[blackcat] L2 Moving Average Oscillator

3 ott 2020

Level: 2

Background

OsMA is an abbreviation for the term Moving Average Oscillator (MAO). The OsMA is a technical indicator that shows the difference between an oscillator and its moving average over a period of time. The MACD is the most commonly used oscillator in the OsMA display, although any oscillator can be used. The MACD has a built-in moving average, which is the signal line. The signal line is an intersection of the MACD line. The OsMA is the difference or the distance between these two lines, which are usually drawn as a histogram. It can provide both a trend confirmation and possible trading signals.

Function

L2 Moving Average Oscillator combines advantages of moving average and oscillator. It can effectively reduce statruation effect of an oscillator under extreme market conditions.

Key Signal

fastline --> MAO fast line
slowline --> MAO slow line
trendline --> more stable trend line of fastline

Pros and Cons

Pros:

1. filter out oscillator fake signal with moving average processing
2. it is an oscillator that can detect overbought and oversold zones effectively


Cons:

1. need to select proper trading pair and time frame


Remarks

My first MAO indicator

Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

24 mar

Note di rilascio

█ OVERVIEW
The [blackcat] L2 Moving Average Oscillator is a sophisticated technical indicator designed to help traders identify potential buy and sell signals based on price momentum and trends. This script calculates multiple indicators including a fast line, slow line, and trend line to provide insights into market conditions.

█ FEATURES

• Advanced algorithm combining various smoothing techniques such as EMA, SMA, and WSM.
• Visual representation of overbought and oversold levels with customizable thresholds.
• Clear distinction between positive and negative historical data using colored columns.

█ HOW TO USE

1 — Install the script from TradingView's Pine Script editor or directly import it into your chart.
2 — Adjust input parameters if necessary through the settings panel for customization.
3 — Use the generated signals to inform trading decisions:
• Crossovers between the fast and slow lines may indicate short-term entry points.
• Divergences between the price action and the oscillator can signal reversals.
• Monitor column colors in the histogram for momentum strength.

█ LIMITATIONS

• The effectiveness of this strategy depends heavily on the time frame used; backtest thoroughly before live deployment.
• Historical performance does not guarantee future results.
• May produce false signals during choppy markets without proper filtering methods.