sharp vision traders

Note: This download requires NinjaTrader 8 release 8.1.3 or newer.

Understanding the Enhanced Projection Oscillator: A Guide for Traders

The Enhanced Projection Oscillator indicator for NinjaTrader is a technical analysis tool that helps traders identify overbought and oversold conditions by comparing the current price to its projected price range over a specific period. This oscillator is enhanced with advanced smoothing techniques like polynomial smoothing and Laguerre filtering, providing a more responsive and accurate reflection of market dynamics.

What's different about this Indicator

• Trend Sensitivity: Adjusts for the underlying trend by incorporating the slope of the price's regression line, offering a dynamic view of price momentum.
• Enhanced Smoothing Options:
  • Polynomial Smoothing: Reduces noise and smooths out short-term fluctuations, making the oscillator more reliable.
  • Laguerre Filtering: Provides advanced smoothing with adjustable responsiveness, allowing traders to fine-tune the indicator to their preferences.
• Distinct Averaging Methods: Offers different averaging techniques for the signal line, separate from the smoothing methods, including Weighted, Simple, Exponential, and more.

Key Features of the Enhanced Projection Oscillator

1. Identifying Overbought and Oversold Conditions

• Overbought Zone (Above Upper Limit):
  • When the oscillator rises above a specified upper limit (e.g., 80), it indicates the asset may be overbought.
  • Traders might consider selling positions or preparing for a potential price reversal.
• Oversold Zone (Below Lower Limit):
  • When the oscillator falls below a specified lower limit (e.g., 20), it suggests the asset may be oversold.
  • This could signal a buying opportunity as the price may rebound.

2. Generating Buy and Sell Signals

• Buy Signal:
  • Occurs when the oscillator crosses above the lower limit from below.
  • Enhanced confidence when the oscillator also crosses above the signal line, calculated using a separate averaging method.
• Sell Signal:
  • Triggered when the oscillator crosses below the upper limit from above.
  • Confirmation is stronger if it also crosses below the signal line.

3. Customization and Flexibility

• Adjustable Parameters:
  • Period Length: Modify the number of periods to adjust the sensitivity of the oscillator.
  • Upper and Lower Limits: Customize thresholds based on the asset's volatility.
• Smoothing and Averaging Options:
• • Smoothing Methods:
    • None: Use the raw oscillator values without additional smoothing.
    • Polynomial Smoothing: Applies a weighted average to reduce noise.
    • Laguerre Filtering: Offers advanced smoothing with a gamma parameter to control responsiveness.
  • Averaging Methods for Signal Line:
    • Options include Weighted, Simple, Exponential, and others, allowing traders to choose how the signal line is calculated independently from the smoothing method.

4. Visual Enhancements

• Shading Zones:
  • Apply shading between the upper and lower limits to visually highlight overbought and oversold areas.
  • Customize shading opacity and colors for better visual cues.
• Color Coding:
• • Change the oscillator's color when entering overbought or oversold zones, providing immediate visual feedback.

Review the screenshots and video for setup options.

Check out a list of all of NinjaTrader's Downloads.

Click here for installation instructions.