PROJECTION OSCILLATOR Guia de trading

The Projection Oscillator is a bounded momentum oscillator that measures where the current close sits inside a slope-adjusted projection channel. Instead of comparing price only to a flat recent high-low range, it projects recent highs and lows forward using the current linear-regression slope, making the oscillator more aware of trending market structure.

What does the indicator show?

• Projection Oscillator Line: The main 0 to 100 position line. Above 50 means price is in the upper half of its slope-adjusted projected range; below 50 means price is in the lower half.
• Signal EMA: A slower reference line used to see whether the channel position is improving or weakening.
• Position Fill: A clean fill from the 50 level. Green fill means price is holding the upper half of the projected channel; red fill means it is holding the lower half.
• Divergence Markers: Green and red diamonds mark confirmed regular bullish and bearish divergences between price pivots and the Projection Oscillator value at those pivots.
• Overbought and Oversold Zones: Configurable upper and lower zones, typically 80 and 20, used to identify stretched conditions.
• Middle Line: The 50 level marks the center of the projected channel and can be used as a bias filter.

Key Settings

• Projection Length: Number of candles used to calculate the regression slope and projected high-low channel.
• Signal EMA Length: Controls how quickly the signal line follows the oscillator.
• PO Smoothing: Optional EMA smoothing applied to the raw oscillator before the signal line is calculated.
• Overbought Level: Upper threshold for stretched bullish conditions.
• Oversold Level: Lower threshold for stretched bearish conditions.
• Divergence Pivot Left / Right: Defines how many candles must sit on each side of a price pivot before a divergence can be confirmed.
• Divergence Min / Max Bars: Controls the allowed distance between two compared pivots.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, the Projection Oscillator can be used either as a channel-position filter or as a signal-line momentum trigger.

1. Oscillator Values

These outputs describe the current position of price inside the projected channel.

• Projection Oscillator - Smoothed oscillator value from 0 to 100.
• Raw Projection Oscillator - Unsmoothened channel-position value.
• Signal EMA - EMA signal line of the oscillator.
• PO - Signal - Difference between the oscillator and its signal line.

Strategy Example: For a long continuation setup, require Projection Oscillator > 50 and PO - Signal > 0. This keeps entries aligned with price holding the upper half of its projected channel.

2. Cross Signals

These signals are useful when looking for short-term momentum turns.

• PO Bullish Cross - The oscillator crossed above its Signal EMA.
• PO Bearish Cross - The oscillator crossed below its Signal EMA.

Strategy Example: A reversal-style long entry can use PO Bullish Cross is true after the oscillator has recently been below the oversold level.

3. Zone Signals

These outputs identify when the oscillator is stretched or when it exits an extreme zone.

• PO Overbought - The oscillator is at or above the configured overbought level.
• PO Oversold - The oscillator is at or below the configured oversold level.
• PO Reclaimed Oversold - The oscillator crossed back above the oversold level.
• PO Rejected Overbought - The oscillator crossed back below the overbought level.

Strategy Example: For mean-reversion exits, a long strategy can close or reduce exposure when PO Rejected Overbought is true, showing that price failed to hold the upper projected channel.

4. Divergence Signals

These signals compare confirmed price pivots against the Projection Oscillator value at those same pivots.

• Bullish PO Divergence - Price made a lower pivot low while PO made a higher value at that pivot.
• Bearish PO Divergence - Price made a higher pivot high while PO made a lower value at that pivot.

Strategy Example: A long reversal strategy can require Bullish PO Divergence is true plus Projection Oscillator > Signal EMA. This waits for both structural divergence and early momentum confirmation.

5. Projection Band Diagnostics

These values expose the current price-space channel behind the oscillator.

• Upper Projection Band - Current upper projected price band.
• Lower Projection Band - Current lower projected price band.

Strategy Example: Advanced strategies can compare current price behavior against Upper Projection Band or Lower Projection Band to build custom breakout or channel-fade logic.