dominant cycle of real price data. This DSP is computed by subtracting
a half-cycle exponential moving average (EMA) from the quarter cycle
exponential moving average.
See "MESA and Trading Market Cycles" by John Ehlers pages 64 - 70.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
//////////////////////////////////////////////////////////// // Copyright by HPotter v1.0 25/06/2014 // Detrended Synthetic Price is a function that is in phase with the // dominant cycle of real price data. This DSP is computed by subtracting // a half-cycle exponential moving average (EMA) from the quarter cycle // exponential moving average. // See "MESA and Trading Market Cycles" by John Ehlers pages 64 - 70. //////////////////////////////////////////////////////////// study(title="D_DSP (Detrended Synthetic Price)", shorttitle="D_DSP (Detrended Synthetic Price)") Length = input(14, minval=1) hline(0, color=red, linestyle=line) xHL2 = hl2 xEMA1 = ema(xHL2, Length) xEMA2 = ema(xHL2, 2 * Length) xEMA1_EMA2 = xEMA1 - xEMA2 plot(xEMA1_EMA2, color=blue, title="D_DSP")