Cyber Cycle
An oscillator introduced by John Ehlers that models the cyclical component of a time series using FIR smoothing.
Usage
Use as a high-resolution short-term cycle oscillator to time entries and exits around cycle turns. Pair with a trend classifier to suppress signals in trending conditions.
Background
Ehlers introduces the Cyber Cycle in Cybernetic Analysis (2004) as a bandpass-like filter isolating the short-term cyclical component. The trigger line is the Cyber Cycle delayed by one bar, creating a clean crossover signal without derivative noise.
Parameters
length(default: 14): Alpha smoothing length parameter
Formula
[ \alpha = \frac{2}{\text{Length} + 1} ] [ \text{Smooth} = \frac{X_t + 2X_{t-1} + 2X_{t-2} + X_{t-3}}{6} ] [ CC_t = \left(1 - \frac{\alpha}{2}\right)^2 (\text{Smooth}t - 2\text{Smooth}} + \text{Smooth{t-2}) + 2(1 - \alpha)CC ]} - (1 - \alpha)^2 CC_{t-2