Technical Ratings

The Technical Ratings indicator calculates and aggregates the biases of 26 different technical indicators to provide a comprehensive outlook on market sentiment across multiple timeframes. This tool simplifies complex market data into five distinct states—Strong Buy, Buy, Neutral, Sell, and Strong Sell—helping traders gauge trend strength and potential reversals.

Usage

The Usage section describes how the script can be used to interpret market trends and momentum through aggregated technical data.

Signal Interpretation

The indicator oscillates between +1 and -1. Users can determine the market state based on the following levels:

• Strong Buy: Value above 0.5.
• Buy: Value between 0.1 and 0.5.
• Neutral: Value between -0.1 and 0.1.
• Sell: Value between -0.1 and -0.5.
• Strong Sell: Value below -0.5.

Group Weighting

Traders can adjust the influence of the "Moving Averages" (MAs) group versus the "Oscillators" group. Increasing the weight of the MAs group typically results in a smoother, less reactive signal, whereas increasing the Oscillators' weight makes the indicator more sensitive to short-term price fluctuations.

Multi-Timeframe (MTF) Analysis

The script allows users to calculate ratings based on a timeframe higher than the current chart. This is useful for identifying "top-down" market bias. The tool includes a non-repainting toggle for MTF data to ensure historical accuracy.

Markers and Alerts

Visual markers (triangles) can be enabled to highlight specific conditions, such as the signal breaching the "Strong" levels or a specific number of cumulative advances/declines. These markers serve as the foundation for the built-in alert system.

Details

The indicator functions by evaluating two primary categories of technical analysis tools:

1. Moving Averages (15 components): Includes Simple and Exponential Moving Averages (periods 10, 20, 30, 50, 100, 200), Hull Moving Average, Volume-Weighted Moving Average, and Ichimoku Cloud components.
2. Oscillators (11 components): Includes RSI, Stochastic, CCI, ADX, Awesome Oscillator, Momentum, MACD, Stochastic RSI, Williams %R, Bull Bear Power, and the Ultimate Oscillator.

Each component is assigned a value of +1 (bullish), 0 (neutral), or -1 (bearish). The indicator calculates the average for each group and then combines them based on the user-defined weight to produce the final rating.

Settings

Calculations

• Timeframe: Specifies the timeframe used for calculations.
• Repainting: Toggles whether the signal updates in real-time on the current bar or only after the bar closes.
• Rating uses: Selects whether to use only MAs, only Oscillators, or a weighted combination of both.
• Weight of MAs (%): Adjusts the percentage influence of the Moving Average group on the final rating.

Ratings display

• Plot style: Changes the visual representation (Columns, Histogram, Area, or Line).
• Colors (Bull/Bear/Neutral): Customizes the color scheme for different market states.

Alerts and markers

• Direction: Selects which types of signals (Long, Short, or Both) trigger markers and alerts.
• Alternate longs & shorts: When enabled, prevents consecutive alerts in the same direction.
• Longs/Shorts level: Sets the specific threshold the rating must cross to trigger an alert.
• Cumulative adv./decl.: Sets the number of consecutive signal increases or decreases required to trigger an alert.

FAQ

How do I interpret the different color intensities? The intensity of the bull or bear color is determined by cumulative advances or declines in the rating, capped at five levels. Brighter colors indicate a more sustained move in that specific direction.

Why does the rating differ from the built-in "Technicals" gauge? The built-in gauge often defaults to a 1D timeframe. Additionally, this version allows for custom weighting between MAs and Oscillators, which can result in different aggregate values compared to the standard 50/50 split.

How do I access this indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.