Hello Guys,

One stupid question from a newbie. Is any chance there is an oscillator that does not diverge at all (or diverges very little)? I need it for calculating Bollinger Bands of it.

Regards

[BlowFish]

Dunno, you would have to eliminate phase shift (lag) before you could meaningfully measure divergence in amplitude. I would take a look at signal processing approaches, Ehlers work springs to mind. I think the short answer is probably no - unless you know precisely the phase shift so can compare the amplitude of price now with the oscillator amplitude N (lag) bars ago. I think that might work but might not useful My knowledge of signal processing is pretty rudimentary though if memory serves there are a couple of guys here that where engineers in previous lives that might be able to answer with much more authority.

[Kiwi]

An oscillator diverges for a simple reason (well its simple for a good oscillator).

When price doesn't have as much velocity (measure vertical move/number of bars) then an oscillator will not push as far as price because in some way its a 1st (or maybe 2nd in come cases) derivative of price.

So by definition oscillators will diverge.

Will divergence be meaningful? Quite probably not ... slowing down doesn't mean that something is going to stop and reverse does it?

For a project of mine I just need the oscillator that resembles the price as much as possible, e.i. if the price makes a new high, I want the oscillator to make a new high as well.

What you guys wrote is not very optimistic for me

[Kiwi]

Why not just double smooth price then. Try a 3 ema followed by a 3 ema of the 3 ema (or sma for that matter). Or a hull ema. That will look like price.

Or if you want the extensions use a zig zag or a zig zag smoothed with a 3ema.

[bigdavediode]

Originally Posted by Tresor »

For a project of mine I just need the oscillator that resembles the price as much as possible, e.i. if the price makes a new high, I want the oscillator to make a new high as well.

What you guys wrote is not very optimistic for me

Perhaps a inverse Fourier transform. You could create a low (or high) pass filter to chart with other indicators or just map the "function" very closely.

[Kiwi]

Heres a zig zag then a hull(4) of the zz and then a hull(6) of the hull(4) (green)

Originally Posted by Kiwi »

Why not just double smooth price then. Try a 3 ema followed by a 3 ema of the 3 ema (or sma for that matter). Or a hull ema. That will look like price.

Or if you want the extensions use a zig zag or a zig zag smoothed with a 3ema.

Hi Kiwi, emas will be emas; they can móve from 0 to zillions. I need an oscillator that will be bound within -100 to 100 or 0 to 100, etc