Pivot Oscillator from Moving-Average Differences in Typical Price

Summary

The Pivot Oscillator is defined from three moving-average differences applied to typical price, calculated as the average of a bar’s high, low, and close. The method forms differences between fast, medium, and slow moving averages, adds those differences, and divides the result by typical price. Four inputs control the calculation: the three average periods and the moving-average method.

The description explains the indicator’s construction but does not specify how to interpret its values, define trading signals, or choose parameter settings. It provides no market examples, tests, or evidence of profitability. The formula text also appears to label the slow moving average inconsistently in one line, so an implementation should verify which average is intended before use. The indicator is therefore best understood here as a compact measure of relative separation among moving averages of typical price, rather than as a complete trading strategy.

Key ideas

• The oscillator uses moving averages of typical price, which averages high, low, and close.
• It combines the pairwise differences among fast, medium, and slow averages and scales them by typical price.
• Its inputs are three average periods and the moving-average calculation method.
• The description gives no signal rules, parameter guidance, or performance evidence.
• The slow-average notation appears inconsistent and should be checked when implementing the formula.

Tags

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