Sunday, June 14, 2015

thinkscript included: sdi_mfc rev:1.1 cluster indicator with overlay option

the market forecast indicator is a trio of oscillators that operate in multiple time-frames. i find that this indicator is most useful when the three oscillators cluster in the over-bought or over-sold areas, a condition that purports to foretell a reversal. the reversal might come a day or two to a week after the cluster, so i use this as mostly for a heads-up. with the spaghetti of plots it is a little hard sometimes to see when a cluster occurred, especially if it was just for one day. so i added a little indicator to help point out exactly when the cluster happens:
spy with sdi_mfc rev:1.1, cluster indication
a side benefit of this is that if you are only interested in the cluster indication then you can hide the momentum, shortTerm, intermediate, overbought and oversold plots and place the study in the upper price graph like this:

spy with sdi_mfc in cluster overlay mode.

now that's a good deal tidier.

as always the revised code is maintained on the original post for this chart study.

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