Cycle

The cycle oscillator is an innovative cycle oscillator, with the particularity of having an extremely periodic aspect while staying correlated with the price. Unlike the other oscillator types available in the Lux oscillator, the cycle oscillator is the one holding the most predictive power, as such its direction can potentially deviate from the direction price is taking.

The value of length determines the average period of the oscillator (in bars). In order to have the most pertinent results possible length should be adjusted depending on the period of the dominant cycle.

Cycle oscillator with length = 20

Usage

Users can use the sign (positive/negative) of the cycle oscillator to infer about the direction price is taking or might take.

It is also possible to detect divergences with the cycle oscillator, however unlike other oscillators, here divergences are caused by the price forcing the oscillator to readjust to price variations.

Bearish divergence with length = 100