This is a trading item or a component that was created using QuantShare by one of our members.
This item can be downloaded and used by QuantShare Trading Software.
Trading items are of different types. There are data downloaders, trading indicators, trading systems, watchlists, composites/indices...
You can use this item and hundreds of others for free by downloading QuantShare.
Top Reasons Why You Should Use QuantShare:
Works with US and international markets (stock, forex, options, futures, ETF...)
Offers you the tools that will help you become a profitable trader
Allows you to implement any trading ideas
Exchange items and ideas with other QuantShare users
Our support team is very responsive and will answer any of your questions
We will implement any features you suggest
Very low price and much more features than the majority of other trading software
Among linear filters commonly used in trading, the simple and exponential moving averages are probably the most popular ones. According to John Ehlers, linear filters are optimal when used with stationary data, which is not the case with security quotes. The Ehler Filter invented by John is a nonlinear FIR filter that provides great smoothing in sideways markets and follow price movement with less lag than with linear filters such as the moving average.
The current Ehler filter is based on acceleration and speed. The filter uses the close and volume data along with three inputs/parameters to smooth the price series. The parameters that should be provided to the Ehler filter function are:
- Length of the FIR (Finite Impulse Response). This is one type of filter, the other one is the Infinite Impulse Response (IIR). For example, the EMA is an IIR filter.
- Exponential weight of passed acceleration and speed
- Weighting factor between acceleration and speed
The Ehler filter is interpreted like any moving average where usually a close price above the Ehler filter is considered a bullish sign and a value below the filter is considered a bearish sign.
