CG Oscillator
CGO

Type: Oscillator (to the trend regulation)

The centre - of - Gravity - Oscillator (CG) tries to determine the balance point of the courses of the considered period with the help of relatively simple calculations.
A balance point is to be understood as a point in which all active forces rise mutually. As an example one fancies a ruler which is balanced on the finger. If it concerns a 30-cm-long ruler, the balance point gave way exactly in 15 cm - line. Put the ruler exactly in this mark on your forefinger, it will pause in the horizontal position.
Only if you put on an additional load at an end of the ruler, for example one euro coin, the balance point will move in this direction. Now you must change the edition point to be able to balance the ruler further.

Like this example, one tries to find with the CG the balance point of the courses in the calculation period. This balance point shall be found in times without trend relatively near in the middle of the scale. If a strong trend rules, the balance point will move in one of both trend directions.
The oscillator is thereby able to signal turning points in the course movements relatively well. In comparison to the Slow - Stochastic he shows a better course pattern and in points with sharp direction changes also a quicker reaction.

Calculation:

The CG - Oscillator is calculated from the sum of the products from course and position in the consideration period, divided by the sum of the courses in the consideration period.

The following formula corresponds to the described above:

Picture


Because the so calculated balance - point develops in the opposite direction of the course movements, becomes the CG inverted. Important for the use it is that you adapt the calculation period to the base value and its cycles to be analysed. If you lie with the calculation period crooked, an absolutely useless result results from it.