Hi,
Dominany cycle period is used to tune indcators to make them adaptive e.g. RSI so showing divergence does not have any sense here. John Ehler using this value internally to tune indiators or create instant trendlines in part of his work. If you look to sin screenshoot you can see that sin is changing the frequency or period (its actually called chirp signal) so indicators what I posted show length of measured period.
Below you can see two screens of strategies applied to chirp signal. One adaptive and one with fixed length. You can see that adaptive tuned by dominant cycle
perfectly finds top and bootoms but another one with fixed settings suddenly start to trade opposite i.e. buy at top and sell at bottom.
Unfortunatelly price data is not sin signal so it very diffcult to extract DC value, during John carrier he wa trying maybe 5 or more different methods, all is in his books and articles.
John Ehler will be 90 years old this year so I don't think he will make more development it this area....
Krzysztof
