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LBR 3-10 Oscillator

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This is a variation of MACD popularised by Linda Bradford Raschke. Instead of the regular MACD settings, the this indicator uses simple moving averages, not exponential moving averages, and a setting of 3 for the fast MA, 10 for the slow MA and 16 for the signal line.

The signal line (red) acts as a trend indicator, with crossings of the zero line indicating trend changes, while the MACD line (blue) acts as a short term momentum indicator.

Setups:
- First cross: This is basically selling or buying at the first pullback after a trend change. Buy or sell after the signal line has crossed the zero line and the MACD crosses the signal line for the first time after the trend change. Use price action to time the entry after the pullback — you don't need to wait for the MACD to cross the signal line again.
- Pullback in a trend: The MACD crosses the signal line in the opposite direction of the trend irregardless of when the trend change occurred. Use price action to time the entry.
- Divergence: The MACD line shows a pattern diverging form price (e.g. makes higher lows whereas price makes lower lows). This can be an indication of trend reversal or waning.

In the indicator's input panel there is an option for showing standard deviation bands (turned off by default). MACD line crossing the standard deviation bands can indicate oversold and overbought conditions.

快照

The indicator comes with the following alerts:
- First cross downtrend
- First cross uptrend
- Pullback in downtrend
- Pullback in uptrend
- Trend change down
- Trend change up

Sources:
lindaraschke.net/wp-content/uploads/2013/11/upstairs1.pdf
netpicks.com/310-oscillator-macd/
版本注释
Updated to v5. Added MACD Histogram.
版本注释
Update chart annotations.
版本注释
Annotations.
版本注释
Fix inverted logic in volatility normalization option.
3-10-16Centered OscillatorslbrOscillatorsTrend Analysis

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