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Dynamic Momentum Oscillator
MetaStock Indicator
In July 1996 Futures magazine, E. Marshall Wall introduces
the Dynamic Momentum Oscillator (Dynamo). Please refer to this
article for interpretation.
He describes the Dynamo Oscillator to be:
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| Dynamo = Mc - ( MAo - O ) |
where
Mc = the midpoint of the oscillator
MAo = a moving average of the oscillator
O = the oscillator |
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This concept can be applied to most any oscillator to improve
its results.
For example, applying the Dynamo Oscillator to a 5-period %K
slowed 3 periods Stochastic Oscillator would give:
50-(Mov(Stoch(5,3),21,S)-Stoch(5,3))
where:
Mc = Stochastic Oscillator's midpoint = 50
MAo = Moving average of the Stochastic = Mov(Stoch(5,3),21,S
O = Stochastic Oscillator = Stoch(5,3)
This example applies it to an RSI oscillator:
50-(Mov(RSI(14),21,S)-RSI(14))
where:
Mc = RSI's midpoint = 50
MAo = Moving average of the RSI = Mov(RSI(14),21,S
O= RSI Oscillator = RSI(14)
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