A Stair-Step Moving Average Oscillator for Tick-Chart Scalping

Summary

This indicator method turns a stair-step moving average into the center of an oscillator. It updates the trend center when a triangular moving average moves beyond a configurable percentage threshold; otherwise, the prior center is retained. A short simple moving average of price is then compared with that center, and the difference forms the signal line.

The proposed rule is to go long when the signal crosses above zero and short when it crosses below zero. The author says it appears effective on DAX/GER30 tick charts, with examples of 100- and 20-tick charts, but supplies no backtest, performance figures, or detailed trade examples to support that assessment. The method leaves profit targets and stop losses to the trader and suggests adjusting the parameters for other instruments. It is therefore an indicator concept and entry signal, not a complete trading system.

Key ideas

• The stair-step center changes only when a triangular moving average exceeds a percentage threshold.
• The oscillator signal is the difference between a short simple moving average and the stair-step center.
• The suggested entries are long above zero and short below zero.
• The author cites DAX/GER30 tick charts but provides no quantitative validation and leaves exits to the user.

Tags

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