Stocks & Commodities V. 34:07 (10–13): The Super Passband Filter by John F. Ehlers

The Super Passband Filter by John F. Ehlers

Are low and high frequencies getting in your way? Here’s a filter that will reject both of these extremes so you can focus on what really matters.

It's a well-known fact: The real enemy of technical traders is the lag from their indicators and trading strategies. Sure, it is relatively simple to create a fancy filter that will give you a precise answer to your trading decisions. But fancy filters require more data than simple filters do, which will cause a delay in the calculations. What use would that be to a trader?

It is far better to get a reasonable answer with no lag, which is precisely what my super passband filter does. Because it passes a band of frequencies through a filter from the data spectrum, it rejects the very low frequencies and therefore displays as an oscillator...