Smooth Price Oscillator [BigBeluga]

12 Nov

The Smooth Price Oscillator by BigBeluga leverages John Ehlers' SuperSmoother filter to produce a clear and smooth oscillator for identifying market trends and mean reversion points. By filtering price data over two distinct periods, this indicator effectively removes noise, allowing traders to focus on significant signals without the clutter of market fluctuations.


🔵 KEY FEATURES & USAGE

● SuperSmoother-Based Oscillator:
This oscillator uses Ehlers' SuperSmoother filter, applied to two different periods, to create a smooth output that highlights price momentum and reduces market noise. The dual-period application enables a comparison of long-term and short-term price movements, making it suitable for both trend-following and reversion strategies.

Pine Script®

● Mean Reversion Signals:
The indicator identifies two types of mean reversion signals:

• Simple Mean Reversion Signals: Triggered when the oscillator moves between thresholds of 1 and Overbought or between thresholds -1 and Ovesold, providing additional reversion opportunities. These signals are useful for capturing shorter-term corrections in trending markets.
  
• Strong Mean Reversion Signals: Triggered when the oscillator above the overbought (upper band) or below oversold (lower band) thresholds, indicating a strong reversal point. These signals are marked with a "+" symbol on the chart for clear visibility.
  

Both types of signals are plotted on the oscillator and the main chart, helping traders to quickly identify potential trade entries or exits.

● Dynamic Bands and Thresholds:
The oscillator includes overbought and oversold bands based on a dynamically calculated standard deviation and EMA. These bands provide visual boundaries for identifying extreme price conditions, helping traders anticipate potential reversals at these levels.


● Real-Time Labels:
Labels are displayed at key thresholds and bands to indicate the oscillator’s status: "Overbought," "Oversold," and "Neutral". Mean reversion signals are also displayed on the main chart, providing an at-a-glance summary of current indicator conditions.


● Customizable Threshold Levels:
Traders can adjust the primary threshold and smoothing length according to their trading style. A higher threshold can reduce signal frequency, while a lower setting will provide more sensitivity to market reversals.



The Smooth Price Oscillator by BigBeluga is a refined, noise-filtered indicator designed to highlight mean reversion points with enhanced clarity. By providing both strong and simple reversion signals, as well as dynamic overbought/oversold bands, this tool allows traders to spot potential reversals and trend continuations with ease. Its dual representation on the oscillator and the main price chart offers flexibility and precision for any trading strategy focused on capturing cyclical market movements.