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| Elliott waves are one of the most commonly used methods of technical analysis. However, the author of Elliott waves, Ralph Nelson Elliott, found out that it is not easy to determine whether a new wave has formed or not in some cases. To solve this problem, he designed the Elliott Wave Oscillator (EWO). The indicator is the difference between a 5-period and 35-period simple moving average. On the chart, it is plotted as a histogram with positive and negative areas. Here are some rules to follow when using the indicator. The first wave in a bullish uptrend often begins with a bullish divergence between the prices and the EWO indicator. And the fifth wave usually ends with a bearish divergence. The highest values of the EWO indicator are during the third wave. During corrective waves, the indicator does not reach new peaks. |
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Elliott Wave Oscillator
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| EWO(5,35,5) Above Zero |
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| EWO(5,35,5) Below Zero |
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| EWO(5,35,5) Crossed Above Zero |
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| EWO(5,35,5) Crossed Below Zero |
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| EWO(5,35,5) Above Signal Line |
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| EWO(5,35,5) Below Signal Line |
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| EWO(5,35,5) Crossed Above Signal Line |
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| EWO(5,35,5) Crossed Below Signal Line |
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| EWO(5,35,5) Bullish Divergence |
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| EWO(5,35,5) Bearish Divergence |
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