Value Oscillator (Exponential) [EOsc]

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The Value Oscillator (Exponential) function calculates the difference between two exponential moving averages for a field, returning the difference as a raw value or percentage. This function differs from the other Value Oscillators only in the type of moving average that it uses. Parameters ------------------ Data               The data to use in the calculation. This is typically a field in a data series or a calculated value. Short Period   The number of bars of data to include in the shorter average, including the current value.                        For example, a period of 3 includes the current value and the two previous values. Long Period   The number of bars of data to include in the longer average, including the current value.                        For example, a period of 7 includes the current value and the six previous values. As Percent     A boolean value indicating whether to return the difference as a raw value or as a percentage.                        A value of zero indicates to return the actual difference in value.                        Any other value (non-zero) indicates to return the difference as a percentage. Function Value ------------------------ The Value Oscillator is calculated by subtracting the value of a longer term moving average from the value of a shorter term moving average. If it is expressed as a percentage, the value is relative to the shorter moving average and is traditionally multiplied by 100 for easier graphing. To make it relative to the longer period, reverse the order of the short and long periods and negate the result. The value of the exponential Value Oscillator at the beginning of a data series is considered to be zero. Since it uses exponential moving averages, its initial values will include the zero value in its calculation. Therefore, you may want to ignore values before the first longer period has been completed. Usage ----------- The Value Oscillator can be used for analyzing both price data and volume data. When analyzing price data, it can be used to detect price trends. Specifically, when the shorter term moving average decreases below the longer term moving average, prices have been trending lower. When this function is used in entry/exit systems, signals are typically generated when the value crosses zero or specific thresholds. Trading when a value oscillator crosses zero is functionally the same as trading when the shorter moving average crosses the longer moving average. See the sample entry/exit systems for examples of moving average crossing systems. Note that this is an extension of the MACD (Moving Average Convergence/Divergence), which is a Value Oscillator for 12-day and 26-day exponential moving averages expressed as a raw value. Signals are traditionally generated with the MACD when it crosses its own 9-day exponential moving average. When analyzing volume data, it can used to detect trends in market sentiment. For example, when the shorter term moving average decreases below the longer term moving average, overall volume is decreasing, indicating reduced interest in the current trend. Source ------------ This indicator is based on entries in "Technical Analysis From A To Z" by Steven B. Achelis.