Infiten's Price Percentage Oscillator Channel (PPOC Indicator)

What is the script used for?
Infiten's Price Percentage Oscillator (PPOC Indicator) can be used as a contrarian indicator for volatile stocks and futures to indicate reversals, areas of support and resistance. For longer term trading, if the Short SMA or prices go above the High PPO Threshold line, it is a sign that the asset is overbought, whereas prices or the Short SMA going below the Low PPO Threshold line indicates that the asset is oversold.

What lines can be plotted?

• Low PPO Thresh - Calculated as -PPO Threshold * Short MA + Long MA : Gives the price below which the PPO hits your lower threshold
  
• High PPO Thresh - Calculated as PPO Threshold * Short MA + Long MA : Gives the price above which the PPO hits your upper threshold
  
• MA PPO : Plots candles with the Low PPO Thresh as the low, High PPO Thresh as the high, Short MA as the open, and Long MA as the close.
  
• Short SMA : plots the short simple moving average
  
• Long SMA : plots the long simple moving average
  

Customizable Values :

• Short MA Length : the number of bars back used to calculate the short moving average for a PPO
  
• Long MA Length : the number of bars back used to calculate the long moving average for a PPO
  
• PPO Threshold : the percent difference from the moving average expressed as a decimal (0.5 = 50%)
  

Recommendations:
Longer timeframes like 300 days are best with larger PPO Thresholds, I recommend using a PPO Threshold of 0.5 or higher. For shorter timeframes like 14 days I recommend setting smaller PPO Thresholds, like 0.3 or lower. I find that these values typically capture the most extremes in price action.