Elliott Wave Oscillator (EWO) Pro – Validated Twin Peaks

Elliott Wave Oscillator – Advanced Interpretation

Elliott Wave Oscillator (EWO) – Validated Twin Peaks is an advanced analytical version of the classic Elliott Wave Oscillator.
The core EWO calculation is preserved and remains fully consistent with the original methodology.

This indicator adds optional analytical layers designed to improve signal interpretation, not to replace or modify the original EWO logic.

Core Logic

At its foundation, the indicator uses the standard Elliott Wave Oscillator formula:

• Difference between fast and slow moving averages (EMA by default)
• Optional SMA mode
• Optional percent normalization relative to price

The original behavior of EWO is fully maintained.

Key Enhancements

Validated Twin Peaks
Twin Peaks patterns are detected using a strict structural approach:

• Both peaks must be on the same side of the zero line
• The second peak must be weaker (closer to zero)
• Momentum deceleration is confirmed internally using the Accelerator Oscillator (AC)
• No zero-line crossing is allowed between peaks
• Peaks are confirmed using a configurable number of surrounding bars

This validation significantly reduces false signals in strong trends.

Saucer Patterns
Optional detection of classic bullish and bearish saucer formations based on EWO shape and direction.

Signal Line
An optional smoothing line applied to EWO values for better visual analysis.

Accelerator Oscillator (AC)
A derived oscillator based on EWO momentum.
AC is always calculated internally for pattern validation, while visual display is optional.

Enhanced Visualization

• Four-color histogram based on direction and position relative to zero
• Clear zero-line reference
• Minimal, non-intrusive markers for patterns

Design Philosophy

• No price-based indicators are added
• No external oscillators (RSI, MACD, etc.)
• No alteration of the original EWO formula

All additional logic is optional and works as an analytical overlay.

Who This Indicator Is For

• Traders using Elliott Wave Oscillator for wave structure analysis
• Users who want clearer and more selective Twin Peaks signals
• Analysts who prefer confirmation over early but noisy signals

This tool is designed for structure and momentum analysis, not for ultra-fast entries.