Oscillator Phase Change Index Formula and Parameters
Summary
The Oscillator Phase Change Index (PCI) is presented as an indicator for identifying the current market phase. Its configurable inputs are the lookback period, applied price, and overbought and oversold levels. The stated index scales the ratio of upward deviations to the combined upward and downward deviations to a 0–100-style measure.
The calculation defines a gradient from a lagged price and momentum estimate, then accumulates absolute distances from that gradient into upward and downward components according to whether the lagged price lies above or below it. The document supplies the formula and parameter descriptions but gives no interpretation rules for its threshold levels, trading examples, or empirical tests. It therefore explains the indicator’s construction, but does not establish how reliably it detects phase changes or how it should be combined with other signals.
Key ideas
- PCI is described as an oscillator intended to indicate the current market phase.
- Its inputs include a calculation period, applied price, and overbought and oversold levels.
- The formula compares accumulated upward and downward deviations from a momentum-based gradient.
- The document provides no tested signal rules or evidence of predictive performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.