is a momentum oscillator developed by J. Wilder. The original version of rescaled the measurement to range. While the rescaling is useful for readability, This non-rescaled version tells the exact average of the movement for the past period, and give another way to put the reading into context of current market condition.
█ Description & How To Use
1. The (+/-) in value indicates the direction
Example 1: of 2.33 means average gain is 2.33 bigger than average loss for the past period (Equivalent to 70)
Example 2: of -2.33 means average loss is 2.33 bigger than average gain for the past period (Equivalent to 30)
Example 3: of 0 means average gain is equal to average loss for the past period (Equivalent to 50)
Look at comparison below:
2. You can use it exactly how you would use RSI: Overbought/Oversold state, Divergence, Trend identification, Failure Swings etc..
- Overbought/Oversold line still maintainable as standard level (70,30) in user input screen. The script will recalculate and plot the ob/os level accordingly
- Value Label to indicate the and RS value
- Custom Gradient Color Scheme
The absolute value is capped at 20 to avoid ratio value too big(or too small). This is enough to get accurate equivalent of reading between 5-95
Past performance is not an indicator of future results.
My opinions and research are my own and do not constitute financial advice in any way whatsoever.
Nothing published by me constitutes an investment/trading recommendation, nor should any data or Content published by me be relied upon for any investment/trading activities.
I strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
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.