Keltner Center-of-Gravity Width, Trend State, and Volume Events
Summary
KCGmut combines a Donchian-range center-of-gravity zone with ATR-spaced outer channel bands. Its lookback is assigned according to chart timeframe, and its channel width and inner COG width are displayed as percentages of the range midpoint. Price above, within, or below the inner zone defines an up, sideways, or down state; expanding widths are highlighted to call attention to new range extremes or rising volatility.
A separate volume measure compares current volume with a trimmed recent baseline and marks increases in two intensity bands. The author suggests that repeated volume events occurring with range expansion may be more informative than isolated spikes, framing them as market participation. This is a descriptive indicator concept, not a validated signal: the document offers no systematic results, and its volume thresholds, timeframe-specific lookbacks, and visual conventions are implementation choices that need testing across instruments and chart settings.
Key ideas
- The indicator builds an inner center-of-gravity zone from Fibonacci fractions of a Donchian high-low range.
- ATR-based outer bands and inner-zone width are shown as percentages of the range midpoint.
- Price location relative to the inner zone labels the state as upward, sideways, or downward.
- Expanding channel or COG widths highlight volatility growth or new range extremes.
- Volume rises above a trimmed recent baseline are marked in two bands, with repeated events suggested as more meaningful than isolated ones.
- No backtest or comparative evidence is provided for the proposed interpretations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.