StoneAxe: A Normalized Close Position Oscillator

Summary

StoneAxe is described as a normalized oscillator that places the closing price within the recent high-to-low range. The calculation maps the close’s position between the period low and period high onto a scale from -100 to 100, with the range midpoint corresponding to zero. The document says that three normalized oscillators can be displayed on one chart, implying the indicator can be compared across multiple periods or configurations.

The note attributes the indicator to Rosh via MetaStock and says it was first implemented in MQL4, with publication in 2008. It does not specify the periods used for the three oscillators or explain how to interpret readings, generate trades, or handle a zero high-low range. No testing or performance evidence is supplied, so practical use would require additional rules and validation.

Key ideas

• StoneAxe normalizes the closing price’s location within a lookback high-low range.
• Its output is scaled from -100 to 100.
• Three versions of the oscillator can be shown on a single chart.
• The document gives no trading thresholds, period settings, or performance results.

Tags

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