Dynamic Momentum Oscillator
In July 1996 the future of the magazine, E. Marshall Wall introduces Dynamic Momentum Oscillator (Dynamo). Please see this article for interpretation.
He describes the Dynamo Oscillator to be:
Dynamo = mc - (Mao - O)
where
Mc = focal point of the oscillator
Mao = a moving average of the vibrator
O = the oscillator
This concept can be applied to most any oscillator to improve its results.
For example:
Applying the oscillator of Dynamo 5-period% K slowed 3 times Stochastic oscillator will give:
50 - (Mov (Stoch (5,3), 21, S)-Stoch (5,3))
where:
Mc = Stochastic Oscillator is a focal point = 50
Mao = moving average of the Stochastic = Mov (Stoch (5,3), 21 S
O = Stochastic Oscillator = Stoch (5,3)
This example relates to an oscillator RSI:
50 - (Mov (RSI (14), 21, S)-RSI (14))
where:
Mc = RSI is midpoint = 50
Mao = moving average of RSI = Mov (RSI (14), 21, M
O = RSI oscillator = RSI (14)
Monday, April 11, 2011
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