Rainbow Oscillator

Rainbow Oscillator for NinjaTrader 8

As the name implies, the Rainbow Oscillator displays 100 oscillator values with ascending lookback periods, as opposed to moving averages as seen in the Multiple Rainbow Filter.

Indicator Description

The default Rainbow Oscillator lookback period for the minimum, K-, smooth, fast- and slow periods are set to 12. The default period can be changed as per user preference. When the increments 1 and 2 are set to 2 and 4 for the default Stochastics Momentum Index (SMI), the oscillator values will increase accordingly, i.e. SMI14/SMI16, SMI18/SMI20, SMI20/SMI24… until SMI206/SMI404, SMI208/SMI404 and SMI210/SMI408

The Rainbow Oscillator also comes with the option to use RSI and MACD as input for the oscillator values.

The Rainbow Oscillator is available for NinjaTrader 8.

The Indicator Library also contains a number of standard momentum oscillators such as the RSI, Stochastics, and the TDI. These are built with trend indicators, tracking short-term overbought or oversold conditions. I.e. when the oscillator value approaches the upper extreme, it indicates overbought, and as it approaches the lower extreme, oversold.

Furthermore, the library also has a category for advanced oscillators featuring among others the Connors RSI, the Laguerre RSI and the MACD BB Lines. These tools build on the same concept as the standard momentum oscillators, but with a higher degree of sophistication. In general, they allow for added value approaches, utilizing a set of more complex algorithms.