Ehlers Adaptive Cyber Cycle Indicator and Its Adaptive Smoothing

Summary

The document presents a ProRealCode implementation of John Ehlers’s Adaptive Cyber Cycle indicator, adapted from a TradingView version. It begins with a smoothed midpoint price series, derives a cycle component, and estimates cycle phase change using in-phase and quadrature components. A median filter stabilizes the period estimate, which is then used to adapt the smoothing applied to the output cycle.

The code initializes early bars with a simple second-difference calculation and applies the adaptive calculation after a warm-up period. It returns the current indicator, its prior value, and a zero reference line. The accompanying median helper selects the middle of three values. No trading rules, market examples, or performance tests are provided, so the text explains indicator construction rather than demonstrating its predictive value. Results may also depend on platform-specific handling of historical indexing and initialization.

Key ideas

• The indicator estimates a dominant cycle period from price-derived in-phase and quadrature components.
• A median of recent period-change estimates helps smooth the adaptive period input.
• The adaptive period controls smoothing of the final cycle output.
• The document provides implementation logic but no trading signals or performance evidence.

Tags

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