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Adaptive Ultra-Smooth Momentum Indicator

When the lag is eliminated and the smoothed, clear reversal points are restored, new options for technical analysis arise. The Cycle-Swing Indicator is fast, clear and smooth. You get better timing, greater accuracy, and better signals.

Many systems include momentum as an indicator. Until now, however, momentum signals have been extremely jittery, resulting in whipsaw trades. In contrast, the adaptive cycle swing generates an ultra-smooth swing without adding lag to the original signal.

The Cycle Swing Indicator "CSI" provides an optimized "momentum" oscillator based on the current dominant cycle by considering the dominant cycle swing instead of the raw source momentum. Offering the following improvements:

  • Smoothness
  • Zero delay
  • Sharpness at turning points
  • Robust and adaptable to market conditions
  • Accurate deviation detection

The following common problems with standard indicators are solved by this indicator:

First, normal indicators introduce a lot of false signals due to their noisy signal line. Second, to compensate for the noise, one would normally try to add some smoothing. But this only results in adding more delay to the indicator, which makes it almost useless. Third, standard indicators require a length adjustment to derive reliable signals. However, you never know how to set the right length.

All three problems described above are solved by the developed adaptive cyclic algorithm.