OPEN-SOURCE SCRIPT
Multi-Oscillator - James Chew
Multi-Oscillator Confluence Trading System
This is a multi-timeframe momentum confluence indicator that combines five popular oscillators to identify high-probability oversold and overbought conditions for scalping and short-term trading.
🔍 What It Does:
Core Concept:
Instead of relying on a single oscillator (which can give false signals), this system waits for multiple momentum indicators to agree before signaling entry or exit points. It's based on the trading principle that "confluence increases probability."
The Five Oscillators:
Stochastic %K (14) - Classic momentum oscillator
Williams %R (14) - Price position within recent range
Williams %R (52) - Longer-term price position for trend context
Williams %R (13) - Shorter-term price position for precision timing
Money Flow Index (14) - Volume-weighted momentum indicator
📊 Signal Types:
Buy Signals:
🟢 Early Warning = 4 out of 5 indicators show oversold conditions
🟡 Strong Buy = All 5 indicators are simultaneously oversold
Sell Signals:
🟠 Take Profit Warning = 4 out of 5 indicators show overbought conditions
🔴 Strong Sell = All 5 indicators are simultaneously overbought
🎯 Best Use Cases:
Perfect For:
Scalping on 1-15 minute charts
Mean reversion trading in ranging markets
Confluence confirmation with support/resistance levels
Risk management - knowing when NOT to trade
Trading Scenarios:
Crypto/forex markets with high volatility
Index futures during active trading hours
Any liquid market with clear oscillations
🧠 The Psychology Behind It:
Why It Works:
Reduces false signals by requiring multiple confirmations
Catches market extremes when multiple momentum measures agree
Provides early warnings so you can prepare for setups
Clear exit signals to lock in profits before reversals
The Edge:
Most traders use single indicators and get whipsawed. This system waits for "consensus" among multiple momentum measures, significantly improving win rates at the cost of fewer total signals.
📈 Typical Performance Characteristics:
Higher win rate (60-75%) due to confluence requirement
Fewer signals but higher quality setups
Best in volatile, ranging markets
Struggles in strong trending conditions (like most oscillators)
In essence, it's a "smart" oversold/overbought detector that reduces noise and increases signal quality for short-term traders.
Please do your own testing before using this script for actual trading.
- James
This is a multi-timeframe momentum confluence indicator that combines five popular oscillators to identify high-probability oversold and overbought conditions for scalping and short-term trading.
🔍 What It Does:
Core Concept:
Instead of relying on a single oscillator (which can give false signals), this system waits for multiple momentum indicators to agree before signaling entry or exit points. It's based on the trading principle that "confluence increases probability."
The Five Oscillators:
Stochastic %K (14) - Classic momentum oscillator
Williams %R (14) - Price position within recent range
Williams %R (52) - Longer-term price position for trend context
Williams %R (13) - Shorter-term price position for precision timing
Money Flow Index (14) - Volume-weighted momentum indicator
📊 Signal Types:
Buy Signals:
🟢 Early Warning = 4 out of 5 indicators show oversold conditions
🟡 Strong Buy = All 5 indicators are simultaneously oversold
Sell Signals:
🟠 Take Profit Warning = 4 out of 5 indicators show overbought conditions
🔴 Strong Sell = All 5 indicators are simultaneously overbought
🎯 Best Use Cases:
Perfect For:
Scalping on 1-15 minute charts
Mean reversion trading in ranging markets
Confluence confirmation with support/resistance levels
Risk management - knowing when NOT to trade
Trading Scenarios:
Crypto/forex markets with high volatility
Index futures during active trading hours
Any liquid market with clear oscillations
🧠 The Psychology Behind It:
Why It Works:
Reduces false signals by requiring multiple confirmations
Catches market extremes when multiple momentum measures agree
Provides early warnings so you can prepare for setups
Clear exit signals to lock in profits before reversals
The Edge:
Most traders use single indicators and get whipsawed. This system waits for "consensus" among multiple momentum measures, significantly improving win rates at the cost of fewer total signals.
📈 Typical Performance Characteristics:
Higher win rate (60-75%) due to confluence requirement
Fewer signals but higher quality setups
Best in volatile, ranging markets
Struggles in strong trending conditions (like most oscillators)
In essence, it's a "smart" oversold/overbought detector that reduces noise and increases signal quality for short-term traders.
Please do your own testing before using this script for actual trading.
- James
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.