LazyBear

DecisionPoint Price Momentum Oscillator [LazyBear]

The DecisionPoint Price Momentum Oscillator (PMO) is an oscillator based on a Rate of Change calculation that is smoothed twice with custom exponential moving averages. Because the PMO is normalized, it can also be used as a relative strength tool.

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.
- Divergences.
- 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.

More Info:
http://stockcharts.com/school/doku.php?st=pmo&id=chart_school:technical_indicators:dppmo

List of my public indicators: http://bit.ly/1LQaPK8
List of my app-store indicators: http://blog.tradingview.com/?p=970

Some Sample Charts:

TWTR:
snapshot

MSFT:
snapshot

GOOGL:
snapshot


Remove from Favorite Scripts Add to Favorite Scripts
//
// @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[1])) * sm + nz(csf[1])
	csf
i=(src/nz(src[1], 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[1]?lime:green:d<d[1]?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)
great works,thanks, I'm trying to code PMO in mt4 following your codes
Reply
Hi, What is the indicator that draws the Red and Green horizontal support and resistance lines?
Reply
It is RSI S/R Levels. More info: http://blog.tradingview.com/?p=970
Reply
yah yah yah... but wheres my damn Shadow Channels?
Reply
LazyBear PRO Futuraman
You mean this one?
snapshot


ping me, we can work out a deal to make this "your" shadow channels. :P
Reply
Oh you are such a tease!!!
Reply
The word "excellent" was mentioned three times already in the comments and I add one (two) more. This indicator script is really excellent :) Thank you!
Reply
ChartArt ChartArt
FYI:

"Do PMO Sell Signals in All Three SPY Time Frames Spell Doom?"

"Currently for the S&P500, all three PMO signals (short-, medium-, and long-term) are in bearish mode."
http://stockcharts.com/articles/decisionpoint/2015/06/spy-do-pmo-sell-signals-in-all-three-time-frames-spell-doom.html
Reply
rmwaddelljr ChartArt
Short answer: No. Longer answer: "CONCLUSION: While price action is still bullish--Trend Model signals are BUY in all time frames--PMOs in all time frames tell us that the market is being undermined internally. In particular, the weekly and monthly PMOs are negative and it will require persistently positive price action to reverse the outlook in those time frames. Bottom line, in my opinion, the market is probably in a topping process that will result in a significant decline." (to quote stockcharts)

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!
Reply
Xolus rmwaddelljr
Thank you for requesting this PMO indicator from LazyBear then. I had come around the stockcharts.com description page of it once while surfing, but had never tested the indicator itself before. And yes, there is definitely a topping process going on.
Reply
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