Detrended Synthetic Price: Prefer Signal Lines to Fixed Levels

Summary

This brief note discusses the Detrended Synthetic Price oscillator, attributed to John Ehlers. It observes that one common approach uses fixed threshold levels, but those thresholds may need adjustment for each instrument, timeframe, and indicator configuration. The author considers a version with signal lines a more practical alternative to relying on fixed levels.

The note does not define the oscillator’s calculation, specify how the signal lines generate entries or exits, or provide charts, tests, or performance evidence. It offers a usability preference rather than a complete trading method. The proposed signal-line version may reduce the need to tune absolute levels, but the document does not show that it is robust across markets or parameter settings; traders would need to define rules and validate them independently.

Key ideas

• The oscillator is attributed to John Ehlers.
• Fixed threshold levels may require adjustment across symbols, timeframes, and parameter settings.
• The author favors a version that uses signal lines instead of fixed levels.
• The note provides no calculation details, trading rules, or empirical validation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.