The “Center Of Gravity indicator” is a technical indicator that calculates the price center of gravity of any market, oscillating between its recent tops and bottoms. It has been developed by the famous french trader Mostafa Belkhayate who has won many trading contest over the years.
The Center Of Gravity indicator
The COG (Center Of Gravity) makes it easier to read the direction of the price and its extremes. Indeed, thanks to the upper and lower bands added or subtracted from the center of gravity, it is easy to understand towards which price levels this one will turn towards the COG.
The upper and lower bands are obtained by adding (or subtracting) the center of gravity to multiples of the golden ratio (around 1.618), which is also used to calculate Fibonacci retracements. You can set variable for upper and lower band as you prefer:
POLYNOMIAL ORDER
You can set the order of polynomial as you prefer:
MBFX Timing indicator
Our own version of this COG indicator also includes free of charge the second indicator that Mostafa Belkhayate uses in his famous system (MBFX system), the “Belkhayate Timing”. This is positioned under the price chart and makes it possible to find the market turning points in correlation with the center of gravity.
See these examples:
The overbought and oversold zones of the Timing indicator are materialized by colored zones in the COG!
Our own version of the Belkhayate gravity center includes the information of the MBFX Timing directly readable in it, when price is in overbought or oversold areas the color of the channel automatically adapt:
Many ways to use the Gravity Center for trading
Several color themes and ways of representing the Gravity Center are possible, examples:
Interface
Please note that due of its calculation formula (polynomial regression analysis of the price), the COG is a repainting indicator.
fredrik.dahlander (verified owner) –
Really satisfied with it, looks great also.
Peter Kershaw (verified owner) –
I have been using a similar product on another trading site and found it very useful in guaging possible moves ahead.
To find this for PRT on the IG service was very satisfying, but then to be able to fit the Williams Alligator inside the out band of the COG indicator was the best of both world’s for me anyway because the ‘Alligator’ might show a plateauing of a trend but the outer bands still show probable progression or regression.
At present running it on 3 timeframes: 6 M, 30 M & 4H, 2 indices & VIX with different COG settings
Francisco Gale (verified owner) –
Hi, I was looking for the COG for prorealtime since a long time and finally found it! It works indeed the same as in other softwares i used to trade with, now i can with prorealtime. Nice options and good looking.