What is Pretty Good Oscillator (PGO) [Trading Strategy]

Pretty Good indicator (PGO or PG oscillator) is measure by substrating the specific period SMA from the current period closing Price. Then divide the result by EMA of specific period Average true range.

The PGO indicates buying and selling signals. This is the price base indicator. Changing price that will change the Indicator movement.

Setting

pretty-Good-Oscillator
  • Period: The default period of this indicator is 14. This means 14-period prices will take to calculate PGO indicators.
  • Result: this is the oscillator line color.

Pretty Good Oscillator calculation

The PGO oscillator calculation is calculated by subtracting n period SMA value from the closing price. Then the result will be divided by n Period EMA of the ATR.

Formula: (Closing period – n period SMA of the closing price) / n period EMA of ATR.

Pretty Good Oscillator trading strategy

Strategy 1

This is my personal Trading experience with this indicator. Generally when the Oscillator is moving Downward direction after crossing zero line. This is a sell signal.

If oscillator moving up and after crossing 0 line, you can buy.

Strategy 2

Use RSI indicator with PGO Indicator

In the PGO Indicator is moving upward direction. After crossing the zero line. This is the buying Signal.

And in the RSI Indicator, if the RSI Indicator is moving up and after crossing the 50 line. Above the 50 level of RSI is the bullish signal.

When Both indicators are giving a positive signals then you can buy the stock.

Sell: When the Indicator line is Moving downward direction and after crossing the zero line this is the selling signal in PG oscillator.

Similarly, if the RSI value is below the 50 level is the bearish signal.

When both the indicators are giving the selling signals then you can sell.

Strategy 3

You can PG oscillator with the MACD indicator.

Buy: when PG Oscillator is Positive. And in the MACD Indicator, the MACD line is crossing the signal line and moving above the zero line. also giving a positive signal then you can buy the stock.

Sell: when the PG oscillator is giving a selling signal, and int Signal line is crossing the MACD line and moving below the zero line. this is a selling signal in the MACD indicator, when both the Indicators giving selling Signal, you can sell the stock.

Strategy 4

For Intraday trading strategy. you can use pretty good Oscillator combination with Intraday Momentum index Indicator.

When PG Oscillator is above the zero level of this Indicator, this is the buying signal. Similarly, in the Intraday Momentum Index (IMI), if the IMI line is moving up and above the 50, this is the buying signal. When both the indicator showing position to buy, then buy the stock.

If PG Oscillator is below the zero level of this Indicator, this is the selling signal. Similarly, in the IMI indicator, if the IMI line is moving Down, and below the zero level of the IMI indicator line is giving a selling signal. If Both Indicators giving selling signal, then sell the stock.

Conclusion

Pretty Good oscillator Indicator is price base Oscillator. it takes the closing price, moving average price of the specific period, and ATR value of the specific period to calculate this indicator.

The line will oscillate and show you where to buy and where to sell the share. for better trading signals use this indicator with a combination of other indicators for a better trading view.

*Bonus Video

*Read Related Post for more information.

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