Andean Oscillator Signals

Andean Oscillator Signals Indicator

This is a companion indicator intended to be used alongside the Andean Oscillator. It plots signals on the main price panel indicating where crossings have occurred in the oscillator panel.

The Andean Oscillator identifies trend shifts, momentum acceleration, and trend exhaustion in both the bullish and bearish direction. I generally find it to be best suited to higher timeframes, as on short timeframes it can be quite noisy.

Here is a breakdown of what each symbol, color, and position represents on the main price chart:

General Rule of Thumb: Markers BELOW the price bar signify a bullish or strengthening event. Markers ABOVE the price bar signify a bearish or weakening event.

Detailed Signal Legend

Here is a detailed guide for each of the 6 unique crossing signals:

1. Bullish Component (Green Line) vs. Bearish Component (Red Line)

This is the primary oscillator signal, showing the direct balance of power.

• Visual: Green Circle below the price:
• Event: The Bullish (green) line crosses above the Bearish (red) line.
• Interpretation: Bullish Momentum Crossover. Bullish strength is now overpowering bearish strength. This is a primary signal for a potential move up.
• Visual: Red Circle above the price:
• Event: The Bullish (green) line crosses below the Bearish (red) line.
• Interpretation: Bearish Momentum Crossover. Bearish strength is now overpowering bullish strength. This is a primary signal for a potential move down.

2. Bullish Component (Green Line) vs. Signal Line (Yellow Line)

This shows how the current bullish strength compares to the recent trend.

• Visual: Aqua Cross below the price:
• Event: The Bullish (green) line crosses above the Signal (yellow) line.
• Interpretation: Bullish Acceleration. Bullish momentum is accelerating and is now stronger than the recent average trend. This acts as a confirmation of bullish strength.
• Visual: Yellow Cross above the price:
• Event: The Bullish (green) line crosses below the Signal (yellow) line.
• Interpretation: Bullish Exhaustion. Bullish momentum is fading and has dropped below the recent average trend. This is a warning sign that the uptrend may be losing steam.

3. Bearish Component (Red Line) vs. Signal Line (Yellow Line)

This shows how the current bearish strength compares to the recent trend.

• Visual: Fuchsia Cross above the price:
• Event: The Bearish (red) line crosses above the Signal (yellow) line.
• Interpretation: Bearish Acceleration. Bearish momentum is accelerating and is now stronger than the recent average trend. This acts as a confirmation of bearish strength.
• Visual: Purple Cross below the price:
• Event: The Bearish (red) line crosses below the Signal (yellow) line.
• Interpretation: Bearish Exhaustion. Bearish momentum is fading and has dropped below the recent average trend. This is a warning sign that the downtrend may be losing steam.