Premier Stochastic Oscillator (PSO) [andre_007]

This is a improved version of Premier Stochastic Oscillator (PSO), coded by "LazyBear".

"The indicator was first introduced by technical analyst Lee Leibfarth in the August 2008 issue of the journal Technical Analysis of Stocks & Commodities".

Improvements:

• Added support for different times frames.
• For example, now it's possible to stay in intraday and at same time see a weekly version of this indicator.
• Refined timeframe selection and added repaint control, as per best practice recommendations.
• Possibility to customize the thresholds.
• Added legends to lines
• Added overbought and oversold colored zones
• Changed default colors for easier viewing

1. Introduction

"Stochastic oscillators have long been used to help traders and investors identify areas where trend changes are likely.
Leibfarth developed the PSO to take advantage of a standard stochastic oscillator's strengths while enhancing it to become more reactive to market activity.
The result is a faster indicator that provides earlier signals for potential trend changes".

More info:
investopedia.com/articles/trading/10/premier_stochastic_oscillator_explained.asp

2. What to look for

According to Lee Leibfarth's paper:
"[...] the PSO is best suited for trading changes in market direction (countertrend trading) [...]

The thresholds are defined by horizontal lines at +/-0.20 and +/-0.90.
These thresholds create two symmetric buy and sell areas with the following rules:

• Long trades: (1) Premier stochastic crosses below 0.90, (2) premier stochastic crosses below 0.20
• Short trades: (1) Premier stochastic crosses above -0.90, (2) premier stochastic crosses above -0.20~"

However, we can adapt this indicator to our own trading system, and nothing prevents us from using a trend movement, instead of counter-trend mentioned by the author.
It is noteworthy that the probability of winning increases if we use this indicator in conjunction with other tools, such as using a longer timeframe in parallel along with a price-action analysis.

3. Pricing

This indicator has been published on the TradingView platform free of charge, with the source code available for both personal and commercial use.

It can be found at the following link:

https://www.tradingview.com/script/zcjchgHw/

No download is required.

However, if you would like to make a donation, I would appreciate it.