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Logarithmic weighted oscillator

The LWO is a tool that effectively indicates the end of trends.
Being an oscillator, it has values between 0 and 100, defining the areas of hyper-sold and those of hyper-bought.
Its effectiveness is due to the weighing of prices at the end of individual periods on a logarithmic scale; this allows you to have a perception of the will of the market.


The parameters
The indicator has only 2 settable values, period and smooth factor.
The period indicates how many bars the weighing is performed, while the smooth factor "softens" the reactivity of the indicator.

How use
The instrument is ideal for trend following strategies, which for scalping.
Depending on the value of the bars considered, it gives significant signals for the identification of long-range trends (period from 21 to 35), or pulses useful for the opening of flash positions (period from 3 to 7).


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