Notis Oscillator Estimates Volatility from Intraday Price Ranges

Summary

The Notis oscillator uses the distances from the close to the intraday high and low to form two smoothed series. In its default, non-cumulative mode, the gap between the Plus and Minus lines is presented as a measure of volatility; their crossing is described as indicating direction. Its calculation scales the Plus series as a share of the sum of both series.

Cumulative mode combines the behavior into a single oscillator line, with an optional chart inversion. The inputs are the lookback period, averaging method, cumulative-mode switch, and inversion switch. The document explains the indicator’s construction and modes but gives no chart data, performance tests, or rules for trading signals. The volatility interpretation is therefore a description of the indicator, not evidence that it predicts future volatility or profitable trades.

Key ideas

• The indicator derives Plus and Minus series from the close’s distances to the intraday high and low.
• A moving average smooths each series over a chosen period.
• In non-cumulative mode, the distance between the lines represents the stated volatility reading.
• Cumulative mode presents one oscillator line and can optionally invert its display.
• The document does not provide empirical tests or a complete trading strategy.

Tags

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