Oscillator & SentimentThis script is a custom TradingView indicator that calculates an oscillator and sentiment line based on various input parameters. The oscillator is based on a modified version of My Oscillator, which is a measure of price deviation from its exponential moving average ( EMA ). The sentiment line is a smoothed average of the oscillator values. The script also uses a unique color-coding system to represent the trends in the oscillator and sentiment line, making it visually appealing and easier for traders to identify market movements.
Parameters:
Fast Length: fast EMA length.
Slow Length: slow EMA length.
SMA Length: simple moving average length .
Sentiment Length: The length for calculating the sentiment line.
LengthInputRoR: A constant value used for the highest and lowest calculations.
Calculations:
Highest and Lowest: The highest and lowest values of the Simple Moving Average of high and low prices over the LengthInputRoR period.
Price Calculation (HLC2): The average of the high, low, and close prices divided by ...
My Oscillator ( SMO ): A measure of price deviation from the EMA5. It is calculated with HLC2 , EMA5, STDDEVS
Sentiment: A Simple Moving Average of My Oscillator over the sentiment_length period.
Colors:
Sentiment Color: Changes based on the current sentiment value relative to the previous value. It can have three different color variations to represent increasing, decreasing, or steady sentiment.
Candle Color: Adjusts according to the close price relative to the highest and lowest values. It helps traders to quickly identify if the price is in a strong or weak position.
Key Features:
Unique Oscillator and Sentiment Combination:
The script integrates My Oscillator and a sentiment line calculation, providing a comprehensive view of the market. The oscillator is a deviation-based indicator that is responsive to market trends, while the sentiment line offers a smoothed representation of the oscillator values.
Intuitive Color-Coding System:
Bullish state Confirmed: The oscillator is green and the sentiment is above 0 and below the oscillator.
Bearish state Confirmed: The oscillator is red and the sentiment line is below 0 and above the oscillator.
Neutral state: The oscillator is yellow above or below 0, normally a risk off area and wait for direction confirmation, doesn't mean that there can't be a Long or Short possibility.
Neutral state often also gives Long or Short Setup's when the oscillator is 1 for Long and -1 for Short, but in the Neutral state there will be more chance of moves up or down.
The Script will also color the candles in the main-chart the same as the oscillator colors
Enhanced Market Analysis:
The combination of the oscillator, sentiment line, and color-coding system provides traders with valuable insights into the market's direction, strength, and momentum, ultimately helping them make more informed trading decisions.
** This script is a great to use together with my other script: "Long & Short / Bullish & Bearish & Neutral / Sentiment" ( it will color the bars so if you use them together turn off barcolor in this one if you like that system: "Long & Short / Bullish & Bearish & Neutral / Sentiment")
