Stochastic Cyber Cycle

Stochastic Cyber Cycle is a VertexFX Indicator derived by the normalization of the Cyber Cycle indicator. It is useful to detect market cycles and turning points.

It comprises of two indicators, the Stochastic Cyber Cycle (Blue) signal and the Trigger (Red) signal. When the Stochastic Cyber Cycle line crosses above the Trigger line, the market is at the bottom of the cycle. Similarly, when the Stochastic Cyber Cycle line crosses below the Trigger line we are at the top of the cycle.

This indicator has a minimal lag of one to two bars. The median price is first smoothed over 3 bars using a Weighted Moving Average (WMA). Then this smoothed price further smoothed using Alpha to calculate the Cyber Cycle value. This value is normalized and weighted using (WMA) over the Length period of bars to generate the Stochastic Cyber Cycle. The Trigger line is calculated by weighing the previous Stochastic Cyber Cycle line by 96% and adding 0.02 to the result.

BUY – Place Buy position when blue line crosses above red line. It is preferred that both red and blue lines are below zero level.
SELL – Place Sell position when blue line crosses below red line. It is preferred that both red and blue lines are above the zero level.

Usage

• Download the attachment.
• Copy it to your company VertexFX  Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.