Dap's Oscillator- Short Term Momentum and Trend.

11 באוג׳ 2022

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DAP's OSCILLATOR:

WHAT IS IT?
This Oscillator was created to inspire confidence in the short-term trend of traders. This will work very well with a volatility metric (I recommend BBWP by The_Caretaker)

WHAT IS IT MADE OF?
1. Consists of a series of equations (mainly the difference between simple to exponential moving averages) and Standard deviations of these moving average differences (length equivalent to the length of sampled ma's)
2. These equations are then boiled down through an averaging process array, after averaging the covariants are equated against the variants of the positive side of the array. This is what is presented as the aqua line.
3. The RC average (yellow) is the sma following the DAP'S Oscillator at a specified length
4. The most important part of this indicator is simply the momentum oscillator represented as a green or red line based on the value relative to the Oscillators.

HOW DO I USE THIS?
As I mentioned before mixed with a volatility metric, it should set you up for a good decision based on short-term trends. I would say to be careful for periods of consolidation, with the consolidation the momentum often meets hands with DAP's Oscillator and can cause fake-outs. You want to spot divergences from the price to the momentum difference, as well as room to work down or upward to secure a good entry on a position.

CHEAT CODE'S NOTES:

I appreciate everyone who has boosted my previous scripts, it means a lot. If you want to translate words to pine script onto a chart, feel free to PM me. I would be happy to help bring an indicator to life. I may take a quick break but will be back shortly to help create more cheat codes for yall. Thanks!

-Cheat Code