The Cyclic Oscillator is a very responsive momentum-based overbought/oversold indicator. It is highly sensitive to significant trend changes while being quite smooth and robust. Its repetitive oscillations make it ideal for identifying cyclic price patterns and wave frequencies.

The Cyclic Oscillator spends a lot of time in overbought/oversold territory. Crossing down out of the overbought zone is a bearish signal and crossing up out of the oversold zone is a bullish signal. The best signals come when the Cyclic Oscillator dips down out of the overbought zone but stays above the midline, then hooks back above the overbought zone. When it crosses below the overbought zone for the second time, a low-risk short position can be taken. By the same token, when the Cyclic Oscillator rises above the oversold zone but stays below the midline, then hooks back into the oversold zone and finally crosses above the oversold boundary again, a low-risk long position can be taken.

The Cyclic Oscillator has a total of three inputs, as follows:

STRENGTH(6),{The sensitivity of the oscillator. Higher numbers mean less sensitivity. Useful values range from 1 to 20.}

OBZONE(80), {Controls the location of the OverBought Zone border line}

OSZONE(20), {Controls the location of the OverSold Zone border line}

Available on:

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