[blackcat] L2 Ehlers Early Onset Trend

7 dic 2020

Level: 2

Background

John F. Ehlers introuced Early Onset Trend Indicator in Aug, 2014.

Function
In “The Quotient Transform” in Aug, 2014, John Ehlers described an early trend detection method, the idea of the quotient transform, that was designed to reduce the lag often found in other trend indicators. I provided a script with pine v4 code here for the early-onset trend-detection indicator and also describes an approach for creating a strategy based on this indicator as an example.

The entry points displayed in blue on the price chart are defined by the top Onset Trend Detector upper quotient crossing above a threshold value e.g zero or 0.25/-0.25 here in this script. In the article, Ehlers suggested using a different K value for the exit, so the exit points are determined by the lower Onset Trend Detector quotient crossing below a threshold e.g. zero or -0.25/0.25 here in this script.


Key Signal


Quotient1 --> upper quotient in yellow which determines long entry
Quotient2 --> lower quotient in fuchsia which determines short entry
long ---> long entry signal
short ---> short entry signal

Pros and Cons

100% John F. Ehlers definition translation, even variable names are the same. This help readers who would like to use pine to read his book.

Remarks

The 82th script for Blackcat1402 John F. Ehlers Week publication.


Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

14 feb 2022

Note di rilascio

upgraded to Pine v5

15 apr

Note di rilascio

OVERVIEW

The [blackcat] L2 Ehlers Early Onset Trend indicator is a technical analysis tool based on Ehlers' filtering methods. It generates buy and sell signals using two quotient lines with customizable parameters.

FEATURES

• Two quotient lines for trend identification
• Customizable period length (LPPeriod)
• Adjustable K coefficients (K1 and K2)
• Visual buy/sell signals with labels
• Real-time trading signals

HOW TO USE

Adjust the LPPeriod input to modify the signal sensitivity
Fine-tune K1 and K2 values for optimal performance
Monitor the quotient lines for: • Buy signals when Quotient3 crosses above zero • Sell signals when Quotient4 crosses below zero
INPUT PARAMETERS

• LPPeriod: Length of the period for calculations (default: 30)
• K1: First K coefficient for quotient calculation (default: 0.85)
• K2: Second K coefficient for quotient calculation (default: 0.4)

LIMITATIONS

• Works best in trending markets
• May generate false signals during choppy market conditions
• Requires careful parameter tuning for optimal results

NOTES

• Indicator uses Ehlers' proprietary filtering algorithms
• Overlay is disabled by default for better visibility
• Signal labels appear automatically at crossover points