An oscillator that double-smooths the RSI and redraws it as a MACD-style histogram. It keeps RSI's readability while shaving off the noise, showing the moment momentum to reach for new prices turns, smoothly and ahead of price.
The Derivative Oscillator is an oscillator devised by the technical analyst Constance Brown.
Its raw material is the RSI that everyone knows.
Brown's idea ran like this. The RSI reads momentum cleanly on a 0 to 100 scale, but the line itself is jagged, and it becomes awkward when it pins at overbought or oversold levels.
So she smooths the RSI twice and redraws the result as a histogram, the way MACD does.
What comes out is a double-smoothed RSI, a signal line, and a histogram standing on the difference between them.
It catches turns in momentum with a MACD-style cross and histogram, while keeping the readability of the RSI. That is the aim of the Derivative Oscillator.
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