Using Sinusoidal Phase and Amplitude as Trading Signals

Summary

This indicator description explains how a sinusoidal moving-average tool exposes phase, opposite phase, and amplitude as separate plotted values. Phase is represented in degrees across a full cycle, while the opposite phase runs through the negative range; the description suggests shifting that opposite phase by a full cycle when combining values. Amplitude is expressed in points.

The author says polynomial smoothing can make lines smoother while adding lag and rhythm, and sinusoidal extrapolation near a constant can adjust the apparent lead or delay. Phase values can digitize points along the curve for use as expert-system signals, including asymmetric intervals that block trades during selected portions of a cycle. These are design suggestions rather than validated trading results: the document provides no performance tests, market context, parameter evaluation, or risk controls, and notes that display workarounds are used to retain the original indicator lines.

Key ideas

• The indicator outputs phase, opposite phase, and amplitude as distinct series.
• Phase values describe location within a cycle and can be converted into discrete signal states.
• Polynomial averaging smooths the plotted series but also increases inertia.
• Selected phase intervals can be used to filter or prohibit trades asymmetrically.
• The document gives no empirical evidence that these signals are profitable.

Tags

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