Price Oscillator Trend Reversal Strategy
Source: commodity.com/technical-analysis/price -oscillator/
Indicators:
Price Oscillator (PO): Calculated as the difference between two Exponential Moving Averages (EMAs):
Short EMA (Fast Period): 9 days
Long EMA (Slow Period): 18 days
Thresholds:
• Overbought Level: PO >+2
•Oversold Level: PO <-2
Entry Conditions
Buy Entry (Long Position):
•PO crosses above the zero line from below (bullish crossover).
• OR PO moves into the oversold region (<-2) and starts to increase, indicating a potential reversal.
Sell Entry (Short Position):
• PO crosses below the zero line from above (bearish crossover).
• OR PO moves into the overbought region (>+2) starts to decrease, indicating a potential reversal.
Exit Conditions
Exit Long:
•PO crosses back below zero line.
Exit Short:
•PO crosses above 0 line.
Source: commodity.com/technical-analysis/price -oscillator/
Indicators:
Price Oscillator (PO): Calculated as the difference between two Exponential Moving Averages (EMAs):
Short EMA (Fast Period): 9 days
Long EMA (Slow Period): 18 days
Thresholds:
• Overbought Level: PO >+2
•Oversold Level: PO <-2
Entry Conditions
Buy Entry (Long Position):
•PO crosses above the zero line from below (bullish crossover).
• OR PO moves into the oversold region (<-2) and starts to increase, indicating a potential reversal.
Sell Entry (Short Position):
• PO crosses below the zero line from above (bearish crossover).
• OR PO moves into the overbought region (>+2) starts to decrease, indicating a potential reversal.
Exit Conditions
Exit Long:
•PO crosses back below zero line.
Exit Short:
•PO crosses above 0 line.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.