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Oscillators > Mobility Oscillator

Article/Author: “Guaging Mobility With Price Distributions”, Mel Widner, Stocks&Commodities Magazine, Traders Tips, 02/1996

Download: mo.ela

File Includes:

Indicator - Mobility Oscillator
Function - MO
Function - PDF

Category: Indicator > Oscillators

Description:

The price distribution function, which analyzes the distribution of prices over a lookback period, is useful for predicting price mobility. Here's a new method called the mobility oscillator that will allow you to do so.

Price mobility, the ease with which prices move, can be assessed by constructing price distribution functions and determining congestion and the location of the current price compared with the congestion. That is not to say that moves will happen, since other external factors not in the market influence moves, but that it is easier. When congestion develops and the current price is in a congested region, an abrupt move often follows.

Usage:

One should create charts in time of the PDF and the current price. Further interpretation is needed to develop useful guides for trading decisions.
If consecutive data is considered, certain patterns emerge. The regions of high congestion and low mobility represented by peaks and regions of low congestion and high mobility represented by valleys.




Inputs:

M - number of intervals
LookBack - lookback period

EasyLanguage Code:
INPUTS: M(10), LOOKBACK(14);

PLOT1(-MO(M,LOOKBACK),"MOBILITYOSC");

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