Oscillator of Oscillator

Oscillator of Oscillator is the general form of the oscillator of oscillator construction: a stochastic second layer applied to another oscillator instead of price. The first layer (RSI by default, or Stochastic %K, CCI, MFI, or Rate of Change) is optionally pre-smoothed, located inside its own recent high-low range on a 0–100 scale, then smoothed into %K and its %D signal line. %K colors by its side of the 50 midline, dashed lines mark the 80/20 extremes, and a dashboard spells out the two-pass pipeline and current state.

How to Trade the Oscillator of Oscillator?

• %K above 80: the first-layer oscillator is stretched high within its own recent range. The cross back below the level carries its own alert.
• %K below 20: the mirror stretch low; crossing back above is the recovery event.
• %K/%D crosses: the crossover trigger, alertable both ways; pane markers are off by default.
• 50 midline: the bias line: the %K color flip and the midline-cross alerts track it.

Second-layer extremes describe the oscillator, not price: a steady trend can swing the layer between extremes while price barely pauses, so anchor readings back to price structure.

Oscillator of Oscillator Settings

• Oscillator (default RSI): the first-layer base, per its standard definition.
• Length (default 14): the first-layer lookback.
• Source (default close): feeds the RSI and Rate of Change bases.
• Pre-Smoothing (default 1): SMA on the first layer; 1 means none.
• Stochastic Window (default 14): the second-layer lookback: shorter makes extremes frequent and cheap, longer behaves like the raw base.
• %K Smoothing (default 3) and %D Smoothing (default 3): output smoothing and its signal average.
• Overbought (default 80) and Oversold (default 20): the second-layer extremes.
• Show Dashboard (default enabled); Show %K/%D Cross Markers (default disabled).

Frequently Asked Questions

Is this just Stochastic RSI?

Why does it reach extremes so much more often than its base?

Can unbounded oscillators like CCI be used?