OPEN-SOURCE SCRIPT
Updated EZ Oscilator - Live Divergences
**How to Trade with EZ Oscillator**
The **EZ Oscillator** combines momentum waves with live divergence detection to deliver clear, high-probability trading signals. Here’s how to use it effectively:
### 1. Bullish Signals (Long Entries)
- **Bullish Crossover**: Look for the fast wave (wt1) crossing **above** the slow signal wave (wt2) when the signal is below 30. This is a strong momentum reversal signal in oversold territory.
- **Bullish Divergence**: A "Bull" label appears when price makes a lower low but the oscillator makes a higher low. This often signals weakening bearish momentum and potential reversal upward.
- Best used near the **Oversold level (15)** or when the oscillator is rising from below the midline (50).
### 2. Bearish Signals (Short Entries)
- **Bearish Crossover**: Look for the fast wave crossing **below** the slow signal wave when the signal is above 70. This indicates momentum exhaustion in overbought territory.
- **Bearish Divergence**: A "Bear" label appears when price makes a higher high but the oscillator makes a lower high. This warns of weakening bullish momentum and possible downward reversal.
- Most effective near the **Overbought level (85)** or when the oscillator is falling from above the midline.
### 3. Key Levels & Confirmation
- **Midline (50)**: Acts as the equilibrium level. Crosses above 50 favor bulls, crosses below 50 favor bears.
- **Overbought (85) / Oversold (15)**: Use dashed levels as dynamic zones. Price + oscillator extremes here increase reversal probability.
- **Divergence Lines**: Visible connecting lines confirm hidden strength or weakness between price and momentum.
### 4. Additional Tips
- The **gradient glow** strengthens visually as the oscillator moves further from 50 — the brighter the glow, the stronger the momentum.
- Combine with higher timeframe context or support/resistance for better accuracy.
- Use the **Trend Bar** at the bottom (if enabled) as a quick visual reference for current momentum direction.
**Pro Tip**: The strongest setups occur when a **crossover** and a **divergence label** appear together near the extreme levels (15 or 85).
This oscillator is non-repainting on closed bars and works across all markets — Forex, Stocks, Crypto, and Futures.
How to Trade with EZ Oscillator
The EZ Oscillator combines momentum waves with live divergence detection to deliver clear, high-probability trading signals. Here’s how to use it effectively:
1. Bullish Signals (Long Entries)
2. Bearish Signals (Short Entries)
3. Key Levels & Confirmation
4. Additional Tips
Pro Tip: Always combine with higher timeframe structure or key support/resistance levels for higher probability trades.
The oscillator is non-repainting on closed bars.
The **EZ Oscillator** combines momentum waves with live divergence detection to deliver clear, high-probability trading signals. Here’s how to use it effectively:
### 1. Bullish Signals (Long Entries)
- **Bullish Crossover**: Look for the fast wave (wt1) crossing **above** the slow signal wave (wt2) when the signal is below 30. This is a strong momentum reversal signal in oversold territory.
- **Bullish Divergence**: A "Bull" label appears when price makes a lower low but the oscillator makes a higher low. This often signals weakening bearish momentum and potential reversal upward.
- Best used near the **Oversold level (15)** or when the oscillator is rising from below the midline (50).
### 2. Bearish Signals (Short Entries)
- **Bearish Crossover**: Look for the fast wave crossing **below** the slow signal wave when the signal is above 70. This indicates momentum exhaustion in overbought territory.
- **Bearish Divergence**: A "Bear" label appears when price makes a higher high but the oscillator makes a lower high. This warns of weakening bullish momentum and possible downward reversal.
- Most effective near the **Overbought level (85)** or when the oscillator is falling from above the midline.
### 3. Key Levels & Confirmation
- **Midline (50)**: Acts as the equilibrium level. Crosses above 50 favor bulls, crosses below 50 favor bears.
- **Overbought (85) / Oversold (15)**: Use dashed levels as dynamic zones. Price + oscillator extremes here increase reversal probability.
- **Divergence Lines**: Visible connecting lines confirm hidden strength or weakness between price and momentum.
