E2E4MFCK asked me to give you guys a bit of explanation about this indicator. Was as you know implemented by Ehlers based on his experience with market waves. Because the waves are recurring he implemented the bandwidth. I will not enter in details, read his book. But how this in particular works, well one must find a main if not the main period of the ticker so let's say from the highest high of the ticker to the next one, i.e Bitcoin has 554 D candles in between those 2 pecks, if you guys introduce that period instead of 20 ( which is default) you will have a very accurate indicator, indicator that by the way show you the direction od the market, in layman terms this is an indicator that shows the direction of the main wave, zero lines are just for determining when a cycle is complete, 1/2 cycle is 2PI, that means the yellow signal touches the zero line twice. I strongly advise you to read Mr. Ehlers' books. Do not play too much with the bandwidth, the higher it goes the more bad noise your indicator will catch.
ABG1968
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@ABG1968, just a small addition to all this, why is 20 the default number there, well according to Ehlers the most common number of trading days that make a cycle on markets is 20 (a month)
ABG1968
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@ABG1968, one more thing, a cycle is 2PHI, so correction the line touches 2 times starts on zero crosses and came back on zero that is a full cycle to be correct may not be a perfect circle ( most likely is not)
cybernetwork
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@ABG1968, Great idea!!! I come from a physic background, and was thinking of implementing something somewhat similar, and came across this script!
reading "The Geometry Of Stock market Profits" "M.Jenkins" I realized that he is talking and telling us how to find cycles, finding cycles means one can have an idea if one stock is going up or down. This indicator and that book is the holy grail for people that understand that is more in investing that only numbers. Read it and get it used with this indicator. Thx again e2emfck for your work much appreciated.
cybernetwork
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Awesome script! I was thinking of making an FFT analysis script, and found this! :)
nagihatoum
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it would be better to do that on the RSi, because the RSI is detrended.
ABG1968
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super thx man
ICEKI
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John F. Ehlers one of my famous author; his book are awesome.
Thank you e2e4mfck for posting for us =D