Pivot Oscillator is based on three oscillators of average differences in typical prices.
There are four input parameters:
- Fast MA period - fast moving average period
- Medium MA period - medium moving average period
- Slow MA period - slow moving average period
- MA method - moving average calculation method
Calculation:
Pivot oscillator = (Diff1 + Diff2 + Diff3) / Typical Price
where:
Diff1 = FMA - SMA
Diff2 = MMA - SMA
Diff3 = FMA - MMA
FMA = MA(Typical Price, Fast MA period, MA method)
MMA = MA(Typical Price, Medium MA period, MA method)
MMA = MA(Typical Price, Slow MA period, MA method)
Typical Price = (Close + High + Low) / 3.0
