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MetaStock
Indicator - Dynamic
Momentum Oscillator
rev. 01/06/97
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:
| 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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