Center Of Gravity

The Center of Gravity indicator for MT5, popularly known as COG, was developed based on the coefficient of the J. F. Ehlers filter. The oscillating Forex trading indicator detects the main pivot points of the price, otherwise known as the center of gravity, which tends to act as support and resistance zones.

The indicator is very responsive to price changes. It does not lag behind the price, making it one of the best Forex indicators for identifying the potential reversal zones in the market. Therefore, it can be used by scalpers, day/intraday, and swing traders to identify short and long-term buying and selling opportunities. However, we recommend using the indicator with price action/other technical indicators for better efficiency.

Features of the Center of Gravity Indicator for MT5

The indicator is a beginner-friendly tool with easy-to-interpret signals, which makes it ideal for novice and experienced Forex traders. It uses red and blue signal lines on a separate window below the main chart. The blue line indicates a bullish move, while the red line depicts a bearish trend. The crossover of the two signal lines indicates a possible trend reversal of an instrument.

So, the blue line above the red suggests a potential bullish trend, which doubles as a BUY signal. Conversely, the red line below the blue indicates a possible bearish move

Benefits of Trading with the Indicator

• Identifying Reversal Points: The cross-over between the two signal lines indicates that the price is at a reversal zone. Thus, the indicator helps traders identify potential trend-reversal zones without hassle.
• Trading Confluence: The indicator can be used as a supporting tool with regular technical analysis or other indicators to make better trading decisions.

Indicator Settings Description

The indicator comes with the following customizable settings:

Indicator averaging period: Determines the period for the indicator calculation.

Signal line smoothing period: Determines the period for smoothing the signal line.

 Signal line averaging method: Defines the type of smoothing method of the indicator.

Price constant: Determines the price type the indicator uses for calculation.