Price Change Sentiment Index [tradeviZion]

Price Change Sentiment Index

A technical indicator that measures price changes relative to the day's range.

Indicator Overview

• Normalizes price changes on a 0-100 scale
  
• Uses a smoothing period for signal clarity
  
• Shows potential overbought/oversold conditions
  

Inputs

• Smoothing Period (default: 3)
  
• Show Background Colors (on/off)
  
• Overbought Level (default: 75)
  
• Oversold Level (default: 25)
  

Reading the Indicator

• Values above 75: Price change showing strong upward movement
  
• Values below 25: Price change showing strong downward movement
  
• Around 50: Neutral price movement
  

Technical Details

// Core calculation
changePct = (currClose - prevClose) / (high - low)
normalized = 50 + (changePct * 50)
smoothedNormalized = ta.sma(normalizedClamped, smoothingPeriod)

Usage Notes

• Best used with other technical analysis tools
  
• Adjustable smoothing period affects signal sensitivity
  
• Background colors highlight extreme readings
  
• Works on any timeframe
  

Settings Guide

• Smoothing Period:
  - Lower values (1-3): More responsive
  - Higher values (5-10): Smoother output
  
• Visual Settings: Toggle background colors
  
• Levels: Adjust overbought/oversold thresholds
  

This indicator is a technical analysis tool. Please conduct your own research and testing before use.