Derivative Oscillator Cu [ID: AC-P]

13 oct 2019

The "AC-P" version of the Derivative Oscillator is my personal customized version of Constance Brown's Derivative Oscillator (using Everget's implementation of it as the base), with the the following modifications and additions:

• VWAP Indication - option to show whether the price input option is above or below the Daily VWAP (red triangles = price input is below vwap, green triangles = price input is above vwap)
  
  
• Bullish and Bearish phases from shayankm's Waddah Attar Explosion V2 (tradingview.com/script/d9IjcYyS-Waddah-Attar-Explosion-V2-SHK/) is included as indication dots (bullish = blue dots, bearish = yellow dots) below/above the Derivative Oscillator histogram
  
  
• Coral Trend from Lazybear (tradingview.com/script/qyUwc2Al-Coral-Trend-Indicator-LazyBear/) is included as indication dots (red/green dots below/above the Derivative Oscillator histogram
  
  
• Input source options for vwap, Waddah components (MACD, Bollinger Upper/Lower)
  
  
• Centerline option for Coral trend, and Horizontal center option for the Derivative Oscillator with circle indication (optional - provided as option for flexibility in use with overlaying with other indicators)
  

This indicator is a hybrid, with a combination of leading indicators and lagging trending indicators combined into one. Specifically, a few of the other indicators I use are lacking in the momentum and trend department, and this is one of the indicators I use to address that:
* VWAP provides trend information on lower timeframes from a high timeframe interval (D)
* Coral Trend provides additional confirmation to VWAP trend wise, and is adjustable
* Waddah Attar Explosion provides a third level of confirmation for trending moves, taking into account shorter and longer timeframes (FastEMA and SlowEMA parameters).

Script base for the Derivative Oscillator is credited to Everget (tradingview.com/script/b1qim2XB-Derivative-Oscillator/) and LazyBear (tradingview.com/script/6wfwJ6To-Indicator-Derivative-Oscillator/).

Source attribution to Constance Brown for the Derivative Oscillator formula/indicator:
*// Brown, Constance.
*// Reference 1: “The Derivative Oscillator: a New Approach to an Old Problem,” Journal of Technical Analysis (Winter-Spring 1994) 45–61.
*// Reference 2: Technical Analysis for the Trading Professional. New York, NY: McGraw-Hill, 1999.

Information on the Derivative Oscillator:
* investopedia.com/terms/d/derivative-oscillator.asp