For TradeStation

Based on "Rolling with the Punches", E. Marshall Wall, Futures Magazine July, 1996

The Dynamo oscillator is a normalizing function which adjusts the values of a standard oscillator for trendiness by taking the difference between the value of the oscillator and a moving average of the oscillator and then subtracting that value from the oscillator midpoint.

A modifier which can be applied to any standard overbought/oversold oscillator to create an adaptive version that adjusts to market conditions, thus making it less likely to get "stuck" in overbought/oversold status in strongly trending markets.