Center of Gravity Oscillator
The CG Oscillator identifies price turning points with essentially zero lag by calculating the balance point of prices.
Usage
Use as a zero-lag momentum oscillator to detect cycle turning points. Crossovers of the trigger line provide high-accuracy entry and exit signals.
Background
Ehlers introduces the Center of Gravity oscillator in Cybernetic Analysis (2004) as a near-zero-lag indicator. It computes the center of mass of a price series over a lookback window, producing an oscillator whose turning points lead price turns — a reversal of the usual indicator lag relationship.
Parameters
period(default: 10): Observation window length
Formula
\[
CG = -\frac{\sum_{i=0}^{N-1} (i+1) \times Price_i}{\sum_{i=0}^{N-1} Price_i}
\]