Volume MAs Oscillator | Lyro RS

Volume MAs Oscillator | Lyro RS


Overview
The Volume MAs Oscillator is a powerful volume‑adjusted momentum tool that combines custom‑weighted moving averages on volume‑weighted price with smoothed deviation bands. It offers dynamic insights into trend direction, overbought/oversold conditions, and relative valuation — all within a single indicator


Key Features

• Volume‑Adjusted Moving Averages: Moving averages can be volume‑weighted using the following formula: a moving average of (Price × Volume) divided by a moving average of Volume. This formula is applied across more than 14 different moving averages; however, it is not used with the VWMA, as VWMA is inherently a volume-weighted moving average.
  
  
• Percentage Oscillator: Displays the normalized difference: (source – MA) / MA * 100, centered around zero for easy interpretation of strength and direction.
  
  
• Deviation Bands: Builds upper and lower bands from standard deviation of the oscillator over a selected lookback, with distinct positive/negative multipliers and optional smoothing to reduce noise.
  Inputs: Band Length, Band Smoothing, Positive Band Multiplier, Negative Band Multiplier.
  
  
• Multi‑Mode Signal System:
  1. Trend Mode – Colors oscillator according to breaks above (bullish) or below (bearish) respective bands.
  
  2. Reversion Mode – Inverses color logic: signals overextensions beyond bands as reversion opportunities, greys inside the bands.
  
  3. Valuation Mode – Applies a gradient color scale (UpC ⇄ DnC) to reflect relative valuation strength.
  
  
• Customizable Visuals: Select from 5 pre‑set palettes—Classic, Mystic, Major Themes, Accented, Royal—or define your own custom bullish/bearish colors.
  Chart enhancements include color‑coded oscillator line, deviation bands, glow‑effect midline at zero, background shading and candlestick/bar coloring aligned to signal mode.
  
  
• Built‑In Signals: Automatically plots ▲ oversold and ▼ overbought markers upon crosses of lower/upper bands (in trend or reversion modes), enhancing signal clarity.
  

How It Works

1. MA Calculation – Applies the selected MA type to price × volume (normalized by MA of volume) or direct VWMA.
   
   
2. Oscillator Output – Calculates the % difference of source vs. derived MA.
   
   
3. Band Construction – Computes rolling standard deviation; applies user‑defined multipliers; smooths bands with exponential blending.
   
   
4. Mode-Dependent Coloring & Signals –
   • Trend: Highlights strength trends via band cross coloring.
   • Reversion: Flags extremes beyond bands as potential pullbacks.
   • Valuation: Uses gradient to reflect oscillator’s position relative to recent range.
   
   
5. Signal Markers – Deploys arrows and color rules to flag overbought (▼) or oversold (▲) conditions when bands are breached.
   

Practical Use

• Trend Confirmation – In Trend Mode, use upward price_diff cross above upper band as bullish; downward cross below lower band as bearish.
  
• Mean Reversion – In Reversion Mode, fading extremes beyond bands may precede a retracement.
  
• Relative Valuation – Valuation Mode shines when assessing how extended price_diff is, with gradient colors indicating valuation zones.
  
• Bars/candles color‑coded to oscillator state boosts clarity of market tone and allows for rapid visual scanning.
  

Customization

• Adjust MA type/length to tune responsiveness vs. smoothing.
  
• Configure band settings for volatility sensitivity.
  
• Toggle between signal modes for trend-following or reversion strategies.
  
• Stylish visuals: pick or customize color schemes to match your chart setup.
  

⚠️Disclaimer
This indicator is a tool for technical analysis and does not provide guaranteed results. It should be used in conjunction with other analysis methods and proper risk management practices. The creators of this indicator are not responsible for any financial decisions made based on its signals.