Market Strength Analyzer: A Comprehensive Indicator for Market Trends and Volume Dynamics

To succeed in trading, understanding market strength and momentum is crucial. The Market Strength Analyzer script offers traders a well-rounded perspective by combining RSI, MACD, OBV, Stochastic Oscillator, VWAP, and Ichimoku Cloud to provide a detailed assessment of market conditions. Whether you are a day trader, swing trader, or long-term investor, this script delivers actionable insights to optimize your trading decisions.

⚠ Disclaimer: No indicator guarantees profits. Market Strength Analyzer should be used as a strategic tool alongside proper risk management and thorough market analysis.

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🛠 Key Features of the Market Strength Analyzer Indicator

📊 Relative Strength Index (RSI) Analysis:

• Tracks overbought and oversold conditions with customizable RSI length settings.
• Provides clear trend indications with “Overbought,” “Oversold,” and “Neutral” statuses.

📈 On-Balance Volume (OBV) for Market Flow Assessment:

• Analyzes buying and selling pressure based on volume.
• Detects accumulation or distribution phases by comparing current and past volumes.

📉 MACD (Moving Average Convergence Divergence) Integration:

• Identifies trend strength and potential crossovers.
• Differentiates between buyer and seller dominance.

🔄 Stochastic Oscillator for Momentum Analysis:

• Helps identify overbought and oversold conditions with smoothed signals.
• Provides additional confirmation of trend strength.

☁ Ichimoku Cloud Analysis:

• Tracks support/resistance levels and overall trend direction.
• Helps traders spot potential breakouts or reversals.

📊 Volume Analysis:

• Measures current volume against a moving average to assess relative strength.
• Classifies volume as “High” or “Low” based on a user-defined threshold.

🏷 VWAP (Volume Weighted Average Price):

• Compares price action with VWAP to determine market bias.
• Provides buy/sell signals based on price positioning relative to VWAP.

📊 Comprehensive Market Strength Evaluation:

• Aggregates multiple indicators to classify overall market conditions.
• Displays market strength visually with color-coded signals.

🖥 Dashboard for Easy Interpretation:

• A visually appealing table summarizing key indicator statuses.
• Displays trend bias (Buyers vs. Sellers) in an easy-to-understand format.

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📊 Recommended Usage

Scalping:

• Timeframes: 1-minute to 5-minute charts.
• Use VWAP and RSI for quick entry/exit signals.

Day Trading:

• Timeframes: 15-minute to 1-hour charts.
• Combine Ichimoku Cloud with MACD to confirm trends.

Swing Trading:

• Timeframes: 4-hour to daily charts.
• Leverage OBV and volume analysis to spot accumulation phases.

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🔍 Script Evaluation

Functionality: ⭐⭐⭐⭐⭐ (4.8/5)

• Combines multiple indicators effectively to provide market insights.

Ease of Use: ⭐⭐⭐⭐☆ (4.3/5)

• Some understanding of technical indicators is required for optimal usage.

Accuracy: ⭐⭐⭐⭐☆ (4.5/5)

• Provides reliable results in trending markets; additional confirmation may be needed in ranging conditions.

Repainting Analysis:
The script does not repaint. All calculations are based on confirmed price action, making it reliable for both live trading and backtesting.

Optimal Timeframes:

• Scalping: 1-minute to 5-minute charts.
• Day Trading: 15-minute to 1-hour charts.
• Swing Trading: 4-hour to daily charts.

Overall Score: ⭐⭐⭐⭐⭐ (4.6/5)
An excellent indicator for traders looking for a holistic market analysis tool.

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//@version=6
indicator("Market Strength Analyzer", overlay=true)

// RSI Calculation
length = input.int(14, title="RSI Length")
overbought = input.int(70, title="Overbought Level")
oversold = input.int(30, title="Oversold Level")
rsi = ta.rsi(close, length)

// Determine RSI Status
var string rsiStatus = na
if rsi >= overbought
    rsiStatus := "Overbought"
else if rsi <= oversold
    rsiStatus := "Oversold"
else
    rsiStatus := "Neutral"

// OBV Calculation
obv = ta.cum(close > close[1] ? volume : close < close[1] ? -volume : 0)

// Determine OBV Status
var string obvStatus = na
if obv > obv[1]
    obvStatus := "Buyers"
else if obv < obv[1]
    obvStatus := "Sellers"
else
    obvStatus := "Neutral"

