CoffeeShopCryptoMoney Flow Index is a long used tool in trading markets, understanding to where money is moving and most importantly when its going there.
One of the biggest challenges was the when part. Because seeing it on your current trading chart timeframe is easy but it gets difficult if youre attempting a top-down-analysis of market structure vs price performance.
The new formula presented by @CoffeeshopCrypto is a key solution to this timeframe analysis issue. Seems like I may have solved the "glitch-In-The-Matrix".
The issue was always setting a secondary MFI on your chart and telling the system you wanted to watch the 1 hour MFI from a 5 minute chart.
To do this you need to wait for 12 candles to close on your 5 minute chart before you can get a 1hour MFI value. The move may have already happend and you may be too late. If there was only a better faster way to see the changing values of the High Timeframe Money Flow Index in real time without changing chart times and losing place......oh wait.....there is one now!
This tool allows you to tell it what timeframe you are looking at,
and what you want to compare it to.
It runs the calculation in the background automatically to give you the real time values of your High Timeframe chart setting on the chart you are looking at.
How to trade Long
When both the LFT and HTF Money flow cross above ZERO, they are both in uptrend
How to trade Short
When both the LFT and HTF Money flow cross below ZERO, they are both in downtrend
What happens when Low timeframe is inside the high timeframe:
If High timeframe MFI is below zero but the LFT MFI is above it and still below zero, you have lost your short term downtrend. The opposite is true when the high timeframe MFI is above zero.
A strong constant comparative trend is when your low timeframe MFI is leading your High timeframe MFI.
Personal Settings:
In my usage, i find it best to multiply my trading chart timeframe by 3 and use that number as my high timeframe MFI setting
This works on ANY chart time you want. For example you are not locked to the standard built TradingView chart times.
If you trade on a 7 minute timeframe, you can set your HTF to 21.
7 * 3 = 21
Adaptable Relative Momentum Index [ParadoxAlgo]The Adaptable Relative Momentum Index (RMI) by ParadoxAlgo is an advanced momentum-based indicator that builds upon the well-known RSI (Relative Strength Index) concept by introducing a customizable momentum length. This indicator measures price momentum over a specified number of periods and applies a Rolling Moving Average (RMA) to both the positive and negative price changes. The result is a versatile tool that can help traders gauge the strength of a trend, pinpoint overbought/oversold levels, and potentially identify breakout opportunities.
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Smart Configuration Feature
What sets this version of the RMI apart is ParadoxAlgo’s exclusive “Smart Configuration” functionality. Instead of manually adjusting parameters, traders can simply select their Asset Class (e.g., Stocks, Forex, Futures/Indices, Crypto, Commodities) and Trading Style (e.g., Scalping, Day Trading, Swing Trading, Short-Term Investing, Long-Term Investing). Based on these selections, the indicator automatically optimizes its core parameters:
• Length – The period over which the price changes are smoothed.
• Momentum Length – The number of bars used to calculate the price change.
By automating this process, users save time on tedious trial-and-error adjustments, ensuring that the RMI’s settings are tailored to the characteristics of specific markets and personal trading horizons.
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Key Features & Benefits
1. Momentum-Based Insights
• Uses RMA to smooth price movements, helping identify shifts in market momentum more clearly than a basic RSI.
• Enhanced adaptability for a wide range of asset classes and time horizons.
2. Simple Yet Powerful Configuration
• Smart Configuration automatically sets optimal parameter values for each combination of asset class and trading style.
• Eliminates guesswork and manual recalibration when switching between markets or timeframes.
3. Overbought & Oversold Visualization
• Integrated highlight zones mark potential overbought and oversold extremes (default at 80 and 20).
• Optional breakout highlighting draws attention to times when the indicator crosses these key thresholds, helping spot possible entry or exit signals.
4. Intuitive Design & Ease of Use
• Clean plotting and color-coded signal lines make it easy to interpret bullish or bearish shifts in momentum.
• Straightforward dropdown menus keep the interface user-friendly, even for novice traders.
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Practical Applications
• Early Trend Detection: Spot emerging trends when the RMI transitions from oversold to higher levels or vice versa.
• Breakout Confirmation: Confirm potential breakout trades by tracking overbought/oversold breakouts alongside other technical signals.
• Support/Resistance Confluence: Combine RMI signals with horizontal support/resistance levels to reinforce trade decisions.
• Trade Timing: Quickly gauge when momentum could be shifting, helping you time entries and exits more effectively.
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Disclaimer
As with any technical indicator, the Adaptable Relative Momentum Index should be used as part of a broader trading strategy that includes risk management, fundamental analysis, and other forms of technical confirmation. Past performance does not guarantee future results.
