Using a Smoothed Pretty Good Oscillator for Trend Signals
Summary
This document describes a modified Pretty Good Oscillator (PGO) that allows its values to be smoothed with a Timm Morris moving average. The stated purpose of smoothing is to filter some false signals. It recommends interpreting crossings of the zero line as indications of longer-term changes in trend direction, while changes in the indicator's slope can suggest shorter-term directional shifts.
The source provides only a brief description of the indicator and its suggested signal reading. It includes no formula, parameter settings, market examples, backtest, or performance evidence, so the claimed reduction in false signals is not substantiated here. The signals should be treated as a technical-analysis heuristic requiring instrument-specific testing; the document does not define trade execution, exits, or risk management.
Key ideas
- The indicator applies a Timm Morris moving average to smooth PGO values.
- Smoothing is intended to filter some false signals, though no evidence is provided.
- Zero-line crossings are proposed as longer-term trend-change signals.
- Changes in slope are proposed as shorter-term directional signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.