Saty Phase Oscillator for Market Phases and Volatility Compression

Summary

The Saty Phase Oscillator combines an EMA pivot, ATR normalization, and Bollinger Bands to describe price movement relative to a dynamic reference. Price distance from an EMA(21) is scaled by three times ATR(14) and smoothed with EMA(3). Thresholds divide readings into neutral, directional, and extended regions, which the document associates with market phases. Zero crossings indicate movement across the pivot, while extreme readings are suggested as possible fade areas.

A separate squeeze measure flags periods when the Bollinger envelope lies within an ATR-based envelope. The indicator marks these periods as compression and clears the state when its expansion condition is met. The document provides calculation details and code, but no backtest or evidence that a breakout or reversal follows reliably. Its phase labels and trading interpretations are heuristics, and the presented guidance should be validated across markets and settings.

Key ideas

• The oscillator scales distance from an EMA(21) pivot by three times ATR(14) and smooths the result with EMA(3).
• Threshold bands classify readings as neutral, directional, or extended relative to the pivot.
• The compression detector flags when Bollinger Bands fit inside an ATR-based envelope.
• The document suggests preparing for expansion during compression but provides no outcome statistics.
• Its phase readings and fade interpretations are trading heuristics that require independent testing.

Tags

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