Ehlers Center of Gravity Indicator and Signal Interpretation

Summary

This short description explains the Ehlers Center of Gravity indicator as a weighted position of prices within an observation window: each price is weighted by its position, and the sum is normalized by the window's total price. The described implementation includes a trigger line and follows the original calculation, while allowing the user to select the price input instead of requiring median price.

The stated use is to watch for indicator color changes as signals. The text cautions that the indicator is not meaningfully interpreted against fixed levels, so adding horizontal thresholds is not recommended. It gives no parameter settings, performance evidence, trading rules for entries and exits, or market-specific evaluation. The material is an indicator overview rather than a tested strategy, and its brief description does not establish that color changes predict profitable trades.

Key ideas

• The indicator calculates a price-weighted balance point across an observation window and normalizes it by summed prices.
• The described version includes a trigger line and lets the user choose the price series.
• Color changes are presented as possible signals for using the indicator.
• Fixed horizontal levels are discouraged because the indicator is not tied to stable levels.
• The description provides no backtest or evidence of signal profitability.

Tags

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