The indicator counts the Up bars (Close-Open) and Down bars (Open-Close).

Calculation:

n = Up bars (Close>Open, first bar=1, last bar=n)

m = Down bars (Close<Open)

Oscillator indicator, my opinion - use it for filtering of entry, when UpDownBars is above 0 go only short and when UpDownBars is below 0 go only long.

Inputs:

• UpDown_Period = 20     // period for calculation UpDown bar indicator
• Average_Period = 10     // period for calculation Moving Average on indicator
• Average_Method = Simple // method of Moving Average