This center oscillator measures the advancing stocks and declining stocks on a 20 days basis. This indicator is a leading indicator as it leads the price move. The bigger the difference between the current price and the price 20 days ago, the higher the value of this oscillator. When the indicator is above 0, the percentage price change is positive (bullish). When the indicator is below 0, the percentage price change is negative (bearish). This indicator is especially reliable when a new high or low of the market is not confirmed by momentum.
Bullish: Above 0 or below -10,000
Bearish: Below 0 or above 10,000
Watch out for divergences between the market and that indicator