Fast oscillator

Fast oscillator is a VertexFX client side VTL indicator that analyzes the latest three bars on the basis of a quadratic function and is displayed as a histogram with two signal lines with different periods.

Signal lines are two moving averages with different periods. At the intersection of the signal lines the indicator introduces alerts in the price field as corresponding arrows. To obtain more accurate signals, you can find the optimal values of moving average periods.

Method of calculation and construction of the indicator:

1. We calculate the value of a linear weighted difference between the opening and closing prices on the last three bars of the following formula: – arrH(i)=(LnDif(i)+LnDif(i-1)/MathSqr(2))+LnDif(i-2)/MathSqr(3))/Point. where LnDif(i)=arrClose(i)-arrOpen(i);
2. According to the calculated values arrH (i) we make the calculation of the two moving averages with periods equal to 3 and 9.
3. Next, we define the intersection of moving averages, and in these areas we display signals for buying and selling in the form of red and blue arrows.

A linear weighted difference between the opening and closing prices on the last three bars displayed on the chart as a bluehistogram. Line moving average with a period equal to 3 is red, and with a period of 9 is green.

The input parameters of the indicator, you can specify different values of periods of moving averages. This enables you to obtain more accurate signals for the various financial instruments and timeframes. Fast oscilator indicator is concidered 2 candles faster than others MACD indicators.

BUY – Place Buy position when Fast oscilator indicator generates a Buy (Blue) arrow. Avoid entering trade if candle gaps up.
SELL – Place Sell position trade when Fast oscilator indicator generates a Sell (Red) arrow. Avoid entering trade if candle gaps down.

Indicator input parameters:
1- ma1 (default = 3) – the period of the fast moving average ;
2- ma2 (default = 9) – the period of slow moving average.

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.