PMO can be used in many ways:
- PMO can be used to determine the OB/OS state. While the +2.5 to -2.5 is the usual range for broad stock market indexes, each price index will have its own “signature” range. You may have to tune this for your instrument.
- PMO triggers buy/sell on signal crossovers and ZERO crossovers.
- Common patterns like BullKiss, BearKiss are useful to track. See the link below for more info.
- Histo-only mode that can be used similar to MACD-Histo.
I have exposed all params as configurable. Have fun tuning :) Don't forget to share what you found for your instrument.
List of my public indicators: http://bit.ly/1LQaPK8
List of my app-store indicators: http://blog.tradingview.com/?p=970
Some Sample Charts:
// // @author LazyBear // // List of my public indicators: http://bit.ly/1LQaPK8 // List of my app-store indicators: http://blog.tradingview.com/?p=970 // study(title="DecisionPoint Price Momentum Oscillator [LazyBear]", shorttitle="DPMO_LB") src=input(close, title="Source") length1=input(35, title="First Smoothing") length2=input(20, title="Second Smoothing") siglength=input(10, title="Signal Smoothing") fr=input(true, title="Fill Region") ehc=input(false, title="Enable Histo Color") ebc=input(false, title="Enable Bar Colors") soh=input(false, title="Show Only Histo") slvl=input(false, title="Show OB/OS Levels") oblvl=input(2.5, title="OB Level"), oslvl=input(-2.5, title="OS Level") calc_csf(src, length) => sm = 2.0/length csf=(src - nz(csf)) * sm + nz(csf) csf i=(src/nz(src, src))*100 pmol2=calc_csf(i-100, length1) pmol=calc_csf( 10 * pmol2, length2) pmols=ema(pmol, siglength) d=pmol-pmols duml=plot(not soh and fr?(d>0?pmol:pmols):na, style=circles, color=gray, linewidth=0, title="DummyL") plot(0, title="MidLine") hc=d>0?d>d?lime:green:d<d?red:orange plot(d, style=columns, color=ehc?hc:gray, transp=80, title="Histo") sigl=plot(soh?na:pmols, title="PMO Signal", color=gray, linewidth=2, title="Signal") mdl=plot(soh?na:pmol, title="PMO", color=black, linewidth=2, title="PMO") fill(duml, sigl, green, transp=70, title="PosFill") fill(duml, mdl, red, transp=70, title="NegFill") barcolor(ebc?hc:na) plot(not soh and slvl?oblvl:na, title="OB Level", color=gray, linewidth=2) plot(not soh and slvl?oslvl:na, title="OS Level", color=gray, linewidth=2)
"Do PMO Sell Signals in All Three SPY Time Frames Spell Doom?"
"Currently for the S&P500, all three PMO signals (short-, medium-, and long-term) are in bearish mode."
Topping processes take a long time to form. My take? Watch this oscillator along with other indicators. I asked Lazybear to code this for
2 reasons: 1. Price momentum is but one part of the puzzle, but I feel (for my purposes) I need the info in the larger picture. 2. It's a
great complement to other studies such as bollinger bands, keltner channels, starc bands, volume studies and the like which I use.
The DPMO can be found on stockcharts.com and they have a fine platform for charting. I like TV's better (I like to tinker and be around others who like to do the same:)) Finally, the best two pieces of information is price action and the indicator between your ears...unbeatable!
This is one of the best indicators to be used in conjunction with your setups and having an alert for this one would be lucrative.
Any input would be appreciate! Thanks, all! Thanks, LazyBear. Yet again, you have seriously outdone yourself. Thank you for all of your hardwork, time and effort. I should be cutting you percentage cheques from my earnings. Help me get the alerts working and I will lol