DYO: Ergodic Candle Oscillator

The Ergodic Candle Oscillator is "a double smoothed ratio of the difference between the Close (C) and Open (O) of each bar, and the difference between the High (H) and Low (L) prices for each bar" originally created by William Blau.  This oscillator shows the trend well and is not affected by opening gaps.

The formula for this study is:  ECO = (MOV(MOV(C-O,5,E))26,E) / MOV(MOV(H-L,5,E))26,E))*100

This study can be implemented in Ensign Windows using the Design Your Own™ study feature.

Line A calculates the spread between the Close and the Open.   The -[$O] Number field entry subtracts the Open.

Line B calculates a 5 period exponential average of the Line A  Close-Open spread.

Line C calculates a 26 period exponential average of the Line B average.  This numerator result is saved in GV [1].

Line D returns the Bar range, which is the High - Low spread.

Lines E and F accomplish the double average of the Range, similar to the Line B and C steps.  Result is saved in [2].

Line G does the division of the numerator in [1] by the denominator in [2] and multiplies by 100.  This is the ECO.

A template named ErgodicCandle can be downloaded from the Ensign web site using the Internet Services form.