Mobility Oscillator

The Mobility Oscillator was authored by Mel Widner, Stocks and Commodities Magazine 02/1996. This Indicator uses highest highs, lowest lows, loops within loops, many if ands or equals, and even a prior close to arrive at its oscillator value. It uses a price distribution function and may be useful in predicting price mobility. The user may change the period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.

How To Trade Using Mobility Oscillator

Mobility Oscillator may be used in conjunction with other indicators. No trading signals are given.

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Go to the top menu, choose Study>Mel Widner>Mobility Oscillator

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Calculation

//period = user defined, default is 14
//m = user defined, default is 10
//pdf = price distrubition function
//index = current bar number, LOE = less or equal
//MOE = more or equal

Plot: mo = -mo(m, index, period);
....
Method mo(m, index, period)
hMax = highest(index, period, high);
lMin = lowest(index, period, low);
rX = (hMax -lMin) / m;
bL = 0, bU = 0, pdfI = 0, pdfC = 0, pdfMx = 0;
imX = 1, priorClose = 0, x = 0;
for(i=index-m+1; i LOE index; i++)
    bU = lMin + ((x + 1) * rX);
    bL = bU - rX;
    pdfI = pdf(i, (x+1), m, period);
    if (x == 0) pdfMx = pdfI;
    if (pdfI moreThan pdfMx) imX = x + 1; pdfMx = pdfI;}
    if (x == 0) pdfC = pdfI;
    priorClose = close[period-1];
    if (priorClose moreThan bL AND priorClose LOE bU) pdfC = pdfI;
    x++;
endFor
pmo = lMin + (imX - .5) * rX;
moVar = 100 * (1 - pdfC / pdfMx);
if (priorClose lessThan pmo) moVar = -moVar;
return moVar;
endMethod
....
Method pdf(index, value1, m, period)
hMax = highest(index, period, high);
lMin = lowest(index, period, low);
hi = 0;
lo = 0;
pdf = 0;
rX = (hMax - lMin) / m;
bL = lMin + ((value1 - 1) * rX);
bU = lMin + (value1 * rX);
for(i=index-period+1; i LOE index; i++) 
    hi = high[i];
    lo = low[i];
    if (hi LOE lo) continue;
    if (hi LOE bU) pdf++;
    if (!(hi LOE bU OR lo MOE bU)) pdf = pdf + (bU - low) / (hi - lo);
    if (hi lessOr= bL) pdf--;
if (!(hi LOE bL OR lo MOE bL)) pdf = pdf - (bL - low) / (hi - lo);
return pdf / period;
endMethod
....