Smart Oscillator Ultimate Document

Smart Oscillator Ultimate Document

I - Useable markets & timeframes

This indicator works effective in All Markets (Stocks, Currencies, Cryptocurrencies, Bonds, Futures....) and All Timeframes.

II - Suggested usage

Smart Oscillator Ultimate indicator is a Momentum Oscillator Indicator. This indicator should work together with Smart Vision Ultimate indicator as a confirmation indicator.

However, if you prefer to use this as a stand alone indicator, you can take Overbought/Oversold signals or Bearish/Bullish Divergence signals from this indicator to trade.

III - Guidelines

1. Settings

Oscillator

  • Oscillator Type: Available options: Price, Volume. It means using Price or Volume to calculate momentum oscillator.
  • Length: Look back period.
  • Smoothing Length: Look back period to make the signal smoothing.
  • Double Smoothing: Make the signal even more smoothing.

Display & Signals

  • Show Reversion Bands: Show/Hide the dynamic reversion bands.
  • Show Overbought/Oversold: Show/Hide the Overbought/Oversold signals.
  • Show Divergence: Show/Hide Divergence detection lines.

2. Interpretation

  • The middle horizon line is Zero Line.
  • Columns above and below Zero Line create a Histogram, like an oscillator, fluctuates above and below Zero line.
    We have 4 difference colors to help you see the histogram more visually:
     Green when histogram column is above Zero Line & higher than previous one.
     Lime when histogram column is above Zero Line & lower than previous one.
     Orange when histogram column is below Zero Line & lower than previous one.
     Red when histogram column is below Zero Line & higher than previous one.
  • In Volume Oscillator:
    – When columns are above Zero Line, it means the volume is rising. The current trend direction is supported and it may continues.
    – When columns are below Zero Line, it means the volume is falling. The current trend direction is weak and it may reverts.
  • In Price Oscillator:
    – When columns are above Zero Line, it means the market is bullish.
    – When columns are below Zero Line, it means the market is bearish.
  • Red Cloud with levels (difference red tones) in top and bottom are Reversion Bands. These bands are dynamic and calculated based on previous oscillators. When the Histogram is close or reach these bands, it tends to revert to the opposite side. Darker red means stronger reversion strength.
  • Red Circle means Overbought signal. The Histogram has been too hight and it is reverting. It is Sell signal. Supported in Price Oscillator only.
  • Blue Circle means Oversold signal. The Histogram has been too low and it is reverting. It is Buy signal. Supported in Price Oscillator only.
  • Red Line means Bearish Divergence. Price trend and Histogram trend are in difference directions. It is Sell signal. Supported in Price Oscillator only.
  • Blue Line means Bullish Divergence. Price trend and Histogram trend are in difference directions. It is Buy signal. Supported in Price Oscillator only.

3. Alert conditions

This component provides these Alert Conditions so you can use to create Alerts

  • Overbought: Fired when there is an Overbought signal.
  • Oversold: Fired when there is an Oversold signal.
  • Bearish Divergence: Fired when there is a Bearish Divergence signal.
  • Bullish Divergence: Fired when there is a Bullish Divergence signal.