[blackcat] L2 Ehlers Hilbert Oscillator

23 Eki 2020

Level: 2

Background

John F. Ehlers introuced Hilbert Oscillator in his "Rocket Science for Traders" chapter 8. The Hilbert Oscillator identifies every major turning point.


Function

blackcat L2 Ehlers Hilbert Oscillator is used to follow the trend. Although it will not be a leading indicator because of the 2-bar lag required to compute Q3, it does prove itself to be superior to most currently available oscillators. The bandwidth for the computation of Value1 is twice the bandwidth of I3. Therefore, the amplitude compensation will be less, approximately the square root of 1.57, which is about 1.25. The Hilbert Oscillator identifies every major turning point.


Key Signal

Smooth --> 4 bar WMA w/ 1 bar lag
Detrender --> The amplitude response of a minimum-length HT can be improved by adjusting the filter coefficients by
trial and error. HT does not allow DC component at zero frequency for transformation. So, Detrender is used to remove DC component/ trend component.
Q1 --> Quadrature phase signal
I1 --> In-phase signal
Value1 ---> Hilbert Oscillator fast line
I3 ---> Hilbert Oscillator slow line

Pros and Cons

100% John F. Ehlers definition translation of original work, even variable names are the same. This help readers who would like to use pine to read his book. If you had read his works, then you will be quite familiar with my code style.

Remarks

The 7th 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.

9 Nis

Sürüm Notları

OVERVIEW

The [blackcat] L2 Ehlers Hilbert Oscillator is a technical analysis tool designed to identify trends and potential reversal points in financial markets. It uses advanced mathematical techniques to filter out noise and highlight significant price movements.

FEATURES

Source Input: Allows users to select the price source (default is HL2).
Hilbert Transform: Applies a complex mathematical transformation to the price data to extract the in-phase (I) and quadrature (Q) components.
Plotting: Displays the I and IQ components on the chart, with a fill area between them based on their relative values.
Period Calculation: Automatically adjusts the period based on the calculated Hilbert Oscillator values to ensure accurate trend identification.

HOW TO USE

Add the script to your TradingView chart.
Adjust the "Source" input to your desired price series.
Observe the I and IQ plots and the fill area to identify potential trend reversals and strong price movements.

LIMITATIONS

The script may not perform optimally on extremely volatile or low-volume markets.
The default settings are optimized for general use but may need adjustment for specific trading strategies.

NOTES

This script is based on the work of Ehlers and has been adapted for use in TradingView.
Ensure you understand the underlying mathematics to make informed trading decisions.