Center of Gravity (CG) Indicator Explained

John Ehlers' Center of Gravity (CG) oscillator computes the weighted balance point of prices in the window — like finding where a ruler loaded with price-weights would balance. Ehlers derived it searching for an oscillator with zero smoothing lag; CG comes remarkably close.

How It Works

• Prices are position-weighted and summed to find the window's balance point.
• The balance point shifts toward whichever end of the window holds heavier prices.
• Turns coincide almost exactly with short-cycle price turns.

How to Trade It

CG is a cycle-timing tool: trade its turns (or its cross of a one-bar-delayed trigger) for swing entries inside ranges, filtered by a trend gate. Because it barely lags, it pairs well with slower confirmation like a Super Smoother baseline.

Building It in Setup.Cash

Add Center of Gravity (CG) in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. See Ehlers' Even Better Sinewave for the phase-based evolution. For the full category overview, see the advanced momentum library guide.

Momentum signals are timing tools — combine them with a trend or regime filter and backtest the exact rules before going live.