UCS_Murrey's Math Oscillator_V2

The UCS_Murrey's Math Oscillator_V2 indicator translates Murrey Math Line (MML) principles into a bounded oscillator format to help traders identify overbought/oversold conditions and trend strength based on price action fractals.

Usage

The Usage section describes how the script can be used to interpret market momentum and potential reversal zones. The oscillator fluctuates around a central zero line, which represents the Murrey Math midline.

• Trend Identification: When the oscillator bars are green and rising, it suggests bullish momentum. Conversely, red bars moving lower suggest bearish momentum.
• Overbought/Oversold Zones: The script highlights specific quadrants (1/8th fractions). The extreme boundaries (the 4th quadrants) indicate highly extended price action where reversals or consolidations are more likely to occur.
• Bar Coloring: Users can enable candle coloring to synchronize their main chart with the oscillator's state, providing a visual cue for trend transitions without looking away from the price action.

Details

The script is based on the concept of Murrey Math, which assumes that price movement behaves in fractals divided into eights. The indicator calculates the highest high and lowest low over a user-defined lookback period to establish the trading range.

The range is then divided using a multiplier (standardized at 0.125 or 1/8). The oscillator value is derived by comparing the current closing price to the calculated midline, normalized by the range. This version focuses specifically on the 1/8th fraction distribution, providing a clean column-based visualization of where the price sits within the current mathematical frame.

Settings

• Look back Length: Defines the number of bars used to calculate the highest high and lowest low for the Murrey Math range.
• Multiplier: Sets the fractional divisor for the quadrants; currently optimized for 0.125 (1/8).
• Show Murrey Math Fractals: Toggles the visibility of the horizontal quadrant lines within the oscillator pane.
• Show Bar Colors Based On Oscillator: When enabled, this will change the color of the price candles on the main chart to match the oscillator's momentum state.

FAQ

How do I interpret the different shades of the oscillator columns? The color intensity increases as the oscillator moves further away from the zero line, indicating strengthening momentum as it reaches the outer Murrey Math quadrants.

Can I change the multiplier to 0.25? While the input is available, this specific version is architected to support 1/8 fractions (0.125). Using other values may result in visual inconsistencies in the fractal lines.

How do I access the UCS_Murrey's Math Oscillator_V2? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.