The Capital Spectator’s Overbought-Oversold Indicator is designed to measure the directional bias and relative level of bullish and bearish strength. The index is calculated based on the mean of Z-scores for the following components:

* 3-month return for asset
* 6-month return for asset
* 1-year return for return for asset
* performance spread for asset’s 20- and 100-day moving averages
* performance spread for asset’s 50- and 200-day moving averages
* asset’s rolling 60-day (3-month) return volatility
* asset price less 200-day moving average