A Price-Change Oscillator Based on a Logistic Function

Summary

This experimental indicator applies a logistic-style expression to the change in closing price over a selected lookback. It scales the calculation by the high-low range across that same window, producing separate plotted series for positive and negative price changes. The script also draws reference levels at half the range in either direction and colors bars according to whether the calculated values exceed those bounds.

The publication offers a mathematical construction rather than a complete trading method: it does not explain entry, exit, or position-sizing rules, and it reports no testing or performance evidence. Its author leaves interpretation to the user. Because the calculation depends on the selected lookback and recent range, its values and color states are contextual; the document does not establish that they forecast price direction or identify profitable opportunities.

Key ideas

• The indicator applies a logistic-style function to closing-price change over a configurable lookback.
• The calculation scales price change relative to the high-low range over the same period.
• Positive and negative outputs are plotted separately against zero and half-range reference levels.
• Bar colors identify when either output exceeds its corresponding range boundary.
• The publication provides no trading rules or evidence that the readings predict market moves.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.