Phasor

Rocket Science cycle phase ehlers dsp dominant-cycle

Extracts In-Phase (I) and Quadrature (Q) components using a Hilbert Transform.

Usage

Use to measure the instantaneous phase and amplitude of the dominant market cycle. Phase crossings of key angles (90, 180 degrees) provide precise cycle turn timing signals.

Background

Ehlers borrows the concept of a phasor from electrical engineering to represent the amplitude and phase of a market cycle as a rotating vector. In Rocket Science for Traders (2001) he shows how measuring the instantaneous phasor angle gives more precise cycle timing than zero-crossing methods.

Formula

[ I = \text{Detrender}_{t-3} ] [ Q = \text{HilbertFIR}(\text{Detrender}, \text{Period}) ]

Source