ChannelCycle
Extracts cyclic components and a leading function using channel-normalized bandpass filtering.
Usage
Use to estimate the dominant cycle period from the width of price channels. Useful as a simpler alternative to Hilbert Transform cycle measurement when computational resources are limited.
Background
Ehlers estimates the dominant cycle period by tracking successive peaks and troughs of price. The distance between turning points approximates half the cycle period, and smoothing this measurement across recent bars gives a stable period estimate for use in adaptive indicators.
Parameters
period(default: 20): Channel and Bandpass period
Formula
[ Detrended = \frac{Price - Low}{High - Low} - 0.5 ] [ BP = \text{Bandpass}(Detrended, Period) ] [ Leading = \frac{BP - BP_{t-1}}{2\pi/Period} ]