This is the Ultimate (Nonlinear) Oscillator in overlay format. Took me a while to figure out the best configuration and finally found this one. From what I've observed, this is basically a support/resistance line indicator. When the candle moves thru the supporting/resisting line, its a entry/exit point or an indicator that the opposite side should be targeted depending on the market condition. Ignore the wicks as they go thru the line constantly.
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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.
study(title="[LAVA] Ultimate Nonlinear Oscillator", shorttitle="UNO_L", overlay=true) length7 = input(7, minval=1), length14 = input(14, minval=1), length28 = input(28, minval=1) average(bp, tr_, length) => sum(bp, length) / sum(tr_, length) lowers = highest(low, length14) uppers = lowest(high, length14) high_ = max(high, close) low_ = min(low, close) bp = close - low_ tr_ = high_ - low_ tp_ = uppers - lowers avg7 = average(bp, tr_, length7) avg14 = average(bp, tr_, length14) avg28 = average(bp, tr_, length28) out = 100 * (4*avg7 + 2*avg14 + avg28)/7 upper = uppers-out*(tp_*.015) lower = lowers+out*(tp_*.018) p2 = plot(lower, color=#00FF00, title="UNO TOP") p3 = plot(upper, color=#FF0000, title="UNO BOT")