Hey fellow traders! Today, I want to dive into a nifty tool that can help cut through the noise in your trading charts—the 2 Pole Butterworth Filter. This indicator was developed by John Ehlers, a renowned figure in our trading community, and you can find it discussed in his book, Cybernetic Analysis For Stocks And Futures, specifically on page 192.
In his works, Ehlers emphasizes the importance of using noise-cutting filters like this one. If you're eager to learn more, I highly recommend checking out his other book, Cycle Analytics for Traders: Advanced Technical Trading Concepts, where he shares another calculation method for this indicator on page 32.
You can grab the code for the indicator, which includes both calculation methods, along with versions for MT4, directly from Ehlers' Telegram channel. You’ll find the link in my profile and in the source code files for this indicator. And don’t forget to Subscribe while you’re at it!
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