QuanTAlib/lib/oscillators/_index.md

Oscillators

"Oscillators tell you when to act, not which direction to trade."  Unknown

Oscillators fluctuate above and below a centerline or within bounded ranges. Useful for identifying overbought/oversold conditions, momentum shifts, and divergences. Best in ranging markets; trend-following indicators work better in trending markets.

Indicator Status

Indicator	Full Name	Status	Description
AC	Acceleration Oscillator	=�	Second derivative of AO. Measures acceleration of market driving force.
AO	Awesome Oscillator		5-period SMA minus 34-period SMA of bar midpoint. Bill Williams creation.
APO	Absolute Price Oscillator		Raw currency difference between fast and slow EMAs. Unbounded.
BBB	Bollinger %B	=�	Position within Bollinger Bands. 0=lower band, 1=upper band.
BRAR	BRAR	≡	Combines AR (sentiment) and BR (momentum) indicators to gauge market mood.
CCI	Commodity Channel Index	≡	Measures price deviation from its statistical mean, identifies cyclical turns.
COPPOCK	Coppock Curve	≡	Long-term momentum oscillator used primarily for identifying major market bottoms.
CRSI	Connors RSI	≡	Composite indicator combining RSI, Up/Down Streak Length, and Rate-of-Change.
CTI	Correlation Trend Indicator	≡	Measures the correlation between price and time to determine trend strength.
DOSC	Derivative Oscillator	≡	Measures the difference between a double-smoothed RSI and its signal line.
DPO	Detrended Price Oscillator	=�	Removes trend via displaced SMA. Reveals cycles.
ERI	Elder Ray Index	≡	Measures buying (Bull Power) and selling (Bear Power) pressure relative to an EMA.
KDJ	KDJ Indicator	=�	Enhanced Stochastic. J = 3K - 2D provides leading signal.
KST	KST Oscillator	≡	Smoothed, weighted Rate-of-Change oscillator combining multiple timeframes.
QQE	Quantitative Qualitative Estimation	≡	Smoothing technique applied to RSI, providing trade signals via signal line crossovers.
RVGI	Relative Vigor Index	≡	Compares closing price to trading range.
STOCHF	Stochastic Fast	=�	Unsmoothed Stochastic. Faster but noisier.
STOCHRSI	Stochastic RSI	=�	Stochastic applied to RSI. More sensitive than either alone.
ULTOSC	Ultimate Oscillator		Multi-timeframe oscillator. Combines 7, 14, 28 period buying pressure.
WILLR	Williams %R	=�	Inverse Stochastic. -100 to 0 range. Overbought/oversold.

Status Key:  Implemented | =� Planned

Selection Guide

Use Case	Recommended	Why
Momentum confirmation	AO, APO	AO for bar midpoint. APO for close price. Both unbounded.
Overbought/oversold	STOCH, WILLR, STOCHRSI	Bounded 0-100 or -100 to 0. Classic mean reversion signals.
Multi-timeframe analysis	ULTOSC	Combines three periods. Reduces false signals.
Cycle detection	DPO	Removes trend to reveal underlying cycles.
Leading signals	KDJ, FISHER	J-line leads K and D. Fisher provides sharp turns.
Noise filtering	TRIX	Triple smoothing removes most short-term noise.
Volatility-normalized	PGO	ATR normalization makes signals comparable across instruments.

Oscillator Types

Type	Examples	Range	Best For
Bounded (0-100)	STOCH, STOCHRSI	0 to 100	Overbought/oversold zones
Bounded (-100 to 0)	WILLR	-100 to 0	Mean reversion
Bounded (-1 to +1)	FISHER	- to + (practical: �3)	Sharp reversal signals
Unbounded	AO, APO, DPO	- to +	Trend momentum
Normalized	PGO, CFO	ATR or % units	Cross-market comparison

Divergence Analysis

Oscillator divergence signals potential reversals:

Price Action	Oscillator Action	Signal
Higher high	Lower high	Bearish divergence. Weakening momentum.
Lower low	Higher low	Bullish divergence. Strengthening support.
Higher high	Higher high	Confirmation. Trend intact.
Lower low	Lower low	Confirmation. Trend intact.

Divergences work best with bounded oscillators (STOCH, RSI, WILLR) where extremes are well-defined.