EFS for Trading Success
EFS Featured Studies of the Month: The Center of Gravity and the Piercing Line
The EFS library is full of new and useful strategies you can use for free in eSignal.
This month, we feature a study that identifies major turning points and another that identifies a bullish reversal pattern.
The Center of Gravity
This indicator identifies every major turning point without much lag. It is computed in a similar way to the Ehlers filter. The position of the balance point is the summation of the product of position within the observation window multiplied by the price at that position divided by the summation of prices across the window.
The formula is:
CG = SUM(x+1) * Price(i) / SUMPrice(i)
In this formula, "1" is added to the position count because it starts with the most recent price at zero, and multiplying the most recent price by that position count would remove it from the computation.
Download the Center of Gravity EFS study
Piercing Line
This is a bullish reversal pattern formed by two candlesticks. Following a downtrend, an up candlestick with a long real body is followed by a lower open on the next candlestick. This session finishes as an up candlestick and closes above the midpoint of the prior candlestick's real body.
Download the Piercing Line EFS study
Resources for EFS
- To access other EFS studies, visit the EFS Library (wait a few seconds for the Most Popular Articles listing to appear).
- For detailed tutorials on EFS, including how to implement EFS studies within eSignal, visit the Help Guides and Tutorials section of the EFS KnowledgeBase.
