The Ehlers' Super Smoother Filter is a smoothing technique developed by John F. Ehlers, based on aerospace analog filters. This filter aims at reducing noise in price data, which appears to be stronger as the high-to-low price swings increase especially when chart is plotted for greater time intervals. In theory, this filter eliminates the noise completely, as opposed to moving averages, e.g., exponential (EMA) which only offers a modest attenuation effect.
Regardless of the time frame used, all waves having cycles of less than 10 bars are considered noise. Thus, the filter only passes those spectral components whose periods are greater than 10 bars. Note that the period of 10 bars is a default value which can be customized using the
cutoff length input parameter.
||The price to which the filter is applied.|
||Maximum period for a wave cycle to be considered noise.|
||The Ehlers' Super Smoother Filter.|
1. "Predictive Indicators for Effective Trading Strategies" by John F. Ehlers. Technical Analysis of Stocks & Commodities, January 2014.
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.