[RS]Linear Decay Oscilator V0 — Indicator by RicardoSantos

experimental linearregression decay oscillator

EXPERIMENTAL: binary oscillator based on linear regression.
the master line has 1/4 of the decay.

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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Want to use this script on a chart?

study(title="[RS]Linear Decay Oscilator V0")
src = input(title='Source:', type=source, defval=hl2)
smoothing = input(title='Source Smoothing:', type=integer, defval=4)
decay = input(title='Decay:', type=float, defval=0.001)

smooth_src = sma(src, smoothing)

previous_lr = nz(lr[1], smooth_src)
lr = smooth_src > previous_lr ? previous_lr+decay : smooth_src < previous_lr ? previous_lr-decay : previous_lr

previous_master_lr = nz(master_lr[1], smooth_src)
master_lr = smooth_src > previous_master_lr ? previous_master_lr+decay/4 : smooth_src < previous_master_lr ? previous_master_lr-decay/4 : previous_master_lr

macd = sma(smooth_src-lr, smoothing)
signal = macd > 0 ? 1 : macd < 0 ? -1 : 0

master_macd = sma(smooth_src-master_lr, smoothing)
master_signal = master_macd > 0 ? 1 : master_macd < 0 ? -1 : 0

plot(title='Follower', series=signal, style=columns, color=signal > 0 and master_signal > 0 ? green : signal < 0 and master_signal < 0 ? maroon : gray, transp=75)
plot(title='Master', series=master_signal, color=master_signal > 0 ? green : master_signal < 0 ? maroon : gray, linewidth=4)
hline(title='0', price=0, color=black)