Speed Oscillator: Scaling Moving Average Change by Recent Average Speed

Summary

The Speed Oscillator measures how quickly a moving average changes on the current bar relative to the mean speed over a chosen lookback period. It separates upward and downward movement, scaling each by the average positive or negative speed in the historical window, and returns zero when the moving average is unchanged. This normalization is intended to show whether the current movement is fast or slow compared with its recent directional history.

The document provides calculation logic and an example configuration using a 9-period moving average and a 120-period averaging window. It does not specify trading thresholds, entry or exit rules, asset classes, or empirical performance. Because it compares movement with direction-specific averages, practical interpretation depends on how the lookback is defined and how the indicator handles periods without positive or negative movement; these details are not discussed.

Key ideas

• The indicator compares the current moving-average change with a historical mean speed.
• Upward and downward changes are normalized using separate directional averages.
• The oscillator returns zero when the moving average does not change.
• The example uses a 9-period moving average and a 120-period averaging period, without providing trading rules or performance evidence.

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