The calculation for both is the same. In this case I added the 5 day which is the blue line. The difference between the blue line and the AO is the which is also described in NTD and is usually plotted in a different indicator ( ).
This is the base for the following signals:
2nd Wise Man
The signals are triggered and shown on the main chart screen through the use of OS . This indicator (AO) provides further insight in analyzing those signals by reading the AO, its current position and evolution directly.
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.