Ehlers Loops for Comparing Sector Price and Volume Cycles

Summary

This indicator maps price and volume behavior for six selectable sector symbols into a shared two-dimensional loop. It applies a high-pass filter followed by a smoother to each series, then normalizes both with a rolling root-mean-square measure. The resulting coordinates let traders compare each symbol’s recent price and volume movement against deviation bands, with plotted paths and recent candles providing context.

The chart is a visualization aid for observing sector rotation and relative movement; it does not specify entry, exit, or portfolio rules, and the document gives no performance tests. Its interpretation depends on the chosen filters, RMS period, symbols, and chart timeframe. The security requests use lookahead-enabled data, which can expose future values on historical bars and make the displayed paths unreliable for evaluating signals. Treat the display as exploratory rather than evidence of a tradable edge.

Key ideas

• The indicator filters price and volume separately before comparing their normalized values.
• Each symbol’s recent observations form a path in price-volume coordinate space.
• Deviation bands provide a visual reference for how far a series is from its normalized center.
• The script compares up to six symbols but does not define a complete trading strategy.
• Lookahead-enabled symbol requests can distort historical interpretation.

Tags

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