Description
The Ehlers Decycler Oscillator is a technical indicator proposed by John F. Ehlers. Its calculation involves eliminating very low-frequency components from Ehlers Simple Decycler and transforming the output into the oscillator. Low-frequency components are eliminated using the half-period Ehlers Highpass filter.
The oscillator itself is equal to the ratio of the high-pass output data to price, multiplied by a coefficient. This coefficient is equal to 1 by default, however, you might want to adjust it if you use several instances of the oscillator on the same subgraph. Crossovers of oscillators with different coefficients might help identifying important trend reversals.
Input Parameters
price
|
Defines the price on which the calculations are performed. |
roof cutoff length
|
Defines the maximum cycle length in bars. Cycles with greater lengths will be eliminated. |
k
|
The coefficient with which the oscillator is calculated. |
Plots
DecyclerOsc
|
The Ehlers Decycler Oscillator plot. |
ZeroLine
|
The zero level. |
Further Reading
1. "Decyclers" by John F. Ehlers. Technical Analysis of Stocks & Commodities, September 2015.
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.