John Ehlers Cyclic Component Oscillator Calculation

Summary

This document describes the calculation for John Ehlers' Cyclic Component oscillator. It identifies two inputs: a period that sets the calculation interval and an applied price series. The method first derives a high-pass component from price changes and the preceding high-pass value, using a coefficient determined by the period and trigonometric functions.

The oscillator output is then a weighted average of the current and three preceding high-pass values, with the two middle observations receiving double weight. This concise description provides the recurrence relations but no interpretation of signal levels, parameter guidance, trading rules, or empirical results. It is therefore a technical indicator specification rather than a complete strategy, and practical use would require implementation choices and testing that the document does not discuss.

Key ideas

• The oscillator takes a period and an applied price as inputs.
• Its intermediate high-pass component uses price changes and the previous component value.
• The period determines a coefficient through sine and cosine terms.
• The final component weights four consecutive high-pass observations, doubling the two middle weights.
• The document supplies no signal interpretation or performance evidence.

Tags

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