Oscillator MM (Market Mode) allows assessing the market state: In trend state or in cyclic state.
It has three configurable parameters:
- Period - calculation period;
- Delta - coefficient to calculate market waves;
- Fraction - half-width of the channel.
Calculations:
Mode = SMA(BP, Period2) Peak = Fraction * SMA(FPeak, 50) Valley = Fraction * SMA(FValley, 50)
where:
BP = 0.25 * (1-Alpha) * (High + Low - High[2] - Low[2]) + Beta * (1+Alpha) * PrevBP - Alpha * BP[2]
If PrevBP > BP and PrevBP > BP[2]:
FPeak = PrevBP
otherwise:
FPeak = PrevFPeak
If PrevBP < BP and PrevBP < BP[2]:
FValley = PrevBP
otherwise:
FValley = PrevFValley
Period2 = 2*Period + 5 Alpha = Gamma - Sqrt(Gamma*Gamma - 1), Gamma = 1/cos(4*Pi*Delta/Period), Beta = cos(2*Pi/Period)
