Spread Oscillator

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Re: Spread Oscillator

Postby Apprentice » Sat Jul 06, 2013 11:13 am

Is this correct formula
Value1 = (( Close[period]/Close[period- Length])- Data[Period]/Data[period-Length] ))*100;
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Re: Spread Oscillator

Postby Jeffreyvnlk » Sat Jul 06, 2013 11:33 am

Apprentice wrote:Is this correct formula
Value1 = (( Close[period]/Close[period- Length])- Data[Period]/Data[period-Length] ))*100;


Thank but may I move back to express by language literally

A.Dividing the price of Instrument 1 to that of Instrument 2
B. Doing the same but for a period (length) looking back
C. A minus B and divide to 100
D. Plot on the chart as an Oscillator with over/under value levels and Zero line

Strategy for trading: it advisable to wait the Oscillator from extreme levels (over/under value btw 2 instruments) crossing Zero line in order to long/short accordingly
Not only for trading but using for analysis. Right now XAU still overvalue to Bond so XAU would go lower, even go down faster because bond also in a down trend. Regarding USD cycles, XAU could go to 800$

Thank you for helping
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Re: Spread Oscillator

Postby Apprentice » Sat Jul 06, 2013 11:37 am

Can you revise your formula.
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Re: Spread Oscillator

Postby Jeffreyvnlk » Tue Jul 09, 2013 2:48 am

Apprentice wrote:Is this correct formula
Value1 = (( Close[period]/Close[period- Length])- Data[Period]/Data[period-Length] ))*100;

I think this is correct
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Re: Spread Oscillator

Postby Apprentice » Tue Jul 09, 2013 4:26 am

Spread Oscillator.png

Try this version
Spread Oscillator=((Close[period]/Close[period- Length])- Data[Period]/Data[period-Length]))*100;
Spread Oscillator.lua
(4.41 KiB) Downloaded 1013 times
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Re: Spread Oscillator

Postby Jeffreyvnlk » Sat Jul 20, 2013 7:25 am

Thank you

May I come back to OP ? I see your indicator great potential
Larry Williams suggest all instruments comparing to gold. Over a century,always 1 ounce of gold can buy you a nice suit ! So in term of currencies index he suggested the currency will be against 3 other stuff: gold, T-bond and USD index

I don't know here we have currencies indexes or not but let tweak this spread oscillator more.For example, under EUR/USD chart, instead of 3 underneath windows for 3 oscillators (EUR/USD vs. Gold/Bund/FXCM's USD index) , there would be just 1 window for all 3 ? Thanks

Larry W said about the concept of valuation. It different from oversold/overbought. Sometime the instrument oversold but not yet under valuation, shorting not recommended. In practice,when you see EUR over valuated to gold and USDindex (2 out of 3), preparing to short EUR.
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Re: Spread Oscillator

Postby Apprentice » Fri Jun 22, 2018 8:15 am

The indicator was revised and updated.
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Re: Spread Oscillator

Postby Emma_202 » Tue Aug 25, 2020 11:55 am

Jeffreyvnlk wrote:Thank you

May I come back to OP ? I see your indicator great potential
Larry Williams suggest all instruments comparing to gold. Over a century,always 1 ounce of gold can buy you a nice suit ! So in term of currencies index he suggested the currency will be against 3 other stuff: gold, T-bond and USD index

I don't know here we have currencies indexes or not but let tweak this spread oscillator more.For example, under EUR/USD chart, instead of 3 underneath windows for 3 oscillators (EUR/USD vs. Gold/Bund/FXCM's USD index) , there would be just 1 window for all 3 ? Thanks

Larry W said about the concept of valuation. It different from oversold/overbought. Sometime the instrument oversold but not yet under valuation, shorting not recommended. In practice,when you see EUR over valuated to gold and USDindex (2 out of 3), preparing to short EUR.


Has anyone tested this indicator to see how well it performs?

The Williams Valuation concept should in theory be relevant to understand how an economy, and by proxy its currency, is valued by investors.
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