King Oscillator

#momentum #composite #oscillator #reversal #multi-timeframe 

The King Oscillator blends multiple separate momentum and strength indicators into a single, smoothed line. Instead of relying on just one oscillator, it calculates readings from multiple trend, momentum indicators and oscillators. All components use the same period setting, so the final line represents a consensus view of momentum across multiple calculation methods. 

Default period: 14 

Line behavior: 

Oscillates between 0 and 100 with 50 as the centerline. Because it averages nine different indicators, the line is much smoother and less noisy than any single oscillator. It rises when most underlying indicators agree momentum is bullish, and falls when they agree momentum is bearish. 

Useful readings: 

– Above 50: Majority of internal indicators lean bullish 

– Below 50: Majority of internal indicators lean bearish 

– Above 70: Broad overbought consensus across multiple methods 

– Below 30: Broad oversold consensus across multiple methods 

– Crossing 50 up/down: Shift in overall momentum sentiment 

Objective rules: 

– Buy when the King Oscillator crosses above 50 from below 

– Sell when the King Oscillator crosses below 50 from above 

– Avoid buying when above 70 (overbought consensus) 

– Avoid selling when below 30 (oversold consensus) 

– Divergence between price and the King Oscillator warns of potential reversals 

– Use same period for all internal components (default 14) 

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.