Lopez Speed Oscillator calculates price and time vectors to project the aggregate market direction along with two moving averages to detect if the market is accelerating or decelerating.
This indicator acts as a quality filter for trades to increase their short term trade returns.
How to trade with Lopez Speed Oscillator
This indicator does not repaint and has a unique speed detection algorithm with implemented alerts.
The plotted aggregate market direction is the sum of all price and time vectors evaluated. Based on market acceleration or deceleration, an instrument could be longed if the blue moving average is above the dotted moving average. For short entries the blue MA should be below the dotted MA.
Also, the further the blue moving average is from a neutral 0 level, the stronger the price momentum is in that direction.
In addition, the oscillator can be combined with other short term trading indicators such as the Zone indicator.
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