RodgerDodger12

MomentumAccelerationOscillator (MAO)

This new oscillator quantifies acceleration in momentum. There are a number of key features:

1. Values above zero signify an acceleration in buying momentum
2. Values below zero signify an acceleration in selling momentum
3. Green bars above the zero line signify increasing acceleration in buying momentum.
4. Red bars above the zero line signify decreasing acceleration in buying momentum.
5. Red bars below the zero line signify increasing acceleration in selling momentum.
6. Green bars below the zero line signify decreasing acceleration in selling momentum.

This oscillator can be used to build many trading systems. Here are two ideas:

1. Buy on crossover of the zero line (=acceleration in buying momentum). Exit on two consecutive red bars (=decreasing acceleration in buying momentum).
2. In existing up trend (MAO > 0), buy on colour change from grey to green (=increasing acceleration in buying momentum). Exit on two consecutive red bars (=decreasing acceleration in buying momentum).
Release Notes: - Adjusted the equation for calculating momentum acceleration
- Updated colouring:
Above zero = lime/olive;
Below zero = red/maroon;
Increasing buying acceleration = lime;
Decreasing buying acceleration = olive;
Increasing selling acceleration = red;
Decreasing selling acceleration = maroon;
Release Notes: Updated horizontal histogram colouring
Protected script
This script is published closed-source and you may use it freely. You can favorite it to use it on a chart. You cannot view or modify its source code.
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