The Instantaneous Phase Dominant Cycle was created by John Ehlers (Stocks & Commodities V. 18:3 (16-27)) and this is one of many similar indicators that I will be publishing from Ehlers in the next few months that calculate the current dominant cycle period. The cycle period can be used in multiple ways but generally this means that if the stock is currently at a low then the current cycle period will tell you when the next lowest low will get hit or vice versa. This is also useful for using this cycle period as an input for other indicators to provide a very good adaptive length. Let me know how you wind up using these indicators in your daily trading. I have included the same buy and sell signals from my recent Hilbert Transform and so buy when the line turns green and sell when it turns red.
Let me know if there are any other indicators you would like to see me publish!
Thanks for sharing. I'm playing around with the settings trying to get it to make sense but seems this might be inverted... the buy sell signals seem to be late and would lead to big drawdown. Also, linked RSI with this and it too would be way off compared to standard intervals i.e. 11, 14, 21. Thanks for any input to help me determine why this isn't backtesting well.
cheatcountry
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@gepenniman, If you are backtesting you would want to turn repainting on so it is using the latest data. That being said Ehlers did say the fundamental part of this calculation has a 4 bar lag so it isn't great for trading by itself but send me a pm with how you linked this to rsi and I will take a look