OPEN-SOURCE SCRIPT

Composite Momentum Indicator

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Composite Momentum Indicator" combines the signals from several oscillators, including Stochastic, RSI, Ultimate Oscillator, and Commodity Channel Index (CCI) by averaging the standardized values (Z-Scores). Since it is a Z-Score based indicators the values will be typically be bound between +3 and -3 oscillating around 0. Here's a summary of the code:

Input Parameters: Users can customize the look-back period and set threshold values for overbought and oversold conditions. They can also choose which oscillators to include in the composite calculation.

Oscillator Calculations: The code calculates four separate oscillators - Stochastic, RSI, Ultimate Oscillator, and CCI - each measuring different aspects of market momentum.

Z-Scores Calculation: For each oscillator, the code calculates a Z-Score, which normalizes the oscillator's values based on its historical standard deviation and mean. This allows for a consistent comparison of oscillator values across different timeframes.

Composite Z-Score: The code aggregates the Z-Scores from the selected oscillators, taking into account user preferences (whether to include each oscillator). It then calculates an average Z-Score to create the "Composite Momentum Oscillator."

Conditional Color Coding: The composite oscillator is color-coded based on its average Z-Score value. It turns green when it's above the overbought threshold, red when it's below the oversold threshold, and blue when it's within the specified range.

Horizontal Lines: The code plots horizontal lines at key levels, including 0, ±3, ±2, and ±1, to help users identify important momentum levels.

Gradient Fills: It adds gradient fills above the overbought threshold and below the oversold threshold to visually highlight extreme momentum conditions.

Combining the Stochastic, RSI, Ultimate Oscillator, and Commodity Channel Index (CCI) into one composite indicator offers several advantages for traders and technical analysts:

Comprehensive Insight: Each of these oscillators measures different aspects of market momentum and price action. Combining them into one indicator provides a more comprehensive view of the market's behavior, as it takes into account various dimensions of momentum simultaneously.

Reduced Noise: Standalone oscillators can generate conflicting signals and produce noisy readings, especially during choppy market conditions. A composite indicator smoothes out these discrepancies by averaging the signals from multiple indicators, potentially reducing false signals.

Confirmation and Divergence: By combining multiple oscillators, traders can seek confirmation or divergence signals. When multiple oscillators align in the same direction, it can strengthen a trading signal. Conversely, divergence between the oscillators can warn of potential reversals or weakening trends.

Customization: Traders can tailor the composite indicator to their specific trading strategies and preferences. They have the flexibility to include or exclude specific oscillators, adjust look-back periods, and set threshold levels. This adaptability allows for a more personalized approach to technical analysis.

Clarity and Efficiency: Rather than cluttering the chart with multiple individual oscillators, a composite indicator condenses the information into a single plot. This enhances the clarity of the chart and makes it easier for traders to quickly interpret market conditions.

Overbought/Oversold Identification: Combining these oscillators can improve the identification of overbought and oversold conditions. It reduces the likelihood of false signals since multiple indicators must align to trigger these extreme conditions.

Educational Tool: For novice traders and analysts, a composite indicator can serve as an educational tool by demonstrating how different oscillators interact and influence each other's signals. It allows users to learn about multiple technical indicators in one glance.

Efficient Use of Screen Space: A single composite indicator occupies less screen space compared to multiple separate indicators. This is especially beneficial when analyzing multiple markets or timeframes simultaneously.

Holistic Approach: Instead of relying on a single indicator, a composite approach encourages a more holistic assessment of market conditions. Traders can consider a broader range of factors before making trading decisions.

Increased Confidence: A composite indicator can boost traders' confidence in their decisions. When multiple reliable indicators align, it can provide a stronger basis for taking action in the market.

In summary, combining the Stochastic, RSI, Ultimate Oscillator, and CCI into one composite indicator enhances the depth and reliability of technical analysis. It simplifies the decision-making process, reduces noise, and offers a more complete picture of market momentum, ultimately helping traders make more informed and well-rounded trading decisions.
* Feel free to compare against individual oscillatiors*

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Added Chaikin Oscillator to the composite momentum indicator. Fixed the look back period for Z-score calculation of CCI. Also included a simple moving average (length 3) to have a smoothed representation.

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Included money flow index as part of the composite index.

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added header // This source code is subject to the terms of the Mozilla Public License 2.0 at mozilla.org/MPL/2.0/
// © federalTacos5392

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minor update to fix the charting display

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Updates script to change the custom lengths of different momentum indicators.

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minor fix

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Included Kairi Relative Index , Williams % R and Awesome Oscillator.