Elliot Wave Oscillator

The Elliott Oscillator is a 34 period simple moving average of prices subtracted from a 5 period simple moving average of prices displayed as a histogram above and below a zero line.

Elliot wave analysts can use Elliot wave oscillator for identifying the 5-3 wave structure of price moves. The most important concept about the Oscillator is that the highest/lowest point of the Oscillator is connected to the bullish/bearish Wave 3 of Elliot wave structure. Elliot wave analysis is very complex and difficult for many traders. However Elliot wave oscillator can be used for divergence trading. In the image, observe the divergence between price and the oscillator. After divergence, observe the emergence of a down trend.

In its simplest mode, Elliot wave oscillator can be used for divergence trading between price and the oscillator. The oscillator shows the momentum of different waves. Oscillator can be used on any time frame. There is no parameters in the formula.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:ProgramDataVertexFX Client Terminals”Company name”VTL10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.