The manual says following:


When I'm reading this, the first thing I got to think of was Standard Deviation...

Anyone knows the difference between the two?

Thanks!

It is not the standard deviation. The GCOsc algorithm is described in John Ehler's book.

I'm not sure about how to use CGOsc to create signals. John Ehlers himself shows two outputs (two lines) in his graph, but the Manual doesn't mention that. If I look at MACD or Bollinger Bands, I got 3 outputs and can create signals with cross over or under condition. Ehlers notes in http://www.mesasoftware.com/papers/TheCGOscillator.pdf "It is clear that every major price turning point is identified by the CG Oscillator and the crossovers formed by its trigger with zero lag." Where do I get the signal line from?

The CGO has only one output. The other line in Ehler's image is just the signal delayed by 1 bar.

I was irritated by the looks of the graph, because it's not exactly the same graph shifted to the right. (look just after the last peak).

I think my interpretation must be false, because I get only like 400 Trades on EURUSD for the whole year 2015 on the 1min TF, compared to over 10000 with RSI.

int Cycle = 0.5*DominantPeriod(Price,20);
vars CGO = series(CGOsc(price,Cycle));

if(crossOver(CGO+1,CGO))
enterLong();
else if(crossUnder(CGO+1,CGO))
enterShort();

The code looks ok, only "Price", not "price" must passed to CGOsc. And Ehler's chart looks indeed as if the curves were slightly different, but according to his description it's just CGO+1 vs. CGO. Maybe it's a resolution issue with his charting software.

Thank you!