This oscillator is the combination of different settings RSI , RSX , STOCHRSI , MSI ,... in a Stochastic function that can help traders to understand the weakness and strength of momentum in candle sticks in different time frames.
This oscillator organized by three Line , control zone and Divergence Line 1:) Fast Line 2:) Slow Line 3:) Heavy Line 4:) Neutral Zone between Fibo 38.2% & 61.8% 5:) Bullish Control Zone 6:) Bearish Control Zone 7:) Divergence Line
And there are two theories of finding tradable signals behind those parts .
The first and the most simplest theory is the situation that the Fast Line has the possibility to be supported by Slow or Heavy Lines and basically reverse its slope !! But there are some rules and notes for this theory ... First of all the accuracy and rate of that is variable in three main categories of situation 1:) with or without price action reversal structure like reversal pattern (Head&Shoulder , Quasimodo , .... ) 2:) with or without regular divergence 3:) in which control zone ? So basically the most powerful setup occurs when price action is already in the reversal structure and the potential to have at least one drive of regular divergence exist and also the Fast Line is in the opposite control zone of the current time frame trend .... so obviously if one of those rules will not be satisfied so the signal will be the less value
The second theory is the signals that occur after the reversal, obviously a sign of trend continuation. there are two type of that you can use with this oscillator The first one happens when price reverses its trend and this oscillator is moving to the neutral zone ... so if at least one drive of hidden divergence exist the neutral zone will have good possibility to reverse the slope of the oscillator obviously this would happen usually after hidden divergence confirmed . and the second one is basically the first type but after the reversal Subsequently in the outside of the bullish/bearish control zone ... those kinds of signals are NOT the reversal potency signal at all !! they designed for trend continuation... be careful of them and try trade with your old friend trend ! .... also The existence of hidden divergences will be better for trade in this kind of signals .
The idea of this oscillator was inspired by @mrhashem Borjas Tarh Momentum.
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Style Update & Settings Updated.
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Settings Updated & Code Tweaks.
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Huge Update !!! Setting Updated , Code Tweaks , Style Updated and Divergence Algorithme Optimized . This is FINAL FIRST release .
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Few Bug Fixed .
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Smoothing Setting Updated.
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Code Tweaks and some Bug Fixed.
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Code Tweaks .
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Style Updated & BG Warning Added .
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Bug Fixed .
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Method calculating input added .
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BG Warning Updated .
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Changing heavy line smoothing mode option added .
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Setting Updated.
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Bug Fixed.
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Bug Fixed :))
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Style Updated & Slow line optimized.
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Second Final Release .
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Final Second Release .
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Bug Fixed & Style Updated .
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Entropy Line Added . this entropy [ log(close[0] / close[1]) ] calculated in stochastic function ... Entropy is a measure of randomness generally but it would be very useful to understand the emerging trends in the markets ... Basically when this Entropy Oscillator breaks 80-100 or 0-20 zone it means the current trend ended and there is a good possibility of starting a new one in one side direction ... so it doesN'T imply direction it implies volatility ! ...
and i found this concept very helpful in the confluence of Momentum itself ... So IF one of the reversal signals in Cyber Momentum occurs in the situation that Entropy confirmed current trend is not still valid that signal will have significant value for trading reversal price action ...
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Smoothing Optimized & Code Tweaks .
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Style Updated & Source Switching between Close|Hl2|HLC3|OHLC4 added .