Fusion Oscillator (RSI+MFI+MACD+CCI+TSI+RVI)

The Fusion Oscillator (RSI+MFI+MACD+CCI+TSI+RVI) indicator aggregates multiple popular directional oscillators into a single unified average to visualize indicator agreement and trend strength. By normalizing various technical indicators into a standardized range, this tool helps traders identify high-probability reversal points and trend continuations through a consensus-based approach.

Usage

The tool is primarily used to identify market direction and potential exhaustion points. The white line represents the aggregate directional oscillator, changing color based on its position relative to the zero line.

• Directional Agreement: When the unified oscillator reaches extreme levels (above 1 or below -1), it indicates a strong consensus among the underlying indicators (RSI, MFI, etc.) regarding overbought or oversold conditions.
• Non-directional Filter: By enabling the "Plot Nondirectionals" setting, users can view an average of volatility-based indicators like ADX and ATR. This serves as a strength filter; buy or sell signals are generated only when volatility/trend strength meets the defined threshold.
• Sensitivity Tuning: The "Overall Length" input allows users to adjust the sensitivity of the internal calculations. A value of 3 is the default, while higher values reduce noise and prioritize accuracy over speed.

Details

To ensure each component carries equal weight, the script normalizes indicators like RSI, MFI, MACD, CCI, TSI, and RVI into a range typically between -1 and 1.

• Directional Components: Includes RSI, MFI, MACD, CCI, TSI, and RVI. These are averaged to create the "SuperDir" value.
• Non-directional Components: Includes ATR and ADX. These are used to gauge if there is sufficient market activity to validate a directional signal.
• Signal Logic: Buy signals occur when the directional source crosses above the buy threshold while the non-directional filter (strength) is above its minimum requirement. Sell signals occur when the source crosses below the sell threshold under similar strength conditions.

Settings

Display

• Plot Nondirectionals: Toggles the visibility of the ADX/ATR-based strength line.
• Plot Directionals: Toggles the visibility of the main fusion oscillator.
• Plot Directionals EMA?: Enables an exponential moving average of the main oscillator for smoothing.
• Directionals EMA Length: Defines the lookback period for the smoothing EMA.

Alert Management

• Alert Condition: Selects whether signals are triggered based on the raw Directional Source or the smoothed Directional EMA.

Central

• Overall Length: Adjusts the sensitivity/responsiveness of the internal oscillators.
• ND Buy/Sell Threshold: Sets the minimum non-directional strength required to trigger a signal.
• Directional Sell Threshold: The upper level where sell signals are triggered.
• Directional Buy Threshold: The lower level where buy signals are triggered.
• Correlation Length: The period used to calculate the correlation between ATR and ADX.

Individual Indicator Groups

• Directionals (RSI, MFI, MACD, etc.): Allows for independent adjustment of the lookback periods for each component indicator.
• Nondirectionals (ATR, ADX): Adjusts the lookback periods for the volatility and trend strength components.

FAQ

How do I interpret the fusion line?

The line represents the average of six different oscillators. When it is high, most indicators agree the market is overbought; when low, they agree it is oversold.

What is the "Overall Length" setting?

Unlike a standard lookback, this acts as a multiplier for the sensitivity of the composite oscillators. Increasing this value makes the indicator less sensitive to minor price fluctuations.

How can I access Fusion Oscillator (RSI+MFI+MACD+CCI+TSI+RVI)?

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