A Low-Lag Ultimate Oscillator Using Two High-Pass Filters
Summary
This indicator adapts John Ehlers’ Ultimate Oscillator concept to emphasize price movement within a selected range of wavelengths. It subtracts the output of a shorter-period high-pass filter from a longer-period one, then scales the difference by its 100-period root mean square. The result acts like a band-pass momentum measure: positive values indicate upward movement in the selected range, while negative values indicate downward movement.
The BandEdge input sets the shorter critical period, and Bandwidth scales it to define the longer period; the description suggests a bandwidth of 2 as a general starting point and permits values from 1.4 upward. An optional cloud compares ten parameter variations, showing their combined range and coloring it according to the majority of positive or negative readings. The document explains the calculation and settings but provides no performance tests or trading rules, so it does not establish whether the indicator produces profitable signals across markets or timeframes.
Key ideas
- The oscillator subtracts two high-pass filter outputs to isolate movement between their critical periods.
- It normalizes that difference using a rolling root mean square.
- BandEdge sets the shorter filter period, while Bandwidth determines the longer period relative to it.
- Positive and negative readings represent upward and downward momentum in the selected range.
- An optional cloud displays the spread and directional consensus of parameter variants.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.