PMO can be used in many ways:
- PMO can be used to determine the OB/OS state. While the +2.5 to -2.5 is the usual range for broad stock market indexes, each price index will have its own “signature” range. You may have to tune this for your instrument.
- PMO triggers buy/sell on signal crossovers and ZERO crossovers.
- Common patterns like BullKiss, BearKiss are useful to track. See the link below for more info.
- Histo-only mode that can be used similar to MACD-Histo.
I have exposed all params as configurable. Have fun tuning :) Don't forget to share what you found for your instrument.
List of my public indicators: http://bit.ly/1LQaPK8
List of my app-store indicators: http://blog.tradingview.com/?p=970
Some Sample Charts:
// // @author LazyBear // // List of my public indicators: http://bit.ly/1LQaPK8 // List of my app-store indicators: http://blog.tradingview.com/?p=970 // study(title="DecisionPoint Price Momentum Oscillator [LazyBear]", shorttitle="DPMO_LB") src=input(close, title="Source") length1=input(35, title="First Smoothing") length2=input(20, title="Second Smoothing") siglength=input(10, title="Signal Smoothing") fr=input(true, title="Fill Region") ehc=input(false, title="Enable Histo Color") ebc=input(false, title="Enable Bar Colors") soh=input(false, title="Show Only Histo") slvl=input(false, title="Show OB/OS Levels") oblvl=input(2.5, title="OB Level"), oslvl=input(-2.5, title="OS Level") calc_csf(src, length) => sm = 2.0/length csf=(src - nz(csf)) * sm + nz(csf) csf i=(src/nz(src, src))*100 pmol2=calc_csf(i-100, length1) pmol=calc_csf( 10 * pmol2, length2) pmols=ema(pmol, siglength) d=pmol-pmols duml=plot(not soh and fr?(d>0?pmol:pmols):na, style=circles, color=gray, linewidth=0, title="DummyL") plot(0, title="MidLine") hc=d>0?d>d?lime:green:d<d?red:orange plot(d, style=columns, color=ehc?hc:gray, transp=80, title="Histo") sigl=plot(soh?na:pmols, title="PMO Signal", color=gray, linewidth=2, title="Signal") mdl=plot(soh?na:pmol, title="PMO", color=black, linewidth=2, title="PMO") fill(duml, sigl, green, transp=70, title="PosFill") fill(duml, mdl, red, transp=70, title="NegFill") barcolor(ebc?hc:na) plot(not soh and slvl?oblvl:na, title="OB Level", color=gray, linewidth=2) plot(not soh and slvl?oslvl:na, title="OS Level", color=gray, linewidth=2)
Topping processes take a long time to form. My take? Watch this oscillator along with other indicators. I asked Lazybear to code this for
2 reasons: 1. Price momentum is but one part of the puzzle, but I feel (for my purposes) I need the info in the larger picture. 2. It's a
great complement to other studies such as bollinger bands, keltner channels, starc bands, volume studies and the like which I use.
The DPMO can be found on stockcharts.com and they have a fine platform for charting. I like TV's better (I like to tinker and be around others who like to do the same:)) Finally, the best two pieces of information is price action and the indicator between your ears...unbeatable!