Stochastic Parameters Oscillator For ThinkOrSwim

[Randolph_Nomad]

Good Day all,
I've been a member for a few years, and everytime i use something on this site it teaches me; improving my technical analysis AND learning to read signals.

I decided to give some coding a try. forgive the pseudo program mgr context, but its easier for me to manage the approach this way.

Goal: Approximate a stochastic process that:

• Tracks near-term volatility dynamics (implied or realized).
• Flags momentum vs. mean-reversion conditions.
• Outputs a “probability reading” (or score) indicating the likelihood of a near-term run.

here's the code for the study: as I continue, any feedback is greatly appreciated

declare lower;

# -- 1) Declare inputs as "constant" values for lengths --
input HVLength = 20;       # Historical Volatility lookback
input RSIlength = 14;      # RSI lookback
input BollLength = 20;     # Bollinger (mean-reversion) lookback

# -- 2) Basic Price & Volatility Inputs --
def price = close;

# For HV, we can approximate with the standard deviation of log returns:
def dailyReturn = Log(price / price[1]);
def HV = StDev(dailyReturn, HVLength);
def IV = imp_volatility();  # TOS built-in implied volatility for the underlying

# -- 3) Momentum (RSI) --
# Instead of RSI(price, rsiLen), use RSI(length = RSIlength)
def rsiValue = RSI(length = RSIlength);

# -- 4) Mean-Reversion (Bollinger Z-Score) --
def avgPrice = Average(price, BollLength);
def stDevPrice = StDev(price, BollLength);
def zScore =
    if stDevPrice != 0 then
        (price - avgPrice) / stDevPrice
    else
        0;

# -- 5) Composite Probability-Like Score --
# Momentum Part: normalized RSI
def momentumPart = (rsiValue - 50) / 50;  # -1 (oversold) to +1 (overbought) scale

# Volatility Part: comparing IV and HV
def volPart =
    if IV < HV then
        1  # “Cheap” implied volatility vs realized
    else
        HV / IV;  # If IV > HV, ratio < 1

# Mean-Reversion Part: if zScore < -1, bullish snapback, if > +1, bearish
def mrPart =
    if zScore < -1 then
        1
    else if zScore > 1 then
        -1
    else
        0;

# Weight them (adjust coefficients to taste)
def stochParamRaw = (0.5 * momentumPart) + (0.3 * volPart) + (0.2 * mrPart);

# Convert raw value to 0-100 scale, just for a nicer read
def stochParamScore = Round(50 + 50 * stochParamRaw, 0);

# -- 6) Plot the "StochasticParam" Score --
plot SPScore = stochParamScore;
SPScore.SetDefaultColor(Color.CYAN);

 

[RickMoneyMoses]

I just input your code, I am excited to watch it today.
Do you know a good code for S/R to correlate with this? That for me would be a game changer