Using the HighPass–LowPass Roofing Filter to Identify Trend Direction

Summary

The document introduces a variation of John Ehlers’s HighPass–LowPass Roofing Filter and describes it as a way to identify a stock’s trend direction. It gives a simple interpretation of the indicator: readings above zero indicate an uptrend, while readings below zero indicate a downtrend. It also proposes buying when the plotted line is green and selling when it is red.

The note provides no formula, parameter settings, chart, backtest, or performance evidence, so it is not enough to reproduce or assess the method. It also does not explain how colors are assigned, how signals are timed, or how to handle whipsaws and trading costs. The material is best treated as a brief description of an indicator rule, not evidence that the rule is profitable or suitable on its own.

Key ideas

• The Roofing Filter is presented as an indicator for estimating stock trend direction.
• A reading above zero is interpreted as an uptrend, while a reading below zero is interpreted as a downtrend.
• The note suggests buying on a green indicator line and selling on a red line.
• No calculation details or performance evidence are provided.

Tags

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