ArcTan Oscillator

ArcTan Oscillator passes a normalized oscillator through an arctangent squash, a sigmoid transform that compresses swings toward the rails so the reading concentrates on direction rather than magnitude. A pre-gain control sets how aggressive that "squarification" is, and a correlation-based gradient shades the plot red when a reversal may be brewing.

How to Trade the ArcTan Oscillator?

• Oscillator above zero: the trend reads up; below zero it reads down. The sign is the primary signal, and the transform exists to make it easy to follow.
• High pre-gain: pushes values against the bounds so the sign dominates. A setting of 5 makes the trend read almost binary.
• Red gradient: the correlation between oscillator and price is deteriorating, hinting at divergence; paired with a negative oscillator it suggests a possible move up, and the reverse for positive readings.

Pre-gain spans -10 to 10. Negative values reduce amplitude ahead of the transform, preserving the small swings divergence hunters need, while positive values simplify the picture for pure trend following. The reversal gradient is unaffected by pre-gain either way, so both reads coexist.

ArcTan Oscillator Settings

• Length: the oscillator's period, governing its sensitivity.
• Pre-Gain: amplitude adjustment applied before the ArcTan step, from -10 to 10.
• Source (Src): the input series feeding the calculation.

Frequently Asked Questions

When should I run a negative pre-gain?

Is there a related oscillator worth comparing?

How do I add the ArcTan Oscillator to my charts?