Adaptive High-Low Cycle Oscillator for Bullish and Bearish Momentum

Summary

This document describes an oscillator built from the midpoint of the current high and low, normalized against the highest high and lowest low over a rolling window. Its recursive calculation smooths that normalized value and applies a logarithmic transform, producing a line that can be read relative to a zero level. An optional adaptive calculation adjusts the window length using a ratio of price movement to accumulated movement, intended to respond to market noise.

Four output buffers distinguish whether the oscillator is rising or falling while above or below zero. The author presents the positive side as bullish and the negative side as bearish. The document provides the calculation logic and a default period setting, but no charts, backtest, performance evidence, or trading rules for entries and exits. It also does not explain how to handle edge cases such as a zero-width high-low range, or validate whether the adaptive period improves results across markets and timeframes.

Key ideas

• The oscillator normalizes the price midpoint within a rolling high-low range.
• An optional adaptive calculation varies the channel period using a price movement-to-noise ratio.
• A logarithmic transform and recursive smoothing produce the main oscillator line.
• The four output buffers identify rising or falling readings above or below zero.
• The document supplies an indicator calculation but no evidence of trading performance.

Tags

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