Elder’s SIROC Momentum Oscillator with EMA Smoothing

Summary

The document presents the SIROC momentum oscillator attributed to Alexander Elder. It describes the indicator as similar to a rate-of-change measure, with exponential smoothing applied to closing prices before the rate of change is calculated. The specified construction uses a 13-period exponential moving average and then measures its rate of change over 21 periods; a zero reference line is also returned for comparison.

This is an indicator definition rather than a complete trading strategy. The document gives no entry or exit rules, asset universe, parameter rationale, chart examples, or backtest results, so it does not establish how SIROC performs or whether these settings suit a particular market. It also offers no guidance on interpreting crossings, divergences, or threshold levels. The personal-data notice included in the source is unrelated to the oscillator and provides no additional trading information.

Key ideas

• SIROC measures the rate of change of a smoothed closing-price series.
• The described smoothing uses a 13-period exponential moving average.
• The rate-of-change calculation spans 21 periods and is shown alongside a zero reference line.
• The document defines an indicator but gives no trading rules or evidence about its performance.

Tags

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