Average Force Oscillator: Normalizing Price Within Its Recent Range
Summary
Average Force is a smoothed oscillator that locates the close within the high-low range over a selected lookback period. The calculation scales the close's position between the period's lowest low and highest high, then shifts the result around zero. A simple moving average smooths this normalized value. Positive readings are colored differently from negative readings, giving a visual cue for price positioning and possible trend direction.
The indicator exposes lookback and smoothing settings, with default values provided in the source. Its release notes explain that the calculation handles a zero-width range by returning zero, avoiding division by zero when highs and lows are equal. The document characterizes the tool as a sentiment and trend aid, but includes no rules for entries or exits and no testing or performance evidence. It should therefore be treated as an indicator definition rather than a validated standalone strategy.
Key ideas
- The oscillator measures the close's position within the recent high-low range.
- It centers the normalized value around zero and smooths it with a simple moving average.
- Positive and negative values receive different colors for visual interpretation.
- A zero-range condition returns zero to avoid division by zero.
- The document provides no tested trading rules or performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.