Indicator: ElliotWave Oscillator [EWO]

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This oscillator has to be used in conjunction with other EW tools (certainly cannot be the main indicator).

EWO             has:
- Higher values during third waves' up
- Lower but still Positive values during the first and fifth waves up
- Negative values during the biggest corrections or downtrend impulse waves.

Personally, I am still trying to figure out EW, so do not use this. Just wanted to publish this for the EW masters out there who can put this to good use.

Appreciate any comments/feedback.
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// @author LazyBear
study(title = "Elliot Wave Oscillator [LazyBear]", shorttitle="EWO_LB")
s2=ema(close, 5) - ema(close, 35)
c_color=s2 <= 0 ? red : lime
plot(s2, color=c_color, style=histogram, linewidth=2)
Hey Lazy Bear, run this by He's a big EW guy and I'd be curious what he has to say.

+1 Reply
Yup, checked with him before publishing. The "warning" in the first line is from him actually.

My plan now is to take one of his EW charts and add this indicator there to see how EWO confirms his EW wave cycles :) Hopefully will get to it tomm.
+3 Reply
grahvity LazyBear
Cool. I look forward to seeing that.
+1 Reply
5th wave makes divergence from 3rd wave.
4th wave returns to zero line which then creates the setup for the 5th wave divergence

EWO is sensitive to the period you are using it on. You can't use it on a daily chart to count intraday waves. You need to figure out what bar length corresponds to what degree wave you are trying to identify. For longer term cycle waves, daily works. For intraday noise, 1 hr is best. 30 minute works on occasion for early detection of tops/bottoms. 4 hr divergence is good for confirming a trend change in a move that lasts for days to a week. YMMV, so do some testing of your own.

It won't let me insert my chart so here is an example of what I was talking about
LazyBear PRO RyNinDaCleM
This is very good info, thanks for sharing.

You can insert an image here by clicking on the chart button (top right in the text box).
I believe it uses SMA instead of EMA.
Revisiting a 6mo old indicator :)

Yes, you are correct, EWO seems to be SMA rather than EMA. Looks like the one I ported to Pine used EMA.

Here are some good links on how to use this for nailing down W3.

Here's the updated code:

// -----------------------------------------
// @author LazyBear
study(title = "Elliot Wave Oscillator ", shorttitle="EWO_LB")
s2=sma(close, 5) - sma(close, 34) // 5/34 and not 5/35 as published above.
c_color=s2 <= 0 ? red : lime
plot(s2, color=c_color, style=histogram, linewidth=2)
FrancisS LazyBear
Dear Sir, I love your indicator. Could you try to add False Bar for the Oscillator ? Example
What is a false bar? That link is not opening for me (session timedout error).
FrancisS LazyBear
Sorry Sir. I download it and shared from below : .. Thank you
RyNinDaCleM FrancisS
With EWO that would be unnecessary. EWO won't embed in such a situation. It is used primarily to find tops/bottoms through divergences and to determine where we are in a wave structure. It is not a momentum indicator like stochastics, and does not offer overbought/oversold ranges. I would recommend not to use it as such. EWO is more like the MACD. Boundless and oscillates around zero. It is more sensitive however, so it does move fast and can give the appearance of over bought/sold situations.
Thx for this indicator! Here ( is written that: "The Elliott Oscillator is most effective when the chart has the "correct" number of bars. From 100 to 150 bars is the correct number of bars to use with the oscillator. Dr. Bill Williams suggests 100-140. Tom Joseph implies that 150 is right. We like to use about 120 bars, which is comfortably in the middle of that range, and which has consistently produced reliable results." IF this should be the truth, could you please modify the script that once in use it will "per default" push to display only certain Nr of the bars?
Thank you
Sinuhet Sinuhet
1) I modified the script as Lasy Bear mentioned above
2) Created 2 snapshots: the dirrerence between two is by the 2nd chart I simply used the "backward" button to load almost 2 years of daily bars additionally. I personally do not see any difference in form or amplitude, between both these charts...
Sinuhet Sinuhet
sorry, by mistake published 2 same charts... this is the other one for comparision...
I do not think there is a way to force a specific number of bars to be displayed. It is an interesting request, though.

Can you plz post this in getsatisfaction? Thanks.
richyrmgy LazyBear
Is there anyway to include the breakout bands showing on the last page on this link:
richyrmgy richyrmgy I think you can use this link as a guide to add the breakout bands.
Hi I like so much your indicator, I don´t known write code, but i Found a php code with breaking bands, like advanced get, but I can´t fix to pine editor.
Best regard,

Reference to Picture in:

--Converted by Kelvinhand --



MP = (H+L)/2;
Price1 =ma(MP,5) - ma(MP,35) ;
AvgP = ema(Price1,Len);

clr = IIf(AvgP > 0, colorrgb(183,179,142), IIf(AvgP < 0, colorrgb(110,136,177), colorGrey50));
Plot(AvgP, "AvgP", clr, styleNoLabel|styleHistogram|styleThick);

clr = IIf(Price1 > 0, colorYellow, IIf(Price1 < 0, colorBlue, colorGrey50));
Plot(Price1, "Osc535", clr, styleNoLabel|styleHistogram|styleThick);

for(i=0; i<40; i++)
UpperBand =LowerBand= Price1;
FedeMerello tradinggg
@tradinggg, @LazyBear the EWO + Braking bands could be a great trading combo , do you test both in the same script?
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