Combining Oscillators, Relative Volume, Channels, and Divergence Signals
Summary
This indicator is a configurable framework for charting and combining technical oscillators. Users can select up to two built-in oscillators and optionally add an external one; their normalized weights can be combined, with relative volume optionally adjusting the aggregate. The available calculations span price, momentum, trend, and volume measures. A reference moving average and a bounded oscillator channel help show the weighted line’s position and movement.
The workbench also identifies divergences using selectable definitions, tracks bullish and bearish channel states, and can display markers, alerts, and bar colors. Inputs control channel sources, breach rules, sensitivity, and filters such as close direction, rising volume, or oscillator position. The document explains that tighter channel caps can affect both chart scale and divergence locations, and that an optional bias estimate makes channel states less reliable. It is a visualization and signal-building tool, not a tested trading strategy; the supplied material reports no predictive or performance evidence. Intrabar analysis is limited by a stated maximum, so finer intrabar coverage reduces the historical chart span available.
Key ideas
- The indicator combines selected built-in or external oscillators into an aggregate weight.
- Relative volume can scale oscillator influence according to its percentile rank.
- A reference average and capped channel visualize oscillator movement and help define states.
- Divergences, markers, alerts, and bar colors can be configured with different rules and filters.
- Channel caps and intrabar coverage involve tradeoffs that can alter signals or historical coverage.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.