Building an InSync Consensus Score from Technical Indicators

Summary

This indicator combines directional readings from Bollinger Bands, CCI, Ease of Movement, MACD, Money Flow Index, detrended price oscillation, rate of change, RSI, and Stochastic. Each component contributes a bullish, bearish, or neutral score, and the values are added to a midpoint of 50 to create a plotted consensus series. The accompanying code defines thresholds for overbought or oversold readings and compares selected indicators with their moving averages to assign direction. The stated scale runs from 5, described as extremely bearish, to 95, described as extremely bullish.

The method offers a compact way to visualize whether several technical signals point in the same direction. However, the inputs are equally weighted despite differing construction and possible overlap, and the document provides no backtest, calibration, or evidence that extreme scores predict returns. Thresholds and lookback periods are fixed in the example, so their suitability may vary by market and timeframe. The score should be treated as an indicator summary rather than a validated standalone entry or exit rule.

Key ideas

• The indicator aggregates signals from several momentum, trend, and oscillator measures.
• Each component contributes a positive, negative, or neutral increment around a midpoint score of 50.
• The example assigns fixed thresholds and lookback periods to its component signals.
• Equal weighting and overlap among indicators may distort the apparent consensus.
• The document presents no testing evidence that the score forecasts profitable trades.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.