Support And Resistance Oscillator

Support And Resistance Oscillator was authored by Art Putt. True Range, Highs, Lows, Opens and Closes all contribute to the construction of this oscillator; which is equiped with adjustable guides and highlighted as a tri-colored histogram. The user may change the input (close) and guide values. This indicator’s definition is further expressed in the condensed code given in the calculation below.

How To Trade Using SupportAndResistance Oscillator

Adjust the top and bottom guides to control the quantity and quality of the trading signals. SRO values above .70 to .80 are considered to be overbought and therefore offer an opportunity to sell. SRO values below .30 to .20 are considered oversold and present an opportunity to buy. If the SRO peaks above the top guide a sell signal will be generated. Conversely, if the SRO troughs below the bottom guide a buy signal will be given. The .50 line divides the bulls (above) from the bears (below).

How To Access in MotiveWave

Go to the top menu, choose Study>Oscillators>SupportAndResistance 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.

Important Disclaimer: The information provided on this page is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security. Please see our Risk Disclosure and Performance Disclaimer Statement.

Calculation

//input = price, user defined, default is closing price
//index = current bar number

tRange = getTrueRange(index);
close = price[index];
sro = 0;
if (tRange != 0) sro = ((High - open) + (close - Low)) / (2 * tRange);
 //Signals
highSell = sro for last sell signal, reset to max_negative at each  buy signal;
lowBuy = sro for last buy signal, reset to max_positive at each sell signal;
sell = (sro moreThan topGuide) AND (sro moreThan highSell);
buy = (sro lessThan bottGuide)  AND (sro lessThan lowBuy);