BASS: Combining Momentum Oscillators and Volume Bias in One Display
Summary
The BASS indicator overlays several familiar measures as histograms around a shared zero line: MACD, a centered RSI, a smoothed stochastic difference, the Awesome Oscillator, and an Alligator-derived spread. Positive readings are colored blue and negative readings red to give a compact view of directional momentum. A separate purple histogram represents volume bias, calculated as the difference between a volume-weighted moving average and a simple moving average of price.
The accompanying guidance treats agreement across the momentum plots and positive volume bias as a potentially stronger bullish picture, while disagreement is a caution that market direction lacks confirmation. This is a visual interpretation aid, not a standalone entry or exit system, and the document reports no backtest or predictive evidence. Because the component measures use different scales, the script offers individual multipliers; users may need to tune them for an instrument so one plot does not dominate or obscure the others.
Key ideas
- The indicator combines MACD, centered RSI, stochastic, Awesome Oscillator, and Alligator-derived momentum views.
- Positive and negative oscillator readings are displayed on either side of a common zero line.
- Volume bias is the difference between a volume-weighted moving average and a simple moving average.
- Agreement between momentum signals and volume bias is presented as confirmation, while divergence calls for caution.
- Individual scaling controls address differences in the magnitude of indicator values across instruments.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.