As a popular indicator, Oscillator makes it easy and simple to interpret amplitude changes in the . Either an observed peak in positive or negative amplitude can be used to snipe high/low points or a crossover from a positive number to a negative amplitude can indicate the change of Accumulation to Distribution.
Hidden divergences can also be found by looking for differences in the price/volume amplitude, similar to OBV divergence rules.
// @author Mr. J, credit to JStewartTV for indicator idea and No1 for helping me get starting started coding. // If this code is use in whole or in part, please add credit. study("Accumulation Distribution Oscillator", shorttitle="AD OSC") //Declarations FMAAD=input(6) SMAAD=input(10) //Accumulation Distribution FVA = ema(accdist,FMAAD) //Leading Volume Average SVA = ema(accdist,SMAAD) //Tail Volume Average DeltaVolumeAD = FVA - SVA //Plotting plot_colorAD = DeltaVolumeAD >= DeltaVolumeAD ? purple : DeltaVolumeAD < DeltaVolumeAD ? white : na plot(DeltaVolumeAD, title="Histo", style=histogram, color=plot_colorAD, linewidth=1)