Smoothing Oscillator Bands
As all momentum indicators this oscillator is measuring the speed and change of price movement.
Momentum indicator is using an overbought and oversold conditions. The SmoothingOscillatorBands indicator is using a curve bands to show those conditions instead of constant levels. If the Yellow line is over a Blue line then we have an Overbought condition and when the Yellow line start to break out below the Blue line then we have a good opportunity to go Short. If the Yellow line is under a Red line then we have an Oversold condition and when the Yellow line start to break out above the Red line then we have a good opportunity to go Long.
- The Yellow line is an Oscillator main line of the indicator.
- The Red line is a Resistance line.
- The Blue line is a Support line.
- The White dotted line is a Center line.