Karobein Oscillator
Alex Grover released the Karobein Oscillator on TradingView which is a code that was originally developed by Emily Karobein and is an oscillator that aims to rescale smoothed values with more reactivity in a range of (0,1)
Calculation
The scaling method is similar to the one used in a Kalman filter for the Kalman gain.
We first average the up/downs x, those calculations are similar to the ones used for calculating the average gain/loss in the relative strength index.
a = ema(src < src ? x : 0,length)
b = ema(src > src ? x : 0,length)
where src is a exponential moving average of length period and x is src/src in the standard calculations, but anything else can be used as long as x > 0.
Then we rescale the results.
c = x/(x + b)
d = 2*(x/(x + c*a)) - 1
How To Use the Karobein Oscillator
It is better to use centerline-cross/breakouts/signal line.
In general when we use something smooth as input in oscillators, breakouts are better than reversals, you can see this with the stochastic and rsi.
So a simple approach could be buying when crossing over 0.8 and selling when crossing under 0.2.
Here is the balance of a strategy using those conditions, length = 50.
Made this version with color change on slope, seems okay but wondering how close it is to Alex Grover's TV version.
