A Two-Line Oscillator for Comparing Bullish and Bearish Trends

Summary

The Prevailing Trend oscillator represents bullish and bearish market components with separate lines labeled Up and Down. It estimates the Up line as a moving average of bullish candlesticks over a selected period, and the Down line as a moving average of bearish candlesticks over that period. The line that sits higher indicates which side is prevailing according to this indicator.

Users can set a calculation period and a calculation method, although the document does not define the available methods or explain how candle direction is classified. It gives no empirical performance evidence, trading rules for entries or exits, or risk controls. The oscillator is presented as a way to summarize prevailing directional pressure; its interpretation alone does not establish a profitable signal.

Key ideas

• The oscillator uses separate lines to represent bullish and bearish candle activity.
• Each line is calculated as a moving average over a chosen period.
• The higher line indicates the direction considered prevailing by the indicator.
• The document gives no validation, trading rules, or risk-management guidance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.