Adaptive Resonance Oscillator [AlgoAlpha]

Overview:
The Adaptive Resonance Oscillator is an advanced momentum-based oscillator designed to dynamically adjust to changing market conditions. This innovative indicator detects market frequency through a Hilbert Transform approach, adapting in real-time to identify overbought and oversold conditions with improved accuracy. With built-in divergence detection, trend analysis, and customizable smoothing, this tool is perfect for traders looking to refine their entries and exits based on adaptive oscillation mechanics.


How It Works:
The indicator begins by applying a Hilbert Transform frequency estimation to the price series, identifying the dominant market cycle length. This is used to calculate a period for the RSI that matches its resonant frequency with the dominant market frequency, dynamically adjusting the Oscillator. The oscillator then applies an optional Hull Moving Average (HMA) smoothing for signal refinement. Additionally, the indicator scans for bullish and bearish divergences by comparing oscillator movements against price action, plotting signals accordingly. When overbought/oversold conditions or divergence events occur, alerts are triggered to notify the trader in real time.


Example:



Features:

• Adaptive Frequency Detection ? Uses Hilbert Transform principles to dynamically determine market cycle length for precise oscillator calculation.
• Customizable Smoothing ? Option to apply a Hull Moving Average (HMA) for enhanced signal clarity.
• Divergence Detection ? Identifies bullish and bearish divergences with visual markers, helping traders spot early trend reversals.
• Overbought & Oversold Signals ? Highlights extreme momentum conditions with adjustable thresholds.
• Real-Time Alerts ? Get notified for crossovers, divergences, and strong trend shifts directly on your TradingView chart.
• Fully Customizable Appearance ? Modify colors, divergence sensitivity, and smoothing options to fit your trading style.

Availability:

• FREE
• Open-Source

Linkback: https://www.forex.zone/tradingview-pine-script-indicators/41/adaptive-resonance-oscillator-algoalpha/4601/