// MACD Calculation
[macdLine, signalLine, _] = ta.macd(close, 12, 26, 9)
macdStatus = macdLine > signalLine ? "Buyers" : "Sellers"

// Stochastic Oscillator Calculation
stochLength = input.int(14, title="Stochastic Length")
k = ta.sma(ta.stoch(close, high, low, stochLength), 3)
d = ta.sma(k, 3)
stochStatus = k > d ? "Buyers" : "Sellers"

// Ichimoku Cloud Calculation
conversionPeriods = input.int(9, title="Conversion Line Period")
basePeriods = input.int(26, title="Base Line Period")
laggingSpan2Periods = input.int(52, title="Lagging Span 2 Period")
displacement = input.int(26, title="Displacement")

conversionLine = ta.sma(math.avg(high, low), conversionPeriods)
baseLine = ta.sma(math.avg(high, low), basePeriods)
leadingSpanA = math.avg(conversionLine, baseLine)
leadingSpanB = ta.sma(math.avg(high, low), laggingSpan2Periods)
laggingSpan = close[displacement]

ichimokuStatus = close > conversionLine and close > baseLine ? "Buyers" : "Sellers"

// VWAP Calculation
var float cumulative_pv = na
var float cumulative_v = na
if (na(cumulative_pv))
    cumulative_pv := close * volume
    cumulative_v := volume
else
    cumulative_pv := cumulative_pv + close * volume
    cumulative_v := cumulative_v + volume

vwap = cumulative_pv / cumulative_v
vwapStatus = close > vwap ? "Buyers" : "Sellers"

// Volume Calculation
volumeThreshold = input.float(100000, title="Volume Threshold")
volumeStatus = volume > volumeThreshold ? "High Volume" : "Low Volume"

// Moving Average of Volume
volumeMA = ta.sma(volume, 20)
volumeMAStatus = volume > volumeMA ? "High Volume" : "Low Volume"

// Relative Volume Calculation
relativeVolume = volume / volumeMA
relativeVolumeStatus = relativeVolume > 1 ? "High Relative Volume" : "Low Relative Volume"

// Combined Volume Indicator
var string combinedVolumeStatus = na
if (volumeStatus == "High Volume" and volumeMAStatus == "High Volume" and relativeVolumeStatus == "High Relative Volume")
    combinedVolumeStatus := "Strong Buyers"
else if (volumeStatus == "Low Volume" and volumeMAStatus == "Low Volume" and relativeVolumeStatus == "Low Relative Volume")
    combinedVolumeStatus := "Strong Sellers"
else
    combinedVolumeStatus := "Neutral"

// Determine Overall Market Strength
var string overallStatus = na
buyersCount = 0
sellersCount = 0

if rsiStatus == "Overbought"
    buyersCount := buyersCount + 1
else if rsiStatus == "Oversold"
    sellersCount := sellersCount + 1

if obvStatus == "Buyers"
    buyersCount := buyersCount + 1
else if obvStatus == "Sellers"
    sellersCount := sellersCount + 1

if macdStatus == "Buyers"
    buyersCount := buyersCount + 1
else if macdStatus == "Sellers"
    sellersCount := sellersCount + 1

if stochStatus == "Buyers"
    buyersCount := buyersCount + 1
else if stochStatus == "Sellers"
    sellersCount := sellersCount + 1

if ichimokuStatus == "Buyers"
    buyersCount := buyersCount + 1
else if ichimokuStatus == "Sellers"
    sellersCount := sellersCount + 1

if vwapStatus == "Buyers"
    buyersCount := buyersCount + 1
else if vwapStatus == "Sellers"
    sellersCount := sellersCount + 1

if combinedVolumeStatus == "Strong Buyers"
    buyersCount := buyersCount + 1
else if combinedVolumeStatus == "Strong Sellers"
    sellersCount := sellersCount + 1

if buyersCount > sellersCount
    overallStatus := "Strong Buyers"
else if sellersCount > buyersCount
    overallStatus := "Strong Sellers"
else
    overallStatus := "Neutral"

// Create Table for Displaying Indicator Values and Statuses
var table dashboardTable = table.new(position.top_right, 2, 10, border_width=1, border_color=color.new(color.blue, 90), frame_color=color.new(color.blue, 90), frame_width=1)

