Center of Gravity oscillator produces nearly zero lag indications of market corrections and pivot points with precise accuracy. The indicator was a result of studies of adaptive filters by John Ehler and was developed and presented in Stocks & Commodities magazine in 2002.
How to trade with Center of Gravity oscillator
The Center of Gravity oscillator resembles the stochastic oscillator just has no overbought and oversold areas. It can be used on relatively any time-frame and currency pair.
The oscillator draws two signal lines, red and blue. The crossing of them serves as the indicator’s main signal: -If the red line crosses the blue from bottom up, we can expect a bullish correction. -While if the red line crosses the blue one at the topside, we can expect a bearish correction.
In addition, signal divergence can also be observed in the Center of Gravity oscillator: If the price continues forming lower highs and/or lower lows while the Center of Gravity oscillator remains trending higher, a divergence signal is generated and we can expect an overall trend to shift to bullish.
Similarly, if the price continues forming higher highs and/or higher lows while the Center of Gravity oscillator remains to trend lower, we can expect an overall trend to turn bearish. Both examples are shown in the graph above.
CG = -1*NUM/DEN NUM = int (n, i = 0) DEN = int (n, i = 0) , where PRICE = the price i bar (bars) back; PRICE = the current bar price; PRICE = the price 2 bars back.
How to Download and Install Center of Gravity oscillator
How to install your indicator on MT4 platform:
1. Click on Download button below;
2. Save the file to your computer;
3. Move the .ex4 file into the following folder : meta traderexpertsindicators;
4. Restart your Metatrader platform;
5. Click the “Indicators” button in Metatrader toolbar;
6. Select “Custom”;
7. Search and select “Center of Gravity”;
8. Adjust settings or press OK to add the indicator to your selected chart;
Note: Center of Gravity oscillator is developed by John Ehler and was sent by an AtoZ Markets follower from the United States, Mark. AtoZ Markets does not carry any copyrights over this trading tool.
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