Pivot Mean Oscillator 外汇EA

Pivot Mean Oscillator (PMO) is a unbounded zero-centered oscillator that provides a quick and normalized measure of divergence between two
spreads. Detailed description of the mathematical formulation along with some comments and experiments can be found in

this article. 

Trading aspects

This version of PMO is tuned on spreads relative to Close and Open price signals against their cumulative moving average (CMA). Positive
PMO(m,n) values means that last (normalized)

m Close prices are higher than last (normalized) n Open ones, thus detecting long positions while the opposite
accounts for short positions. Upward and downward PMO reversals can be considered similar to oversold and overbought conditions found by
RSI.

A very basic and simplified set of IF THEN rules for trading with PMO is the following:

• IF upward reversal happens below zero centerline THEN early warning BUY
• IF downward reversal happens above zero centerline THEN early warning SELL
• IF upward crossing zero centerline THEN recommended BUY
• IF downward crossing zero centerline THEN recommended SELL

Furthermore:

• as a rule of thumb, when a spike occur in PMO values it is highly probable that market will react in the
  opposite direction.
• in order to reduce lag, it is useful to minimize the number of last Close prices to consider (e.g. PMO(1,8)). As a drawback, this
  reduces smoothness of the PMO signal.

Key features

• applicable in all timeframes
• applicable to all symbols
• useful both for scalping and intraday strategies 
• useful for finding spikes, local maxima and minima
• useful for comparing any couple of FX signals (due to normalization, see article
  for details)
• easy-to-use with minimum setting
• free

Input Parameters

• startingTime: datetime of the first bar to consider for calculation
• MA_close: number of last close prices to average
• MA_open: number of last open prices to average
• data_logging: flag to enable data recording from startingTime to now for data analysis purposes
• filename: name of the file used to archive data