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Weighted Multi-Mode Oscillator [BackQuant]

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Weighted Multi‑Mode Oscillator [BackQuant]

1. What Is It?
The Weighted Multi‑Mode Oscillator (WMMO) is a next‑generation momentum tool that turns a dynamically‑weighted moving average into a 0‑100 bounded oscillator.
It lets you decide how each bar is weighted (by volume, volatility, momentum or a hybrid blend) and how the result is normalised (Percentile, Z‑Score or Min‑Max).
The outcome is a self‑adapting gauge that delivers crystal‑clear overbought / oversold zones, divergence clues and regime shifts on any market or timeframe.

2. How It Works
• Dynamic Weight Engine
  ▪ Volume – emphasises bars with exceptional participation.
  ▪ Volatility – inverse ATR weighting filters noisy spikes.
  ▪ Momentum – amplifies strong directional ROC bursts.
  ▪ Hybrid – equal‑weight blend of the three dimensions.

• Multi‑Mode Smoothing
  Choose from 8 MA types (EMA, DEMA, HMA, LINREG, TEMA, RMA, SMA, WMA) plus a secondary smoothing factor to fine‑tune lag vs. responsiveness.

• Normalization Suite
  ▪ Percentile – rank vs. recent history (context aware).
  ▪ Z‑Score – standard deviations from mean (statistical extremes).
  ▪ Min‑Max – scale between rolling high/low (trend friendly).

3. Reading the Oscillator

Zone Default Level Interpretation
Bull > 80 Acceleration; momentum buyers in control
Neutral 20 – 80 Consolidation / no edge
Bear < 20 Exhaustion; sellers dominate

Gradient line/area automatically shades from bright green (strong bull) to deep red (strong bear).
Optional bar‑painting colours price bars the same way for rapid chart scanning.

4. Typical Use‑Cases
Trend Confirmation – Set Weight = Hybrid, Smoothing = EMA. Enter pullbacks only when WMMO > 50 and rising.
Mean Reversion – Weight = Volatility, reduce upper / lower bands to 70 / 30 and fade extremes.
Volume Pulse – Intraday futures: Weight = Volume to catch participation surges before breakout candles.
Divergence Spotting – Compare price highs/lows to WMMO peaks for early reversal clues.

5. Inputs & Styling
Calculation: Source, MA Length, MA Type, Smoothing
Weighting: Volume period & factor, Volatility length, Momentum period
Normalisation: Method, Look‑back, Upper / Lower thresholds
Display: Gradient fills, Threshold lines, Bar‑colouring toggle, Line width & colours
All thresholds, colours and fills are fully customisable inside the settings panel.

6. Built‑In Alerts
WMMO Long – oscillator crosses up through upper threshold.
WMMO Short – oscillator crosses down through lower threshold.
Attach them once and receive push / e‑mail notifications the moment momentum flips.

7. Best Practices
Percentile mode is self‑adaptive and works well across assets; Z‑Score excels in ranges; Min‑Max shines in persistent trends.
Very short MA lengths (< 10) may produce jitter; compensate with higher “Smoothing” or longer look‑backs.
Pair WMMO with structure‑based tools (S/R, trend lines) for higher‑probability trade confluence.

Disclaimer
This script is provided for educational purposes only. It is not financial advice. Always back‑test thoroughly and manage risk before trading live capital.

Feragatname

Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.