5‑Factor Market Bias For ThinkOrSwim

[jonshank62]

mod note:
This indicator reads the market’s bias and tells you whether the current bar is neutral, bullish, or bearish.
It converts five different pressures into a single weighted score, colors the line and the price bars based on that score, and prints a label that tells you the current state.

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I have come up with this bar-by-bar grading system with a lag time of 1 bar.
I have added different colors for different grades.

The lower study is choppy and hard to follow but does accurately display the choppiness of the market .

I have also added a label and color bar options.
I'm not usually a fan of color bars, but wow, for me, it is an eye-opener. It makes it easy to distinguish institutional bars from the common noise.

Also, yellow = natural is very interesting.
So far, every time a yellow is posted, the price, if not interfered with, will revert to the 20 PMA.

This is the code I am using with good success on all time frames

# WEIGHTED ENSEMBLE SYSTEM
# 5‑Factor Market Bias Model
# bar by bar analysis

declare lower;
# These defaults reflect real-world behavioral importance:
# 200 Sma >9 sma > rsi 4 > Obv > Break out >

input w1 = 4.0; # Weight for 200 Sma
input w2 = 4.0; # Weight for 9 SMA
input w3 = 4.0; # Weight for rsi (4)
input w4 = 4.0; # Weight for OBV direction
input w5 = 8.0; # Weight for Breakout Range

def score1 =
if close > Average(close, 200) then 0.5 else -0.5;

def score2 =
if Average(close, 8) > Average(close, 9)[1] then 0.5 else -0.5;

def score3 =
if rsi(4) > rsi(4)[1] then 0.5 else -0.5;

def score4 =
if OnBalanceVolume() > OnBalanceVolume()[1] then 0.5 else -0.5;

def score5 =
if close > Highest(high, 5)[1] then 0.5 else
if close < Lowest(low, 5)[1] then -0.5 else 0;

def finalScore =
score1 * w1
+ score2 * w2
+ score3 * w3
+ score4 * w4
+ score5 * w5;

plot ZeroLine = 0;
ZeroLine.SetDefaultColor(Color.GRAY);
ZeroLine.SetLineWeight (4);

plot pLine = 4.0;
pLine.SetDefaultColor(Color.GREEN);
pLine.SetLineWeight (3);

plot nLine = -4.0;
nLine.SetDefaultColor(Color.RED);
nLine.SetLineWeight (3);

plot Score = finalScore;
Score.SetLineWeight(3);
Score.SetPaintingStrategy(PaintingStrategy.LINE);

Score.AssignValueColor(
if finalScore > -2 and finalScore < 2 then Color.YELLOW else
if finalScore > 2.1 and finalScore <= 4 then Color.LIME else
if finalScore > 4.1 and finalScore <= 8 then Color .GREEN else
if finalScore > 8.1 then Color.DARK_GREEN else
if finalScore < -2.1 and finalScore >= -4 then Color.PINK else
if finalScore < -4.1 and finalScore >= -8 then Color.RED else
if finalScore < -8.1 then Color.DARK_RED else Color.GRAY);


input colorbars = yes;
AssignPriceColor(if !colorbars then Color.CURRENT else
if finalScore > -2 and finalScore < 2 then Color.YELLOW else
if finalScore > 2.1 and finalScore <= 4 then Color.LIME else
if finalScore > 4.1 and finalScore <= 8 then Color .GREEN else
if finalScore > 8.1 then Color.DARK_GREEN else
if finalScore < -2.1 and finalScore >= -4 then Color.PINK else
if finalScore < -4.1 and finalScore >= -8 then Color.RED else
if finalScore < -8.1 then Color.DARK_RED else
Color.GRAY );



# note if yellow printed then nutural and price will attempt to revert to movingAverage

input showLabel = yes ;
AddLabel(showLabel ,

if finalScore > -2 and finalScore < 2 then "neutral" else
if finalScore > 2.1 and finalScore <= 4 then "neutral +" else
if finalScore > 4.1 and finalScore <= 8 then "bull" else
if finalScore > 8.1 then "strong bull" else
if finalScore < -2.1 and finalScore >= -4 then "neutral -" else
if finalScore < -4.1 and finalScore >= -8 then "bear" else
if finalScore < -8.1 then "strong bear" else "unknown",

if finalScore > -2 and finalScore < 2 then Color.YELLOW else
if finalScore > 2.1 and finalScore <= 4 then Color.LIME else
if finalScore > 4.1 and finalScore <= 8 then Color.GREEN else
if finalScore > 8.1 then Color.DARK_GREEN else
if finalScore < -2.1 and finalScore >= -4 then Color.PINK else
if finalScore < -4.1 and finalScore >= -8 then Color.RED else
if finalScore < -8.1 then Color.DARK_RED else Color.GRAY , Location.top_right
, FontSize.LARGE);