The TFS MBO indicator is the last component of Bryan Strain's Tend Following System. Similarly to the MACD oscillator, it calculates the difference between two averages - fast and slow. TFS MBO is consequently an oscillator based on the close price whose variation is used to confirm the market tendency.
This function whose name is 'tfs_mbo', takes as arguments the lengths of the respective periods of the fast and slow averages.
Using this indicator and the two others, the volume oscillator and the tether line, the system rules are as follows:
Yesterday close price is below the tether line
Today's close is above the tether line
The volume oscillator has a positive value
Today's MBO value is greater than yesterday's value
In case all the above rules are met, we should go long. (Buy at market).
Sort objects
