3/10 Oscillator

Modified on 2014/04/08 11:31 by Eugene — Categorized as: Community Indicators

Syntax

```
public LBR3_10(DataSeries ds, int period1, int period2, string description)
public static LBR3_10 Series(DataSeries ds, int period1, int period2)public LBR3_10_Histogram(DataSeries ds, int period1, int period2, int period3, string description)
public static LBR3_10_Histogram Series(DataSeries ds, int period1, int period2, int period3)public LBR3_10_Signal(DataSeries ds, int period1, int period2, int period3, string description)
public static LBR3_10_Signal Series(DataSeries ds, int period1, int period2, int period3)
```

Parameter Description

 ds The source DataSeries period1 First simple moving average period period2 Second simple moving average period period3 Slow (signal) line period

Description

Linda Bradford Raschke's 3/10 Oscillator is essentially the well-known Moving Average Convergence Divergence indicator. The only substantial difference is in the type of moving average used: the 3/10 Oscillator is constructed with simple moving averages while MACD uses exponential MAs.

According to the author, the 3/10 Oscillator calculates the difference between a fast 3 bar simple moving average and a slower 10 bar simple moving average, and then adds a 16 bar simple moving average of the difference.

Interpretation

Refer to the MACD documentation.

Calculation

Here's an extract from Linda Raschke's site outlining the indicator construction:

To construct this oscillator, first subtract a 10 period simple moving average from a 3 period simple moving average. We often refer to this as the "fast line." Next, create a 16-period simple moving average of the "fast line" - we refer to this line as the "slow line." It is also useful to plot a horizontal line at the zero value. We plot all three lines together on our charts beneath the price.

Example

The following example will plot MACD and 3/10 Oscillator together to demonstrate their similarities and differences:

```
using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;
using Community.Indicators;namespace WealthLab.Strategies
{
public class CompareMACDwithLBR : WealthScript
{
protected override void Execute()
{
MACDEx macdex = MACDEx.Series(Close,3,10);
MACDEx_Histogram macdexHist = MACDEx_Histogram.Series(Close,3,10);
MACDEx_Signal3 macdSignal = MACDEx_Signal3.Series(Close,3,10,16);			LBR3_10 lbrOsc = LBR3_10.Series(Close,3,10);
LBR3_10_Histogram lbrOscHist = LBR3_10_Histogram.Series(Close,3,10,16);
LBR3_10_Signal lbrOscSignal = LBR3_10_Signal.Series(Close,3,10,16);

ChartPane macdPane = CreatePane(50,true,true);
ChartPane lbrPane = CreatePane(50,true,true);
DrawHorzLine(macdPane,0,Color.Blue,LineStyle.Dashed,1);
DrawHorzLine(lbrPane,0,Color.Blue,LineStyle.Dashed,1);
HideVolume();

PlotSeries( macdPane, macdex, Color.Black, LineStyle.Solid, 2 );
PlotSeries( macdPane, macdexHist, Color.DarkGreen, LineStyle.Histogram, 1 );
PlotSeries( macdPane, macdSignal, Color.Red, LineStyle.Solid, 2 );

PlotSeries( lbrPane, lbrOsc, Color.Black, LineStyle.Solid, 2 );
PlotSeries( lbrPane, lbrOscHist, Color.DarkGreen, LineStyle.Histogram, 1 );
PlotSeries( lbrPane, lbrOscSignal, Color.Red, LineStyle.Solid, 2 );		}
}
}
```