Developed by Donald Lambert, the ( ) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold. It is also used to assess price trend direction and strength. This information allows traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.
• The measures the difference between the current price and the historical average price.
• When the is above zero it indicates the price is above the historic average. When is below zero, the price is below the hsitoric average.
• High readings of 100 or above, for example, indicate the price is well above the historic average and the trend has been strong to the upside.
• Low readings below -100, for example, indicate the price is well below the historic average and the trend has been strong to the downside.
• Going from negative or near-zero readings to +100 can be used as a signal to watch for an emerging uptrend.
• Going from positive or near-zero readings to -100 may indicate an emerging downtrend.
• is an unbounded indicator meaning it can go higher or lower indefinitely. For this reason, overbought and oversold levels are typically determined for each individual asset by looking at historical extreme levels where the price reversed from." ----> 1
1: (SINCE IM NOT A "PRO" MEMBER I C'ANT POST THE SOUCRE URL..., webpage consulted at : 8:50 GMT -5 ; the 2020-01-18)
I- Added a 2nd MA length and changed the default values of the source type and switched the to a MA.
II- In process to add analytic histogram correlation and if possible, ploting a relative histogram between the upper and lower band.
Don't set your moving averages lengths to far from each other... This could result in fewer convergence and divergence, also in fewer crossing MA's.
Have a good year 2020 !!