Projection Oscillator

The Projection Oscillator indicator is based on the Projection Bands as introduced by Mel Widner, Ph.D in an Technical Analysis of Stocks & Commodities magazine article from July, 1995.

Projection Oscillator

Indicator Description

The Projection Oscillator is based on the Projection Bands indicator and plots the location of the close within the bands:

  • A value of 0 means that the close equals the lower band
  • A value of 50 equals the midband
  • A 100 equals the top band.

Whereas the Stochastic’s calculation uses the raw highest high and lowest low value, the Projection Oscillator adds the regression line component, making it more responsive.

You may use the Projection Oscillator indicator to reveal price divergences as well as identifying overbought/oversold scenarios. You may also use a moving average of the oscillator to indicate buy/sell signals with a cross above/below the trigger line.

Other Library indicators

The standard / advanced momentum oscillators categories of the NinjaTrader indicators library also has a Double Smoothed Momentum, LBR 3/10, MACD KC Lines, Stochastic, SVE Stochastics IFT and our new and improved version of the standard RSI indicator.

The Projection Oscillator is best used when aligned with a higher timeframe trend / momentum bias. For a few suggestions on how to do that, please review our Indicator Spotlights on the TDI indicator, Heikin Ashi bars, Ichimoku Kinko Hyo, the Donchian Channel Strategy or the Regression Channel. Our library also features the Daily Regression Channel, the True Strength Index and the Moving Average Wave indicators.

You may also increase the probability of successful trades by “buying support and selling resistance”. Additional information on that can be found in our Indicator Spotlights on the Daily Pivot Levels and Fibonacci Retracement Lines.

Furthermore, you may also consider average daily range levels for support / resistance. Our Indicator Spotlight discussed the Daily Range Projections. Finally, the Weekly Range Projections / Monthly Range Projections are also available from our Volatility Indicators category.

The Projection Oscillator indicator download is available for NinjaTrader 8.

Projection Oscillator