Cycle Swing Indicator
The Cycle Swing Indicator indicator is an enhancement of the classic Momentum indicator. The cyclic-tuned momentum indicator was first introduced in the book "Decoding the Hidden Market Rhythm Part 1: Dynamic Cycles" (LINK) and the indicator code has been made public for different charting platforms. It does not require any input or parameter as this indicator automatically adjusts the calculation according to the main market cycle.
Popular technical indicators often react too slowly to changes and deliver shaky signal lines. If they are smoothed, the lag becomes greater and greater, rendering the signals useless for real-time analysis.
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:
- 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.
Add to chart
Our TradingView indicator version is available as public Open-Source indicator in their public library. If you want to use this indicator on your chart, use the "Indicators" button from the TradingView chart panel.
Search for "Cycle Swing" in the "Indicators" window and select the "Cycle Swing Momentum" from WhenToTrade as indicator.
You can also open the source code and adjust for your own needs. The script page with code is available via this link at TradingView: https://www.tradingview.com/script/b7o7GmWT-Cycle-Swing-Momentum/
This indicator is not designed for use as an automated trading strategy
This is an parameter-less improved technical indicator. It can be used as drop-in replacement for the classic momentum. The basic applications of technical analysis for oscillators and the Momentum oscillator apply. The script is intended for use in discretionary trading.