OPEN-SOURCE SCRIPT
Karobein Oscillator
Developed by Emily Karobein, the Karobein oscillator is an oscillator that aim to rescale smoothed values with more reactivity in a range of (0,1)
Calculation
The scaling method is similar to the one used in a kalman filter for the kalman gain.
We first average the up/downs x, those calculations are similar to the ones used for calculating the average gain/loss in the relative strength index.
a = ema(src < src[1] ? x : 0,length)
b = ema(src > src[1] ? x : 0,length)
where src is a exponential moving average of length period and x is src/src[1] in the standard calculations, but anything else can be used as long as x > 0.
Then we rescale the results.
c = x/(x + b)
d = 2*(x/(x + c*a)) - 1
How To Use
It is better to use centerline-cross/breakouts/signal line.
In general when we use something smooth as input in oscillators, breakouts are better than reversals, you can see this with the stochastic and rsi.
So a simple approach could be buying when crossing over 0.8 and selling when crossing under 0.2.
Here is the balance of a strategy using those conditions, length = 50.
20 trades have been mades since the 29 oct we made 341 pips with eur/usd, of course this backtest was made during good trends period,
this result is not representative of how the strategy work with other conditions/markets.
For any questions/suggestions feel free to contact me
Calculation
The scaling method is similar to the one used in a kalman filter for the kalman gain.
We first average the up/downs x, those calculations are similar to the ones used for calculating the average gain/loss in the relative strength index.
a = ema(src < src[1] ? x : 0,length)
b = ema(src > src[1] ? x : 0,length)
where src is a exponential moving average of length period and x is src/src[1] in the standard calculations, but anything else can be used as long as x > 0.
Then we rescale the results.
c = x/(x + b)
d = 2*(x/(x + c*a)) - 1
How To Use
It is better to use centerline-cross/breakouts/signal line.
In general when we use something smooth as input in oscillators, breakouts are better than reversals, you can see this with the stochastic and rsi.
So a simple approach could be buying when crossing over 0.8 and selling when crossing under 0.2.
Here is the balance of a strategy using those conditions, length = 50.
20 trades have been mades since the 29 oct we made 341 pips with eur/usd, of course this backtest was made during good trends period,
this result is not representative of how the strategy work with other conditions/markets.
For any questions/suggestions feel free to contact me
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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