### 4. Additional Tips
- The **gradient glow** strengthens visually as the oscillator moves further from 50 — the brighter the glow, the stronger the momentum.
- Combine with higher timeframe context or support/resistance for better accuracy.
- Use the **Trend Bar** at the bottom (if enabled) as a quick visual reference for current momentum direction.
**Pro Tip**: The strongest setups occur when a **crossover** and a **divergence label** appear together near the extreme levels (15 or 85).
This oscillator is non-repainting on closed bars and works across all markets — Forex, Stocks, Crypto, and Futures.
How to Trade with EZ Oscillator
The EZ Oscillator combines momentum waves with live divergence detection to deliver clear, high-probability trading signals. Here’s how to use it effectively:
1. Bullish Signals (Long Entries)
- Bullish Crossover: Fast wave (wt1) crosses above the slow signal wave (wt2) when the signal is below 30. Strong momentum reversal in oversold territory.
- Bullish Divergence: "Bull" label appears when price makes a lower low but the oscillator makes a higher low — signals weakening bearish momentum.
2. Bearish Signals (Short Entries)
- Bearish Crossover: Fast wave crosses below the slow signal wave when the signal is above 70. Indicates momentum exhaustion in overbought territory.
- Bearish Divergence: "Bear" label appears when price makes a higher high but the oscillator makes a lower high.
3. Key Levels & Confirmation
- Midline (50): Equilibrium level. Above = bullish bias, Below = bearish bias.
- Overbought (85) / Oversold (15): Use as dynamic reversal zones.
- Divergence Lines: Connect pivots to visually confirm hidden strength/weakness.
4. Additional Tips
- The gradient glow becomes stronger as the oscillator moves away from 50 — brighter glow = stronger momentum.
- Strongest setups occur when a crossover and divergence label appear together near 15 or 85.
- Works on all timeframes and markets (Forex, Stocks, Crypto, Futures).
Pro Tip: Always combine with higher timeframe structure or key support/resistance levels for higher probability trades.
The oscillator is non-repainting on closed bars.
Release Notes
**Recent Updates & Improvements:****Ribbon Fill Enhancement:**
Added a clean between-the-waves ribbon fill (`fill(p1, p2)`) that dynamically colors based on the relationship between the fast wave (`wt1`) and slow wave (`wt2`).
- Green tint (`#089981`) when the fast wave is above the slow wave (bullish momentum).
- Red tint (`#f23645`) when the fast wave is below the slow wave (bearish momentum).
This creates a smooth, modern ribbon effect that clearly highlights momentum shifts with minimal visual clutter.
**Level Lines Standardization:**
- Overbought (90) and Oversold (10) levels now use solid, thicker lines (`linewidth = 8`) for stronger visual impact and better zone definition.
**Small Visual Improvements:**
- Fast wave (`wt1`) now dynamically uses bullish/bearish colors based on its position relative to the slow wave.
- Minor cleanup and optimization for better readability and performance.
- Updated alert messages to match the indicator name.
The core divergence engine and momentum calculation logic remain unchanged and fully preserved.
Recent Updates & Improvements:
Ribbon Fill Enhancement:
Added a clean between-the-waves ribbon fill that dynamically colors based on the relationship between the fast wave (wt1) and slow wave (wt2).
- Bullish ribbon (green tint) when fast wave is above slow wave.
- Bearish ribbon (red tint) when fast wave is below slow wave.
This creates a smooth, modern ribbon effect that clearly highlights momentum shifts with minimal visual clutter.
Level Lines Standardization:
Overbought (90) and Oversold (10) levels now use solid, thicker lines (linewidth = 8) for stronger visual impact and better zone definition.
Small Visual Improvements:
- Fast wave (wt1) now dynamically uses bullish/bearish colors based on its position relative to the slow wave.
- Minor cleanup and optimization for better readability and performance.
- Updated alert messages to match the indicator name.
The core divergence engine and momentum calculation logic remain unchanged and fully preserved.
Release Notes
Minor Update in nameChart: BTCUSD charts
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.