Reflex and Trendflex Oscillators for Separating Cycles and Trends
Summary
This indicator presents two normalized oscillators intended to distinguish short-term cycle behavior from trend behavior in a price series. Both use an Ehlers two-pole SuperSmoother filter to reduce high-frequency noise. Reflex measures deviations from the slope of the smoothed series, while Trendflex measures deviations from the smoothed series’ recent average; an exponentially weighted root-mean-square calculation normalizes their amplitudes.
Optional dynamic bands flag unusually large oscillator readings. Users can select a threshold based on a scaled dispersion estimate, standard deviation, or a percentile of absolute oscillator values, and apply it to either oscillator. The indicator also provides alerts for threshold breaches and zero-line crossings. These are signal-construction and visualization tools, not a complete entry, exit, or risk-management strategy. The document offers code and parameter choices but no market-specific evaluation, comparative evidence, or performance results, so the usefulness of the signals requires independent testing.
Key ideas
- Reflex and Trendflex are designed to represent cycle and trend components separately.
- A two-pole SuperSmoother reduces high-frequency noise before the oscillator calculations.
- Root-mean-square normalization adapts oscillator amplitude as recent variability changes.
- Threshold bands can use scaled dispersion, standard deviation, or percentiles of absolute values.
- Zero-line crossings and threshold breaches can trigger alerts, but no tested trading rules are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.