This particular UO Cross is evolved into far more flexible and visually intuitive oscillator than previous versions.
After thorough experiments with the code of indicator, I came to new deductions on how to use it properly for random TF and made it simpler.
How to read a chart using UOX:
With this indicator we can understand:
It would be much better if you combine it with volume-based indicators.
Good luck!
After thorough experiments with the code of indicator, I came to new deductions on how to use it properly for random TF and made it simpler.
How to read a chart using UOX:
- Before uptrend takes place, we see the both indicator levels moving towards green dotted line (40).
- When green UO index passes below 40, it's an alert that the market is about to interact to new demand levels, coloring it blue for a potential reversal.
- Once green UO index is moving up and crossing above green dotted line - the second signal of uptrend established.
- Another strong sign of uptrend is when green UO index passes above red UO index, coloring the space in between 2 indicators greenish.
- At this point of time, we can be more confident that the general movement of the price is headed upwards, although we might see some small corrections there.
- During uptrend Green UO index will fluctuate above red UO index.
- Both indices will rise, getting closer and closer to red dotted line, which psychologically would be the first signs of the reversal of the uptrend.
- When you see green UO index passing above red dotted line 60, coloring orangish, that's a serious alert for upcoming reversal.
- I'll once more remind you that at this point of time both UO indices are at overbought levels, def above 50.
- You know the situation is serious when you witness red UO index being very close to red dotted line!
- To confirm the signals for downtrend, you must see green UO index go down and passing below red dotted line.
- Second confirmation of downtrend is when green UO index crosses below red UO index, and colors the space in between indices red.
With this indicator we can understand:
- Condition of the market
- Early signs and alerts for reversal
- Signals of entry
- Confirmations of those signals
- Visualized mass psychology behind domination of bulls / bears
It would be much better if you combine it with volume-based indicators.
Good luck!
Notes de version:
Few bug fixes