[blackcat] L2 BullBear Oscillator

19 jam yang lalu

OVERVIEW

The "[blackcat] L2 BullBear Oscillator" is a custom trading indicator for TradingView that helps traders identify market trends, potential tops and bottoms, and the strength of trends using various moving averages and price relationships.

FEATURES

Calculates a base oscillator based on the close price relative to the highest and lowest prices over the past 60 periods.

Smoothes the oscillator using exponential moving averages (EMAs).

Determines market strength through relative strength indicators and moving averages.

Identifies potential tops and strong support levels based on specific conditions involving oscillators and price actions.

Plots several signals to help traders make informed decisions.

HOW TO USE

Install the script on your TradingView chart.

Customize the settings in the "Inputs" section:

Set the periods for the short-term and long-term EMAs.

Set the periods for the three SMAs used in calculations.

Interpret the plots:

BullBear Signal (Fuchsia Line): Indicates the overall market trend. Uptrends suggest buying opportunities, while downtrends suggest selling.

Decreasing BullBear Signal (Aqua Line): Highlights periods when the trend is weakening or turning bearish, signaling possible selling opportunities.

Potential Top Condition (Yellow Plot): Signals possible trend reversals from bullish to bearish, indicating times to consider taking profits or preparing for a downtrend.

High Price Condition (Yellow Plot): Indicates strong bullish momentum but also potentially overbought conditions, which might precede a correction.

Earning Condition (Red Line): Possibly signifies strong bullish signals, indicating good times to enter long positions.

Strong Support Condition (White Arrows): Signals potential bottoms or support levels, indicating buying opportunities.

Start Hiding Condition (Fuchsia Plot): Might indicate times to exit positions or reduce exposure due to unfavorable market conditions.

ALGORITHMS

Moving Averages:

Simple Moving Averages (SMAs): Used to calculate averages of price data over specified periods.

Exponential Moving Averages (EMAs): Used to give more weight to recent prices, making the moving averages more responsive to new data.

Oscillator Calculation:

The base oscillator is calculated based on the close price's position within the highest and lowest prices over 60 periods, normalized to a 0-100 scale.

This oscillator is then smoothed using EMAs to reduce noise and make trends more visible.

Relative Strength Indicator:

Calculated based on the close price's position within the highest and lowest prices over 20 periods, also normalized to a 0-100 scale.

This is smoothed using SMAs to get a more stable signal.

Condition Checks:

Various conditions are checked to identify potential tops, strong support, and other market states based on the relationships between these indicators and price actions.

LIMITATIONS

The script is based on historical data and does not guarantee future performance.

It is recommended to use the script in conjunction with other analysis tools.

The effectiveness of the strategy may vary depending on the market conditions and asset being traded.

NOTES

The script is designed for educational purposes and should not be considered financial advice.

Users are encouraged to backtest the strategy on a demo account before applying it to live trades.

THANKS

Special thanks to the TradingView community for their support and feedback.