# Pretty Good Oscillator | Formula | 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

• 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