Larry Williams Proxy Index
Simplified implementation of the Larry Williams Proxy Index
A simplified implementation of the Larry Williams Proxy Index (LWPI), a momentum oscillator used to identify overbought and oversold conditions. The line dynamically colors itself based on whether the value is above or below the midline, providing an instant visual read on momentum direction.
The Concept
LWPI is a momentum oscillator that reads overbought and oversold conditions through a simplified proxy calculation. The line dynamically changes color at the midline — green above, red below — giving you an instant visual read on which side of momentum the market is on without analyzing the exact value.
How to Read It
A single color-changing line oscillates around the 50 midline.
- Line above 50 (green) indicates bullish momentum — buyers have the edge
- Line below 50 (red) indicates bearish momentum — sellers have the edge
- Midline crossovers mark momentum transitions between buyers and sellers
- Extreme readings near the top or bottom of the range suggest extended conditions
Practical Tips
Display in a separate chart region. The Period controls responsiveness — shorter periods react faster but produce more noise. LWPI is especially effective as a quick momentum filter: only take long setups when the line is green, shorts when red. The color-change feature makes it one of the fastest studies to read at a glance.
Input & Settings
| No. | Input Name | Function |
|---|---|---|
| 1 | Period | The lookback period for the LWPI calculation. Default: 14. |
The lookback period for the LWPI calculation. Default: 14.
Subgraphs
| No. | Subgraph Name | Function & Comments |
|---|---|---|
| 1 | LWPI | Default: Line. The LWPI oscillator line — dynamically colored green above the midline and red below. |
| 2 | Middle Line | Default: Line. The 50-level midline reference, separating bullish territory (above) from bearish territory (below). |
| 3 | Color Above Midline | Default: Hidden. Controls the color used for the LWPI line when the value is above 50. Default: Green. |
| 4 | Color Below Midline | Default: Hidden. Controls the color used for the LWPI line when the value is below 50. Default: Red. |
Default: Line. The LWPI oscillator line — dynamically colored green above the midline and red below.
Default: Line. The 50-level midline reference, separating bullish territory (above) from bearish territory (below).
Default: Hidden. Controls the color used for the LWPI line when the value is above 50. Default: Green.
Default: Hidden. Controls the color used for the LWPI line when the value is below 50. Default: Red.
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