Combining RSI, EWO, MACD, and MFI into a Normalized Trading Oscillator
Summary
The Buy Low Sell High Composite combines four technical measures—RSI, an EMA-difference Elliott Wave Oscillator, MACD histogram, and Money Flow Index—into one oscillator intended to summarize trend, momentum, and volume. It rescales components to a common range, using ATR-based ranges for the EWO and MACD terms, then sums them and maps the result to a final normalized scale.
The document describes positive readings as bullish consensus and negative readings as bearish; expansion or contraction in the histogram is presented as a sign of momentum strengthening or fading. MACD crossings are marked as possible early entry or exit cues. The code supplies default lookbacks and allows ATR, RSI, and MFI periods to be adjusted. It provides no backtest, performance evidence, or rules for trade sizing and risk management. The normalization method and indicator interpretations are presented as a design rationale, so they should be evaluated independently before use; the composite is not evidence that its signals predict profitable reversals or continuation trades.
Key ideas
- The indicator combines RSI, an EMA-difference oscillator, MACD histogram, and MFI into a single composite.
- RSI and MFI are scaled using a 25–75 range, while EWO and MACD components use an ATR-based range.
- Positive and negative composite readings represent bullish and bearish consensus, respectively.
- Histogram expansion or contraction is interpreted as changing momentum strength.
- MACD crossings generate possible early warnings, but the document provides no performance testing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.