US & EU Airlines Basket Analysis

This Pine Script v5 indicator is a multi-faceted analysis tool designed primarily for monitoring the collective sentiment and technical health of a basket of US and EU airline stocks. It overlays this basket analysis onto the chart of a single security, using advanced metrics like moving average (MA) crosses, Volume-RSI scoring, broader market indices, and oil price action to generate a Combined Sentiment Index and projected Strike Price targets.
1. ⚙️ Core Logic and Calculations
The script performs three main categories of analysis: A. Airline Basket Analysis (US & EU): The core of the indicator calculates the sum of prices and moving averages (9-period and 50-period Simple Moving Averages) for the European and US airline baskets separately. Basket Signal: A signal is generated based on the relative difference between the basket's total 9-period MA and its 50-period MA. Signals (Strong/Medium/Weak): Defined by user-set thresholds, if the following conditions are met simultaneously: Buy: Price increases, Volume is above average, and RSI is in the upper half. Sell: Price decreases, Volume is above average, and RSI is in the lower half. The Net Vol/RSI Score (sum of all individual scores) is displayed on the chart labels. B. Combined Sentiment Index: This index is a weighted aggregation that consolidates all major influences into a single plot line positioned relative to the visible price range. Metrics and Influence: The index includes the Basket MA Score (directional strength of MAs), Basket Vol/RSI Score (momentum-backed moves), Main Chart RSI Score (momentum of the current symbol), Index Bias (influence from DJI, S&P 500, and NASDAQ), DXY Influence (USD Index breakouts), Oil Influence (Inverted change of Brent crude oil price, reflecting fuel costs), and a Vol/RSI Bonus for extreme scores. The final index determines the position and color of the plot line, with a sensitivity factor to control movement away from the anchor. C. Oil Inflection Points: This logic compares large moves in the Brent Crude Oil price against simultaneous large moves in the Focused Airline Basket on a user-defined, higher timeframe (e.g., Daily). Inverse Inflection (Yellow Line): Signals when Oil and Airlines move in opposite directions, confirming the expected inverse relationship (e.g., Oil \uparrow & Airlines \downarrow). Direct Inflection (Blue Line): Signals when Oil and Airlines move in the same direction, suggesting the inverse relationship is currently broken.
2. 📊 Visual Outputs and Signals
Basket MA Lines: Overlaid on Price (Green for EU, Blue for US Total MAs). Basket Signals: Below/Above Bars with Labels (EUs/USs, etc.) indicating MA cross strength. Sentiment Plot: User-defined Anchor line with a superimposed line colored Lime (Bullish) or Red (Bearish) representing the Combined Sentiment Index. Strike Price Line: Overlaid on Price as a Solid White line, an estimated near-term target price projected from the sentiment strength. Indices Table: Located at the Bottom Center, displaying real-time percentage change and alerts for the major US stock indices. Oil Inflection: Overlaid on Price as Thick Yellow/Blue Lines highlighting bars where the oil/airline relationship is confirmed or broken.
3. Adjust Inputs: Open the indicator settings (the gear icon) and adjust the included regions ("Include EU/US Airlines") and the Oil Inflection Timeframe (use a higher timeframe like 'D' for Daily for more significant signals).
4. Interpretation: A Sentiment Plot line moving significantly above the Anchor (Lime) indicates strong bullish conviction; moving below (Red) indicates strong bearish conviction. The white Strike Price Line provides a potential short-term target.

Oil is included as a feature with this indicator to assess if any possible relevance exists or seems to exist as relationship with price action value of the air travel asset class conversely or inversely: which is presented by blue and yellow bars.