John Ehlers Forward Reverse EMA for Responsive Price Smoothing

Summary

This document presents a price indicator attributed to John Ehlers and gives a ProRealCode translation of its calculation. It first smooths closing prices with an exponential moving average using a fixed coefficient of 0.1. It then applies a sequence of recursive reverse calculations, each using the prior stage and powers of the remaining coefficient, and subtracts a scaled final stage from the EMA to produce the signal.

The document provides implementation logic rather than a trading strategy, performance results, or a comparison with other filters. It does not explain how to interpret the signal, select assets or timeframes, or turn it into entry and exit rules. The displayed initialization and recursion are the available evidence for how the indicator is computed; its responsiveness or predictive value is not tested here. Users would need to validate the implementation and assess its behavior on their own data before relying on it.

Key ideas

• The indicator begins with an exponential moving average of closing prices using a fixed smoothing coefficient.
• It builds eight recursive reverse stages from the smoothed series and its prior values.
• The output subtracts a scaled version of the last reverse stage from the EMA.
• The document provides code logic but no trading rules or empirical performance evidence.

Tags

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