Normalized Market Internals Oscillator and Inverted VIX for ThinkOrSwim

[dart966]

I created 2 different lower indicators to view averaged Market Internals and the Inverted VIX:

• Updated code to add a dashed vertical line when $TICK is +/- 800 or $TICK is +/- 1000
• Added Strength Labels for $VOLD and $ADD as well as added $TICK

1.) Market Internals Oscillator + Normalized Inverted VIX V03
http://tos.mx/!rNxMAKPX (shared link for indicator)

What the Script Does

• VIX Normalized Candlesticks
  • VIX (volatility index) is normalized (z‑score) and inverted so that falling volatility signals time to get bullish.
  • Plots candlesticks of this normalized VIX:
    • Light green = VIX falling (bullish for equities).
    • Light red = VIX rising (bearish for equities).
    • White = Doji (neutral).
• Market Internals Oscillator
  • Combines $VOLD (volume up vs down), $ADD (advancers vs decliners), and $TICK (upticks vs downticks).
  • Normalizes the combined line into a z‑score.
  • Plots fast and slow moving average bands around it:
    • Blue when fast > slow (bullish breadth).
    • Yellow when fast < slow (bearish breadth).
• VIX Bands
  • Similar fast/slow bands applied to the normalized VIX oscillator.
  • Green when fast > slow (volatility easing).
  • Red when fast < slow (volatility rising).
• Overbought/Oversold Zones
  • Fixed thresholds at +2.5 to +3 (pink cloud = overbought) and ‑2.5 to ‑3 (lime cloud = oversold).
  • These highlight extreme conditions where reversals are more likely.

Tutorial: How to Use It

1. Add the study to a lower panel in ThinkOrSwim.
2. Watch the oscillator bands:
   • Blue internals + Green VIX = bullish confirmation.
   • Yellow internals + Red VIX = bearish confirmation.
   • Mixed colors = caution/chop.
3. Check extremes:
   • If the oscillator enters the pink cloud, the market is stretched to the upside → watch for pullbacks.
   • If it enters the lime cloud, the market is stretched to the downside → watch for rallies.
4. Look for confluence:
   • Strongest signals occur when internals and VIX agree (both bullish or both bearish).
   • Divergence between them often precedes volatility or trend changes.
5. Use as a market timing tool:
   • This study is best for gauging overall market conditions (breadth + volatility).
   • Apply its signals to decide whether to lean long, short, or stay cautious on individual trades.

In short: This indicator helps you see breadth strength vs volatility pressure in one pane. Use the color cues (blue/yellow for internals, green/red for VIX) and the OB/OS clouds (pink/lime) to spot trend bias, extremes, and potential reversals. Also, included an input for "bandMultiplier" so one can adjust the width of the bands for better visualization.


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2.) Market Internals Oscillator + Inverted VIX Oscillator (TMO method) V04
http://tos.mx/!0mxdw2Jv ( shared link for indicator)

What the Script Does
This study combines two powerful market measures into one lower‑pane oscillator:
VIX (volatility index) is and inverted so that falling volatility = bullish signal.

• The indicator is first normalized (z‑score), then filtered through the Mobius' True Momentum Oscillator (TMO) method, which counts directional moves and smooths them with EMAs.
  
  
• This produces some really nice divergences.

Tutorial: How to Use It

• Same as above.

Another nice intraday indicator :
$ADSPD & $TICK with Fractal Linear Energy for ThinkorSwim
https://usethinkscript.com/threads/adspd-tick-with-fractal-linear-energy-for-thinkorswim.21846/