OPEN-SOURCE SCRIPT
Infiten's Return Candle Oscillator
Infiten's Return Candle Oscillator is an oscillator which shows the percentage return on the open, high, close and low over a customizable period in the form of candlesticks. It may be helpful for seeing volatility, swing trading, or mean reversion trading.
The RCO consists of two plotted elements :
RCO Candles (short length): candlesticks which are plotted with low = the product of the percentage changes in the low over a period, high = the product of the percentage changes in the high over a period, close = the product of the percent changes in close over a period, and open = the product of the percentage changes in return over a period. Similarly to with standard candlesticks, if the percentage change on the close is higher than the percentage change on the open, the candlestick is green, otherwise it is red.
Smoothed RCO Line (long length) : a moving average of the average of the low, close, open and high calculated for the RCO Candles. The line's transparency is determined by the percentage difference between the RCO and the highest or lowest RCO over the long length. A more transparent line means that the RCO is closer to the highest or lowest RCO, and may be indicative of a reversal, or weakening trend.
The RCO consists of two plotted elements :
RCO Candles (short length): candlesticks which are plotted with low = the product of the percentage changes in the low over a period, high = the product of the percentage changes in the high over a period, close = the product of the percent changes in close over a period, and open = the product of the percentage changes in return over a period. Similarly to with standard candlesticks, if the percentage change on the close is higher than the percentage change on the open, the candlestick is green, otherwise it is red.
Smoothed RCO Line (long length) : a moving average of the average of the low, close, open and high calculated for the RCO Candles. The line's transparency is determined by the percentage difference between the RCO and the highest or lowest RCO over the long length. A more transparent line means that the RCO is closer to the highest or lowest RCO, and may be indicative of a reversal, or weakening trend.
Open-source script
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