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Varadi Oscillator

alexgrover Wizard Updated   
Oscillators leading varadi vdo percentrank detrending
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oscillator leading varadi vdo percentrank detrending
The Varadi Oscillator (VDO) is a leading indicator first proposed by David Varadi and originally aim to reduce the influence of the trend component in oscillators. The DVO can be described as a rolling percent rank of detrended prices over a certain lookback period. The detrending process used for the calculation of the indicator is based on the simple moving average of the ratio between the closing price and median (hl2) price.

Both the length of the percent rank and the moving average used for detrending can be adjusted by the user. We can see that the VDO can lead price movements.

snapshot

Don't have time to post anything else, if the indicator is too simple, moderators can feel free to remove it and ban me for some time, won't complain.
Release Notes:
Added David blog in the comments, make sure to check it out.
Check out the indicators we are making at luxalgo: www.tradingview.com/u/LuxAlgo/
Open-source script

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