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Cycle/Trend Analytics

Ehlers DSP cycle trend ehlers classification adaptive

A set of oscillators (Price - SMA) with lengths from 5 to 30 used to visualize cycles and trends.

Usage

Use to classify the current market mode as trending or cycling before selecting your strategy. Apply trend-following systems in trend mode and mean-reversion systems in cycle mode.

Background

Ehlers presents Cycle/Trend Analytics in Cycle Analytics for Traders as a framework for determining the dominant market mode. By measuring the correlation between price and the best-fit dominant cycle, the indicator classifies market behavior, enabling traders to switch between trend and cycle trading strategies dynamically.

Parameters

  • min_length (default: 5): Minimum SMA length
  • max_length (default: 30): Maximum SMA length

Formula

\[ Osc(L) = Price - SMA(Price, L) \quad \text{for } L \in [min, max] \]

Source