SK Zones & Signals [CLEVER]

This Pine Script indicator, named "SK Zones & Signals", is a customized version of the standard by Sk [1]. It is designed to visually highlight overbought and oversold conditions and generate explicit trading signals within a separate pane below the price chart (overlay=false) [1].
Key Components

SK Calculation: The core of the indicator is the SK, a momentum oscillator that measures the speed and change of price movements [1]. By default, it uses a 14-period length (skLength).
Zones and Levels: The script defines and visually emphasizes specific threshold levels:
Overbought (OB): The standard level is set at 70.
Oversold (OS): The standard level is set at 30.

Extreme Zones: A shaded "Extreme Overbought Zone" is defined between 80 and 100 (shaded red), and an "Extreme Oversold Zone" is defined between 0 and 20 (shaded lime green).
Midline: A horizontal line is drawn at 50 to indicate the centerline.

Signals: When enabled (showSignals = true), the indicator plots "Buy" and "Sell" labels directly on the chart based on specific crosses:
Buy Signal: Generated when the SK line crosses above the 30 (oversold) level.
Sell Signal: Generated when the SK line crosses below the 70 (overbought) level.

How to Use It

The indicator provides a clear visual representation of market momentum:
Momentum Reading: The aqua line (SK line) indicates current momentum. Readings above 70 suggest the asset may be overbought and due for a reversal, while readings below 30 suggest it may be oversold [1].
XAUUSD USOIL DXY EURUSD XAUUSD
Extreme Conditions: When the line enters the shaded 80-100 red zone or 0-20 green zone, it indicates potentially strong price movements that might exhaust soon [1].
Signal Interpretation: The "Buy" and "Sell" labels offer potential entry or exit points based on the SK returning from extreme conditions toward the neutral zone [1].

This script allows traders to easily identify standard and extreme momentum conditions and potential reversal points at a glance.