Rikki's DikFat Bull/Bear Oscillator

10 בנוב׳

Rikki's DikFat Bull/Bear Oscillator - Trend Identification & Candle Colorization

Rikki's DikFat Bull/Bear Oscillator is a powerful visual tool designed to help traders easily identify bullish and bearish trends on the chart. By analyzing market momentum using specific elements of the Commodity Channel Index (CCI), this indicator highlights key trend reversals and continuations with color-coded candles, allowing you to quickly spot areas of opportunity.

How It Works

At the heart of this indicator is the Commodity Channel Index (CCI), a popular momentum-based oscillator. The CCI measures the deviation of price from its average over a specified period (default is 30 bars). This helps identify whether the market is overbought, oversold, or trending.

Here's how the indicator interprets the CCI:

• [] Bullish Trend (Green Candles): When the market is showing signs of continued upward momentum, the candles turn green. This happens when the current CCI is less than 200 and moves from a value greater than 100 with velocity, signaling that the upward trend is still strong, and the market is likely to continue rising. Green candles indicate bullish price action, suggesting it might be a good time to look for buying opportunities or hold your current long position.
  [] Bearish Trend (Red Candles): Conversely, when the CCI shows signs of downward momentum (both the current and previous CCI readings are negative), the candles turn red. This signals that the market is likely in a bearish trend, with downward price action expected to continue. Red candles are a visual cue to consider selling opportunities or to stay out of the market if you're risk-averse.
  

How to Use It

• [] Bullish Market: When you see green candles, the market is in a bullish phase. This suggests that prices are moving upward, and you may want to focus on buying signals. Green candles are your visual confirmation of a strong upward trend.
  [] Bearish Market: When red candles appear, the market is in a bearish phase. This indicates that prices are moving downward, and you may want to consider selling or staying out of long positions. Red candles signal that downward pressure is likely to continue.
  

Why It Works

This indicator uses momentum to identify shifts in trend. By tracking the movement of the CCI, the oscillator detects whether the market is trending strongly or simply moving in a sideways range. The color changes in the candles help you quickly visualize where the market momentum is headed, giving you an edge in determining potential buy or sell opportunities.

• [] Clear Visual Signals: The green and red candles make it easy to follow market trends, even for beginners.
  [] Identifying Trend Continuations: The oscillator helps spot ongoing trends, whether bullish or bearish, so you can align your trades with the prevailing market direction.
  
• Quick Decision-Making: By using color-coded candles, you can instantly know whether to consider entering a long (buy) or short (sell) position without needing to dive into complex indicators.
  

NOTES This indicator draws and colors it's own candles bodies, wicks and borders. In order to have the completed visualization of red and green trends, you may need to adjust your TradingView chart settings to turn off or otherwise modify chart candles.

Conclusion

With Rikki's DikFat Bull/Bear Oscillator, you have an intuitive and easy-to-read tool that helps identify bullish and bearish trends based on proven momentum indicators. Whether you’re a novice or an experienced trader, this oscillator allows you to stay in tune with the market’s direction and make more informed, confident trading decisions.

Make sure to use this indicator in conjunction with your own trading strategy and risk management plan to maximize your trading potential and limit your risks.

16 בנוב׳

הערות שחרור

Alert conditions have been added. You can now signal the chart to alert you when either a green candle close occurs signaling a possible change to bullishness or likewise alert you when a red candle close occurs signaling a possible change to bearishness.

18 בנוב׳

הערות שחרור

Per Moderation I have updated the Chart Image to remove Bull and Bear.