(coders, quants, and magazine readers) encounter most from Ehlers.
===============================================================================
Category: Cycle detection
Why it’s important:
- This is Ehlers’ signature invention.
- It analyzes price like a signal to find the dominant cycle length in real time.
- Helps create adaptive moving averages, filters, and oscillators.
- Adapting indicator length dynamically
- Cycle-based entries and exits
- Avoiding fixed-period indicators (like standard RSI 14)
Category: Zero-lag trend detection
Features:
- Attempts to extract trend with nearly no lag.
- Reacts faster than SMA/EMA while staying smoother.
- Trend-following systems
- Fast directional bias without repainting
Category: Low-lag smoothing
Description:
- A 2-pole filter that removes noise while keeping responsiveness.
- Works like a zero-lag EMA on steroids.
- Creating smoother versions of RSI, MACD, Stochastics
- Reducing whipsaw during choppy forex markets
Category: Band-pass filter
Purpose:
- Removes both low-frequency drift (trend) and high-frequency noise.
- Leaves only the tradable cyclical component of the price.
- Oscillator construction
- Cycle-based scalping
- Indicators like Ehlers’ Sinewave
Category: Cycle oscillator
Features:
- Plots a sine and lead-sine line.
- Shows turning points before RSI/MACD do.
- Early cycle reversals
- Identifying peak/trough moments
- Sideways market scalping
Category: Probability-based oscillator
Why it’s popular:
- Converts price into a Gaussian-like distribution, making turning points more statistically meaningful.
- Extremely sharp turning points.
- Reversal signals
- Converting price swings into clear highs/lows
- Foundation of many MT4/MT5 custom indicators
Category: Recursive filter
Purpose:
- Smooths data with almost no lag and incredibly little noise.
- Uses gamma (γ) to control memory depth.
- Building “no-lag RSI,” “no-lag MACD,” etc.
- Intraday scalping
- Eliminating false signals
Category: Advanced DSP
Includes:
- Hilbert Transform
- Quadrature components
- Dominant cycle measurement
- Adaptive indicators
- Determining if market is trending or cycling
- Identifying cycle phase (peak, trough, slope)
Category: Adaptive moving averages
Features:
- Uses the measured dominant cycle to adjust speed.
- Fast in trends, slow in chop — automatically.
- Trend trading
- Filtering noise
- Adaptive support/resistance
Category: Removing cycles
Purpose:
- Instead of filtering noise to isolate cycles, this filter removes cycles to show pure trend.
- Trend direction without oscillations
- Hybrid cycle/trend systems when paired with Roofing Filter
These are also referenced frequently in S&C Magazine:
- Zero-Lag EMA — modified EMA formula with reduced lag
- Adaptive RSI — RSI using dominant cycle length
- Homodyne Discriminator — cycle measurement technique
- Band-Pass filters for scalping systems
- Gaussian filters for ultra-smooth lines
- Ehlers’ Cyber Cycle — a highly responsive oscillator
Ehlers is the bridge between engineering DSP theory and trading indicators.
He uses:
- Digital filters
- Spectral analysis
- Hilbert transforms
- Smoothing algorithms
- Zero-lag techniques
That’s why platforms like:
- MT4/MT5
- TradingView
- NinjaTrader
- ThinkorSwim
- AmiBroker
===============================================================================