OB/OS Environment MTF

This indicator identifies overbought and oversold price environments — not reversal signals — using a multi-timeframe regime filter combined with volatility-adjusted stretch and confluence logic.

The goal is to highlight when price is objectively extended relative to trend, so traders can:

reduce chasing,

size appropriately,

manage risk,

or look for mean-reversion / pause scenarios without assuming a top or bottom.

How it works

1. Higher-Timeframe Regime (Stable)

Intraday charts → Daily regime

Daily charts → Weekly regime

Weekly charts → Monthly regime

Monthly charts → Monthly regime

Regime is determined using HTF close vs HTF EMA (optionally slope-filtered).
This keeps environments stable and avoids intrabar regime flipping.

2. Volatility-Adjusted Stretch
Price extension is measured as:

distance from EMA

normalized by ATR (z = (price − EMA) / ATR)

This allows the same logic to work across:

5m / 30m / 1h

Daily / Weekly / Monthly

3. Confluence Scoring (N-of-M)
An OB/OS environment only triggers when stretch and a minimum number of confirmations are present:

RSI extreme

Bollinger %B excursion

Stretch percentile vs its own history

Large candle relative to ATR

User-configurable confirmation count helps reduce noise.

4. Environment State (Sticky)
Once an overbought or oversold environment is detected:

the state persists until price decompresses or regime breaks

optional background shading visualizes the environment

arrows mark entry into the environment (not exits)

What this is / is not

This is:

an environment/context tool

multi-timeframe aware

volatility-normalized

designed to work across assets and timeframes

This is NOT:

a buy/sell signal

a reversal system

predictive of timing tops or bottoms

Strong trends can remain overbought/oversold for extended periods — by design.

Best use cases:

Risk management in strong trends

Avoiding late entries

Scaling decisions

Mean-reversion setups with confirmation

Context for options traders (IV, spreads, diagonals)

Feedback welcome

This is an early public release.
I’m specifically interested in feedback on:

confluence logic

regime behavior

parameter defaults by timeframe

false positives vs missed environments

If you have ideas or improvements, please comment — especially if you test across multiple markets or higher timeframes.