Price Cycle Oscillator (PCO)
The Price Cycle Oscillator (PCO) was authored by Larry Williams. The PCO uses a Moving Average of the close minus the low, divided by the Average True Range times 100. The user may change the inputs (close, low), method (SMA), period length and guide values. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using the Price Cycle Oscillator
No trading signals are calculated for this indicator.
How To Access in MotiveWave
Go to the top menu, choose Study>Custom>Price Cycle Oscillator
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//input1 = price, user defined, default is closing price
//input2 = price, user defined, default is low price
//method = moving average (ma), user defined, default is SMA
//avPeriod = user defined, default is 22
//atrPeriod = user defined, default is 22
//index = current bar number
price1 = input1[index]; price2 = input2[index]; cl = price1 - price2; avg = ma(method, index, avPeriod, CL); //Average True Range (atr) atr = sma(index, atrPeriod, TR); Plot: pco = (avg / atr) * 100.0;