All John Ehlers Indicators... - page 3

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I just happened to try the laguerre indicator and it is much more efficent over regular rsi etc.. This got me started into looking into John Ehlers methods. I have read all the free stuff on the internet and I glanced through his Rocket Science ebook. I find all of his methods very confusing. I do not know if confusing is the best word to use- I just cannot figure out any general setups to use. All the indicators and ma's work better then regular indicators I just am lost on how to put it all together in a trading routine.

A example is the Directional Movement system indicator. I like to use this indicator to get a general feel for current market state ie. range vs. trending.

Does Ehlers have a way for detrmining trendness or ranging conditions?

Any setups or strategies with these indicators would be greatly appreciated.

These indicators perform more timely over regular indicators- so a greater edge would be realized by using them. Out of any other TA author- I find Ehlers work the hardest to grasp! I think it is all of the damn math and formulas!

Any thought or advice for further info on DPS systems?

Also, which of Ehlers book should a trader first buy? The Rocket Science for Traders is free online through my library- Does his newer books have any important info that is a must read?? In other words, should I fork over 80.00 bucks for his latest Cybernetics book?

Thanks fellow traders for any help!

M Rippy

 

PipRippy

PipRippy:
I just happened to try the laguerre indicator and it is much more efficent over regular rsi etc.. This got me started into looking into John Ehlers methods. I have read all the free stuff on the internet and I glanced through his Rocket Science ebook. I find all of his methods very confusing. I do not know if confusing is the best word to use- I just cannot figure out any general setups to use. All the indicators and ma's work better then regular indicators I just am lost on how to put it all together in a trading routine.

A example is the Directional Movement system indicator. I like to use this indicator to get a general feel for current market state ie. range vs. trending.

Does Ehlers have a way for detrmining trendness or ranging conditions?Yes..the instant trendline slope is the easy way,the hard way is a combination of sinewave,mama,frama,etc,that he uses in his software,MESA..and based on these conditions,if ranging you can take the sinewave indicator signal..if you don`t have his software stick to the easy one(I have his software the,"old" MESA 2002 EOD,and I stick to the easy way..;) )

Any setups or strategies with these indicators would be greatly appreciated.1- Basically,once a trend is defined by the instant trendline you enter using any of his oscillatorsin the direction of the trend:cybercycle ,cog,etc..my 2 cents,use instant trendline in 4h d1 tf for trend filtering..and use the "fisherized" version(posted by bluto in this thread) of either cybercycle,cog,stochastics in5M/15M tf for entries/exits..set the period of the oscillator to 1/2 the period of the dominant cycle,and adjust daily or weekly..you can know the dominant cycle by using the digital filter generator posted by newdigital in this forum,check it it is very useful..2-Same as 1- but for flat trend,just enter based on the fisherized oscillators in your trading tf..my 2 cents..it is more dangerous,take care

These indicators perform more timely over regular indicators- so a greater edge would be realized by using them. Out of any other TA author- I find Ehlers work the hardest to grasp! I think it is all of the damn math and formulas!

Any thought or advice for further info on DPS systems?Check the digital filters thread started by newdigital,lots of info and digital filters there

Also, which of Ehlers book should a trader first buy? The Rocket Science for Traders is free online through my library- Does his newer books have any important info that is a must read?? In other words, should I fork over 80.00 bucks for his latest Cybernetics book?Cybernetics is very interesting ,I bought it and found it very useful,though this is a personal matter and half the book is dedicated to post the code for esignal/tradestation(or was it metastock? )and most of the other half is heavy on math..so...ifyou like math and knowing the reasons why behind certain settings...and if not...;)You decide,hope this comment has been helpful

Thanks fellow traders for any help!

M Rippy

Hi M Rippy,

Hope the above mentioned comments are helpful enough..

Regards

Simba

 

Simba-Tx for the info! The info about using the instaneous trendline for Range/trend is something I did not read about, I knew he had to have something for this. I am going to take some time and look into how you use the indicators in different combos etc..

I can understand "trader talk"- so it is good to hear how another trader would actually use these indicators etc..

I will say this- your setups appear to be very similar to the way I like to use DMS/ADX on Daily and 4hr timeframes to find a good trend. Then I would drop down to 5min-15-30-1hr and use price action and other indicators for entry/exit. I am assuming that these ehlers indicators are more efficent and show changing conditions better(quicker) over traditional indicators.

I will post any more questions later. Although I am still interested in setups and general combinations. Ty again

M Rippy

 

Piprippy

PipRippy:
Simba-Tx for the info! The info about using the instaneous trendline for Range/trend is something I did not read about, I knew he had to have something for this. I am going to take some time and look into how you use the indicators in different combos etc..

I can understand "trader talk"- so it is good to hear how another trader would actually use these indicators etc..

