Stoch.RSI+RSI+MFI+CM_Williams_Vix_Fix_V3

The Stoch.RSI+RSI+MFI+CM_Williams_Vix_Fix_V3 indicator combines four popular volatility and momentum oscillators into a single workspace to provide a comprehensive view of overbought and oversold conditions. It aims to help traders identify potential market bottoms and trend reversals by correlating momentum shifts with synthetic volatility peaks.

Usage

The tool displays several layers of technical data:

• Stochastic RSI & RSI: Used to identify momentum exhaustion. The Stochastic %K and %D lines are plotted alongside a standard RSI line to highlight short-term price strength.
• Money Flow Index (MFI): This volume-weighted oscillator helps confirm if price movements are backed by significant volume, indicating the strength of a potential reversal.
• Williams Vix Fix (WVF): Plotted as a background histogram, this synthetic VIX identifies market bottoms by measuring price relative to its recent high.
• Bar Coloring: The script includes automated bar coloring based on specific WVF criteria:
  • Aqua: Highlights when the WVF was in a peak state and has now retreated (potential bottom confirmation).
  • Fuchsia/Orange: Represents filtered and aggressive entry signals based on price action strength and look-back conditions.

Details

This script integrates the "Williams Vix Fix" logic developed by ChrisMoody, which recreates the Chicago Board Options Exchange Volatility Index (VIX) for any asset. By calculating the percentage drop from the highest high over a look-back period, the indicator identifies "fear" peaks. When these peaks coincide with oversold readings on the RSI and MFI, the probability of a corrective bounce or trend reversal increases. This version uses Pine Script v6 and includes optimized alert logic and visual filtering.

Settings

Oscillators

• Stochastic %K Smoothing: The period used to smooth the Stochastic %K line.
• Stochastic %K Moving Average: The period for the %D signal line.
• RSI Length: The look-back period for the Relative Strength Index.
• Stochastic Length: The look-back period for the Stochastic calculation.
• MFI Length: The look-back period for the Money Flow Index.

Williams Vix Fix

• LookBack Period Standard Deviation High: The period used for calculating the WVF.
• Bollinger Band Length: Length for the volatility bands surrounding the WVF.
• Bollinger Band Standard Deviation Up: The multiplier for the upper volatility band.
• Look Back Period Percentile High: The period for calculating the highest percentile rank.
• Highest Percentile: The threshold (e.g., 0.90 for 90%) used to identify extreme WVF peaks.

Visuals & Alerts

• Show Highlight Bar options: Toggle specific candle coloring for WVF states and filtered entries.
• Entry Price Action Strength: Number of bars back used to confirm price is closing higher for entry signals.
• Show alerts plot: Enables visual plotting of alert triggers on the oscillator pane.

FAQ

How do I interpret the Williams Vix Fix histogram?

The histogram represents market fear; tall green bars indicate that the current price is significantly lower than recent highs, suggesting a potential bottom. When these bars change color or end, it often signals the start of an upward move.

What do the different bar colors on the chart mean?

Aqua bars indicate that a volatility peak has just finished. Fuchsia and Orange bars represent more complex filtered signals that combine WVF exhaustion with positive price action strength.

How can I access Stoch.RSI+RSI+MFI+CM_Williams_Vix_Fix_V3?

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