This oscillator was created exclusively by xCalper in 2015 based on moving averages calculations to indicate and try predicting oversold and overbought levels.

The fast line (white by default) oscillates basically between values -0.5 (oversold) and +0.5 (overbought).

Whenever the fast line crosses the value of -0.5 upwards, it means an oversold price level. When it crosses the value of +0.5 downwards, it means an overbought price level.

When fast line crosses the value of 0.0 and returns, it is a strong pull-back indication.

The slow line (yellow by default) is a simple average of the fast line with period and scale as parameters.

This line has similar interpretation of the fast line for its oversold/overbought levels. Additionally, slow line signal (positive, above 0.0 or negative, below 0.0) can guide trade direction in conjunction with the fast line.

This oscillator has better indications in sideway markets, where its optional but powerful price prediction can help traders and scalpers to enter and exit positions.

Options

• Periods
• Fast line period (2-20) - fast line calculation period. Default: 20
• Average line period - average line calculation period. Default: 9
• Timeframe
• Process all candles - forced calculation of the entire history. Default: False
• Prediction
• Show - display prediction prices
• Color - color of prediction prices
• Shift left - shift of prediction prices
• Auto-scale
• Reset - forced recalculation of the average line scale