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Cross UO v1

This is my first script.

I use 2x UO's as a tool to identify the stability and overall condition of a trend.
The UO colored blue is more reactive to price change (candles) than red one, because it takes into account less candles.
The difference in rates of change is a mass mental condition of a market.
The combo might predict the reversals too.

How to read a chart using it?
  • We'd know the uptrend is stable when Blue UO fluctuates OVER Red UO.
  • As blue UO reaches red band - it's time for reversal.
  • To confirm the reversal of an uptrend - Blue UO must cross below Red UO.
  • During downtrend, the blue and red UOs are reaching green band which would indicate that market is oversold.
  • Once Blue UO touches green band and crosses above red UO - it's time for downtrend to reverse it's direction.
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.

Want to use this script on a chart?

Comments

thx!
+1 Reply
this is cool!
+1 Reply
Thank you!
+1 Reply