Elliot Oscillator

The difference between 5period ma & 35period ma plotted as a HISTOGRAM.

In wave 3 the prices are trading in a very strong trend, and because of this the 5ma moves away from the slower 35ma at a fast rate & causes the oscillator to have a high peak in ~3.

In ~5 prices are higher, but lacks the strong trend as in ~3 & therefore a smaller peak in the oscillator.

Historical tests have shown that 94% of time the 5/35 oscilator will pull back to zero during ~4 & therefore identifies ~4.