Description

• This oscillator, created by Mel Widner is a derivative of rainbow oscillator
• Bandwidth lines (upper and lower) are created for the highest high and lowest low of 9 simple moving averages of two period duration

Interpretation

• You can view upper and lower bandwidth lines
• If upper bandwidth line crosses above level 80, the stock is overbought
• If lower bandwidth line crosses below level 20, the stock is oversold

Default Parameters Used/Inputs

• Close Line
• Period
• Level

Returns/Output

Upper and lower bandwidth lines of the stock for specified period

Formula

BWUpper = 100 * (hiAvg - lowAvg) / diff
BWLower = (-100) * (hiAvg - lowAvg) / diff