Description
The SuperPassbandFilter is a smoothing technique based on analog filters. Its main purpose is to filter out unnecessary cycle data and reduce the output lag that many smoothing techniques are prone to.
The smoothed and lag-reduced data is represented by the study's main plot, SuperPassbandFilter. It is calculated as the difference of two exponential moving averages, z-transformed. Signals may be recognized using two reference plots: +RMS and -RMS, calculated as the root mean square of the main plot values. -RMS is +RMS times -1.
According to this study, an entry signal can be recognized when the main plot crosses above the -RMS; crossing below the +RMS might be regarded as an exit signal.
Input Parameters
length1
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Defines the period with which the shorter EMA will be calculated, It should be less than length2.
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length2
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Defines the period with which the longer EMA will be calculated, It should be greater than length1.
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Plots
SuperPassbandFilter
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The main SuperPassbandFilter plot. |
+RMS
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The positive root mean square plot. |
-RMS
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The negative root mean square plot. |
ZeroLine
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The zero level. |
Further Reading
1. "The Super Passband Filter" by John F. Ehlers. Technical Analysis of Stocks & Commodities, July 2016.
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.