Parametric Oscillator is an ATR based indicator that both shows the momentum in the market and overbought/oversold areas. The indicator has a price line that can be used for market timing.
This indicator is a good complement to Cumulative Delta (Expo). If you absolutely want to understand momentum and market timing, these indicators should be used together with Parametric ATR Signal (Expo).
HOW TO USE
1. Use the indicator to detect trends.
2. Use the indicator to assess the momentum in the market.
3. Use the indicator to identify overbought and oversold areas.
4. Combine the indicator with Cumulative Delta (Expo) and with Parametric ATR Signal (Expo).
INDICATOR IN ACTION
REGULAR – SCALE
• A positive trend: the are above the midline.
• A negative trend: the are below the midline.
• The midline can act as a support or
• The are approaching the upper-cloud
• The are approaching the lower-cloud
LOGARITHMIC – SCALE
• A positive trend: the are close to the upper cloud.
• A negative trend: the are close to the lower cloud.
• We must have a negative trend and the Price-line peak up above the midline.
• We must have a positive trend and the Price-line peak down below the midline
All types of momentum oscillator indicators produce divergences and so does Parametric oscillator (Expo). Divergences occur when the oscillator deviates from the trending price action. is then when the trending price makes a lower low but the oscillator makes a higher low. divergence is then when the trending price makes a higher high but the oscillator makes a lower high.
I hope you find this indicator useful, and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!
I will continue to work on this indicator, so please share your experience and feedback with me so that I can continuously improve it. Thanks to everyone that have contacted me regarding my scripts. Your feedback is valuable for future developments!
ACCESS THE INDICATOR
• Contact me on TradingView or use the links below
Copyright by Zeiierman.
The information contained in my scripts/indicators/ideas does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
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My scripts/indicators/ideas are only for educational purposes!
- Market change/reversal signals are added!
- Heads-up top signals added (Red triangles)
- Heads- up bottom signals added (Green triangles)
Heads-Up signals give early signs of when the market might top- or bottom out.
- New Long and Short Signals with Alerts Added.
- Improved Market Change/reversal Signals.
- Improved Heads-Up Signals.
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Great to hear that you liked the indicator!
I will release the Signal indicator after lunch today. :)