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Enjoy using the Adaptable RMI and experience a more streamlined, flexible approach to momentum analysis. Feel free to explore different asset classes and trading styles to discover which configurations resonate best with your unique trading preferences.
Nasan Ultimate Health Index (NUHI)The Nasan Ultimate Health Index (NUHI) is a technical indicator designed to measure the relative health of a stock compared to a benchmark index or sector. By incorporating price action, volume dynamics, and volatility, NUHI provides traders with a clearer picture of a stock’s performance relative to the broader market.
The NUHI is based on the idea that a stock’s relative strength and momentum can be assessed more effectively when adjusted for volume behavior and benchmark comparison. Instead of looking at price movement alone, this indicator factors in:
The stock’s price trend (via EMA)
Volume participation (green vs. red volume) and volume ratio - SMA(volume, 21)/ SMA(volume, 252)
Volatility-adjusted performance (ATR-based scaling)
Comparison with a selected benchmark (e.g., SPX, NDX, sector ETFs)
This results in a normalized and comparative score that helps traders identify outperforming, neutral, and underperforming stocks within a specific market environment.
The NUHI is constructed using the following elements:
1️⃣ Stock Raw Score (Unadjusted Momentum)
The exponential moving average (EMA) of the hlc3 (average of high, low, close) is used to define the price trend.
The difference between the current EMA and the EMA from n bars ago shows whether the stock is gaining or losing momentum.
This difference is divided by the ATR (Average True Range) to adjust for volatility.
2️⃣ Volume Behavior Adjustment
Volume is split into green volume (up candles) and red volume (down candles).
The ratio of green to red volume determines whether buyers or sellers dominate over the selected period (n bars).
If the stock is in an uptrend, green volume is weighted higher; if in a downtrend, red volume is weighted higher.
The stock’s Volume Ratio (short-term SMA divided by long-term SMA) is adjusted based on this weight.
3️⃣ Benchmark Comparison
A similar Raw Score calculation is performed on the selected benchmark (SPX, NDX, or sector ETF).
Benchmark price movements, volume behavior, and ATR adjustments mirror the stock’s calculations.
This provides a reference point for evaluating the stock’s relative strength.
4️⃣ Normalization Process
Both the stock and benchmark raw scores are min-max normalized over the past 252 bars (1-year lookback).
This scales values between 0 and 1, ensuring fair comparisons regardless of absolute price differences.
5️⃣ NUHI Calculation
The final NUHI value is computed using a logarithmic ratio between the normalized stock score and the normalized benchmark score:
This transformation ensures a more symmetrical representation of overperformance and underperformance.
Performance Zones
Strong Outperforming (NUHI between >0.41 and 0.69)
Leading (NUHI between >0.10 and 0.41)
Transitioning Outperformance (NUHI between 0.10 and 0)
Equilibrium (NUHI 0)
Transitioning Underperformance (NUHI between -0.10 and 0)
Lagging (NUHI between < -0.1 and -0.41)
Strong Underperforming (NUHI between< -0.41 and -0.69 )
How to Use NUHI
✅ Identifying Strong Stocks
If NUHI > 0, the stock is outperforming its benchmark.
If NUHI < 0, the stock is underperforming the benchmark.
✅ Trend Confirmation
A steadily rising NUHI and raw score (colored green) suggests sustained strength bullish conditions.
A falling NUHI and raw score (colored orange) indicates weakness and possible rotation into other assets.
✅ Finding Reversals
Bullish Divergence: If NUHI is improving while the stock’s raw score is negative, it may signal a bottoming opportunity.
Bearish Signs: If NUHI is dropping despite price strength, it could hint at underlying weakness.
Why a Stock in a Downtrend Can Have NUHI > 0 (and Vice Versa )
NUHI measures performance relative to both its own history and the benchmark.
A stock’s recent movement is compared to how it usually behaves and how the benchmark is performing.
Example Scenarios:
Stock in a Downtrend but NUHI > 0
The stock may still be in a downtrend (negative raw score), but it’s performing better relative to its past downtrend behavior and better than the benchmark over the same period.
This could mean it’s showing relative strength compared to the broader market or sector.
Stock in an Uptrend but NUHI < 0
Even in a uptrend (positive raw score), the stock might be underperforming relative to its past uptrend behavior and underperforming the benchmark.
What This Means:
NUHI > 0 in a downtrend → The stock is falling less aggressively than usual and/or holding up better than the benchmark.
NUHI < 0 in an uptrend → The stock is gaining less than expected based on its history and/or lagging behind the benchmark.
NUHI helps identify relative strength or weakness .
