BTPO (Byware Turning Point Oscillator)

Replace Fast Stochastic with BTPO: it’s ultra smooth and accurate.

# Accurate turning point signals

#Smooth and timely

#Better than stochastics (fast stochastic ...)

The Byware Turning Point Oscillator (BTPO), is a momemtum indicator optimized for timing trend reversals and trade entries.

BTPO measures the "orderliness" of a trend, discounting the magnitude of the price changes. BTPO's output range is between -1 (signifying an orderly downward trend) to +1 (orderly upward trend). Values in between those two extremes indicate a lack of "orderliness" of price movement, with values around 0.0 indicating the complete lack of a detectable trend.

The distinguishing characteristics of the Byware Turning Point Oscillator are its smooth lines and ability to turn very quickly at market turning points. One of the problems with oscillators and other classic indicators is the unavoidable trade-off between smoothing and lag. Any attempt to smooth the oscillator invariably added lag, often to the point where the indicator became useless. BTPO suffers a great deal less from these problems than conventional oscillators. Even at very short measurement intervals, the BTPO is smoother.

The chart below compares BTPO with the standard "Fast %K" stochastic oscillator. We see both BTPO and the fast stochastic indicator applied to a 5 min chart of EURUSD. Both indicators are calculated using a period of 9 bars. Note how much smoother the BTPO is, with little or no noticeable increase in lag over the stochastic.. [Please note that the TPO is generally displayed as a histogram. In these two charts, it is displayed as a line, making it easier to compare the smoothness to the other indicators.]

BTPO accentuates the basic waveform of the standard Fast Stochastic while simultaneously lowering noise.