SCAE MJ VolSpike

Custom indicator named "SCAE MJ VolSpike." It combines multiple technical analysis tools, including EMAs (Exponential Moving Averages), KDJ, MACD, and volume spike detection, to generate buy/sell signals and overbought/oversold alerts. Below is a breakdown of the script's functionality:

Key Components of the Script

1. Input Parameters:
- Users can customize the periods for KDJ, MACD, lookback, and volume spike thresholds.
- Parameters include:
- P1, P2, P3 for KDJ periods.
- SHORT, LONG, M for MACD periods.
- N for the lookback period.
- volume_spike_buy_multiplier, volume_spike_pullback_multiplier and volume_spike_sell_multiplier for volume spike thresholds.
- volume_ma_period for the volume moving average.

2. EMA Calculations:
- The script calculates EMAs for periods 5, 9, 21, 42, and 200.
- These EMAs are plotted on the chart with different colors for visualization.

3. KDJ Calculation:
- The KDJ indicator is calculated using the formula:
- RSV (Raw Stochastic Value) = (close - lowest(low, P1)) / (highest(high, P1) - lowest(low, P1)) * 100
- K = SMA of RSV over P2 periods.
- D = SMA of K over P3 periods.
- J = 3 * K - 2 * D.

4. MACD Calculation:
- The MACD is calculated as:
- DIF = EMA(close, SHORT) - EMA(close, LONG).
- DEA = EMA(DIF, M).
- MACD = (DIF - DEA) * 2.

5. Normalization and Scaling:
- The script normalizes the KDJ and MACD values to align them on a similar scale for comparison.
- This ensures that the indicators can be used together effectively.

6. Volume Spike Detection:
- A volume spike is detected when the current volume exceeds the moving average of volume (volume_ma) plus a multiple of the standard deviation (volume_std).
- Two thresholds are used:
- volume_spike_buy_threshold and volume_spike_sell_threshold for significant spikes.
- volume_spike_pullback_threshold for pullback conditions.

7. Buy/Sell Conditions:
- Buy Signal:
- Triggered when:
- DIF crosses above DEA.
- Volume exceeds the spike threshold.
- Price is above the 9 EMA and 200 EMA.
- Alternatively, a buy signal is triggered during a pullback if the price is above the 21 EMA but below the 200 EMA.
- Sell Signal:
- Triggered when:
- DIF crosses below DEA.
- Volume exceeds the spike threshold.
- Price is below the 9 EMA but above the 21 EMA.
- Overbought/Oversold Conditions:
- Overbought: J_new > 90.
- Oversold: J_new < -90.

8. Plotting and Alerts:
- Buy/sell signals are plotted as arrows on the chart.
- Alerts are set up for:
- Buy signals.
- Pullback signals.
- Sell signals.
- Overbought/oversold conditions.

How to Use the Indicator
1. Add the script to a TradingView chart.
2. Customize the input parameters as needed.
3. Look for buy/sell signals indicated by arrows on the chart.
4. Use the alerts to get notified of trading opportunities.

Example Use Case
- Buy Signal: When the MACD (DIF) crosses above the signal line (DEA) and volume spikes, a green "B" arrow appears below the price bar.
- Sell Signal: When the MACD crosses below the signal line and volume spikes, a red "S" arrow appears above the price bar.
- Overbought/Oversold: Yellow arrows indicate potential reversal points when the KDJ indicator is in overbought or oversold territory.

This script is a tool for traders who want to combine multiple indicators into a single, cohesive strategy. It can be further customized to suit specific trading styles or asset classes.