Center Of Gravity Indicator

Center Of Gravity Indicator

Support and resistance indicator. Best forex trading indicator.

The Center Of Gravity indicator for MetaTrader is a non-lagging indicator, powerful for spotting reversal zones in a forex chart. This oscillator indicator, popularly known as COG, was designed based on John Ehlers’ system as presented in 2002.

The MT4 indicator automatically compares past accumulated history data with the current price and then determines the support or resistance zones. It is a powerful trading tool because of its nearly zero lag features in reading the reversal points. And it does it with high accuracy which makes it very effective in catching price swings timely.This in turn helps you to quickly detect clear reversal points of price and anticipate the further reaction.

The Center Of Gravity indicator is also a tool that would come in handy for both novice and advanced forex traders. It helps to reduce more technical analysis and enhances more accuracy in trading the reversal zone. The indicator’s smoothing feature also makes it easy to quickly spot prices at the turning points.

What’s more, the indicator can be used by scalpers and day/intraday traders. It also looks simple and doesn’t sit on the main chart which makes it easy for you to still have a clear view of your chart.

Center Of Gravity Indicator BUY/SELL Signals

The above chart shows the center of gravity indicator for MT4 in action. The indicator has two signal lines that are easy to interpret and use. BUY/SELL signals are generated when the two lines crossover.

But before we proceed further, it is important to state that this indicator should be used ideally in conjunction with price action or other indicators. This is because some crossovers could be due to sideways market conditions, etc. Therefore not all crossovers are tradable! Furthermore, the indicator’s signals are more accurate on the higher timeframes.

To get a valid BUY setup, first, wait for price action to occur. Then enter a BUY position immediately after the two signal lines of the indicator cross over in the anticipated direction. The above chart typifies how to spot a high probability entry with the COG indicator.

You can see that we had a bullish engulfing candlestick pattern on the above chart which is a reversal sign to the upside. You would have taken a BUY/LONG position after the Center Of Gravity indicator signal lines crossed to also signify an upward move.

A SELL signal is also depicted on the chart. Wait for the price to show a reversal sign to the downside (in this instance, we had a bearish engulfing pattern) and open a SELL trade once the COG’s indicator lines cross.

Conclusion
The Center Of Gravity is indeed an indicator you need on your trading chart. It helps you to make timely trade entries and exits. Finally, the indicator is free to download. Feel free to give it a try.