
Center Of Gravity
Definition
The Center of Gravity (COG) is a tool that helps traders spot potential turning points in the market, like when a stock might start going up or down. Imagine it as a kind of "gravity" that pulls the stock price in a certain direction. It uses a special kind of average to do this and comes with a Signal line for easier interpretation.

Suggested Trading Use
COG is great for identifying moments where a stock might change direction. When the COG line goes above the Signal line, it usually means the stock could start going up. On the other hand, if the COG line goes below the Signal line, the stock might start going down. This can be useful for deciding when to buy or sell. Keep an eye on these line crossovers to get a sense of where the market might be headed next.