OPEN-SOURCE SCRIPT
XAGUSD Long/Short Signal ~ By: Sarp Gokdag
About the Oscillator :
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
- The Rex Oscillator is a study that measures market behavior based on the relationship of the close to the open, high and low values of the same bar. The theory behind the Rex Oscillator is that a big difference between the high and close on a bar indicates weakness. Conversely, wide disparity between the low and close indicates strength. The difference between open and close also indicates market performance.
- The True Value of a Bar (TVB) gives us an indication of how healthy the market is. It is possible to have a negative close and a positive TVB, and vice versa. This indicates that the market is building strength on the opposing side of the trend. The Rex Oscillator is a moving average of the TVB, indicating the inertia of the market. When the Rex Oscillator turns positive in a bearish trend, a reversal is indicated. Likewise, Rex turning negative in a bull market indicates a reversal to the downside.
- When the Rex Oscillator turns positive in a bearish trend, a reversal is indicated. Likewise, Rex turning negative in a bull market indicates a reversal to the downside.
- The REX Strategy goes long when the REX line of the REX Oscillator crosses above the Signal line and Short when the REX line crosses below the Signal line. The strategy is a reversal strategy through the use of the 'Cover and go Long' and 'Close and go Short' Actions. The REX Oscillator properties of Period' and Signal' can be changed for testing purposes using the available Rex1 'Factor.'
- The blue line indicates the difference between the Rex MA and the Signal.
- If the blue line crosses above "0", go Long.
- If the blue line crosses below "0", go Short.
- To achieve best results from this strategy, set your chart range minimum 4hrs, max 1 Day.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.