MoneyWave is a modified version of the Slow Stochastic Oscillator. It's a momentum indicator that shows overbought and oversold levels. %K has been changed to 13 and %D has been changed to 3.
- When the FastLine is above 80, it indicates the stock is currently overbought (red line)
- When the FastLine is below 20, it indicates the stock is currently oversold (green line)
- Sell signal = crossover in the overbought region
- Buy signal = crossover in the oversold region
# MoneyWave # DREWGRIFFITH15 (C) 2014 DECLARE LOWER; # STOCHASTICSLOW INPUT KPERIOD = 14; INPUT DPERIOD = 3; INPUT OVER_BOUGHT = 80; INPUT OVER_SOLD = 20; PLOT FASTLINE = STOCHASTICSLOW("D PERIOD" = DPERIOD, "K PERIOD" = KPERIOD); PLOT SLOWLINE = STOCHASTICSLOW("D PERIOD" = DPERIOD, "K PERIOD" = KPERIOD).SlowD; FASTLINE.SETDEFAULTCOLOR(COLOR.MAGENTA); FASTLINE.SETLINEWEIGHT(3); SLOWLINE.SETDEFAULTCOLOR(COLOR.MAGENTA); SLOWLINE.SETLINEWEIGHT(1); PLOT OVERBOUGHT = OVER_BOUGHT; OVERBOUGHT.SETDEFAULTCOLOR(COLOR.DARK_GRAY); PLOT OVERSOLD = OVER_SOLD; OVERSOLD.SETDEFAULTCOLOR(COLOR.DARK_GRAY); FASTLINE.ASSIGNVALUECOLOR(IF FASTLINE < OVERSOLD THEN COLOR.GREEN ELSE IF FASTLINE > OVERBOUGHT THEN COLOR.RED ELSE COLOR.MAGENTA); SLOWLINE.ASSIGNVALUECOLOR(COLOR.MAGENTA);