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This oscillator, which was made popular by Linda Bradford Raschke, identifies the momentum behind market moves and highlights new momentum highs and lows.
The Elliot Oscillator is a 10-period simple moving average subtracted from a 3-period simple moving average and plotted as a histogram above and below the zero line. The result is in addition smoothed by a 16-period simple moving average. This indicator is very similar to the MACD indicator. It can be applied in any time frame (intraday, daily ...).
A special feature of the Elliot Oscillator is that it looks for a consensus of new high / lows in the oscillator and in the price. When there is a new high / low in both the oscillator (20-periods) and the price (40-periods) the background of the chart is highlighted in blue.