Detrended Synthetic Price: Limitations of Fixed Levels and a Signal-Line Variant
Summary
This short note discusses the Detrended Synthetic Price oscillator, attributing its original development to John Ehlers. It observes that one common approach uses fixed threshold levels, but says those levels need adjustment for each symbol, timeframe, or parameter setting. The note suggests a version using signal lines as a more practical alternative to those fixed levels.
No calculation method, signal-line rules, chart examples, or backtest evidence are provided, so the suggestion cannot be evaluated from this text alone. It does not specify when to buy or sell, how to set risk, or whether the signal-line variant performs consistently across markets. The material is therefore a brief indicator-use observation, not a complete strategy or validated trading method.
Key ideas
- The note identifies the Detrended Synthetic Price as an oscillator originally developed by John Ehlers.
- It describes fixed threshold levels as requiring adjustment across instruments, timeframes, and parameter settings.
- It suggests a signal-line version as an alternative to fixed thresholds.
- The note provides no formulas, signal rules, or empirical evidence to assess the alternative.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.