Elliot Wave Oscillator is a powerful VertexFX client side VTL indicator that gives excellent entry and exit signals.The concept behind the EWO is that the fast moving SMA responds quicker to price trends compared to the slow moving SMA. When a new uptrend starts, the fast SMA raises quickly compared to the slow SMA. As a result, the EWO rises, thus marking the beginning of a new trend.

As the trend stalls, or starts moving sideways, this difference between the fast SMA and slow SMA starts reducing, and reaches its peak. This signals the end of the trend. When the trend reverses, the fast SMA again follows the price, and the difference between the fast SMA and slow SMA turns negative. This negative difference gradually increases and reaches a negative trough when the downtrend stalls.

The same process repeats again on the next uptrend or downtrend. Hence it is very useful to trade in trending markets. The difference between the fast SMA and slow SMA also eliminates any sideways noise and providing clarity in the signal. The indicator is presented as a histogram and oscillates around the zero line. At first step, we calculate the fast moving Simple Moving Average of the Median price for the EWO_PERIOD1 period. In second step, we calculate the slow moving Simple Moving Average of the Median price for the EWO_PERIOD2 period. The indicator value is calculated as the difference between the fast moving SMA and the slow moving SMA.

Buy: Place Buy trade when the EWO indicator value is below Zero line and rising for two consecutive bars.
Sell: Place Sell trade when the EWO indicator value is above Zero line and falling for two consecutive bars.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:\ProgramData\VertexFX Client Terminals\"Company name"\VTL10\Local VTL Scripts
• Restart your Client Terminal or Right Click on "Local VTL Scripts" Tree Node to find the script.