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 );
}
}
}