Based on the source
https://www.tradingview.com/script/nUms ... scillator/Stochastic distance oscillator (SDO), a momentum indicator introduced by Vitali Apirine in an article featured in TASC's June 2023 edition of Traders' Tips. The SDO is a variation of the classic stochastic oscillator and is designed to identify overbought and oversold levels, as well as detect bull and bear trend changes.
The readings of the SDO can be used to identify the following states of the asset price:
Uptrend state: the oscillator crosses over 50 from a non-uptrend state.
Downtrend state: the oscillator crosses under -50 from a non-downtrend state.
Overbought state: the oscillator is in an uptrend and crosses -50 for the first time.
Oversold state: the oscillator is in a downtrend and crosses 50 for the first time.
Trend continuity: the oscillator crosses 0 in the direction of the current trend.