The Elliot Oscillator is a study used to identify waves for implementation of Elliott Wave Theory. It is calculated as the difference between two moving averages of median price: short and long ones.
Elliott Waves can be identified using the following rules. The highest/lowest value of the oscillator might indicate a potential bullish/bearish Wave 3. Oscillator pulling back to zero is considered a signal for Wave 4. When the market is making a new high and the oscillator fails to do so, it might be a signal for Wave 5.
||The number of bars used in calculation of short moving average.|
||The number of bars used in calculation of long moving average.|
||The Elliot Oscillator histogram.|
||The zero level.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.