PivotBoss Oscillator (PBOsc)

PivotBoss Oscillator (PBOsc) – Description

The PivotBoss Oscillator (PBOsc) is a momentum-based indicator derived from the PivotBoss PEMA Method, designed to identify market bias, trend strength, and potential reversals across all timeframes and instruments.

Unlike traditional oscillators, PBOsc measures the differential among three pivot-based EMAs (fast, medium, and slow) relative to the pivot point (PP) of each bar, allowing it to self-adjust dynamically with current market volatility.

Calculation Logic

Pivot Point (PP):

𝑃
𝑃
=
(
𝐻
𝑖
𝑔
ℎ
+
𝐿
𝑜
𝑤
+
𝐶
𝑙
𝑜
𝑠
𝑒
)
/
3
PP=(High+Low+Close)/3

Pivot-Based EMAs:

Fast PEMA = EMA(PP, fast length)

Medium PEMA = EMA(PP, medium length)

Slow PEMA = EMA(PP, slow length)

Differentials:

Diff1 = Fast PEMA − Slow PEMA

Diff2 = Medium PEMA − Slow PEMA

Diff3 = Fast PEMA − Medium PEMA

Oscillator Value:

𝑃
𝐵
𝑂
𝑠
𝑐
=
(
𝐷
𝑖
𝑓
𝑓
1
+
𝐷
𝑖
𝑓
𝑓
2
+
𝐷
𝑖
𝑓
𝑓
3
)
/
𝑃
𝑃
PBOsc=(Diff1+Diff2+Diff3)/PP

Interpretation

Above Zero Line (0): Bullish bias; momentum favors the upside.

Below Zero Line (0): Bearish bias; momentum favors the downside.

Advancing Bars (Green): PBOsc rising → Strengthening trend or positive momentum.

Declining Bars (Red): PBOsc falling → Weakening trend or negative momentum.

Analytical Uses

Change of Bias: Detects short-term shifts in market sentiment.

Trending Markets: Measures pullbacks or continuations within ongoing trends.

Divergence: Divergence between price and PBOsc can signal potential reversals.

Default Settings

Default: (8, 13, 21)

Alternate Presets: (5, 8, 13), (13, 21, 34), (21, 34, 55)