Kurtosis Oscillator: Smoothed Changes in a Fast Price Average
Summary
The document defines a price-based oscillator labeled Kurtosis and presents it as a market sentiment indicator that reflects price direction. Its calculation first takes a short exponential moving average of closing prices, computes the change between consecutive values, smooths that change with a longer exponential average, and applies a final short simple average. The stated default periods are 3 for the initial average, 66 for the longer smoothing, and 3 for the final average.
The description provides the formula and parameter values but no chart interpretation rules, thresholds, entry or exit signals, or empirical evaluation. It does not explain how to distinguish trend from noise or how to combine the oscillator with risk controls. The label “Kurtosis” may suggest a statistical distribution measure, but the supplied calculation is based on smoothed price changes; readers should treat it as this specific indicator construction rather than as a general kurtosis statistic. No asset class or timeframe is specified.
Key ideas
- The indicator smooths changes in a short exponential average of closing prices.
- A longer exponential average filters the price-average changes before a final short simple average is applied.
- The default smoothing periods are 3, 66, and 3, respectively.
- The document offers no thresholds, trade rules, timeframe guidance, or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.