Theory:
Let’s dive into the world of bandpass filters, as explained by John Ehlers:
The goal in cycle mode is to eliminate the noise from both low-frequency trends and high-frequency fluctuations, keeping only the relevant range of frequencies for your desired swing period. This is where a bandpass filter comes into play, allowing specific frequencies to pass through, which is known as the filter’s bandwidth.
This version utilizes a Hilbert transform for phase accumulation, making the bandpass filter adaptive. You’ll need to specify how many cycles it should fill when analyzing the current bar period. The best part? Those cycles can be fractional, giving you flexibility beyond just full cycles.
Usage:
Keep an eye out for color changes, as these serve as signals for your trading decisions.
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