Cycle Swing Momentum

Adaptive Ultra-Smooth Momentum indicator

The Cycle-Swing-Indicator "CSI" provides an optimized "momentum" oscillator based on the current dominant cycle by looking at the swing of the dominant cycle instead of the raw source momentum. Offering the following improvements:

  • Smoothness
  • Zero delay
  • Sharpness at turning points
  • Robust and adaptable to market conditions
  • Accurate deviation detection

The following common problems with standard indicators are solved by this indicator:

First, normal indicators introduce a lot of false signals due to their noisy signal line. Second, to compensate for the noise, one would normally try to add some smoothing. But this only results in adding more delay to the indicator, which makes it almost useless. Third, standard indicators require a length adjustment to derive reliable signals. However, you never know how to set the right length.

All three problems described above are solved by the developed adaptive cyclic algorithm.

The above chart shows current Bitcoin 4h data from the last days as of writing with the proposed signal reading for this indicator. The standard momentum indicator is included for comparison.

The indicator works without any parameter and can be applied to any chart and any time-frame. It will adapt automatically to the Dominant Cycle and use the dominant cycle of the source data to derive the ultra smooth momentum curve. Adaptive upper/lower bands are included and highlight areas with extreme readings. Automatic divergence detection can be turned off/on.

The indicator can be used like any oscillator. In addition, it provides adaptive high and low bands.
* Look for turns above the upper/lower bands
* Look for divergences between source and signals line

Further reading/Original source:
The indicator uses the dominant cycle to optimize signal, smoothing and cyclic memory. To get more in-depth information on the Cycle Swing Indicator, please read Chapter 10 "Cycle Swing Indicator: Trading the swing of the dominant cycle" of the book "Decoding the Hidden Market Rhythm, Part 1" available at your favorite book store.

Related ideas:
Please also check the cyclic RSI indicator which also uses cyclic information to improve the signal.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?
Lars von Thienen

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It seems the divergences signals appear only after the price moved by a few bars?
Does it repaint?
+6 Reply
Awesome, it just doesnt show the indicators for Bullish/Hidden Bulish/Bearish and Hidden Bearish as done in the example chart.
+6 Reply
Are divergences shown right at the bar or immediately after the bar who has the criteria for the divergence? I mean, can you trade divergences right as they appear or they are only shown after a few bars... I tried with many stocks but couldn't see one showing a divergence for the last bar on screen.
+3 Reply
Wow what an incredible indicator. A real piece of art. Thank you for sharing it. I couldn't agree more with your words in the description. So many indicators just follow price exactly and end up giving you a ton of false signals for suckers who love losing money from whiplash. Cycles really are a secret sauce to a great indicator from what I can see, it's really nice to see someone explaining that so well. Given the new dynamic length variables and array function in Pinescript i'm excited to see all the opportunity for powerful indicators such as this.

PS: This reminds me a little of Ehlers Truncated Bandpass Filter (the correct version, not the one you mostly find).
+3 Reply
Great job here mate (from a surface view that is). About to test it out now. I believe in your cRSI script a length input was needed for the Dom Cycle to calculate on. Why not here?
+2 Reply
WhenToTrade ChasinAlts
@ChasinAlts, it uses a different and embedded cycle detection algo which pulls the cyclic and trend information from the data, which is required to get the "swing" of the cycle. This method will not derive the length of the cycle, which would be required for the cRSI. We dont need the exact length; the current cycle swing information is sufficient to get the ultra smooth momentum. Thats the reason we dont need the dom cycle length as input here.
ChasinAlts WhenToTrade
@WhenToTrade, Great, thanks for the speedy reply. Are all these scripts used in your method of teaching (from your site) or do you used a different set to teach from on a different platform? Thanks for your hard work. I enjoy seeing anything new coming from you.
WhenToTrade ChasinAlts
@ChasinAlts, Yes, this indicator is in use for over ~9 years and was first published as "closed" private version. I decided in 2017 to make the key sources available to the public in my book. This indicator is a core component of my cycle tools to fine-tune entry and exits. I have now decided also to publish this indicator here on this platform now. I use the 4-5 core cycle tools, regardless of the platform.
tapandave WhenToTrade
@WhenToTrade, hi, can you make very famous Forexsignal30-extream or AMA opt final Slope Indicator of MT4. ?
starbolt WhenToTrade
@WhenToTrade, could this method be applied on your other RSi cyclic indicator as well? That one requires a length input.