The Lux Oscillator is an oscillator that combines the earliness of a stochastic whilst using the accuracy of moving averages, and that can be used in confluence with both Lux Algo V2 and Lux Volatility.
The Lux Oscillator has two settings, Source and Length, where Length control the number of past Source values to be used by the indicator while Source determines the input source of the indicator (by default closing prices).
Increasing Length allows the user to analyse and take decisions regarding longer term price movements.
Various information can be obtained from the interpretation of the Lux Oscillator. The most basic usage make use of the colors between the oscillator and a moving average of itself to determine the current price trend, with a red color indicating a downtrend and blue color indicating an uptrend trend.
Spotting divergences with Lux Oscillator allows you to take some normal signals more seriously as potential trend reversals or opportunities for larger moves rather than just areas to take profit.
The oscillator overall provides users with more confluence and opportunities to spot reversals before they happen and our signals can be used as great directional confirmation with those plays.