// Update Table with Indicator Values and Statuses
table.cell(dashboardTable, 0, 0, "RSI Value", bgcolor=color.new(color.purple, 90), text_color=color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 1, 0, str.tostring(rsi, "#.##"), bgcolor=color.new(color.purple, 90), text_color=color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 0, 1, "RSI Status", bgcolor=color.new(color.purple, 90), text_color=rsiStatus == "Overbought" ? color.red : rsiStatus == "Oversold" ? color.green : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 1, 1, rsiStatus, bgcolor=color.new(color.purple, 90), text_color=rsiStatus == "Overbought" ? color.red : rsiStatus == "Oversold" ? color.green : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 0, 2, "OBV Status", bgcolor=color.new(color.purple, 90), text_color=obvStatus == "Buyers" ? color.green : obvStatus == "Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 1, 2, obvStatus, bgcolor=color.new(color.purple, 90), text_color=obvStatus == "Buyers" ? color.green : obvStatus == "Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 0, 3, "MACD Status", bgcolor=color.new(color.purple, 90), text_color=macdStatus == "Buyers" ? color.green : macdStatus == "Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 1, 3, macdStatus, bgcolor=color.new(color.purple, 90), text_color=macdStatus == "Buyers" ? color.green : macdStatus == "Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 0, 4, "Stochastic Status", bgcolor=color.new(color.purple, 90), text_color=stochStatus == "Buyers" ? color.green : stochStatus == "Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 1, 4, stochStatus, bgcolor=color.new(color.purple, 90), text_color=stochStatus == "Buyers" ? color.green : stochStatus == "Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 0, 5, "Ichimoku Status", bgcolor=color.new(color.purple, 90), text_color=ichimokuStatus == "Buyers" ? color.green : ichimokuStatus == "Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 1, 5, ichimokuStatus, bgcolor=color.new(color.purple, 90), text_color=ichimokuStatus == "Buyers" ? color.green : ichimokuStatus == "Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 0, 6, "VWAP Status", bgcolor=color.new(color.purple, 90), text_color=vwapStatus == "Buyers" ? color.green : vwapStatus == "Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 1, 6, vwapStatus, bgcolor=color.new(color.purple, 90), text_color=vwapStatus == "Buyers" ? color.green : vwapStatus == "Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 0, 7, "Combined Volume Status", bgcolor=color.new(color.purple, 90), text_color=combinedVolumeStatus == "Strong Buyers" ? color.green : combinedVolumeStatus == "Strong Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 1, 7, combinedVolumeStatus, bgcolor=color.new(color.purple, 90), text_color=combinedVolumeStatus == "Strong Buyers" ? color.green : combinedVolumeStatus == "Strong Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 0, 8, "Overall Strength", bgcolor=color.new(color.purple, 90), text_color=overallStatus == "Strong Buyers" ? color.green : overallStatus == "Strong Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 1, 8, overallStatus, bgcolor=color.new(color.purple, 90), text_color=overallStatus == "Strong Buyers" ? color.green : overallStatus == "Strong Sellers" ? color.red : color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 0, 9, "Credits", bgcolor=color.new(color.purple, 90), text_color=color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)
table.cell(dashboardTable, 1, 9, "This indicator was created by an Iranian programmer, Benyamin", bgcolor=color.new(color.purple, 90), text_color=color.white, text_size=size.small, text_halign=text.align_center, text_valign=text.align_center)

// Add Background Color Based on RSI Status
bgcolor(rsi >= overbought ? color.new(color.red, 90) : rsi <= oversold ? color.new(color.green, 90) : na)

🛠 How to Apply the Market Strength Analyzer in TradingView

1. Open TradingView and log in.
2. Go to the Pine Script Editor (found under “Pine Editor”).
3. Copy and paste the provided script code.
4. Click Save, name the script (e.g., “Market Strength Analyzer”).
5. Click Add to Chart to visualize the indicator.
6. Adjust settings according to your preferred trading style and timeframe.

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💡 Additional Trading Tips

• Combine with Price Action:
  Use support/resistance levels to confirm signals from the indicator.
• Manage Risk Effectively:
  Always set stop-loss levels based on ATR or recent support/resistance.
• Trade with the Trend:
  Avoid counter-trend trades unless significant market conditions justify it.

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🎯 Final Thoughts
The Market Strength Analyzer offers traders a robust trading solution by consolidating multiple indicators into a single, easy-to-read dashboard. Whether you’re aiming to scalp quick profits or hold swing positions, this indicator provides valuable insights into market momentum and trend strength.

However, no trading tool is infallible, and this script should always be used in conjunction with other analysis techniques and sound risk management.

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Stay informed, stay disciplined, and leverage Market Strength Analyzer to maximize your trading potential! 🚀

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Let me know if you’d like further improvements or additional information!