Andean oscillator, updated version from this click
Indicator have MTF, alerts/arrows with choosable methods.
Andean Oscillator - An Innovative Technical Indicator Developed Through an Online Algorithm for Trend Analysis
A novel and straightforward technical indicator, known as the Andean Oscillator, is introduced with the objective of determining both the direction and the magnitude of trend variations in a security. This indicator utilizes an online algorithm and is designed to be applicable for high-frequency trading.
The Andean Oscillator provides users with various insights, primarily focusing on the bull and bear elements.
- When the bull component (green line) rises, it signals bullish price movements, while a rising bear component (red line) indicates bearish price movements.
- If the bull component is above the bear component, it suggests that the market is trending upward, and users can anticipate new higher highs. Conversely, if the bear component is above the bull component, it indicates a downward trend, and users can expect new lower lows.
- The signal line (white dashed line as default) enhances the interpretation of the indicator and can be utilized in different ways:
- It can help filter out potential false signals that may arise from the interactions between the bullish and bearish components. Therefore, users might consider entering a position when either the bullish or bearish component crosses the signal line.
There are various methods to measure the extent of price trend variations based on their direction (up-trend/down-trend). The method used by this indicator employs exponential envelopes along with a straightforward calculation of standard deviation.
Initially, exponential envelopes are created from both the regular prices and their squared values, resulting in two upper limits and two lower limits.
To find the bullish component, the upper limit of the squared prices is subtracted from the upper limit of the regular prices, and then the square root of that result is calculated.
The bearish component is derived similarly, but it uses the lower limits of the exponential envelopes.
