overbought/oversold indicator

[czumwalt]

I need help writing the code for an overbought/oversold indicator.

Name: ob/os

I would like to plot it under the chart mush like an RSI.

The upper band would be at .70 and above the lower at .40 and below.

The calculation is [(high - open) + (close - low)] / (range * 2)

[eSignal_JasonK]

Hello czumwalt,

There is an existing formula in our EFS Library that uses your calculation for the OB/OS indicator.

MAOverBoughtOverSold

It also draws a moving average of the OB/OS line. The only change you will need to make is to change lines 5 and 6 to the example below, which will give you your bands at 70 and 40.

addBand(70, PS_SOLID, 2, Color.black, "upper")
addBand(40, PS_SOLID, 2, Color.black, "lower") 

After downloading the formula, open the formula in the editor, which can be found under the "Tools" menu. Edit lines 5 and 6, save the changes and then reapply the formula to your chart.

[czumwalt]

Thanks. That is great.

Can you help me with the code for taking that ob/os value and entering trades on the next bar. What I want to do is go long on the next bar if the ob/os is less than 40. Enter the trade at the open of the next bar and exit the trade at the close of the same bar. The same applies for ob/os greater than 70 which would enter short on the open of the next bar. Any help would be greatly appreciated.

[ACM]

czumwalt
I think the attached efs does what you ask.
FYI I just added the Buy/Sell conditions and logic to Jason's formula.
Alex