Multi-MA Oscillator

Description:

The Multi-MA Oscillator is a highly versatile momentum tool that transforms any moving average into a normalized, mean-reverting oscillator. By converting MA values into statistical z-scores, it provides a standardized view of momentum across different timeframes and market conditions. With support for 7 distinct MA types and extensive customization options, it adapts to any trading style while offering clear visual signals for overbought/oversold conditions and potential reversals.

🔍 Core Methodology:

MA Transformation: Converts moving average values into z-scores, showing how many standard deviations the MA is from its historical mean. This normalization allows for consistent interpretation regardless of the underlying MA type or price level.

Multi-Algorithm Support: Choose from 7 MA types - EMA, SMA, KAMA, HMA, DEMA, ALMA, and WMA - each offering unique characteristics for different market environments.

Advanced Algorithm Settings: Fine-tune specialized MAs with dedicated parameters for KAMA (fast/smoothing) and ALMA (offset/sigma).

🎯 Signal Generation & Features:

Standardized Levels: The oscillator operates around a zero line with clear reference levels at ±2, ±3, and ±4 standard deviations.

Reversal Detection: Plots distinctive circle markers (⚬) when momentum peaks at extreme levels, signalling potential trend exhaustion.

Bullish Reversal: Appears in oversold territory (-3 or below) when momentum begins recovering.

Bearish Reversal: Appears in overbought territory (+3 or above) when momentum starts declining.

Dynamic Bar Colouring: Five different colouring modes to match your analysis style:

Trend: Colors bars by momentum direction (Cyan/Bullish vs Purple/Bearish)

Extremities: Highlights only extreme moves beyond ±2 standard deviations

Reversions: Colors bars specifically during reversal signals

Slope: Colors based on momentum acceleration/deceleration

None: No bar colouring

⚙️ Input Parameters:

MA Settings: Select MA type, source, length, and algorithm-specific parameters

Oscillator Settings: Adjust normalization length and reversion threshold sensitivity


Whether you're a day trader needing responsive signals or a swing trader looking for reliable momentum shifts, the Multi-MA Oscillator provides the flexibility and clarity to enhance your technical analysis workflow.