[blackcat] L3 Volatility Ehlers Stochastic CGO

OVERVIEW

This advanced indicator integrates the Center of Gravity Oscillator (CGO) with an Ehlers-Stochastic framework and an Adaptive Local Minimum-Maximum Average (ALMA) smoothing algorithm. Designed for non-overlaid charts, it identifies market momentum shifts by analyzing price action through multi-layer volatility analysis.

FEATURES

• Dual-line system:
✓ Stochastic CGO: Core oscillating line derived from weighted OHLC price calculations
✓ ALMA Lagging Line: Smoothing component using customizable offset/sigma parameters
• Dynamic color scheme:
✓ Green/red trend differentiation via crossover comparison
✓ Optional fill areas between lines (toggleable)
• Clear trade signals:
✓ Buy/Sell labels triggered by mathematically defined crossovers
✓ Zero-reference baseline marker (#0ebb23)
• Customizable parameters:

Fast Length (9 default) controls CGO sensitivity
Slow Length (5 default) governs ALMA responsiveness
ALMA Offset/Sigma allow adaptive curve optimization

HOW TO USE

Configure core parameters:
• Adjust Fast Length (CGO timeframe window)
• Set Slow Length, ALMA Offset, and Sigma for smoother/laggier response

Interpret visuals:
• Bullish trend = green shaded zone (when primary line above lagging line)
• Bearish trend = red shaded zone (primary line below lagging line)

Analyze signals:
• Buy triggers occur when rising CGO crosses above ALMA while below zero
• Sell triggers activate when falling CGO breaks below ALMA after exceeding zero base

Optimize display:
✓ Enable/disable fill area via Fill Between Lines

LIMITATIONS

• Relies heavily on lookback periods - rapid market changes may reduce predictive accuracy
• Signal frequency increases during high-volatility environments
• Requires additional confirmation methods due to occasional premature crossovers
• Default parameter settings may lack universality across asset classes

NOTES

• Best paired with volume-based confirmations for stronger signals
• Reducing ALMA Sigma sharpens line responsiveness at cost of noise susceptibility
• Increasing Fast Length extends calculation horizon while reducing peak sensitivity
• Weighted OHLC source formula prioritizes closing prices for swing direction assessment