Theory:
Let’s dive into the world of trading indicators! A short and sweet explanation by John Ehlers helps set the stage:
In cycle mode, our goal is to sift out the noise – that pesky high-frequency clutter and the low-frequency trends that don’t serve us. What we want to keep are only the frequencies that matter during our chosen swing period. This is where the bandpass filter comes into play, allowing us to focus on a specific range of frequencies, known as the filter's bandwidth.
Usage:
Now, how do we put this into practice? The color changes on the bandpass filter can serve as effective trading signals. Keep an eye on those shifts; they could indicate when it's time to make your move!
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