Reflex
A zero-lag averaging indicator designed to synchronize with the cycle component in price data.
Usage
Use to identify cyclic reversals with minimal lag. It is more sensitive to significant reversals than standard moving averages.
Background
Ehlers introduces Reflex as a way to reduce lag in averaging indicators by measuring the difference between the current SuperSmoother value and its historical values, adjusted for a linear slope. This 'reflexes' the indicator to show reversals as they happen rather than after the fact.
Parameters
length(default: 20): Assumed cycle period
Formula
[ Filt = \text{SuperSmoother}(Price, Length/2) ] [ Slope = \frac{Filt_{t-Length} - Filt_t}{Length} ] [ Sum = \frac{1}{Length} \sum_{n=1}^{Length} (Filt_t + n \cdot Slope - Filt_{t-n}) ] [ MS = 0.04 \cdot Sum^2 + 0.96 \cdot MS_{t-1} ] [ Reflex = \frac{Sum}{\sqrt{MS}} ]