is an oscillator which compares current intraday highs and lows with the high and low of two bars ago.
The indicator oscillates between +100 and - 100, Default overbought and oversold conditions are 45/-45 respectively.
It was designed to avoid the pitfalls and complaints associated with other widely used and popular oscillators so that more accurate range trading executions can be made.
If (blue solid line) is in overbought / oversold condition for less then 5 bars and crosses the signal (red solid line) in the extreme area, this suggests a price reversal.
However if stays in the ob/os zone for more then 5 bars, it will print a "6" and this suggests the recent market move is strong and likely to continue.
The OS/OB zones will be highlighted if both and Signal enter an extreme zone reading.
daily*tip: Properly getting out of a position is as important as properly getting in. (c) Larry
Stay safe ;)
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.
All their life against the stream
Searching for a hook to catch on
And see their sun beam
Then suffocate in painful tortures
On cutting tables of callous men
Under a knife of handsome butchers
Emeralds are ripped away