The Market Forecast With Signals Indicator is an upgraded version of the popular ThinkorSwim platforms Market Forecast. This upgraded version utilizes stochastic oscillators, moving averages, and momentum calculations to find potential buying and selling opportunities.
Stochastic Oscillator The indicator calculates three variations of the Fast Stochastic Oscillator for different time periods:
🔹Intermediate: Calculated over a medium-term period (default 31 bars). 🔹Momentum: Calculated over a short-term period (default 5 bars). 🔹Near Term: Calculated over a very short-term period (default 3 bars).
These calculations involve finding the highest and lowest values within their respective periods and comparing the current close to this range.
Moving Average Smoothing The results of the Fast Stochastic Oscillator for the Intermediate and Near Term are then smoothed using a Simple Moving Average (SMA):
🔹Intermediate: 5-period SMA of the Intermediate Stochastic Oscillator. 🔹Near Term: 2-period SMA of the Near Term Stochastic Oscillator.
Momentum Indicator A custom momentum calculation is performed, using the recent high and low prices over four periods.
Display The indicator plots the smoothed Intermediate, Near Term, and custom Momentum calculations as separate lines on the chart.
Trading Signals While the original indicator plots the lines mentioned above, the Market Forecast w/ Signals goes a step further by identifying key moments when nuanced signals fire. The built in alerts and visual aids make spotting these trading opportunities a breeze.
Clusters - Bullish and Bearish clusters are identified based on the convergence of all three lines (Intermediate, Near, and Momentum) above 80 (Bearish) or below 20 (Bullish). The background color of the chart changes to indicate these clusters, aiding in quick identification of market extremes.
Trend Reversals - Marked with labels on the chart, this is based on the direction of the cluster (bullish or bearish) and the subsequent price movement crossing a threshold determined during the cluster formation.
Divergences - Divergences between the Near Term line and price highs/lows are detected using pivot points. These divergences are then plotted as lines on the chart, highlighting potential discrepancies between price action and momentum, which can signal reversals.
This is a great indicator... but it could be even more powerful... I made a TON of money on this but not really based on the divergence patterns per say. I'm an experienced trader and I have found this VERY useful watching the "hidden divergences" even more than the divergences... especially on the 5 and 1 minute for scalps... is there a way to plot the hidden divergences also?
optionstreet68
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Think it's a great script. Using it with Heiken Ashi candles and I am very happy with results. Thanks.
Kenayi
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Many thanks for bringing my favourite TOS indicator to Tradingview. This is like a dream come true ...ChatGPT told me it could not be done but here it is. Much respect guys. I actually trade off the intermediate divergence... works like magic. Again, i asked chatGPT to help with that but the output was utter rubbish. Can you help please?