[blackcat] L2 Ehlers Loops

27 thg 5, 2022

Level 2

Background

John Ehlers’ articles in the June issues on 2022,“Ehlers Loops, Part 1”

Function

In his article in this issue, “Ehlers Loops,” John Ehlers presents some concepts of price and volume relationship to determine if any predictive value can be obtained by the analysis. In the analysis, both price and volume are filtered using high-pass and low-pass filters with the result delivering the desired data wavelengths. The author suggests that the resulting Ehlers Loops are a way to discretionarily predict bullish and bearish moves that are based on the curvature and direction of rotation of motion in the price-volume chart.


Remarks

Feedbacks are appreciated.

20 thg 4

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OVERVIEW
The [blackcat] L2 Ehlers Loops indicator is designed to help traders analyze market trends using advanced filtering techniques developed by John F. Ehlers. This script applies high-pass filters and super-smoothing algorithms to both price and volume data, providing insights into underlying market dynamics. By plotting the Root Mean Square (RMS) values, it offers a unique perspective on market movements, making it valuable for identifying trends and potential reversals 📈💹.

FEATURES

Applies High-Pass Filters to isolate significant price and volume changes.
Uses Super-Smoothing Algorithms to refine filtered data for clearer trend identification.
Plots Root Mean Square (RMS) values for both price and volume:
Price RMS: Visualizes price volatility and trends.
Volume RMS: Indicates volume fluctuations and potential breakouts.
Customizable periods for long-term and short-term analysis ⚙️.
Suitable for daily and higher timeframes due to its use of volume data.
HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Adjust the Long Period and Short Period inputs according to your trading preferences.
Observe the plotted RMS values for price and volume on the separate pane below the main chart.
Use these values to identify trends, potential reversals, and increased market activity.
Combine this indicator with other tools for confirmation before making trading decisions.
LIMITATIONS

The indicator's effectiveness may vary across different markets and timeframes.
Users should be familiar with interpreting RMS values and their implications.
False signals can occur in highly volatile or ranging markets 🌪️.
NOTES

Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Customize input parameters as needed to fit your specific trading strategy.