OPEN-SOURCE SCRIPT
CAP - CSI
CSI is a Digital Signal Processing (DSP) tool based on the principles of Lars von Thienen’s "Dynamic Cycles." Unlike traditional momentum oscillators, the CSI uses a recursive dual-thrust processor to isolate cyclic price action, helping traders identify hidden rhythms in the market rather than just static overbought or oversold levels.
How to Read the Indicator
This script focuses on four primary technical components:
Dynamic Band Pivots: The indicator calculates a "cyclic memory" (default 34 periods) to create high and low bands. When the CSI moves outside these bands and begins to pivot, it signals a potential cycle exhaustion point.
Momentum Slope: The color-coded area fill identifies the direction of the cycle's slope. A change in slope is often the first warning of a cycle peak or trough.
The Zero Line: The zero line acts as the "equilibrium" point. Position relative to zero helps define whether the current cycle is in a bullish or bearish regime.
Multi-Timeframe Analysis (HTF): The script includes an HTF filter (suggested 5x the chart timeframe) to ensure you are trading in the direction of the dominant macro cycle.
Performance & Testing: The "Trending" Challenge
This indicator has been developed and tested primarily on Futures (ES, NQ, RTY) and US Equities.
Important Note on False Signals: While the CSI "nails" turning points during standard cyclic/swing conditions, users should be aware of "phantom" cycles or false signals during strong trending conditions. In a powerful trend, the indicator may signal a cycle peak while price continues to move linearly, leading to premature exhaustion signals. Filtering these "trend-drifts" is the current focus of development.
Community & Collaboration
This script is an ongoing project. I am making it public to find like-minded traders interested in Lars von Thienen’s work to:
Refine the processor logic for better signal-to-noise ratios during impulsive trends.
Discuss the best "Trend Shields" (Volume, HTF, or Volatility filters) to stay in winners longer.
Share specific settings for different asset classes in the Futures and Equity markets.
How to Read the Indicator
This script focuses on four primary technical components:
Dynamic Band Pivots: The indicator calculates a "cyclic memory" (default 34 periods) to create high and low bands. When the CSI moves outside these bands and begins to pivot, it signals a potential cycle exhaustion point.
Momentum Slope: The color-coded area fill identifies the direction of the cycle's slope. A change in slope is often the first warning of a cycle peak or trough.
The Zero Line: The zero line acts as the "equilibrium" point. Position relative to zero helps define whether the current cycle is in a bullish or bearish regime.
Multi-Timeframe Analysis (HTF): The script includes an HTF filter (suggested 5x the chart timeframe) to ensure you are trading in the direction of the dominant macro cycle.
Performance & Testing: The "Trending" Challenge
This indicator has been developed and tested primarily on Futures (ES, NQ, RTY) and US Equities.
Important Note on False Signals: While the CSI "nails" turning points during standard cyclic/swing conditions, users should be aware of "phantom" cycles or false signals during strong trending conditions. In a powerful trend, the indicator may signal a cycle peak while price continues to move linearly, leading to premature exhaustion signals. Filtering these "trend-drifts" is the current focus of development.
Community & Collaboration
This script is an ongoing project. I am making it public to find like-minded traders interested in Lars von Thienen’s work to:
Refine the processor logic for better signal-to-noise ratios during impulsive trends.
Discuss the best "Trend Shields" (Volume, HTF, or Volatility filters) to stay in winners longer.
Share specific settings for different asset classes in the Futures and Equity markets.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.