Gorgo's Hybrid Oscillator STrategy

**Indicator Name:** Gorgo's Hybrid Oscillator STrategy (G.H.O.S.T.)

**Purpose:**
The Gorgo's Hybrid Oscillator STrategy (G.H.O.S.T.) is a multi-component technical analysis tool designed to identify overbought and oversold market conditions, assess trend strength, and signal potential buy and sell opportunities. By combining elements from RSI, Ultimate Oscillator, Stochastic CCI, and ADX, this custom indicator provides a comprehensive view of momentum, trend intensity, and volume context to enhance decision-making.

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**Components and Logic:**

1. **RSI (Relative Strength Index):**

* Calculated using a customizable period (default: 14) and based on the hlc3 price source.
* Measures recent price changes to evaluate overbought/oversold conditions.
* Incorporated in the final oscillator average.

2. **Ultimate Oscillator:**

* Combines three timeframes (7, 14, 28 by default) to smooth out price movements.
* Uses true range and buying pressure for multi-frame momentum analysis.
* Averaged together with RSI to create the main oscillator signal.

3. **Stochastic CCI:**

* Applies a stochastic process to the Commodity Channel Index (CCI).
* Smooths the %K and %D lines (default: 3 each) to detect subtle reversals.
* Generates oversold (<35) and overbought (>69) signals, plotted as yellow circles.

4. **ADX + DI (Average Directional Index):**

* Determines trend strength using ADX and directional movement indicators (DI).
* ADX threshold is set at 24 by default to filter weak trends.
* Colored histogram columns:

* Green: Strong bullish trend.
* Red: Strong bearish trend.
* Gray: Weak/no trend.

5. **Volume Analysis:**

* Calculates a 9-period SMA of volume.
* Detects significant volume spikes (2.7× the average by default) to validate breakouts or fakeouts.

6. **Oscillator Output ("osc") and Levels:**

* The main plotted oscillator line is the average of the RSI and Ultimate Oscillator.
* Important horizontal lines:

* Overbought (69.0)
* Oversold (35.0)
* Midline (52.0): Neutral reference point.
* ADX threshold line (24.0)

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**Signals:**

1. **Buy Signal Conditions:**

* Close is less than or equal to open (candle is red).
* Oscillator is decreasing and below oversold level.
* Stochastic CCI is below midline.
* Volume is above average, or excessive volume with oscillator falling below 40.
* ADX confirms trend presence (either above 15 or meeting threshold).

2. **Sell Signal Conditions:**

* ADX increasing and confirming trend.
* Oscillator is increasing and above overbought level.
* Stochastic CCI is above midline.
* Volume is above average, or very high with oscillator above 60.

3. **Visual Feedback:**

* Yellow dots highlight oversold/overbought Stochastic CCI.
* Oscillator line in cyan.
* Background colors:

* Light red for buy signals.
* White for sell signals.

4. **Alerts:**

* Built-in `alertcondition()` calls allow automated alerts for buy and sell events.

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**Usage Guide:**

* **Best Use Cases:** Trend-following and reversal strategies on any timeframe.
* **Avoid Using Alone:** Use G.H.O.S.T. in conjunction with price action, support/resistance, and other confluence tools.
* **Customization:** All thresholds, periods, and volumes are user-editable from the settings panel.

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**Interpretation Summary:**
G.H.O.S.T. excels at filtering out noise by combining different oscillators and volume signals to offer contextually valid entries and exits. A bullish (buy) signal typically suggests a market under pressure but potentially bottoming out, while a bearish (sell) signal highlights likely exhaustion after a strong upward push.

This hybrid approach makes the G.H.O.S.T. a reliable ally in volatile or choppy conditions where single-indicator strategies might fail.