I went through and added notes on what each area of the code is, and in this particular case I added color schemes as a way to improve upon the original code.
Link to original:
"Let me start by saying I know that the name is goofy lol
This is an oscillator that that looks at price action vs. standard deviation in order to illustrate the trend. This thing looks like an but the math behind this and the are totally different (which is pretty interesting, given they look a lot alike). I included the on the chart here so you can look at them and see where they are different.
So the Tip-and Dip Oscillator is meant to help you pinpoint tops and bottoms. I even added arrows where the top and bottom signals are given.
The oscillator itself has 3 colors, an up, down, and neutral color that come as green, red, and yellow. Since the readings given by the oscillator can greatly vary depending on the chart resolution, I included an option to edit the range to fit your chart.
Also - I have 4 different smoothing options that you can use depending on what your preference is. The default setting is the most sensitive so it will identify tops and bottoms more frequently, but it is the most accurate when pinpointing the correct reversal candle. As you smooth it out, the arrows will appear less, but my be slightly delayed and give a later reading. I personally prefer the default, but going up to the second setting in smoothing works nicely as well.
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.
As with the plotchar having "offset=s1 ? -1 : s4 ? -3 : -2" means the indicators onscreen when you look backwards over several hours to see how it would have performed, seem like they're quite accurately calling the top & bottom of open and close of trade, but as they are painting the entry and exit a few candles back based on the known action of last few candles, means they never show on the current candle close, so are basically showing with hindsight where you could have entered.
Which if on say 15 min or 1 hour timeframe as an example, isn't so great knowing where you "should" have entered over half an hour or an hour or 2 before:-)
When as a test, you delete that offset condition out so the signals are painted in the current closing candle when people would be looking for an entry, the success doesn't look as good and could cause losses if solely relying on these, so definitely needs to be used with other indicators for confirmation.