The oscillator uses a 14-period . The is then double smoothed with exponential moving averages. The default settings for the smoothing periods are 5 and 3.
In a second step a signal line is generated from the smoothed by calculating a with a period of 9.
The Derivative Oscillator is calculated as the difference between the smoothed and the signal line and displayed as histogram.
All the values are configurable.
// // @author LazyBear // @credits Constance Brown // study(title = "Derivative Oscillator [LazyBear]", shorttitle="DO_LB") length=input(14, title="RSI Length") p=input(9,title="SMA length") ema1=input(5,title="EMA1 length") ema2=input(3,title="EMA2 length") s1=ema(ema(rsi(close, length), ema1),ema2) s2=s1 - sma(s1,p) c_color=s2 < 0 ? (s2 < s2 ? red : lime) : (s2 >= 0 ? (s2 > s2 ? lime : red) : na) plot(s2 , style=histogram, color=c_color)