Elliott Wave Oscillator with breakout bands

The Elliott Wave Oscillator ( EWO ) is defined as

EWO = SMA (fast-period, source) – SMA (slow-period, source)

where source is hl2 , fast-period is 5 and slow-period is 35.

if price is in an uptrend, and this uptrend has been stronger over the previous five candles relative to the previous 35, then the EWO will be positive. If price is in an uptrend, but price has been in a stronger overall uptrend over the past 35 candles relative to the previous five, the EWO will be negative. Likewise, we can apply this to downtrends.

The Oscillator Break Out Bands provide an Up Band and a Low Band. In a Wave Three, the EWO needs to be above the Break Out
Band. The default strength of the band is 100%, but 80% could be also a good configuration.

Hint: Use together with the XTL indicator