[blackcat] L2 Ehlers DC using the Dual Differentiator

2020年11月8日

Level: 2

Background

John F. Ehlers introuced Measuring the Dominant Cycle using the Dual Differentiator in his "Cycle Analytics for Traders" chapter 14 on 2013.

Function

With Hilbert transformer, the first algorithm to compute the dominant cycle is called the dual differentiator. In this case, the phase angle is computed from the analytic signal as the arctangent of the ratio of the imaginary component to the real component. Further, the angular frequency is defined as the rate change of phase. We can use these facts to derive the cycle period.

Key Signal

DomCycle --> Dominant Cycle

Pros and Cons

100% John F. Ehlers definition translation, even variable names are the same. This help readers who would like to use pine to read his book.

Remarks

The 59th script for Blackcat1402 John F. Ehlers Week publication.

Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

4月14日

版本注释

OVERVIEW
The [blackcat] L2 Ehlers DC using the Dual Differentiator indicator calculates the dominant cycle period in price action using Ehlers' Dual Differentiator method, providing traders with insights into market cycles.

FEATURES

• Calculates dominant cycle periods using advanced signal processing techniques
• Implements Ehlers' Dual Differentiator algorithm
• Includes highpass filtering and Super Smoother filtering
• Provides visual representation of cycle periods
• Adjustable LPPeriod parameter for customization

HOW TO USE

Add the indicator to your chart
Adjust the LPPeriod input parameter as needed: • Default value: 20 • Range: 1-100
Interpret the cycle periods shown on the chart
LIMITATIONS

• Results may vary depending on market conditions
• Requires sufficient historical data for accurate calculations
• Best suited for longer timeframes

NOTES

• The indicator uses two plotting styles to emphasize cycle periods
• Yellow columns show the base cycle periods
• Fuchsia line tracks the current cycle period
• Minimum cycle period is set to 8 bars
• Maximum cycle period is limited to 48 bars