I will say this- your setups appear to be very similar to the way I like to use DMS/ADX on Daily and 4hr timeframes to find a good trend. Then I would drop down to 5min-15-30-1hr and use price action and other indicators for entry/exit. I am assuming that these ehlers indicators are more efficent and show changing conditions better(quicker) over traditional indicators.

I will post any more questions later. Although I am still interested in setups and general combinations. Ty again

M Rippy

Hi ,

This is just a basic example to give you an idea of another variation..please see pic

MTF INST TRNDLN at D1 tf on a 4h chart

Fisherized version of RVI posted by bluto a few posts ago..set to 22 periods in 4h-there is a very strong and consistent cycle in 4h and d1 tfs of about 45 periods..so,half the cycle length is approx 22..

As long as the trend is estimated at least one tf UP(this case D1) than your signal tf(this case 4h) your risk is low and you have a fair share of good signals..

Other "empirical " rules,for cable 1H/4H, I have devised are to take the signals coincident with potential rebounds on the trendline,and to avoid,unless confirmed by other indicators,taking signals when price has closed above/below the trendline more than 40 pips(example:downtrendline price is above the trendline with a close 50 pips above it,and there is a signal..I don`t take it..result is too random for my taste)..

Hope this helped ,and find attached my version of mtf instant trendline.. it is for D1,but you can change the tf just by modifiyng the code..

Simba

 

Bluto

Hi bluto,

Thanks a lot for posting several interesting Ehlers indicators..

I have modified slightly the references in one of them(please see attachment),since it called the Cyan versions,by Damiani,of the Ehlers indicators :cog,cybercycle,rvi that you posted..

I just modified it to call the actual versions you posted,since I thought this will help people to be set up just by downloading the indicators you posted in this thread....

By the way,I like your slight change of avatar..it suits you better..it is more dynamic than the old one ..;)

Regards

Simba

 

Here is a example of a paper trade I just took:

You mentioned that you use the instant trendline indicator you indicator you made as a filter for trades. This trade is taken on a hourly chart- so the daily timeframe is 2 periods above- but the trend direction is same.

The Fisher Transform and center of gravity are signalling buy etc..

The multi-timeframe instant trendline (image 2) has rising angle signalling buy trades only.

Any thoughts on timeframes and indicators?

Which oscillators do you like in what situations? Should you use a instant trendline 4hr as a filter for 1hr trades?

What is the difference between Bluto's instant trendline indicator and the instant trendline filter?

Man, by the time I am done writing this post- this trade has taken off!! I wish I was using a real account instead of play money!!

thanks again,

Rippy

Files:
ehlersquestiona.jpg  105 kb
ehlers_a2.jpg  110 kb
 

Piprippy

PipRippy:
Here is a example of a paper trade I just took:

You mentioned that you use the instant trendline indicator you indicator you made as a filter for trades. This trade is taken on a hourly chart- so the daily timeframe is 2 periods above- but the trend direction is same.

The Fisher Transform and center of gravity are signalling buy etc..

The multi-timeframe instant trendline (image 2) has rising angle signalling buy trades only...Red above Blue means uptrend,and the opposite means downtrend

Any thoughts on timeframes and indicators? ..tfs,ok,4h and d1 as trendfilters for 1h trading ..indicators use the "fisher transform for cgo.." posted by bluto,it is ,by far ,the best oscillator,jointly with the fisher transform for stoch..,from the ehlers set..you can apply it to center of gravity,cyber cycle ,rvi or rsi..i prefer to apply to center of gravity or cybercycle,preferably the first..set the period at half the dominant cycle of your trading tf

Which oscillators do you like in what situations? Should you use a instant trendline 4hr as a filter for 1hr trades?..see above..you can use 4h or d1,if both agree the best situation..

What is the difference between Bluto's instant trendline indicator and the instant trendline filter? none from what i saw

Man, by the time I am done writing this post- this trade has taken off!! I wish I was using a real account instead of play money!!

thanks again,

Rippy

Hi PipRippy,

Hope the above comments help you..take your time for reading about Ehlers papers about fisherization of his indicators and you will understand why i recommend that you use only fisherized versions of them..as recommended by Ehlers in cybernetic...book.

Basically,prices do not follow a gaussian distribution,so we apply the fisher transform to normalize price moves and then we apply oscillators within the normalized range..so,overbought and oversold have a meaning

Simba

 

Simba,

on my MT4 the Fisher Transformer does not refresh for the new bar, is that correct?

 

Dan S

Dan S:
Simba, on my MT4 the Fisher Transformer does not refresh for the new bar, is that correct?

Dan S

No, it shouldn`t be correct ,though I don`t know why this happens..try the one posted by bluto and see if it improves..

Regards

Simba

 

I would, if I could find the cyan versions it is referring to.

Any pointers?

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