Autocorrelative Power Oscillator (APO) [SpiritualHealer117]

This indicator is very strong in identifying short-term trends, and was made for trading stocks and commodities . When it is green, it indicates an uptrend, and red indicates a downtrend. The transparency of the columns illustrates the strength of the trend, with transparent columns indicating weakness, while solid columns indicate strength.

Basic Explanation of the Indicator
This indicator calculates an asset's Pearson's R coefficient when compared with several different lags of the stock's price. After that, the oscillator checks whether the indicator is in the green or red compared to those correlations, and takes the sum of the correlative periods to predict which direction the market should go based on the relationship of the current price with its past correlations.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


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