This chart overlay indicator is based upon the ( ) and can signal multiple triple-timeframe overbought and oversold confluences directly onto your chart, intended for use as a confluence either for reversal trade entries, or potential trade exits, indicating where price may be probable to reverse.
- Primary set of fully configurable triple-timeframe overbought and oversold signals, indicating where 3 selected timeframes are all overbought or all oversold at the same time. Enabled by default.
- Secondary set of fully configurable triple-timeframe overbought and oversold signals, indicating where 3 selected timeframes are all overbought or all oversold at the same time. Enabled by default.
- Optional drawing of background colours and/or ribbon seen at bottom of the chart image.
- The default primary MTF #1 timeframes are set to 1 minute, 5 minute and 15 minute. These are highly suitable for low timeframe scalpers trading on < 5m charts, and can often pin point price reversals.
- The default Secondary MTF #2 timeframes are set to 15 minute, 30 minute and 120 minute. These are suitable for both low timeframe scalpers and considerably higher timeframe traders.
- Independent alerts for MTF #1 and MTF #2 triple-timeframe confluences, including options for alerting MTF overbought and MTF oversold individually, as well as an option for alerting either overbought or oversold in a single combined alert.
- Also includes standard configurable options, including CC length and source type.
Note: The features listed above are accurate at the time of publishing but maybe updated or added to in future.
A similar MTF indicator is also available as a panel indicator here.
This indicator is based upon the original MTF Fantastic (FS+) available here.
What is the ( )?
Investopedia has described the popular oscillator as follows:
“The Commodity Channel Index ( ) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold.
Developed by Donald Lambert, this technical indicator assesses price trend direction and strength, allowing traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.”
You can read more about the , its use cases and calculations here.
How do traders use overbought and oversold levels in their trading?
The oversold level, that is traditionally when the is above the 100 level is typically interpreted as being 'overbought', and below the -100 level is typically considered 'oversold'. Traders will often use the at an overbought level as a confluence for entry into a short position, and the at an oversold level as a confluence for an entry into a long position. These levels do not mean that price will necessarily reverse at those levels in a reliable way, however. This is why this version of the employs the triple timeframe overbought and oversold confluence, in an attempt to add a more confluence and reliability to this usage of the . While traditionally, the overbought and oversold levels are below -100 for oversold, and above 100 for overbought, the default threshold settings of this indicator have been increased to provide fewer, stronger signals, especially suited to the low timeframes and highly volatile assets.
- Changed the default colours for the MTF #1 overbought and oversold signals, to distinguish them apart from the MTF #1 signals, and to match other indicators in range.
- Renamed variables, removed unused variables.
Ganz im Spirit von TradingView hat der Autor dieses Skripts es als Open-Source veröffentlicht, damit Trader es besser verstehen und überprüfen können. Herzlichen Glückwunsch an den Autor! Sie können es kostenlos verwenden, aber die Wiederverwendung dieses Codes in einer Veröffentlichung unterliegt den Hausregeln. Sie können es als Favoriten auswählen, um es in einem Chart zu verwenden.
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