ROC-WMA bull bear indicator

ROC-Weighted MA Oscillator
By Ludovic B

Modified source code of SeerQuant

The ROC-Weighted MA Oscillator (ROCWMA) is a momentum-driven oscillator designed to expose hidden acceleration and deceleration phases in price action by dynamically weighting a moving average with the normalized Rate of Change (ROC).

Instead of treating all price deviations equally, this indicator amplifies meaningful moves and suppresses low-energy noise, making it particularly effective in scalping, intraday trading, and momentum reversals.

🔧 Core Concept

A base moving average (SMA, EMA, TEMA, DEMA, HMA, ALMA, etc.)

Weighted by normalized ROC

Transformed into a Z-score oscillator for comparability across assets

Smoothed with a signal line for timing precision

Result: a context-aware oscillator that adapts to market intensity.

📊 What the Oscillator Shows

Bullish momentum when histogram is positive and expanding

Bearish momentum when histogram is negative and expanding

Neutral zone to filter chop and avoid over-trading

Automatic color logic to highlight regime changes

Optional candle coloring reflects the active momentum state.

🎯 Signal-Based Price Markers (Advanced Feature)

This script includes price-chart markers when:

The signal line retraces to X% of the maximum oscillator bar of the current momentum phase

AND the signal slope confirms exhaustion (rising or falling)

Key characteristics:

Adaptive thresholds (relative, not fixed)

Separate logic for bullish and bearish phases

Reset on each neutral-zone transition

Configurable number of markers per momentum cycle

This makes the indicator particularly useful for:

Pullback entries

Momentum fading

Timing partial exits

⚙️ Customization

Fully adjustable ROC length, MA type, signal length

Neutral zone threshold control

Multiple color schemes

Optional candle coloring

Adaptive signal-to-oscillator percentage logic

🧠 Best Use Cases

Scalping (M1–M5)

Intraday momentum confirmation

Pullback and exhaustion detection

Cross-asset trading (FX, indices, crypto, metals)

ROCWMA is not a lagging oscillator.
It is a momentum intensity detector built to reveal when price moves matter.

Sürüm Notları

📌 ROCWMA — ROC-WMA + RSI Bull / Bear Indicator
🎯 What is this indicator for?
ROCWMA is a context and timing oscillator.
It is designed to answer two simple questions:
1. Is the market bullish, bearish, or neutral?
2. When is the right moment to enter in that context?
It does not predict the market.
It helps filter noise and time entries inside a structured trading method.
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👀 What you see on the chart
• Colored histogram
o Green → selling context
o Red → buying context
o Grey → neutral zone (no trade)
• White line (Signal)
→ smoothed average of the oscillator, used for timing
• Arrows on price (SIG)
→ highlight potential entry zones, not automatic trades
• Integrated RSI
→ used as a context filter (high / low zones)
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⚙️ How it works (simple explanation)
1. Price is smoothed using a moving average.
2. The speed of price movement (ROC) weights this average.
3. The result is normalized to create a stable oscillator.
4. A moving average of the oscillator (white line) helps identify useful pullbacks.
👉 The result is a clean and readable indicator that separates
direction – neutrality – timing.
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🧠 How to use it (beginner-friendly)
1️⃣ Identify the market context
• Histogram above the neutral zone → favor sells
• Histogram below the neutral zone → favor buys
• Histogram inside the neutral zone → do nothing
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2️⃣ Wait for the timing
In a non-neutral context:
• Wait for the white Signal line to pull back toward
X % of the highest oscillator peak
(parameter Signal Threshold, 50% by default)
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3️⃣ Use the arrows correctly
• Arrow below price → buying context, possible timing
• Arrow above price → selling context, possible timing
⚠️ Important:
• Arrows do not always appear
• There can be false signals
• They are attention helpers, not “click-to-trade” signals
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4️⃣ RSI role (important)
RSI is a context filter, not a standalone signal:
• Lower RSI zones → buying bias
• Higher RSI zones → selling bias
• In strong trends, RSI may stop working
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✅ Who is this indicator for?
• Beginner traders who want structured decision-making
• M1 / scalping / intraday traders
• Traders using context + timing, not full automation
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⚠️ What ROCWMA is NOT
• ❌ Not a holy grail
• ❌ Not a standalone trading system
• ❌ Not a reversal predictor
👉 It is a market reading tool, meant to be combined with
EMA structure, RSI, and price action.
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🔧 Recommended default settings
• ROC Length: 55
• MA Length: 7
• Signal Length: 9
• Signal Threshold: 50%
• Neutral Threshold: low (to filter noise)

How to trade with ROCWMA RSI

ROCWMA is used to time entries, not to predict direction.
First, determine the market bias using EMA structure and RSI zones.
If EMA are aligned, trade in the direction of the trend. If the market is range-bound or very volatile, both directions are allowed.

Next, wait for the ROCWMA histogram to be outside the neutral zone, confirming that the market is active.
Then wait for the white Signal line to pull back toward 50% of the strongest ROCWMA peak of the current move (Signal Threshold).

When this pullback occurs, a ROCWMA arrow may appear.
The arrow highlights a timing window, not a guaranteed signal.
Enter only if price action and context remain aligned.

Set a fixed stop loss beyond the nearest high or low.
Exit the trade when the Signal line reaches 50% of the opposite ROCWMA peak, or manage the position with a trailing take-profit.

Sürüm Notları

Bug fix for label display issues

Sürüm Notları

Add CCI filter

CCI Filter — Overview

The CCI filter is used as a timing filter, not as a signal generator.
Its role is to confirm that momentum is fading before allowing a ROCWMA entry.

How it works

Sell (ROCWMA bullish / green zone)
Signals are allowed only when the CCI SMA drops below the positive threshold (default +100) and shows deceleration.

Buy (ROCWMA bearish / red zone)
Signals are allowed only when the CCI SMA rises above the negative threshold (default −100) with increasing slope.

The filter works in state mode: once the condition is met, signals remain authorised (no strict bar-to-bar synchronisation).

Why use it:
Filters out early and impulsive entries
Improves signal reliability, especially in scalping
When disabled, the original ROCWMA behaviour is unchanged
ROCWMA defines direction.
CCI confirms timing.

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