[blackcat] L2 Ehlers Super Smoother (2 poles)

31 mar 2022

Level:2

Background

The second-order super smoother low-pass butterworth filter (2 pole) is a classic J.F Ehlers indicator.

Function

I have found many places where the algorithms are not uniform and some are even wrong. So, I did some research and wrote a low pass filter that I think is correctly defined. This indicator is often used as one of the basic elements of other trading systems.

When you are using it, you need to enter the Period setting period.

The key difference from other places is that, they use :
Filt2 := coef1*(Price+Price[1])/2 + coef2*nz(Filt2[1]) + coef3*nz(Filt2[2])
which introduces extra lag

My version keep the original meaning from Ehlers and use:
Filt2 := coef1*Price + coef2*nz(Filt2[1]) + coef3*nz(Filt2[2])

A little improvement on lag issue.

Remarks

Free and Open Source

19 apr

Note di rilascio

OVERVIEW
The [blackcat] L2 Ehlers Super Smoother (2 Poles) indicator applies John F. Ehlers' Super Smoother algorithm to provide a more responsive moving average. This script calculates the Super Smoother using two poles and plots it on the chart, changing colors based on trend direction. Additionally, it generates buy and sell signals along with corresponding alerts, helping traders make informed decisions 📈💡.

FEATURES

Calculates the Ehlers Super Smoother (2 Poles) using custom functions.
Plots the Super Smoother line on the chart with dynamic coloring:
Yellow for uptrends.
Fuchsia for downtrends.
Generates buy and sell signals based on crossover and crossunder conditions 🚀📉
Adds visual labels for easy identification of trade signals:
"BUY" labeled in green during upward crosses.
"SELL" labeled in red during downward crosses.
Provides alert conditions for both buy and sell signals 🔔
HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Monitor the plotted Super Smoother line for changes in trend direction.
Observe the buy ('BUY') and sell ('SELL') labels on the chart for potential trade opportunities.
Set up alerts based on the generated signals to receive notifications when conditions are met 📲.
Use the indicator alongside other tools for confirmation before executing trades.
INPUT PARAMETERS

Price: Select the price source (default is close).
Period: Define the smoothing period (default is 20).
LIMITATIONS

The indicator may generate false signals in choppy or ranging markets 🌪️.
Users should always confirm signals with other forms of analysis.
The responsiveness of the Super Smoother depends on the chosen period.
NOTES

Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Adjust the period parameter to suit different market conditions and timeframes.