Recursive Median Oscillator Signals and Filtering

Summary

The document introduces a recursive median oscillator based on John Ehlers’s discussion of recursive median filters. Median filtering is presented as a way to reduce the influence of extreme price or volume observations that can distort conventional averaging. The resulting oscillator is described as smoothing data with relatively little lag, with its response compared conceptually to the Relative Strength Index.

Suggested readings include crossings of the zero line and changes in the oscillator’s slope. The note says the indicator uses parameters from the original presentation and suggests experimenting with them; it specifically mentions that longer high-pass periods may produce interesting behavior. No formula, chart, quantitative comparison, or performance results are supplied here, so the claimed filtering and lag characteristics are not independently demonstrated. The signals should be treated as indicator ideas rather than evidence of a profitable strategy.

Key ideas

• Recursive median filtering is intended to limit the effect of extreme observations on price or volume smoothing.
• The oscillator is presented as a low-lag alternative for viewing broader market movement.
• Zero-line crossings are suggested as signals.
• Changes in the oscillator’s slope are offered as another possible signal.
• The note recommends experimenting with parameters but provides no performance evidence.

Tags

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