The Two-Pole Butterworth Filter as a Trading Noise Filter

Summary

The document identifies the two-pole Butterworth filter as a noise-reduction indicator created by John Ehlers and points readers to two books that describe it. It notes that one book presents an alternate calculation method for the same indicator.

The text gives no equations, implementation details, trading rules, or performance evidence, so it does not explain how to calculate or apply the filter. Its practical value is limited to identifying the indicator and its reading references; claims about its effectiveness cannot be assessed from this material alone.

Key ideas

• The two-pole Butterworth filter is presented as a tool for reducing noise in market data.
• John Ehlers is credited with creating the indicator.
• The document says a second book describes another calculation method for the same filter.
• No trading results or implementation details are provided.

Tags

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