An additional trigger line is present in order to provide entry points from the crosses between the oscillator and the trigger line. More details are given below.
- Length : period of the oscillator
- Power : controls the sensitivity of the oscillator to retracements, with higher values minimizing the sensitivity to retracements.
- Src : source input of the indicator
The indicator also includes the following graphical settings:
- Gradient : Determines the color mode to use for the gradient, options include "Red To Green", "Red To Blue" and "None", with "None" displaying no gradient.
- Color fill : Determines whether to fill the area between the oscillator and the trigger line or not, by default "On".
- Circles : Determines whether to show circles highlighting the crosses between the oscillator and the trigger line.
The indicator can be used like any normalized oscillator, but unlike a classical , it does not converge toward 50 with higher length values. This is caused by the using a smooth input.
The power setting will minimize the impact of certain variations on the oscillator:
Here the oscillator at the bottom uses a power value of 1.5.
The trigger line is a smoothed using an as input, and it won't remain as near to 100 and 0 as the main oscillator. Using a moving average of the main oscillator as a trigger line would create faster crosses, but this approach allows us to have no crosses when a retracement is present.
As previously discussed the main oscillator uses an as input; this is computed using a smoothing factor derived from an oscillator, a similar known as ARSI, but unlike ARSI which uses a classical of the closing price for the calculation of the smoothing factor, our smoothing factor makes use of on the error, which provides a higher level of adaptiveness.
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.