Price-Wave Oscillator Using a 150-Period Weighted Moving Average

Summary

This indicator estimates price waves from the close’s distance above or below a 150-period weighted moving average. It converts that relative distance into a percentage, scales it by ten, and plots the result alongside a zero reference line. Positive and negative readings therefore show whether price is above or below the average and how far it has moved relative to it.

Despite its name, the oscillator does not use trading volume. The document provides the calculation but no chart examples, trading rules, performance evidence, or guidance on interpreting signal size. It is best understood as a price-deviation display; the document does not establish that its readings predict reversals or provide profitable entry and exit signals.

Key ideas

• The indicator compares closing price with a 150-period weighted moving average.
• It expresses the relative price difference as a percentage and multiplies the result by ten.
• A zero line provides a reference for whether price is above or below the average.
• The calculation uses price rather than volume, despite the oscillator’s name.

Tags

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