[blackcat] L1 Vitali Apirine Stochastic Distance Oscillator

15 Mei 2023

Level 1

Background

Vitali Apirine published an article of “The Stochastic Distance Oscillator” on June 2023. I rewrite it for pine script.


Function

Vitali Apirine offers a new twist on the classic stochastic oscillator, which he calls "Stochastic Distance Oscillator" (SDO). The SDO is an impulse study that shows the size of the current range versus the maximum/minimum range range over a period of time. The study can be used for stocks or indices that are trending, but is also useful for trading ranges. Overbought and oversold levels can help spot upside and downside trend changes.

Remarks

Feedbacks are appreciated.

23 Apr

Nota Keluaran

OVERVIEW
The [blackcat] L1 Vitali Apirine Stochastic Distance Oscillator is a unique technical indicator designed to measure the distance between current prices and their moving averages over different periods. This oscillator helps traders identify potential buy and sell opportunities by highlighting overbought and oversold conditions. With customizable parameters and clear visual signals, it provides valuable insights into market momentum and potential reversals 📈💹.

FEATURES

Calculates the Stochastic Distance Oscillator (SDO) based on specified periods:
Long-term period: Default set to 200 bars.
Short-term period: Default set to 12 bars.
Smoothing period: Default set to 3 bars.
Includes adjustable overbought and oversold levels:
Overbought level: Default set to 40.
Oversold level: Default set to -40.
Plots the SDO line along with zero, overbought, and oversold lines for easy visualization:
Yellow line represents the SDO value.
Red line indicates the overbought level.
Green line indicates the oversold level.
White line represents the zero level.
Generates buy ('Buy') and sell ('Sell') labels on the chart for quick identification 🏷️
Provides alerts when buy or sell signals are triggered 🔔
HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Adjust the Long-Term Period, Short-Term Period, Smoothing Period, Overbought Level, and Oversold Level parameters as needed to suit your trading strategy ⚙️.
Monitor the chart for buy and sell labels indicating potential trade opportunities.
Set up alerts based on the generated signals to receive notifications when conditions are met 📲.
Use the overbought and oversold levels as additional context for market sentiment analysis.
LIMITATIONS

The indicator may generate false signals in highly volatile or ranging markets 🌪️.
Users should combine this indicator with other forms of analysis for more reliable trading decisions.
The effectiveness of the indicator may vary depending on the asset and timeframe being analyzed.
NOTES

Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Customize the appearance and parameters as needed to fit your trading strategy.
<b]THANKS

Special thanks to Vitali Apirine for developing the original concept behind the Stochastic Distance Oscillator 🤝.