Rex oscillator

Modified on 2013/05/09 10:40 by Eugene — Categorized as: Community Indicators

Syntax

public Rex(Bars bars, int period, WealthLab.Indicators.Community.ChoiceOfMA option, string description) public static CutlersRSI Series(Bars bars, int period, WealthLab.Indicators.Community.ChoiceOfMA option, )

Parameter Description

barsThe source Bars object
periodIndicator calculation period
optionSelect between the moving average types: SMA, EMA, WMA or SMMA (smoothed MA)

Description

The Rex oscillator measures market behavior based on the relationship of the close to the open, high and low values of the same bar. A big difference between the high and close on a bar indicates weakness, and wide disparity between the low and close indicates strength. The difference between open and close also indicates market performance.

The True Value of a Bar (TVB) gives an indication of how healthy the market is. A negative close and a positive TVB (or vice versa) is an indication of the market building strength on the opposing side of the trend. The Rex oscillator is a moving average (SMA, EMA, WMA or SMMA) of the TVB value with the specified period.

Interpretation

When the Rex Oscillator turns positive in a bearish trend, a reversal is indicated. Likewise, Rex turning negative in a bull market indicates a reversal to the downside.

Calculation

The TVB is defined as:

TVB = (Close-Low) + (Close - Open) - (High - Close), or

= 3 * Close - (Low + Open + High)

Rex Oscillator (n periods) = moving average (n periods) of TVB

Example

No example will be provided.