The 2 Pole Butterworth Filter was created by John Ehlers (Cycle Analytics For Traders pg 32) and this is an updated version of his original 2 pole Butterworth Filter script that seems to follow the price even closer. Buy when the indicator line turns green and sell when it turns red.
Let me know if there are other scripts you would like to see me publish or if you want something custom done!
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Very cool indicator, i like the visual and it's simplicity. Looks like indicator might work well with trending market, but when market starts to move sideways, that is something i am thinking about now.
Overall, thanks for sharing this, it's awesome.
Interesting. Thank you for this. The sole change in the script as far as I can see is that you are now multiplying the square root of 2 (truncated) by 1.25. Just curious as to how you chose this- sqrt of 1.57?
@pleasantCardin94082, np. There are quite a few changes actually. Different input for one thing and different methods to calculate the coefficient values. It was Ehlers idea to multiply the square root by 1.25 and this eliminates some of the noise