2020issue C1048-56
High-low activator, directional oscillator, and momentum swing agreement
This archive article reconstructs a short-horizon swing procedure that buys or sells the next open only when a high-low activator, a signed directional oscillator, and a stochastic momentum index share the same side. Mixed votes stay unmarked and are treated as a visible stand-aside state.
- The high-low activator flips to up when close exceeds the prior high-side average, flips to down when close falls below the prior low-side average, and otherwise keeps the previous state.
- In the up state it plots the low-side average, and in the down state it plots the high-side average, so the reference line encodes the last confirmed flip.
- The directional companion is plus DMI minus minus DMI around zero, and the momentum companion is a double-smoothed distance of close from the midpoint of a lookback high-low range.
- The executable rule trades the next open only when close and both oscillators share one side. Chart implementations color full agreement and leave mixed-vote bars unmarked.
What the procedure combines
The featured swing procedure combines a high-low activator with a custom directional-movement construction used to measure trend and a stochastic momentum index used to show momentum.
The procedure enters only when the activator, the directional oscillator, and the momentum index share the same side of their reference levels. It exits or stands aside when that joint alignment ends.
How the high-low activator holds a side
The high-low activator sets an up state when close exceeds the prior high-side average, a down state when close falls below the prior low-side average, and otherwise keeps the previous state.
In the up state the activator plots the low-side average, and in the down state it plots the high-side average, so the reference line itself encodes the last confirmed flip. The last confirmed side is kept until close crosses a delayed moving average of highs or lows, after which the opposite average becomes the reference line.
A signed directional companion
The directional companion equals plus DMI minus minus DMI and is drawn as a signed oscillator or histogram around zero, with a common lookback of 10. Around that zero line, signed directional force can be read as a vote.
Momentum against a zero line
The momentum companion double-smooths how far close sits from the midpoint of a lookback high-low range and is plotted against a zero line plus optional guide levels at 40 and -40.
Editorial reading: momentum may join a swing only as a same-side ballot. It does not open a swing when the activator or the directional oscillator sits on the other side of its reference.
The next-open rule and the stand-aside state
One executable swing rule buys the next open when close is above the activator and both oscillators are positive, and sells the next open when close is below the activator and both oscillators are negative.
Chart implementations mark full bullish or bearish agreement with background color and leave mixed-vote bars unmarked, so disagreement is treated as a visible stand-aside state.
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