Ehlers FM Demodulation
Coder: Richard Poster
Released date: May 17th, 2021 from the official mql5 dot com
In a Technical Analysis of Stocks and Commodities article, May 2021, John Ehlers proposes a FM Demodulation Indicator that extracts the FM component of price movement. The AM portion of price movement represents volatility and the FM component contains market timing information. This indicator is an MQL4 implementation of the Easy Language indicator described by Ehlers in the TASC article.
-------------------------------------------------------------------
Here's the description from the magazine article:
A Technical Description Of Market Data For Traders
What is the nature of market data? What wisdoms can be gained from studying it? Here is a brief summary of research into the nature of market data, from someone who has spent decades researching it, testing it, and trading it. Included is a technique to detect and demodulate the AM and FM components of cycles, so you can better ensure your timing signals are accurately accounting for the market data.
Most traders consider market data to be a continuous function. It is further assumed that smoothing this function with averages or squiggly line indicators will create patterns or conditions that are useful for predicting future market direction. These assumptions are very wrong on many levels ...
by John F. Ehlers
-------------------------------------------------------------------
Also watch out for the divergences.
