convolution

23 nov 2022

Description:
Convolution indicators aim to identify a major reversal in the price direction so that one can trade the market primarily in the direction of the ensuing trend, as described in the Cycle Analytics for Traders, by John F. Ehlers pg. 165. The notion is based on the concept of the two price segments are perfectly correlated (cross-correlated) that have been folded at the horizontal point, since high correlation exists only at the market turning point, e.g. price decreases linearly until the bottom is reached and then increases linearly after the bottom occurs and vice versa. The vertical scale is the lookback period, while the value is converted to colors.

Features:

• High-pass filter and Smoothing function on the input data
  
• Major reversals are identified by plumes pointing backward to the time of the price reversal
  
• Bullish reversal identified by the green color of the indicator,
  
• while Bearish reversal identified by a red color dominated the indicator
  

24 nov 2022

Note di rilascio

minor change, to displayed chart

24 nov 2022

Note di rilascio

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1 lug 2023

Note di rilascio

options to apply high-pass filter